Condo volume and values trended upward in April, but the market still isn’t where it was last spring.
There are two reasons for that—first, we’ve had multiple interest rate hikes over the past year. Secondly, many condos don’t meet buyers’ needs for homes that provide enough space to work from home and have private outdoor space.
Never fear, there are signs that things are looking up for the condo market. Let’s dive in:
April bested March’s condo sales. April’s median price of $1,190,000 was up from $1,120,000 in March—but down twelve percent year-over-year.
Price per square foot improved in April, too. Buyers paid an average of $1,054/sq ft in April compared to $975 in March.
Volume is still kind of lame compared to 2022. 168 sales closed in April vs almost 300 last April.
Drill down: Here’s a quick look at how the most popular condo categories did:
1BRs | 41 sold | $720,000 avge price
2BRs | 79 sold | $1,258,000
3BRs | 32 sold | $1,837,500
70% of condos sold for at or under list price. It’s a good idea to price a condo closer to value these days based on this selling pattern. Only three condos changed hands for 20% or more over asking. 3350 Scott in the Marina exemplifed the type of condo that sells quickly and for maximum value in San Francisco at the moment. The remodeled 1920s top-floor condo had two bathrooms, two full bathrooms, office sunroom, private deck with city views, parking and was located one block from the heart of the Chestnut Street retail corridor. Listed for $1,875,000, the property closed a week later for $2,275,000 in an all-cash transaction.
Luxury condo buyers are on the scene. Sales in the $2M+ range doubled from March, with 26 units closing that ranged in price from $2,050,000 – $6.1M. At the top of the heap was 1 South Park #406 in South Beach. Renovated with architect Toby Levy and designer Ken Fulk, the unit had a combined 6,900 square feet of indoor/outdoor space. Featuring three en suite bedrooms, the penthouse had outdoor amenities that included a kitchen, large dining area, living area with a fire table, Moroccan daybed, sizable hot tub, and big dog run – all with big city views. The buyers paid $6.1M in all cash, a bit higher than the $5.9M list price, and the property only spent two weeks on the market. (Photo courtesy Sotheby’s International Realty)
There are a lot more condos on the market than there are in contract. There were 586 units on the market as of this writing and only 181 in contract.
Current mood: A little stuck because there’s a stalemate between buyers and sellers. Those who own condos in larger buildings—a majority of our inventory—don’t want to lose money or just break even, so they’re sitting tight if their condo isn’t worth what they paid for it. Buyers don’t want to feel like they’re overpaying.
Pro Tips:
Sellers: Pay closest attention to sales over the past quarter to accurately estimate your condo’s value.
Buyers: Look for a condo that has a view or nice outlooks. Those will hold their values better than ones that face neighboring buildings or a wall.
{All data courtesy of the San Francisco Multiple Listing Service]