Skip to main content

January 13, 2025

Bright Spots for Condo Market in Q4 2024

488-folsom-5602

The San Francisco condo market had some bright spots in Q4 2024, with year-over-year (YOY) volume and median price improvements and a boom in two-bedroom condo sales. Of course, we’re still grappling with higher interest rates that are making it much harder for buyers to qualify for loans. But I liked the way the year wrapped up for condos and am optimistic heading into the new year.

Here’s how Q4 2024 played out:

YOY growth: The good news is that sales volume and median prices both saw growth compared to last year. A 20% increase in condo sales (499 units sold) signals positive movement, and the median price rose to $1,125,000, up from $1,075,000 in Q4 2023. The price per square foot also climbed to $1,013, a healthy increase from last year’s $970. I’m talking to more potential sellers than I was at the beginning of 2024, a good sign that we may end up with more inventory this year.

The selling pattern was flat: Buyers are shying away from overbidding on condos, which are selling for about 1% less on average than their list price. Of course, there were a handful of condos that changed hands for 20% over asking in Noe Valley, as well as one each in Duboce Triangle, Potrero, Hayes and Cole Valleys. But those were the exception.

Condos sat on the market a while: It took an average of two months to sell a condo (the timeframe encompassing the date a unit is listed and the date it closes). A typical escrow in San Francisco is 30 days, which gives you an idea as to how long it may take to find a buyer going into 2025.

But it was a slightly different scene in the more urban neighborhoods: Condos in our higher-inventory, high-rise neighborhoods of South Beach, Yerba Buena, Mission Bay, SoMa, Downtown/Financial District saw 120 closed sales and an average of 84 days on market. There was some overbidding for units at the $1M and under price point. But most units sold for at or under asking.

Cash buyers were out and about: One-quarter of all condo sales were cash transactions, indicating that there are still buyers with significant purchasing power in the market.

Two-bedroom condos led the way: Buyers gravitated to two-bedroom units, making up nearly half of all sales (232 condos) with a median price of $1.2M.

The high-end market reared its head: 22 condos sold for $3M or more, with almost half closing for all cash. These included five condos that sold for $6.5M-$11,250,000 in Nob Hill, Pacific Heights and Russian Hill, with South Beach’s The Avery and One Steuart Lane boasting the highest sales at $9,250,000 and $11,250,000, respectively. (Photo of 488 Folsom #5602 at The Avery courtesy Compass)

 

 

Explore All Posts

Blogging Since 2008

Posts by Neighborhood

Posts by Category

Posts by Year