SoMa - South Beach - Yerba Buena - Mission Bay
Sales by Price Range
The greatest number of condo sales in these neighborhoods is in the $500,000 to $750,000 price range, however many sell for less (sometimes distressed property sales) and many sell for far more. Indeed, some of the most expensive condos in the city, usually with staggering views and selling at dollar per square foot figures above $1000, are found here in distinctive buildings among the most beautiful in the world. One condo in this area sold for $28 million in 2011. In 2012, the largest sale through MLS was $7,850,000 for a unit at the Millennium.
Longer-Term Trends for South Beach & SoMa Values The four following charts and tables track average sales price and average dollar per square foot for non-distress condo sales by year since 1995, specifically for the South Beach/ Yerba Buena and SoMa neighborhoods. Remember that average sales price is different from median sales price (which is used more often), but is just another way to look at long-term market trends. Distress sales (bank and short sales) were excluded from this analysis to provide an apples to apples comparison over time. The market recovery in 2012 can be seen very clearly -- and we're seeing further acceleration in 2013.
Condo Sales $1,000,000 & Above The sales of higher-end condos surged in 2012. There is huge demand for the best condos in the best buildings. The drop in the first quarter is typical due to holiday season dynamics for higher end buyers and sellers.
Condos for Sale
The inventory of condos listed for sale through MLS is far below that of previous years and is not currently anywhere close to being adequate to meet market demand.
Average Days on Market
As a market gets hotter, the average amount of time it takes for a new listing to go into contract usually falls, and that is exactly what we've been seeing in these neighborhoods and indeed all over San Francisco.
Months Supply of Inventory (MSI) MSI is the lowest it has been here in years, if not ever. The lower the MSI, the stronger the demand as compared to the supply of homes for sale. MSI readings this low -- below 2 months -- would typically be considered indicative of a very strong "Seller's Market."
Price Reductions, Sales Price to List Price Percentage, and Days on Market
Another chart illustrating the heat of the current market. The vast majority of sales are accepting offers quickly to sell on average for over the asking price -- competitive bidding is common.
Distress Condo Listings & Sales in the Greater SoMa Area
Because so many large developments were built here in the last 15 years, this area had more distressed condo sales (bank-owned property sales and short sales) than any other area of the city. However, the number of distressed listings and sales has been declining rapidly as the market has turned around. It is now well on its way to disappearing altogether.
Median Sales Price Trends for 2-Bedroom Condos in Selected SF Neighborhoods A comparison of median price trends for 2BR condos in 5 of the city’s neighborhoods. All have seen substantial jumps in median sales price, but perhaps none more than South Beach/ Yerba Buena neighborhoods. We will update this chart as soon as we have enough months of sales data to create meaningful statistics.
The New-Development Condo Market The vast majority of new-condo construction over the past 15 years has been in this greater area. The 2008 financial crisis caused new condo construction to crash in SF, which led to large declines in new-condo listings and sales. Even though new construction is now recovering in a big way, this large reduction in new-condo inventory for sale has had significant ramifications for the supply and demand dynamic. The new inventory of newly built condos will be at least a year to two years before arriving in large quantities.