Is There a Black Friday for the Bay Area Housing Market? Take a Guess

Friday sales

A new study by Trulia was done to determine whether Black Friday as a phenomenon existed in the United States housing market. Around 100 of the largest markets for housing were part of the study. Unfortunately, the study shows that San Francisco, Oakland, and San Jose are a few of the places where you are least likely to find price reductions on homes for sale. If you wonder whether that means you should avoid buying corporate apartments on Black Friday, we’ll share some more insight for you below.

Housing Market

Bay Area Home Price

The truth is that the average price of a home in San Francisco is already extremely high compared to other areas. In numerous counties, the price for a single-family home is at or above $1,000,000. You also may be hard pressed to find price reductions for those houses, even on Black Friday. It never hurts to take a look at your options but be aware of the reality when it comes to buying furnished houses for rent.

Why Prices Aren’t Moving

In the areas mentioned above, the markets are not only more expensive than in other areas, but the market is also often much tighter. According to the Trulia housing economist who prepared the above report, Felipe, Chacon, “There’s just not a lot of reasons for sellers to cut prices right now.” That makes it difficult to say that the Bay Area real estate world sees a Black Friday like other retail establishments do.

This report also shows that of homes in San Francisco, including furnished houses for rent, only 6.3 percent of them ending in the month of October saw one or more price cuts. This is quite low when compared to the national average for price cuts at 13.4 percent. Oakland saw 8% of houses experiencing price cuts, while San Jose saw 7.2%. You can compare that with the city of Phoenix to get an idea of the difference in numbers. In that city, nearly 1/5 of homes had one price reduction or more. In addition, the housing there is much cheap to begin with.

Considering the National Market

When looking at the report from Trulia, it shows that the best estimate of a Black Friday on a national level is in August. At this time, about 14 of 100 houses on the market had their prices reduced one time or more. The problem is that this doesn’t apply to the Bay Area to the extent that it does in other areas. That means you may not see the same deals on corporate apartments in the Bay that you would across the rest of the United States.

The reason for this is at least partially related to how competitive the Bay Area market is in general. Right now, there are extremely limited amounts of houses for sale and major investors tend to grab them up, which leads to higher prices for everyone else. People even bid above the asking price in order to have a chance at their dream home.

When looking at the report from Trulia, you’ll see the impact that this continuous pressure upward has had on prices. While there are 7.2 perfect San Jose listings that experienced price cuts, that’s down nearly 10% form the year before. Prices are rising across the area and looking for relief on Black Friday may not be the answer. It looks unlikely that prices will drop anytime soon unless something significant happens. Leave the Black Friday deals to the rest, real estate here isn’t having it.

Top 6 Questions about Temporary Living #6

CHPA, or the Corporate Housing Providers Association is the international trade organization for the multi billion dollar industry of corporate housing or more simply temporary living. Recently CHPA asked several corporate housing providers to clarify common questions of corporate housing guests. We thought this was great information for both corporate housing providers and tenants to know. The following excerpts have been approved for re-print by CHPA.

Question 6: Temporary Living

Why do I need to give a 30 day notice to depart a temporary apartment? A hotel does not require this.

A notable difference between hotels and corporate housing is the notice to depart. While hotels typically don’t require any type of notice that a guest is leaving, corporate housing typically requires 30 days’ notice. Corporate housing companies manage their inventory by controlling their vacant apartments. Keeping vacancy low allows them to offer competitive rates, keeping the rates reasonable for guests.

Corporate Housing: Who, What, Where & Why #2

What makes a successful corporate housing provider? What makes a successful Corporate Housing Renter? Where is the corporate housing industry going? Why do people use corporate housing? Who provides corporate housing? Should I pay or charge a security deposit? What about pets? How do I find a corporate housing rentals?

Your information is essential to assure together we are all more successful – If you own or manage corporate housing rentals please take a minute and complete the 2014 Corporate Housing Survey and get qualified to win an IPad Air!  

What we learned from last year’s Corporate Housing Survey #2..

Topic: Outlook and Profitability of Corporate Housing Rentals

  • Outlook for 2014. 36% of respondents predict that 2014 will be betteOutlook and Profitability of corporate housing rentalsr and more profitable than 2013 – similar to responses in 2012. Only 6.3% of respondents believe that 2014 will be less profitable, down from the 10% who had this outlook in 2012.
  • Profitability. 91% of respondents report that their properties were profitable or breakeven in 2013. Overall, this response has been nearly identical over the last three years.
  • Investment Real Estate Trends. For the fourth year in a row, there are more “Yes, I plan on buying more real estate” responses (45%) than “No, I’m done with real estate” responses (15%). The biggest variation in this question has been the steady 11% decrease in the “No, I’m done with real estate” responses since 2010.

Take the 2014 Survey now and get qualified to win an IPad Air!  

Read the 2013 Annual Report.