San Francisco’s real estate market has begun to reflect the impact of the lingering pandemic which has resulted in permanent business closures, job losses, and declining incomes.
Buyers are shifting measurably from condominium to single-family home purchases. This has resulted in a flattening condominium prices while the prices of single-family homes continues to rise. Similarly, condo, loft and TIC inventory has doubled from last year while single-family home inventory is up less than half of that. It should be noted that one year ago San Francisco’s inventory was still extremely low.
Days on Market for condos, lofts, and TIC’s has nearly doubled (up 92.8%) while it is unchanged for single-family homes. Sales are off significantly in all property types, down 25.5% in single-family and 36.2% in condos, lofts, and TIC’s combined.
A driving factor in the lower San Francisco sales is that many buyers are no longer looking in the city. Instead they are looking in the suburbs or exurbs for more spacious homes, preferably with larger outdoor spaces. Under current conditions many buyers feel these home will allow them to save money or simply get more for their money.
Expect a continuation of these trends until the pandemic is controlled and the economy stabilizes.