Weekend Events and the Weekly Real Estate Update

The 27th Annual Potrero Hill Festival takes place on Saturday, October 21, 2017, 11:00 am – 4:00 pm on 20th Street between Wisconsin and Missouri Streets. You can enjoy local food vendors and artists, musicians, historians, homegrown entertainment, and much more. The final night of “Summer of Love” Light Art in the Park is Saturday night at the Conservatory of Flowers. Finally, on Saturday and Sunday, the San Francisco Trolley Dances literally take to the streets. For the price of a Muni ticket, you’ll get a “hop-on, hop-off” Muni tour to experience an extraordinary lineup of Bay Area dancers performing 8 to 15 minute pieces in response to the physical environment, architecture, and history of each of the tour’s five stops.

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 10/15/17 – 10/121/17

C.A.R. Releases Its 2018 Real Estate Forecast

The California Association of Realtors just released its forecast for the 2018 California housing market. The forecast was completed before the wildfires hit the North Bay, but nevertheless, we think much of what is presented will still hold true.

Solid job growth and favorable interest rates will drive a strong demand for housing next year, as they have in recent years. The state’s unemployment rate will dip to 4.6 percent in 2018, compared to 4.8 percent in 2017 and 5.5 percent in 2016. Housing demand should remain strong and incrementally boost California’s housing market in 2018, though a shortage of available homes for sale and affordability constraints will be a challenge.

“This year’s housing market can be told as a tale of two markets — the inventory constrained lower end and the upper end that’s non-inventory constrained,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “This trend is likely to continue into 2018 as active listings have declined across all price ranges for the past two years, but is most obvious at the lower end.”

“With tight inventory being the new ‘norm’ for the past few years and at least the upcoming year, we’ll continue to see fierce competition driving up prices, leading to lower affordability and weaker sales growth.”

The report projects that the average for 30-year, fixed mortgage interest rates will increase slightly to 4.3 percent in 2018, up from 4.0 percent in 2017 and 3.6 percent in 2016, but will still remain low by historical standards.