The Curious Case of The Downtown Real Estate Market

Okay people, I've got some numbers for you this week. They don't have anything to do with reverse aging. My apologies about the headline.

I was conducting searches on the MLS (Multiple Listing Service) and thought I'd run a little test since the market has seemed much more active in the past few weeks both for me and my colleagues. I searched Mission Bay, Potrero, SOMA and South Beach only. The following numbers track activity from March 1, 2009 through April 6, 200


Closed Sales: 21

Pending/contingent Sales: 48

Remaining Available Listings: 176


During this 37 day period, 69 property owners found themselves with buyers. Not all of these transactions have consummated but that's still healthy activity. What these numbers don't include are most new construction transactions. I would estimate that would add another 50 sales. Those deals would be spread among The Infinity, One Rincon Hill, BLU, and Arterra.

Given these numbers, reports about the death of the Downtown San Francisco real estate market are exaggerated. Prices are down. People are out there buying condominiums.

Spring fever? Crazy contrarians? Pent-up demand? Have we hit the bottom?

I'm just happy to be getting my clients the best possible terms on Downtown condominiums. Let me help you, your friends and colleagues do the same.

Don't fear the Reaper... November turns out to be a strong month for San Francisco's new development sales offices.

A few weeks back I wrote about developers finally waking up to the realities of the current market in our fair city by pricing select chunks of their inventory at very attractive (reduced) prices. Attractive enough I thought, to spur some buying activity in what might be more politely termed a "freaked out" consumer environment. Well gentle readers, I'm happy to report that it seems to have worked. At developments across the city buyers have shunned the negative and accented the positive by putting roughly 10 units into contract at each of a handful of communities from Mission Bay to South Beach and back to the Van Ness corridor.

It is heartening to know that even during a period where federal bailouts are racking up scary hash marks on the billions spent spread sheet; buyers are confident enough in San Francisco's market to put their hard-earned money toward a downtown condo. Maybe it's a contrarian view that is driving these people toward a purchase that a lot of folks might run from right now but one thing is certain: these intrepid individuals are getting some great deals on prime property.

This happy occasion reminds of something that I've heard often in the real estate industry when things get challenging: People will always need to buy or sell, no matter what. This is essentially an elaboration on "Life goes on." People get transferred, lose jobs, get new ones, get married, have babies, etc. This continues to happen regardless of what the stock market does, who the president is, or if Britney Spears releases a new single.

So if you are delaying making a decision about whether to buy or sell property and its starting to have an impact on your quality of life, I recommend speaking with a professional. My contact information is on the banner at the top this page.