New Condo Developments Help Property Values
In May, price per square foot averaged about $1,241, for condos from Pacific Heights to Mission Bay (see map above). These neighborhoods encompass Realtor Districts 6-9, where most highrise residential buildings are concentrated.
The development of newly constructed condos has been doing great things for South Beach, Rincon Hill and Mission Bay. 181 Fremont, Mira SF and The Avery are attracting buyers to the area, many of whom are adding condo resales to their home search. While a new condo goes for about $1,800-$2,000 a square foot, a resale condo averages at about $1,330 per square foot – which is more affordable for a huge portion of the buyer pool.
All-in-all, prices in the Transbay/South Beach are currently up, leading San Francisco in price growth.
Did you know? Pricing for for 1 bedrooms and 2 bedrooms in Dogpatch is averaging higher than some of the city’s trendiest neighborhoods. For example, the average price for a 1 bedroom in Dogpatch is now $988K while Noe Valley’s 1 bedroom average price is $840K. Dogpatch pricing increased because of the new condo closings at 901 Tennessee, a 40-unit luxury development that quickly sold out. See this chart for all neighborhood price comparisons.
The Financial District/Jackson Square price per square foot fell 10% to $1,382, returning to early-2018 price levels after the prestigious 288 Pacific development sold out.
San Francisco is clearly in a housing growth spurt. New construction inventory rose to 667 units, as the Four Seasons Private Residences (146 units) began selling. Supply is expected to trend upward through the summer. Several mid-rise projects — including The Westerly in the Sunset District and 1433 Bush in Polk Gulch — are scheduled to begin selling in the coming months. Stay tuned for more info.
If you are a homeowner and would like more info on housing dynamics, send me a message and I’ll get you more info on the market.
Better Buying Power This Year
Many of my buyers are circling around again: Buyer power is stronger this year as interest rates continue to remain at 4% for the longest.
Home loan rates, in response to changing global economies, are expecting a rate cut in August. We may be seeing the best rates in nearly two years. We’ll see how much further low it will go.