2023 posed formidable challenges for San Francisco Real Estate, witnessing a widespread retreat in prices across nearly every district. In the dynamic landscape of adjusting markets, condominiums bore the brunt of the impact on their value, with SOMA undergoing a particularly noteworthy transformation. While the area has shown slight improvement, the perceptual shift in buyers' minds persists, and a plethora of options remains available. The influence of interest rates looms large, exerting a considerable impact on buyers as the cost of ownership has surpassed most price adjustments. In essence, even with lower prices, buyers find themselves paying more than they would have in previous years.
SOMA Grand : 2023 Year in Review
SOMA Grand Listings
A look at 2023 SOMA Grand listings:
It's been a year of subdued sales activity in the building, with only 7 closed sales out of approximately 20 available listings—roughly 35%, well below the area's average of 50%. Notably, some of these listings spent a year or more intermittently on and off the market before finally closing.
Average Sales Price
The Average Sales Price for condominiums is depicted in this chart, highlighting the yearly fluctuations. It's crucial to observe that all San Francisco condos have experienced a decline of approximately 15%, the broader area around 20%, with SOMA taking the hardest hit at a staggering 35% drop from the 5-year peak. In SOMA, prices have regressed to levels reminiscent of 2008 for many condos and lofts.
Price Per Sq Foot: 1 Bedroom
Price per square foot is just one metric of value, albeit the most commonly utilized one for condominiums. Upon reviewing the past five years, a clear downward trend emerges, indicating an approximate decrease of 18% citywide and 28% specifically for one-bedroom condominiums in SOMA.
Price Per Sq Foot: 2 Bedroom
Price per square foot is just one metric of value, albeit the most commonly utilized one for condominiums. Upon reviewing the past five years, a clear downward trend emerges, indicating an approximate decrease of 10% citywide and 25% specifically for two-bedroom condominiums in SOMA.
SF Units Sold / Interest Rate
This chart vividly illustrates the total volume of closed properties, artfully overlaid with the fluctuating interest rates. While not perfectly precise, the undeniable correlation underscores the significant impact interest rates have had on our market.
SF Units Sold
Not only have fewer properties changed hands this year - the odds of selling saw a pretty dramatic change as well.
I am always available if you would like to talk more about current market conditions, selling your property or searching for your next home - please no not hesitate to reach out.
This is not intended as a solicitation if your home is currently listed by another Broker.
Note: Above data reflects that reported to NorCal MLS Alliance MLS. Data from sources deemed reliable but may contain errors and is subject to revision. All numbers approximate. Outlier data adjusted when identified.