2021: March San Francisco Real Estate Insider
Greetings and happy Sunday! I hope this email finds you well and optimistic as we close out the first week of March. This market report will be on the brief side as I want to update you on the status of the market as well as Prop 19.
First, the market - since January, the San Francisco market has been experiencing incredible demand for single family homes. And now, well-located neighborhood condos are seeing strong demand as well as 2-4 unit buildings. On the single family home front, most all houses in all price points are getting multiple offers. Houses listed in the sub $2M range are typically receiving 10+ offers. I’ve seen some listings where the property received over 30 offers! Over bids in the 10% range are not uncommon and I've some go up to 25% (obviously the list price was not reflecting market value). Record prices are being realized weekly.
In the entry level luxury range ($3M), sellers are also seeing multiple offers albeit trending more towards quality and not quantity (of offer). In the ultra-luxury range, again we are seeing strong demand - there have been some record sales. Those record sales tend to reverberate downward to the market as a strong vote of confidence. Examples include a $17,500,000 sale on Twin Peaks and a pending $25,000,000 sale in Presidio Heights (@ $2800 per foot!).
We are also starting to see the north side luxury condo / Co-op market heat up again. Examples of this ultra-luxury activity are a pending $7,500,000 two-bedroom unit on Nob Hill and a pending $8,995,000 three-bedroom co-op.
This record sales activity at the top end of the market promotes confidence to all segments of the market from the top down. The message is that people are making the investment to make San Francisco their home.
Next, I wanted to touch on Prop 19. Since the beginning of January, it’s not a stretch to say I’ve had more than a 100 seller / owner conversations on this topic. People in the 55+ age category want to know what their new tax base will be if they sell. To answer that, I put a scenario together to help you determine what your new tax base would look like if you sold and leveraged Prop 19 portability.
If you have questions on the value of your primary residence so you can better understand what your new tax base would be; give me a call.
The big take-away from this report is (a) single family homes are in demand more than ever (b) although interest rates are incredibly low, we are seeing an serious uptick in rates and (c) if you can leverage Prop 19 and want to downsize or leave San Francisco, call me. We can get your home properly valued and ideally get your buyers into a bidding war.