The January 2020 Condo Market
January 2020 has been a predictable month in District 9. With 44 sales, we are on pace with a typical start of the year based on recent years of sales data. Experts are predicting the economy to remain mostly stable through the end of 2021 now, which will more than likely reflect transparent prices in the real estate market.
San Francisco enjoys the luxury of being an insulated bubble. In fact, it’s almost a bubble within a bubble (The Bay Area & California), as it’s somewhat sheltered from the macroclimate the rest of the country responds to on a routine basis.
The condo scene in District 9 has shown impeccable signs of stability over most of the past decade, however, we are now certainly off the peak of appreciation we saw from 2012 - 2017. 2020 will likely remain flat, with home values for the rest of the year looking somewhat predictable, too. Agents will be able to trust older comparable properties; if a similar unit sold in 2019, or even as far back as mid-2018, the sales data will be useful to compare with the current state of the market and be valuable data to use when pricing new listings coming to the market.
The only negative sign we’re seeing so far in 2020: it’s taking an extra 2 weeks to sell a condo. 60 days on market is not the highest DOM we’ve seen in the past few years, however, it is a long period of time for a homeowner in need of selling - particularly if the property is staged and staging fees are accumulating.
The best way to offset the potential for elongated staging fees and a lengthy sales process is to test the waters with an off-market / coming soon listing strategy. Top local agents have lists of buyers interested in homes in all local favorites.
Of the 44 properties sold in January, there were some notable condo sales worth mentioning.
Arden continued its price per square foot ascent with a beautiful 10th floor 2 bedroom selling for $1,371 a foot and sitting on the market for just 19 days. Arden has seen incredible demand since resales began in early 2018.
The most unique property sold in January was a 3 bed | 2.5 bath, multi-level condo on top Potrero Hill with sweeping views of the skyline. This property lived just like a single-family home, with the other unit on the building having a separate entrance on the downhill side of the block, tucked away out of sight from the living quarters. Potrero Hill is a highly desirable single-family home neighborhood it throwing distance of downtown. Developers are paying close attention to the rise in value over the past 5 years.
You can find ultra-modern, recently updated condos with insane views from rooftop patios in Potrero just like this home at 900 Carolina Street. For younger couples interested in both a young family lifestyle combined with close proximity and easy access to downtown, we highly recommend exploring Potrero, as well as the Inner Mission. Both neighborhoods have tremendous upside in 2020.
With 197 active listings in February, we anticipate seeing more and more opportunities for buyers at all price points leading into the Spring.