Elections & Downtown non-erections: Developers bearish on short-term outlook while agents hope post-election relief will get buyers back in the swing

originally published 11/4/08

It hasn't been the most relaxing autumn with the culmination of a 3 year long presidential race and the worlds financial markets dancing an endless mambo. Added to these global and national headlines was last weeks more local announcement from the developer of One Rincon Hill that the much anticipated and delayed Tower 2 (T2) was on 'indefinite hold'. No matter where your opinion falls here it seemed to put the exclamation point on a week that many were waiting for. Several developers pulled their collective heads out of the sand and acknowledged that the San Francisco condominium market has changed for the foreseeable future and that moving product right now is a priority.

Some examples: The Hayes has a fifth floor studio with balcony listed in the mid 300's and a tower-level 1-bedroom at Arterra in Mission Bay was re-priced in the low 500's. Over on Van Ness Avenue, Symphony Towers has a 1-bedroom on offer in the mid-400's. These prices represent reductions of at least $100,000 from their previous highs and what's more compelling is they seem to work. Erin over at Symphony told me they sold 6 units last week after the price drop.

Reductions in inventory and markdowns on stock indicate that developers are retooling strategy for what they see as a prolonged slowing of demand and it seems like if the price is right one can still sell a condominium even in these uncertain times.

The return of confidence to the country and San Francisco will go a long way in allowing home buyers to feel good about getting back in the market. With the impending change in leadership and recent condominium price adjustments this may be a historic moment in more ways than one.