December wrapped up 2022’s condo market on a quiet note—not unexpected, given that holidays tend to temper the real estate market.
Median year-over-year price was down. December 2022’s median sale price was $950,000, which was a 27% decline from December 2021’s $1.3M median.
Price per square foot dropped, too. The average price per square foot for a condo in December was $923—down 17% from $1,113 in December 2021.
Volume check: There were 60% fewer sales in December 2022 (105) than there were in the same month in 2021 (264).
Drill down: Here’s a quick look at the most popular condo categories:
1BRs | 45 sold | $730,000 median price
2BRs | 37 sold | $1,120,000
3BRs | 19 sold | $1.5M
Most condos sold for under their list prices: 65% of all condos that closed in December did so for under the list price, and none sold for 20% or above list price. The top overbid was a 2BR/2BA unit with parking in a two-unit building at 930 Hampshire in the Mission, listed for $899,000. That one closed for $1,050,000 (16.8% over asking). In a nutshell, accurately priced, remodeled condos with two full bathrooms and parking in desirable locations are going in contract fairly quickly.
It took longer to sell many condos. The average days on market (DOM) for a condo was 77, meaning it took 77 days from the time the property first went on the market to when it went “pending” (in contract with all contingencies removed). Contrast that average with that of single-family homes, which took only 38 days on average to sell in December. The units that are commonly taking longer to sell are in larger buildings in areas like Downtown, SoMa, South Beach, Mission Bayand the Van Ness corridor. Smaller buildings—especially renovated units with classic Victorian/Edwardian period detail–are typically more in demand than the high-rise style ones.
Luxury condo sales were few and far between: 7 condos managed to close escrow in December ranging in price from $2,110,000 – $4.4M. The most expensive unit sold was a gorgeous 3BR/2BA, 3,3100 square foot unit at 54 South Park that had been on the market for 107 days (see photo courtesy of City Real Estate). Last sold for $4,950,000 in 2018, 54 South Park was listed for the same price but closed last month for $4,406,000 in an all-cash sale.
Current mood: Stretching and waking up. There are just under 400 condos currently on the market at an average list price of $1,565,000 and 107 DOM. 203 condo listings were canceled and 18 were put on hold in December, meaning many of those properties will likely be returning to the market in the next few months. Qualified buyers will be in demand to absorb this inventory over the next few months.
Sellers: Be realistic about your condo’s value and price accordingly. Don’t get discouraged if it takes a bit of time to land a buyer. But know that it usually takes one more price chops to get into contract if you’ve been on the market for 30 days or more.
Buyers: You have a lot of choices out there, especially in the higher end of the price range spectrum. Don’t be afraid to write offers that are lower than the list price if a property has been sitting on the market.
[All data courtesy of the San Francisco Multiple Listing Service]