As we head into the second half of this annus horriblus that 2020 undeniably is, the impact of the pandemic is creating a continued divide in the desirability of single family homes and condos.
While year-on-year sales are down across both categories, it’s definitely a “Tale of Two Cities”: As the inventory level of single family homes has decreased slightly, prices are holding up and days on market remaining static. With condos, inventory is stockpiling as they’re simply not selling and prices are tumbling. This is particularly true of District 9 (Central Waterfront, DogPatch and SOMA in particular) where we have more high-rise, high-density housing, lack of neighborhood amenities and the need to be close to your place of work has all but disappeared. This will only get more pronounced if the federal stimulus package is halted and we see a second wave of the pandemic take hold in the coming months.
It’s not all doom and gloom for condos as some neighbourhoods like Noe Valley, Eureka Valley and Clarendon Heights in District 5 appear to be more stable – no doubt benefiting from being in smaller buildings in more established neighbourhoods – so it will be interesting to see how long this continues.
In short, if you have a higher risk tolerance then now is a good time to take advantage of the deals that are unfolding in District 9 in the belief that the market will rebound at some point in the medium to long term future or maybe you’d like to wait a little longer and see how more established neighbourhoods perform in the coming months.
If you’d like more district-by-district data – or data on what’s happening in Marin for example – then please get in touch and as always, if you’d like to discuss buying or selling a property then I’d welcome your call!
Stay safe and hopefully, we’ll speak soon.