Should I Buy Or Rent In San Francisco?

Let’s face it…San Francisco is an expensive place to live. You’ve probably heard how much you need to earn to own a home in the city. Maybe now you’re weighing up the pros and cons of buying vs. continuing to rent.

The truth is that the decision to buy a property is deeply personal.

We know that most new buyers get in the market because of significant life events, including:

• Marriage
• Childbirth
• School district change
• Employment change
• Cash windfalls (like an inheritance or an employer liquidity event)
• Etc.

Mosaik Real Estate believes you should only think about buying a property when you’re ready to do so. As a team of trusted real estate advisors, we would simply be failing our clients to suggest anything otherwise.
But let’s say 2020 is your year…you’re ready to buy and are thinking about the best next steps. Here are a few things we would encourage you to think about before buying a home in the Bay Area:

• Historical Performance

In general, San Francisco real estate is a safe bet. While putting the majority of your wealth in a single asset is risky, the data show that the SF housing market has steadily (and dramatically!) grown over the past 35 years. (This includes 91% growth in average home prices between 2012 and April 2019!) Over time this growth follows a step pattern: strong positive growth when the economy is good, and smaller drop-offs during periods of recession.

• Current Financing Solutions

According to the latest report from Freddie Mac, average mortgage rates for January 2020 are at their lowest in three months. Current average 30-year fixed rates are 3.6% and 15-year fixed rates are 3.04%, or just a quarter point above all-time lows. This is great news for homebuyers as well as homeowners looking to refinance. (And while these are the two most common loan types, we’d be happy to get you up to speed on other mortgage solutions tailored to your unique needs.)

• Working With a Top Agent Team

There are a number of companies looking to disrupt the traditional homebuying model by automating the role of the real estate agent. However, like so many things in life, you get what you pay for. By working with a top agent team like ours, you get not only the expertise to guide first-time homebuyers through the process, but also access to the newest listings and off-market opportunities through our Top Agent Network. This is access that those companies just can’t offer, and your search will be severely limited without it. You can get to know our agents here.

The Bottom Line:

We believe that homebuyers should make the best decisions for themselves. However, it’s the responsibility of real estate agents to equip their clients with the information and service they need to be successful.
Don’t hesitate to reach out with any questions — including about market conditions not just in San Francisco, but across the Bay Area!