Should You Buy a Home in San Francisco Right Now? Experts Say Prices Will Keep Rising
At some point, you’ve probably heard the saying, “The best time to buy was yesterday, but the next best time is today.”
This couldn’t be more relevant in the San Francisco real estate market, where home prices continue to climb, despite higher mortgage rates. If you’re waiting for a dip in prices or a drop in rates, here’s the reality: putting off buying could cost you in the long run.
San Francisco Home Prices Are Still Rising – But at a More Sustainable Pace
In San Francisco, the days of explosive price hikes may be behind us, but home values are still on the rise. According to experts, prices are projected to increase by around 3-4% annually through at least 2029. While this is a more moderate pace than the past few years, it’s a consistent upward trend.
This steady appreciation is a positive sign for buyers looking to make an investment. If you’re holding out for a drastic price drop, keep in mind that waiting could mean paying more down the road.
What This Means for You
While it might feel tempting to wait for prices or mortgage rates to drop, here’s why that strategy could backfire:
Prices will continue to rise: If you wait, you’ll likely pay more for the same property in the future.
Mortgage rates might not drop enough: Even if rates dip slightly, rising home prices could still make waiting more expensive.
Buy now and start building equity: When home prices are rising, the sooner you buy, the sooner your investment starts working for you.
To put this in perspective, let’s say you’re buying a home in San Francisco at $1.5 million. Over the next five years, based on local trends, the home could appreciate by more than $60,000. That’s money you’d miss out on if you wait to buy.
Why Aren’t Prices Dropping? It’s All About Supply and Demand
Although there are more homes on the market today than there were a year ago, San Francisco’s real estate market still doesn’t have enough inventory to meet the demand from buyers. This imbalance keeps pushing prices upward.
In fact, experts predict that even in 2024, the market will see continued moderate price growth due to the ongoing supply shortage. This means a significant drop in prices isn’t likely in the near future.
Bottom Line: Time in the Market Beats Timing the Market
If you’re debating whether to buy now or wait for a "perfect" moment, remember: real estate rewards those who commit to the market, not those who try to time it exactly.
Yes, today’s market has its challenges, especially in San Francisco. But there are ways to make it work for you—whether that means exploring different neighborhoods, considering condos or townhomes, or speaking with your lender about alternative financing options. The key is to make a move when it aligns with your goals rather than waiting for a perfect scenario that may never come.
Want to know how San Francisco’s real estate market is shaping up right now? Whether you're ready to buy or simply exploring your options, let’s take a look at your opportunities today. Having a clear plan can set you up for long-term success in this growing market.
