So they say it’s a buyer's market. They say the world has changed and we won’t go back. Suburbs are the thing. But is this the time to get ahead in the SF real estate game?
It’s January 2021… but close your eyes and take a deep breath. If you are alone, outside, or more than 6 feet away from someone- take your mask off. Clear your mind. Think back to 2019… actually, think back to almost any point in time in the past decade…
You’re single or have a roommate/partner, and you just want to move out of the dining room you have been renting in a home with four other people for the past two years, sharing one and a half baths. Or you are a young family, and the “San Francisco first child nursery” (aka, a closet with a small window) is starting to get awkward for young Jimmy. Or you have rented in SF for decades, and always wanted to own, but it hasn’t made sense to overbid on a condo just so you can pay more monthly to “own”. Yes, this was the reality in San Francisco and has been for quite some time. In December 2019,
this article from CurbedSF described astronomical rent prices influenced by millennials who don’t want to commit. Did you dream of being a landlord who could collect “mailbox money” from twenty-something techies?
Okay, wake up because it’s 2020 and Covid is REAL. The renters moved home to the midwest, and the San Francisco social and restaurant scene is… different. But is this the time to make your move? Let’s look at the numbers. One and two-bedroom condos are down 9% year to date. While initial list prices on condos are essentially a part of the marketing strategy, it’s notable that in Q3 2020, the average SF unit sold for 2.6% below the asking price, compared to Q3 in 2018, where that price was 7.4% over the original asking. What can put your investment ahead of the game? Keep focused on units that have parking, outdoor space, and in-unit washers and dryers or hook-ups- all of these can add dollars to your bottom line down the road.
Regardless of where you land, this is an opportune time to consider if this is the right time for you to invest in one and two-bedroom condos. Is it time to buy your first home? Is it the right time to buy a pied a terre? You may even consider if this is the time to invest in a multi-unit building. There are a handful of two-unit buildings in prime SF locations that are currently vacant. Condo conversion can add tremendous value to these types of properties for future sale. Or this may be the time for you to consider an investment property to offer for rentals in the future. Everyone’s situation is different, and each property is unique. But it’s safe to say that historically San Francisco real estate recovers and climbs. Happy to speak to you about your situation at any time! Check out some of the properties I’m watching below.
One Bedrooms
3824 Scott Street #1
Off Market - Marina
68 Richardson Avenue
Marina
Two Bedrooms
3316 Scott Street
Marina
2920 Buchanan Street
Cow Hollow