SF: State of the Market; Looking Back to September

While looking over the sales that have taken place so far in December, the first thing I noticed is how few there are. The last time I took a close look at this data back in September, there were 50-60 sales a week in the neighborhoods I cover. Things have definitely slowed down a bit for the winter as there have only been 35 sales in the same neighborhoods since December 1.

Another striking difference was the number of properties going for less than their original asking price. Back in September, the vast majority of properties were selling for at or over asking. So far in December, over 60% of properties sold have fetched less than asking, with some going for significant discounts.

The steepest discount was on an 1,100 square foot 2 bedroom, one bath condo located in prime Pacific Heights at 2040 Jackson St #1202. It went for 84% of its original $1,195,000 asking price, or $999,000. This one looks like a seller who initially asked to much, as even at the discounted sale price, the property still went in the fairly healthy range of over $900/foot.

A few of the other steeply discounted properties may be cause for a little more concern. For example, a 1,900 square foot, 3 bedroom, two bath condo also located in a fairly desirable part of Pacific Heights at 1969 Broadway was originally listed at $1,395,000. Though it has “peekaboo” views of the bay and some cool period details (and even an inglenook) it was only able to bring $1,250,000 – 90% of the original asking price and a relatively low $647/foot.

After spending some quality time with the sales data, I’m not sure whether the slowdown and lower than hoped for prices are signs of the season or signs of something worse. If you have any thoughts on the matter, please feel free to share them below.