The Brannan in South Beach has been a coveted luxury hi-rise since it was built in 2000. I had the pleasure of selling a one-bedroom condo there in 2006. At the time, I thought it was incredible that someone would pay $700k for an 823 square foot home. Yet, here we are in 2020 and similar sized homes at The Brannan are now selling for over $1 million. The San Francisco housing market never ceases to amaze me.
I’m getting an email a day in my inbox from predictors and pundits about real estate and the Coronavirus. While we as real estate agents can’t deliver a lot of clarity (our crystal balls are always foggy anyway), here are some observations about real estate in light of these unusual circumstances.
San Francisco residents are intrepid. We’ve seen no decline in open house traffic, and people seem fine about sharing air space with each other. And this is not just inside houses; yesterday I saw a crowded line of diners stretching down half a block waiting to get into Liho Liho.
Rates are dropping! And dropping! This is increasing buying power and could further drive prices up (which have been going up already since the first of the year).
The stock market sucks right now– and it’s impossible to know how it’s going to behave in the short term. When this happens, there is often a flight to the more reliable, slow-moving real estate sector.
No matter how bad the economy might get, everyone still needs a place to live. People will always get married or divorced, get a promotion or laid off, have kids or see them fly the nest, and go through the other life changes that gets homes bought and sold.
Views, views, views. It’s a well-known fact that buyers will pay BIG money for an incredible view in San Francisco. The prestigious Bellaire Tower, located at 1101 Green Street at the top of Russian Hill, has some of the best views in the entire city. I sold a 931-square foot, one-bedroom home there in 2007 for $855,000. It sure seemed like a lot at the time. And yet, the same home just one floor above sold for over $1.1m in 2016. Another similar sized home in the building is now pending sale at an estimated $1.6m. How’s that for a nice view?
Bellaire Tower lobby
Bellaire Tower entrance