MARKET TRENDS
BREAKING DOWN SAN FRANCISCO’S CONDO MARKET At first glance, the condominium sector appears to be dramatically lagging behind the single-family home market. However, a closer examination reveals a more nuanced landscape, with a stark divergence between the performance of boutique, low-density buildings and larger, amenity-rich high-rises. HIGH-DENSITY MARKET GROWTH The high-density segment—concentrated in South Beach, Yerba Buena, and Mission Bay— recorded a marked improvement in both the number of sales and the median sale price over 2023. This uptick suggests a resurgence in demand, likely driven by a gradual return to in-office work culture. As more firms reinstate office-based operations, absorption rates for these properties are expected to strengthen. STABLE GROWTH IN RESIDENTIAL NEIGHBORHOODS In traditionally low-rise, residential districts such as Noe Valley and the Castro, the market exhibited stability, marking the end of the price declines seen in 2022 and early 2023. Sale prices remained steady, while transaction volumes rose 8%, with average sale prices edging up 1.5%. INVESTMENT DECISION Given the decline in high-density condo sales and longer selling times, they appear to be a riskier investment in the current market climate. Concentrating on neighborhood condos in sought-after locations seems like the more prudent move.
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