Clients, friends, and colleagues:
Happy MLK Day. "Intelligence plus character - that is the goal of true education."
As we enter the market here in 2025, a few, quick, key data points and personal "feels":
Our downtown sector has seen some recent eye-popping sales that show the neighborhood is poised for a strong rebound:
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The grand penthouse at Millenium tower (301 Mission) closed 4 days ago for $9,000,000
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The penthouse at The Avery (488 Folsom) sold for $11,250,000 the day before New Year's
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A mid-level 3-bedroom @ One Steuart sold for a record $3,110/sqft (Sale price: $9,250,000)
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Personally, living in SF's downtown/South Beach, the boost in foot-traffic and the workers return to office is real. We're already seeing increased pressure on our rental inventory, which will no doubt have a carry over effect on our purchase market.
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There's an optimism in the air with regards to our city's new leadership
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Talks are underway for the single biggest office transaction in San Francisco post pandemic. Flynn Properties has emerged as the buyer to purchase the $416M+ loan for Chevron's HQ at 555-575 Market St.
More broadly, the median house and condo sale prices increased year over year in San Francisco, though still running well below '21-'22 pandemic highs. Fueled primarily by rising stock markets, luxury home sales outperformed the general market. Overbidding of asking price increased, and, on average, listings sold a few days faster than in 2023. Detailed statistics to follow in the graphs/charts below.
Macroeconomically: the inflation rate dropped from 3.1% to 2.7% (a welcome decline, but not as large and consistent as hoped).
In September, the Fed reduced its benchmark rate for the first time in 4 years, followed by 2 more cuts in November and December, but, confounding expectations, interest rates rose, ending the year higher than when it began.
Despite volatility, stock markets saw very substantial appreciation in 2024, boosting household wealth, especially for the more affluent.
Consumer confidence rose in the second half of the year to end 6% higher than 2023, and seems poised to improve further.
As we know, real estate markets are fiercely seasonal. December was the slowest month for both new listings and signed contracts as usual. Activity quickly rebounds and accelerates into Spring, which typically sees the year's most heated market conditions.
If you have any questions about the market, the buying/selling process, or specific property, feel free to reach out!
Warmly,
Ron
Recent reviews, sales, and active listings at the bottom