upward pricing trend is expected to continue into 2014
Hayward, CA (PRWEB) January 27, 2014
ACL Property Management explains that the low inventory levels and interest rates turned the residential real estate segment in San Francisco into a moderate market for buyers in 2013, while making it a favorable one for sellers. Through the year, homes were seen often selling at much higher than the list prices due to the stiff competition.
The upward pricing trend is expected to continue into 2014, with the Bay Area neighborhoods witnessing an increase of 6%-8%. In addition, inventory levels are likely to catch only be the end of the year and interest rates will still remain relatively low despite expectations of an increase of more than 5%.
The luxury real estate market is likely to see significant gains through 2014, following the sale of over 350 houses and 120 condos at more than $2 million in 2013. In addition, 341 Tenancy-in-Common or TIC units were sold during the year. San Francisco is also likely to continue to see interest from foreign investors for both luxury and moderately prices homes.
Experts at ACL Property Management also believe that Mayor Lee’s seven-point plan to address the housing crisis in San Francisco will have a positive impact on the real estate market. According to the Mayor’s plan, at least 30,000 new housing units will be added to the city by 2020, of which about a third will be “affordable.” The plan also focuses on building more market rate housing and to reduce obstacles to development in the city.
The commercial real estate market is also likely to see gains in San Francisco through 2014. Owners of office space will see rising tenant demand. In fact, a recent report by CBRE Inc suggests that tenant demand is likely to exceed vacant office space in 2014, for the first time since 2000. The greater downtown area has about 5.7 million square feet of vacant office space, while the market demand is for 6.3 million square feet.
About ACL Property Management: As one of the fasted growing full service real estate and property management firms in the East Bay and Peninsular regions, ACL Property Management has a proven track record in quality service and reliability. Apart from offering full-scale real estate brokerage, the company also provides comprehensive property management services to ease the process of selecting tenants, maintaining the home and ensuring timely rent collection for homeowners.