Located in the famed city of San Francisco, Polk Gulch is a lively little neighborhood with a small population of roughly 5,000 people. It’s known for being the home of several nightlife venues and delicious seafood eateries. Paired up with San Francisco’s favorable climate and strong job market, it’s no wonder why hundreds of thousands of people continue to flock to the city and its stylish neighborhoods.
If you’re interested in moving to Polk Gulch, you’re likely keen on what to expect from the real estate market. Based on recent data compiled by the California Association of Realtors, the Bay area is expected to perform fairly well this year. The overall state of California is set to welcome a balanced housing market as inflation rates start to ease off.
High interest rates cause a decline in home sales
The rise in interest rates has led to a steady decline in buyer demand and home sales as buyers veer away from costly mortgages. Existing home sales have dropped by 32.8% from the previous year, lessening the strain on a tight inventory. The decrease in demand is not a cause for concern, especially in comparison to previous years. Overall sales may be down, but chances are, they’ve already hit the bottom. From here on out, sales can only rise.
Supply set to improve as demand subsides
As a result of buyer demand wavering, the housing supply has had room to grow. On average, the San Francisco Bay region sees 216 active listings on a monthly basis, a growth of 30.1% from the previous year. The number of days properties stay on the market have also increased, further indicating a gradual decline in demand. This is ultimately beneficial for the health of the overall housing market. High demand versus a tight inventory significantly increases home prices, creating an unfavorable market for buyers in conjunction with high interest rates.
Housing supply has increased to two months as of March 2023 and is expected to improve even more. Although a balanced market needs about four to six months’ worth of housing supply, two months is a major improvement over the drastically low supply from March 2022. The growing supply is good news for buyers who want more options and will also benefit sellers who are struggling to see their homes sell.
Inflation predicted to cool down
Inflation is set to cool down and ease off on housing costs, but it will remain fairly high in comparison to previous years. Chances are, the market will not see the historically low interest rates from the pre-pandemic age again, but they are expected to stagnate. Any decrease in interest rates is incentive enough for buyers to return to the market. Experts predict the steady fall in inflation will be enough to lower mortgage rates and renew buyer interest. Polk Gulch and other San Francisco neighborhoods are in favorable positions because of their strong job markets and desirable communities.
A market snapshot
What does the housing market look like at the moment? According to a snapshot report from the California Association of Realtors, the cost of residential properties varies greatly depending on the size and number of bedrooms. Here’s what buyers should anticipate in the Bay area:
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The median price for a one-bedroom home is a little under $1 million at $784,000. There are about 217 one-bedroom homes currently up for sale.
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For a two-bedroom home, the average cost racks up to $1.3 million on average. Currently, there are 336 listings for two-bedroom homes.
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Three-bedroom homes are about $1.76 million on average, with 238 listings available on the current market.
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The cost for a large, four-bedroom home averages to $2.69 million. There are 210 four-bedroom homes for sale in the Bay area.
Cost of living in Polk Gulch
Polk Gulch is one of many neighborhoods in San Francisco, meaning the cost of living in Polk Gulch is on par with that of the whole city. The average cost of living in San Francisco is 79% higher than the national average, but it’s important to note that people earn higher income and experience a much better quality of life. Take a look at how individual categories compare to their national counterparts:
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On average, housing costs are 207% higher than the national average. The median cost for a home in San Francisco is about $1,386,107 depending on the size and location.
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Utility bills are 32% higher than the national median. A majority of this cost is from an increased usage in air conditioning because of the heat.
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Groceries are 31% higher than the national median cost. Food is of higher quality and there are numerous vegetarian, vegan, and organic options.
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As for transportation, most errands necessitate a car. Maintenance and gas prices are about 38% higher than the national average.
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Healthcare is also on the higher end, scoring 31% higher than the average for healthcare nationwide.
The final verdict
A balanced market is beneficial for both buyers and sellers because it affords both parties a reasonable degree of negotiating power. Although housing inventory continues to dwindle, the gradual decrease in buyer demand (a result of high interest rates) has kept the market competition relatively fair. As the number of home listings increases, interest rises will fall in turn, encouraging buyers to return to the market. All in all, now is a great opportunity for buyers to start browsing Polk Gulch properties and for sellers to consider putting theirs up for sale.
Team up with Heidi Rossi
To learn more about homes for sale in Polk Gulch, kindly give a call to Heidi Rossi, a certified Polk Gulch realtor with proven experience in the San Francisco Bay area. Her commitment to client satisfaction and real estate expertise is invaluable to anyone interested in the Polk Gulch real estate market. Reach out to Heidi today to get started!
