As we noted when the 672-square-foot, “once-in-a-lifetime” unit #306 at 1075 Market Street (a.k.a. “Stage 1075”) was quietly listed for 26 percent less than its 2018 price back in June, the 672-square-foot unit #706, a few floors up, was still on the market despite having been listed for 29.7 percent less than its 2019 price this past May.
Since further reduced, twice, the list price for 1075 Market Street #706 is now down to $625,000, an “at asking!” sale at which would be 36.2 percent below the $979,000 paid for the one-bedroom condo in a boutique building with a lobby attendant, virtual doorman and an enviable rooftop deck, back in February of 2019.
If you think you know the market for entry level condos in San Francisco, now’s another chance to tell.
Keep in mind that the 672-square-foot unit #606, a floor below, sold for $625,000 at the end of last year, which was 29.1 percent below its “once-in-a-lifetime” price in October of 2018, while the quiet listing for unit #306 at only 26 percent less than its 2018 price was quietly withdrawn from the MLS without a reported sale.
Market between 6th and 7th streets. That neighborhood has gone downhill the last few years. It was never great, but there were signs of progress.
Big difference between “not great but improving” and “bad and deteriorating”. Some of the perceived value reflected in the earlier sale prices was based on the expectation of the neighborhood solidifying within a few years.
Brahma is right. The original target buyer is gone. The new target buyer is value-minded 1-person households. At least there is a grassy patch on the roof so you don’t have to risk the sidewalks when your dog needs relief.
Good point. If the outlook for a neighborhood is positive, buyers might look optimistically to the future.
It does not seem there is much optimism about this stretch of Market right now.
For inquiring minds:
Virtual Doorman is a building-wide system that integrates a touch screen video intercom, digital CCTV, and access control to remotely grant access for visitors, deliveries, vendors, and even the occasional resident who is locked out of their building.
I guess Carlton wouldn’t have a job anymore.
Thanks for posting, I was wondering what that term meant and if there was supposed to be a person on the other end of the video intercom or a chat bot or some other kind of digitized simulacra (a la Max Headroom). I’d have to see it in person in order to be convinced it was anything other than a normal intercom with the addition of (inexpensive, in the grand scheme of condo amenities, TBH) internet-based video cameras.
It’s worth noting that higher-end buildings, such as the Four Seasons Residences at 765 Market St. featured here the other day, have flesh-and-blood doormen.
Well for the amount of money one spends on HOA fees for the Four Seasons (as well as them having a hotel component that needs a doorman) that should be expected.
Regardless of the nice rooftop deck and modern amenities of the condo, it’s still located in arguably the sketchiest part of San Francisco. Anything on Market between 6th and Civic Center can be a harrowing experience as a pedestrian, with the open air drug market and vagrancy of some of the folks hanging out down there. I used to work at a WeWork on 7th and Market before it shut down, and each day I would encounter some truly distributing situations on my walking commute, including crime scene tape, etc. And this was during working daylight hours. Couldn’t imaging walking there at night. Might consider $625k to be an acceptable deal in 2018, but not today.
According to the listing for Unit 706 on realtor.com, the median price for this area is $830 per ft.² and the current asking for this unit amounts to $930 per ft.². The listing agent lives and works out of a brokerage in the South Bay.
The consensus seems to be that the target market for these units are “20-something coders making $150K+ as their first rung on the home ownership ladder”, but those people can get much more home for their money by changing into a fully-remote position at a company that embraces that employment model and buying outside of San Francisco in a city or town where their personal security won’t have to be as close to top of mind.
I don’t think I know the market for entry level condos in San Francisco, but I’d guess Unit 706, if it closes, will trade for close to $610,000.
Right, except for that pesky thing called having a good time. 20-something coders making $150K want to be in the middle of a big city with walkability, partying, great restaurants and music, and lots of dating options. They also want high quality tech job optionality to a company that may be in-person. SF is the likely best option for that outside of NYC.
The thing is that there’s a difference between “hip & edgy” vs just “gross & unpleasant” and SF has been trending away from the former and towards the latter. Artists are usually poor (and many may even be drug addicts), but that type of artistic poverty is what added spark to cities in the past and what provided the edginess that was appealing to the young. Tranq’ed out zombies are also poor and drug addicted, but have all the negatives and none of the positives to add to the city’s fabric.
Meh. I’ve walked through that area for a long time, off and on, and I don’t find it to be that much worse than it was in 2010. It was a complete no-man’s land back then with no services for hipsters. There are more now. A bunch of new, modern buildings have opened up (like this one).
I just moved out of 588 Minna after just 9 months. I’d lived at 6th and Folsom for 10 years, but the situation near 7th and Mission is unreal and traumatizing.
$585k
550k if they want it sold.
Does SS have any insight in the % of listings that are listed and not sold? Also, seems to be a lot of units on the market 30-90 days and higher.
UPDATE: Apples-to-Apples versus Asking for [this] Entry Level Condo