This San Francisco neighborhood defies the city’s deteriorating housing market

While much of San Francisco’s housing market is still crawling compared to pre-crisis times, one area is still holding strong: the Sunset District.

Much of the city is seeing homes sit on the market for a long time, but the area is attracting buyers at a rate almost pre-Covid – making it one of the bright spots in a sluggish neighborhood.

According to data from Redfin, homes in the 94122 and 94116 Sunset condos sold in an average of two weeks between June and August 2024, a pace nearly identical to the same period in 2019 the median was 16 days, the San Francisco Chronicle reported. .

The nearby 94127 ZIP code also showed similar strength, with homes selling in 14 days this year, down just one day from the average of 15 days in the past five years. .

Meanwhile, houses in almost every part of San Francisco took a long time to sell. Across the city, the average time to find a customer has increased to 35 days in 2024, from just 24 days in 2019.

Redfin’s data highlights how much of the housing market in San Francisco, and California in general, has remained sluggish.

The market in the city by the Bay is collapsing, The Post has previously reported — fueled by factors such as inflation, crime and the drug epidemic.

Sales delays have been compounded by rising mortgage rates, which peaked after a fall in September and another increase in October. Those changes in mortgage rates may have affected sales after the data was collected, but even before that, the numbers pointed to a decline in sales in many neighborhoods.

But not in Sunset, where homes are selling fast and prices are higher than the city’s $1.3 million home value. According to Zillow, average home prices in Sunset are between $1.4 million and $1.5 million, and they always attract buyers who want a balance between affordability and neighborhood amenities.

“That place is too hot or too cold,” Allison Crawford, of Sotheby’s International Realty in San Francisco, told the San Francisco Chronicle. “Recently, it’s been very strong, and if you look at recent sales, they’re all moving well above the asking price.”

One of the main reasons why sunsets are so sought after is their comfort. The area has small business centers, with easy access to Golden Gate Park on 19th Avenue and close to San Francisco International Airport.

The affordability level compared to other parts of the city has also kept interest high, as buyers looking for more space or family-friendly homes continue to be drawn to Sunset.

Conversely, homes in some of San Francisco’s most affluent neighborhoods, such as Pacific Heights and the Marina District, are seeing significant declines.

Data from Redfin shows that homes in the 94123 ZIP code, which includes those areas, took an average of 55 days to sell between June and August 2024 — more than double the 20 days in 2019.

Michelle Harris, of Compass, says the combination of high prices and rising interest rates has made it difficult for buyers and sellers to close deals in these high-end areas.

“The change in interest rates … really locked things in,” Harris explained to the agency. Since homes in Pacific Heights and Marina are often priced in the multi-million dollar range, sellers are becoming more selective about the offers they accept, not wanting to lose such a valuable investment.

Others are still hoping to lower their mortgage rates, unwilling to enter into a deal that will require them to pay a much higher monthly payment. This decline in affluent areas is part of a broader trend affecting much of downtown San Francisco and surrounding areas.

The 94103 ZIP code, which includes parts of the South of Market district, also saw homes sit on the market longer, taking more than three weeks to find a buyer than in 2019. The epidemic has led to changes great for the customer. choice, and many turned to urban areas where they could have large homes with backyards and home offices.

The so-called “doughnut effect” has driven down property values ​​in the city of San Francisco and nearby Oakland, which has seen a steep decline in home prices during the pandemic. Although real estate prices in San Francisco remain among the highest in the country, demand for housing in the city has been slow to recover, and high prices are causing homeowners to do not reach many.

Looking ahead, experts predict that San Francisco’s housing market will remain sluggish through 2025, with little relief expected in mortgage rates. Harris pointed out that the upcoming presidential election, along with the holiday season, could cause additional delays in home sales as buyers and sellers stall.

“I think there are a lot of customers who are starting to hear the jingle bells,” he joked.