An interesting 2019 so far: Stock markets have hit new peaks; interest rates have hit multi-year lows; the SF unemployment rate dropped to a historic low; Bay Area unicorn IPOs have rolled out one after the other; SF residential and office rents have ticked up; consumer, corporate and governmental debt levels - nationally and internationally, across virtually every sector - have hit all-time highs; and SF median home prices hit new peaks in Q2.

The below report reflects sales across an enormous range of buildings of different size, quality, location, type and era of construction, unit mix, tenant profile, rent control effects, expense ratios and other characteristics. It is impossible to know how any of these sales or statistics apply to any particular property without a specific, tailored comparative market analysis.

Review of Sales - Past 12 Months

Legislative Update - New Limitations on Sales

Many of you read my report on this legislation a few months back. It seemed the Board of Supervisors were keeping this very quiet as to not ruffle the feathers of the landlord constituency (although they all voted to approve the measure).

SF has enacted a new law called the Community Opportunity to Purchase Act (COPA) impacting Sellers listing or selling buildings with 3+ residential units and lots zoned for 3+ units. It is designed to provide certain Qualified Nonprofit Organizations (QNOs) preemptive opportunities to purchase such properties. As of 9/3/19, Sellers of such properties will have to provide formal notice to these organizations of their decision to sell before they solicit offers or place such properties on the market. COPA applies to SF multi-family residential buildings on which (a) 3+ residential units exist, including mixed use properties; (b) lots on which 3+ residential units are under construction; and (c) vacant lots on which 3+ residential units could be built.

By September 3, 2019, the Mayor’s Office of Housing and Community Development plans to publish the list of QNOs and to issued rules pertinent to implementing COPA. Buyers - especially those affected by 1031 exchange deadlines - and sellers having any questions should engage a qualified San Francisco real estate attorney. I can provide you with a more detailed outline and list of FAQs created by the SF Association of Realtors.

General Financial Indicators - Updated through Mid-Year 2019

Supply & Demand Statistics

Rent Rate Trends - Average & Median Statistics

Sales by Broker

That is it for now. If you see a possibility of selling your property or acquiring another property, or have friends or colleagues looking for assistance, let me know as I’d love to help.

San Francisco Apartment Insider 2019 Mid-Year Report