San Francisco Condo Sales Return to Pre-COVID Levels

SAN FRANCISCO—Condominium sales in September were up 25% year-over-year, according to a Polaris Pacific report showing that the city is returning to pre-pandemic sales volume levels. Following a dramatic dip in condominium sales from March through June 2020, the September volume increase was concentrated in sales transactions ranging in price from $800,000 to $1.4 million.

The median sale price was $1.22 million, down 5.8% year-over-year, yet condo closings as a whole hit 255 units, a 34.2% year-over-year increase. There was a strong comeback for many markets in September, with higher year-over-year sales compared to 2019.

Downtown condominium sales remain volatile, while suburban markets have seen a sustained increase in activity to close out the summer season. Low-density neighborhoods such as the Richmond District and the Marina District are exceling in sales volume, while downtown areas such as SoMa and South Beach have experienced weaker market conditions than the rest of the city.

“The resilience of cities, particularly an economic powerhouse city like San Francisco, is unquestionable. Q2 and Q3 2020 were very challenging for the condominium market in many urban areas and San Francisco was no exception,” Garrett Frakes, managing partner of Polaris Pacific, tells GlobeSt.com. “However, September 2020’s sales volume and transaction increases are signs that the condominium market is returning to a normalized level in the city. Buyers have become more confident, sellers are offering lower prices and the San Francisco market is on-sale right now which offers buyers an incredible entry opportunity.”

This summer, most West Coast markets experienced a sales volume rebound, however volumes remained volatile, said Polaris Pacific.

“2020 has been a remarkably difficult year for many reasons,” said Frakes. “Despite the headwinds though, the superstar cities with technology-based economies are poised to rebound strongly. The San Francisco housing market rarely stays down for very long and I expect the depressed conditions in the condo market in Q2 and Q3 to be short-lived.”

This report is part of the Polaris Pacific COVID-19 Dashboard, which is the country’s only market trend dashboard that measures changes to the condominium sector of eight core West Coast markets including San Francisco, Los Angeles, San Diego, Silicon Valley, Oakland/Emeryville, Phoenix, Seattle and Denver. The dashboard provides statistics and insights for a vantage point on the ongoing effects of the pandemic.