Buy Or Sell In 2020? Raymond Grinsell Weighs In
Real estate expert Raymond Grinsell shares insight into expected market trends to watch in 2020
The real estate market in San Francisco has seen its fair share of ups and downs over the past few years. At some point, home appreciation was high due to a shortage of housing units in the market. This was accompanied by a boom in cash and investment buyers as opposed to those who purchase with financing.
But as real estate investor Raymond Grinsell, president of Equity Growth Asset Management, points out, the market balanced itself out eventually as was predicted. “While the housing market in San Francisco is still very expensive compared to other real estate markets in the country and even the world,” he says, “investors still make good profits with some of the opportunities they find here.” With more than 40 years of experience, the real estate developer and investor shares with us his vision for the future of the housing market.
Investing in Real Estate
While many investors may balk at the high prices of real estate in San Francisco, the properties on the market are still in high demand. “The median home value,” says real estate investor Raymond Grinsell, “in the market was about $1.35 million throughout the year and is expected to reach $1.36 million in 2020. We haven’t seen a drop-in home values for the past seven years in a row.” Numbers also show that the first quarter of 2019 saw the highest returns on average for home sellers.
These statistics are valid but somewhat misleading. Current real estate prices in San Francisco
and San Mateo Counties are stagnant or dropping. There are many, many more listings on the
market. Interest rates are low, but buyers are holding back longer. What used to take two to
three weeks to sell now take two to three months. This is a very recent change. Where it leads
no one knows, but for a buyer, in the short run at least, it means that you have to be careful to buy a really good house at the right price and expecting some further softening of prices in the near term.
The market is still solid continuing a trend that started right after the housing market recovered from the last housing crash and some expect it to continue throughout 2020. Grinsell, along with other sophisticated investors, have some concerns.
According to real estate investor Raymond Grinsell, the home values in San Francisco went up by about 0.5% in 2019. This trend will slow down in 2020 with home values expected to grow by 0.2 -.3%. “Those who are looking to invest in real estate,” he adds, “should take note of the median rent price in San Francisco. It has exceeded $3,700 compared to $3,500 in the San Francisco-Oakland-Hayward Metro.” Raymond Grinsell advises buyers to grab a good real estate opportunity if they can afford it now and not to wait for interest rates to shift .With the housing market going from strength to strength with possible price softening, buyers have plenty of opportunities to make a decent profit throughout 2020 if they buy very selectively.
The past year saw an increase of 4 percent in median home sales in the San Francisco housing market. That is a positive trend and one that should encourage sellers to take this opportunity to turn a profit on their real estate. But that’s not all. More than any other real estate market, San Francisco has been an increasingly competitive one for buyers until very recently.
So, whether you’re looking for a bigger home or you just want to take advantage of a hot real estate market, now is the time to sell your property. Will the trend continue throughout 2020?
It’s too early to tell by the Spring of next year, we should know if this is a temporary blip
in the market or a more serious adjustment. Stay tuned.