At the beginning of the year, the real estate market came out of the doldrums slowly and things seemed to be picking up. With the single-family home inventory low, some homes were back to getting multiple offers and selling for substantial amounts over the list price. Condos were still taking time to sell and I wondered how long it would take for the condo listings I had coming on the market to sell.
To my surprise, the first 2 bedroom condo listing I had at the beginning of March at 650 Steiner, #6, in Alamo Square, sold with multiple offers after the first weekend on the market and sold almost 10% over the list price. Then the next 2 bedroom view condo listing I had with Joan Maze Miles in Pacific Heights at 1800 Washington Street, #913, which came on in April, also went into contract after the first weekend. It sold at the list price. Finally, the third condo which I brought on in May in Noe Valley at 4187 26th Street, an uber cute unit with a lush garden, did not have parking so I told my client that it might stay on the market awhile. Instead, we had so many disclosure requests that I set an offer date and it received multiple offers closing at a price more than 15% over the list price. (Rather than take offers as they come to wait for the right buyer, when I sense very strong interest, I set a date on which offers will be reviewed so that all interested buyers have a chance to make their best offers.)
I was starting to think, not only was the single-family home market hot, but the condo market was picking up as well. Even a Noe Valley vacant 2-unit building which client buyers of mine made an offer on received 6 offers and sold quickly over the list price. Despite the implementation of the tariffs and the uncertainty in the economy, SF’s market was resilient and taking off, or so I thought.
The Compass Meeting
However, an early morning Compass meeting recently made me question that conclusion. There seemed to be a fair amount of discussion about the softening of the market throughout the city. It was mentioned that some nice homes were even sitting on the market and condos were staying on longer, especially in SOMA and South Beach, which had started to pick up in sales earlier this year.
Broker Tour
So I decided to interview agents on Broker Tour to see what their experience was with the market.
A 2 bedroom condo on Broderick in Pacific Heights had some charm but needed to be updated. The listing agent told me after the first weekend, there were 3 disclosure packages out which seemed promising. A large home at 2315 Sacramento Street had been turned into 5 TICs. The finishes were high end. It has been on the market for 6 weeks and one unit has closed, one is pending and one is close to being in contract, which for TICs which usually take longer to sell, that seemed pretty good.
Then I saw a 1 bedroom condo in Pacific Heights that had a super small kitchen that only one person could fit inside and also needed updates. It was listed for $1.2M which seemed high and had been on the market for 16 days. Without a price reduction, it would probably be on much longer. However, another TIC at 2135 California Street had 3 bedrooms and 2 bathrooms and was nicely renovated. It was listed for $1,349,000 which seemed like a steal in Pacific Heights. It has been on the market for almost two weeks with no offers in sight.
My Conclusion
In the end, my conclusion is that it is a bit of a mixed market. For properties, whether home or condo, that are in good locations, priced well, staged to look their best and have that extra plus – a view, charm, a lush garden – they are selling and often selling quickly for over the list price. For the rest of the market, properties are staying on the market longer because buyers are more particular and if a home or condo is not up to their standards, right now, they aren’t compromising. Properties are selling but some are taking longer than others. While the market may be “hot” for some properties, it is not hot for most.
Right now, patience is needed by agents and those looking to buy or sell.
