San Francisco Market Update | November 2023 Report

San Francisco Market Update

November 2023

 
Clients, friends, and colleagues:
 
Happy Sunday!
 
In addition to giving a quick recap on some macroeconomic data (global conflict, recent stock market spike and interest rate dip, etc), I want to take some time to higlight specific local activity: (a) a check-in on SF office space and (b) highlight some current active listings and recent closings that provide insight into the types of opportunities this down market can provide.
 
(A) Update on office space
 
Major price cuts are happening to office buildings in San Francisco. 550 California St was purchased for $40M, a 60% discount over what Wells Fargo paid in 2005. The deal is one of a handful made by local investors --there's a confident sentiment that the city's comeback is inevitable and they're hoping to get in at the bottom.
 
60 Spear St was recently bought for $41M, a 62% discount over what Clarion purchased it for back in 2014.
 
"The local knowledge is being here, walking down the street... and not just reading the headlines. I think when we look back we'll say this was an amazing time to buy office buildings in San Francisco." - Connor Kidd, CEO of Swig, one of the buyers of 550 California.
 
Yes, these discounts are massive. But the overwhelmingly positive news is that buildings are changing hands and transactions are happening. This will allow new landlords to set lower costs for new tenants, renovate existing buildings, and bring more and more life to the city. If a floor on prices for office buildings is being set, there's a bright light at the end of the tunnel.
 
As a resident of downtown SF, and someone who jogs to a downtown gym amost daily, I can say there's been a steady upward swing in overall activity (people walking, biking, and driving to work) since the start of the year.
 
(B) Highlighting some active listings and recent wild closings
 
When I tell buyers that the late fall market can produce the best deals of the year, this is what I mean. And this year, the coupling of low demand with this seasonal opportunity is creating some serious bargains:
 
(Note: the biggest discounts are condos in our denser, downtown districts - SoMa, South Beach, Civic Center, Mid-Market, etc). This is just a few examples of them. Big discounts extend all over the city, and I know of many more including single and multi-families - feel free to reach out and I'll send them your way)
 
1. 301 Main #21F - Sold (South Beach)
 
2-bed/2-bath/1-Parking
Sold for $1,800,000 in 2016
Sold for $1,399,000 2 weeks ago (28% depreciation)
 
2. 900 Bush #521 - Sold (Lower Nob)
 
2-Bed/2-Bath/1-Parking
Sold for $963,000 in 2019
Sold for $620,000 3 days ago (36% depreciation)
 
3. 1075 Market #513 - Active (Mid-Market)
 
2-Bed/2-Bath/2-Car Parking
Sold for $1,250,000 in 2019
Recently reduced to $769,000 (38% mark down!)
Mid-market location
 
4. 177 Townsend #622 - Active (Co-listing of mine, link @ bottom of this email)
 
2-Bed/2-Bath with deeded parking, storage, and low HOAs
These units would typically sell in the $1.2M range pre-pandemic
Recently reduced to $894,000 (25% mark down!)
Great location of South Beach and well-reputed building
 
The below graphs and charts will review trends in home prices, new and active listings, speed of sale, overbidding, listings going into contract, and sales volumes in both the general market and the luxury segment.
 
As always if you ever have any questions, I'm happy to help!
 
Warmly,
Ron

Active Listings

South Beach

177 Townsend Street, Unit 622

2 BD 2 BA 1025 SF $894,000

Yerba Buena

1 Hawthorne Street, Unit 24B

3 BD 3 BA 2015 SF $2,900,000

Mission Bay

260 King Street, Unit 429

1 BD 1 BA 600 SF $599,000

Inner Mission

2207 Bryant Street

4 BD 2 BA 1730 SF $1,275,000

Hayes Valley

564 Fell Street

2 BD 2 BA 1155 SF $1,595,000

South Beach

400 Beale Street, Unit 1214

3 BD 2 BA 1433 SF $1,425,000

San Anselmo

165 Crescent Road

7 BD 6 BA 5757 SF $4,995,000

ronsellsthecity.com

Ron Salter
 
DRE #: 01989381
REALTOR®
M: 415.717.8752
[email protected]
Montgomery + LEE

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won't be reflected in the data. "Homes" signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, or their MLS areas, unless otherwise delineated. Multi­county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.
 
Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities, views, lot size, quality of outdoor space, "bonus" rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis.

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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San Francisco Market Update | November 2023 Report

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San Francisco Market Update | November 2023 Report

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