The condo market finished on a stable note over the last quarter of 2023, with a minimal year-over-year decline in median price. Many units that had been on the market for several months finally sold and most closed for under their list prices—with a few exceptions.
Here’s Q4 2023’s condo progress report:
Volume and median price check. 411 condos sold at a median price of $1,084,500—a 10.5% drop in volume, but only a 2% dip in median price from Q4 2022.
Some condos really hung out on the market. The average days on market (DOM) for condos was 59, with 22 condos languishing for six months or more.
The market threw this Outer Richmond condo a life raft. One of the most unique properties I’ve seen in San Francisco was 806 47th Avenue, a 3BR/1.5BA condo in its own house on a lot shared by a multi-unit building and homeowners association on Cabrillo. 806 47th Avenue was built in 1878 as the Golden Gate Lifesaving Station, from which the crew braved the surf to rescue shipwrecked sailors. The structure was moved and lifted up on top of the garage in 1923. 806 47th was first listed in the fall of 2022 for $1,448,000 before it went through a few price reductions and closed in October 2023 for $1,160,000. (Photo above courtesy Coldwell Banker Realty)
Drill down: Here’s a quick look at how the most popular condo categories did:
1BRs | 127 sold | $700,000 median price
2BRs | 163 sold | $1,150,000
3BRs | 90 sold | $1.6M
77% of all condos sold at or under their list price. No surprises here, given our abundance of condos later last year. Buyers and their agents took advantage of some good opportunities and negotiated the best prices possible, with units selling for an average of 1% below their asking price.
But there were still some large overbids. 11 condos managed to close for 20% or more over asking. These fell into two camps—units in well-established neighborhoods in the center of the city, or ones at the lower end of the value spectrum that were listed well below value. An example of the latter was 900 Bush #614, a 2BR/2BA unit with parking and $1,254/mo HOA dues in a full-service building downtown. That one was listed for $399,000 and closed for $530,000.
Luxury buyers didn’t leave town. 46 condos sold for between $2M – $4,750,000. The sellers at the four-bedroom, Park Avenue-style building at 840 Powell #501 were finally able to make it happen after coming on the market in March 2023 for $3,250,000. They reduced the price one time to $2.7M before going in contract and ultimately closing 244 days later for $2.2M.
Lots of inventory is still available citywide. There are 342 condos available now at a median price of $1,045,000—and 93 units in contract with a median list price of $900,000.
Pro Tips:
Sellers: It’s a good time to bring your condo on the market if you’re in a position to sell now. 2024 is still young and the real estate market is more stable than it seemed throughout last year.
Buyers: Don’t be afraid to write a low offer on a condo that’s been sitting on the market a while. It may take a while to find the breaking point, but it can totally happen.
{All data courtesy of the San Francisco Multiple Listing Service]