Condos in larger buildings are seeing their fair share of price reductions during corona, based on sales that have closed from July 1 to August 15th.
Twenty percent of the 306 condos sold in that timeframe saw a price chop prior to closing, in various locations throughout San Francisco. But a majority of the reductions were concentrated in the Mission Bay, SoMa and South Beach areas.
Condos in smaller buildings with yards and parking that also have convenient neighborhood locations appear to be holding their values better. Buyers aren’t as quick to write offers on units in hotel-like properties where they have to share elevators and common areas with large numbers of residents.
Just because a property sees a substantial price reduction doesn’t mean it will sell for under the list price. For example, the 3BR/2BA Lake Street condo at 3900 California #4 started out at $1,695,000 at the end of April. They dropped the price to $1,650,000 and ended up closing for…$1,710,000.
But that sale isn’t typical. What I’m seeing in the corona market are condos coming on the market and either going into contract in the first week or two, or sitting on the market longer and undergoing price reductions.
The multi-million dollar end of the condo market is also highly susceptible to reductions. 1045 Mason #502 is a 1990s-era view unit in Nob Hill that came on the market in early May for $3,395,000. After reducing the price to $2,995,000 two months later, the property went into contract and closed for $3,100,000. And another view unit at 1070 Green #1801 in Russian Hill was shopped around off market for a few weeks before officially going into the MLS for $6,500,000. They dropped the price to $5,850,000, closing in early August for that price.
Condos seem to be sitting for 30 days or more before seeing a significant price reduction. So buyers, keep your eyes on those units that are passing the 30-day mark. Those could be good negotiating opportunities.