As with District 5, the South of Market area is looking at constrained supply and higher demand. According to Paragon research, the last three quarters have seen this percentage at or close to its highest point in three years.
What does that translate to? When supply is down and demand is up, that gets to looking like a seller’s market. Condos – which define SOMA – are particularly limited these days, so if you’re looking for one, prepare to get in line.
Median condo prices are remaining consistent – it’s a span between $625,000 and $700,000. Keep in mind that’s for non-distressed properties. Distressed properties – that is, bank-owned and short sales – are seeing their value in consistent decline.
And speaking of condos, keep in mind that SOMA has seen the greatest majority of new-condo construction in the city over the past decade and a half. After the market tanked, new construction went way down – adding to the supply-and-demand issue I described above. The resale market is starting to feel the sweat as well – it’s heating up good as a result of low supply and high demand.
Most condos are selling between $500,000 and $600,000, but keep in mind that this is just a median. Remember that one condo in this area sold for $28 million last year!
Let’s talk months supply of inventory, known by acronym-lovers as MSI. This has been ranging between 2 and 3.5 months – and that’s the lowest I’ve seen it in years. Low MSI translates to high demand – again, this is looking like a seller’s market.
Looking to get the best in SOMA – or in any of San Francisco’s neighborhoods? I’m here to help. Get in touch.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners-- and feeds the dreams of those who wish they could live in Tony Bennett's 'City by the Bay.' Call 415-577-0809 or email cblase@paragon-re.com. www.ceceblase.com
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