Celebrating LGBTQ Industry Leaders

Part II: Real Estate

We met with SF celebrity realtor Matt Woebcke for some clarity on the current housing market. He says even though rates are high, there’s some good news for both buyers and sellers…

How did you get into real estate?

I started my career during the 2008 financial crisis and everyone told me not to go into real estate because the market was so bad. But it was my passion. When I got my license I had no money and nothing to risk so I went for it and success followed. 

How did you find your clientele during that time?

I started working with downtown high rises because houses weren’t selling and I met different buyers who continued to refer me business. It’s been an interesting ride, during the foreclosure crisis I helped buy clients their first homes, fast forward 10 years later, they have kids and I’m helping them find their forever homes. It’s a cool circle. 

Love that. 

Shifting gears, let’s talk interest rates. In the last year, they’ve doubled. What are you telling your first-time buyers?

I think it's a really good opportunity to get in the market right now because you're not up against 20 offers anymore.

That’s true, we interviewed our favorite wealth advisor and he had a different opinion on buying. 

I’m telling my buyers to research the market and learn what they can afford. 

It’s scary, but it was scary during the foreclosure crisis when people thought they were overpaying then. I tell my first-time homebuyers if they can afford it, they’re better off buying because they’ve been paying 100% interest on their rental instead of 6% interest on the home they own. 

Interesting perspective. And what are you recommending to sellers?

I tell them they have to come to terms with the values of their properties. The media has helped with that. My sellers know what’s going on and realize it’s not as bad as people think. 

Look at COVID for example. We thought that was going to be the worst thing we ever experienced in the industry. My business paused for a month, but then real estate bounced back crazier than ever. 

Right now it seems scary, but in San Francisco, it’s a normal market. 

Okay, so it’s a good time for buyers and a normal time for sellers, is there any bad news here? Do you see interest rates going up again?

Yes. The bad news is I think rental prices are going to keep going up. Buyers are going to get out of the market and sellers are also going to get out of the market, so we’re going to see rent prices go up in the next 12 months. 

My guess with interest rates is we’ll see one more hike in July, then things are going to calm down. 

I was talking with another real estate agent the other day and he said something really interesting. He said this is the hardest market to be in because there are so many people that want to buy and so many people that want to sell but no one knows what kind of market we're in yet.

And it’s summertime. Isn’t summer historically the hottest season for real estate?

Yes, and San Francisco has two selling seasons. 

Gay Pride weekend is the kickoff for the summer slowdown. Think about all your friends that you know in San Francisco, they're either here for Gay Pride and they can't wait to celebrate it or they're running out of the city because they want to avoid it. So you have people distracted with Gay Pride weekend and then the following week is the Fourth of July. So those two weeks are really quiet. 

July is a trouble month for San Franciscans because it gets really slow. It's a good time to be a buyer, there are fewer people but there's also less inventory. In early August inventory is really low and everyone panics and mid to late August inventory rises, and August through October is traditionally very busy. 

Are you noticing people moving back to the city after spending their pandemic years in the country? 

I am. I have four clients that moved to the East Coast and can’t wait to come back to San Francisco. One couple was looking to buy in Palo Alto and was shocked to learn teardowns are starting at $2 million. San Francisco is a bargain compared to the peninsula and we’re seeing people come back to the city. 

It's becoming more of the melting pot it was 10 years ago. There are still a lot of people in tech but now we’re seeing a lot more diverse backgrounds and families and twenty-somethings moving in. I lease properties too, and this year has been as busy as the early COVID days. 

That’s good to hear it’s so busy. 

Lastly, what did you do to celebrate Pride?

Before the parade, I was in the Castro and you could really feel the energy. We haven’t celebrated in two years and it was great to see everything coming back. I went to a few parties and made an appearance at the parade. 

Thanks for your time today, it’s great to hear your insight. 

Of course, my pleasure. And one more thing, someone in my office recently sold a $20 million building and it had three offers on it. If that’s not proof San Francisco real estate is still hot, then I don’t know what is.