Getting a home is one of the most prominent goals for the average hardworking American. It is this drive for owning a house that has led to most looking for affordable housing. This is usually in the States they live or work in. Still, sometimes it is often part of their retirement plan, and this category usually prefers finding somewhere warmer to enjoy their bittersweet retirement. States like San Francisco fit the criteria for most people looking to buy a home; good investment, warm, near the ocean, among many other factors.
For the average American, the median price for a home is $200,000, which is about six times lower than the median price of a home in San Francisco, which is $1.3 million. While this price of San francisco houses undoubtedly higher than the national average, you can still get relatively cheaper depending on the asking amount, which can range from as low as $135,000 to as high as $40.5 million.
- Check the season
When looking for San francisco homes for sale, one of the most important aspects of real estate is the seasonality of the dynamic market. San francisco houses are at an all-time low in 2020 in the last couple of years in addition to the low mortgage rates. There is also the likelihood of the predicted 2020 recession by experts happening and affecting the prices of homes. Even though it is common for houses prices to drop for a while, there is also a chance of the prices increasing like the 2001 recession where home prices actually increased.
Another thing to consider is that based on the current market trends of houses for sale in san francisco, the buyer’s market is the hottest in California as the number of buyers is low while the number of houses for sale is high. This is a complete contrast with last year, where it was a seller’s market due to the markets having more buyers that the then active homes for sale. So, if one hopes to get a relatively cheaper house, they are in the best season to get themselves home while the homes are selling (median of $1.34 million) below the asking prices (median of $1.55 million) before the demand goes back up and the market prices shoot.
- Depends on the area
While the median price of homes in San Francisco ($1.3 million) is higher than the national average ($200,000), the home prices in San Francisco happen to vary depending on the neighborhood. For example, in the Bernal Heights neighborhood, the houses there are new but are relatively cheaper than in Rutledge St.
One of the areas in the San Francisco Bay Area that has cheaper homes for those who are looking for affordable homes to live in. Oakley is a suburban neighborhood with a population of over 40,000. Despite the high population, the area is big enough to give one a sparse suburban feel with lots of parks, public schools, ethnically diverse community, relatively low crime rates amenities, transportation, and most of the families have liberal political views. The neighborhood is excellent for families with the median income being $93,824, which is higher than the national average of $55,322. The median price for homes in Oakley is $393,100, making it a bit higher than the national median.
When looking for neighborhoods with cheaper houses in San Francisco, then one does not need to look further than Pacheco. The area will give you a sparse suburban feel with their low population of about 4,355 residents. Other than the suburban feel, Pacheco is filled with parks, coffee shops, restaurants, etc. making it one of the best and affordable places to live in San Francisco. The residents have quite a diverse economic and ethnic background, and they also have liberal political views. The median income there is $65,772, which is higher than the national average of $55,322, while the median home value if $128,500 compared to a national average of $200,000.
III. Bethel Island
Another area with relatively cheaper homes in Bethel Island. This neighborhood is a combination of suburbs and rural. This suburban-rural neighborhood has a total population of around 2,010. It does not hurt that the community has plenty of bars, low crime rates, public schools, and the residents tend to have moderate political views. The median price for a home in Bethel Island is $122,300, which is below the national average, making it actually cheaper for anyone looking for affordable houses.
- The prices of new homes will always be higher
Houses for sale in san francisco are also determined by whether the house is newly built or old. There are currently only three new homes being constructed, and all three have a price range of $2.3 million to $7.25 million. If you are looking for newly built houses that are relatively cheaper, then you will better luck looking in Bernal heights neighborhood. The median price of homes there is $1.72 million.
- Depends on the type of home you are looking for
The median price for homes in San Francisco does not represent the exact prices of all homes in San Francisco. When looking for San francisco homes for sale, the house to buy in San Francisco will depend on type of house you have in mind. You are likely to find one-bedroom houses to be cheaper than four-bedroom houses. The size of the house in square feet also matters in determining the price of a home; the bigger the square-feet area, the higher the price will be.
- Depends on your budget
Another equally important factor one needs to consider is the prices of San Francisco real estate . While the median home value of San francisco real estate is higher than the national median, not everyone will have the same budget constraints. This will eventually determine whether you will get a home in San Francisco. Your budget will affect you based on several factors, such as:
What type of home you are looking for; depending on the size, number of bedrooms.
Age of the house; newer houses will cost more than older homes.
Location of the home; while the median is at $1.3 million, the price range happens to go as low as $135,000 and to as high as $40.5 million.
Market season; you’re likely to get cheaper houses during a buyer’s season than a seller’s season.