Only 40 Percent More Homes on the Market in S.F. Than Usual

From The Chron’s Laura Waxmann, S.F.’s luxury condo market is cooling. Here’s why it might be a good time to buy, twelfth
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According to [San Francisco real estate broker Mike] Basham, the pre-pandemic influx of new luxury units in the San Francisco market was due to several factors: interest rates were at “all-time lows,” and international wealth was pouring into the city and other urban areas, he said.
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But a lot has changed since then…foreign investment also appears to have retreated from San Francisco to some degree. Across the country, the number of homes bought by international buyers in 2023 reached a 14-year low, according to data published by the National Association of Realtors. Patrick Carlisle, a chief market analyst with real estate firm Compass, said that, until recently, new condos had been very appealing to foreign investors.
“In San Francisco, they liked the idea of having condos because that means they don’t have to live there, and they know the building’s being taken care of and there is security. They could rent it out and that sort of thing,” Carlisle said. “But, of course, that demographic has been hit very hard as far as demand: The pandemic happened, which was a huge discouragement. U.S.-China relations have been going down the tube for four years. And China has cracked down for years on allowing money to leave the country.”
Compounding the retreat of foreign investment are the recent headlines on the challenges now facing San Francisco…a string of notable retailers have closed downtown locations, citing crime and worsening quality-of-life issues.
“You can imagine that those issues probably impact foreign buyers more than they do local buyers,” Carlisle said.

The whole thing is worth reading just for the specifics about vacancies in some of the city’s luxury, ultra luxury and über luxe condo towers, and how long those units have been vacant.