Real Estate Overview

Mortgage rates have recently dropped to their lowest level in over a year, even amid significant market volatility. These lower rates have a notable impact on the cost of homeownership for those financing their purchase, and if the trend continues, it could boost market activity—not only for buyers but also for sellers who have been hesitant to list due to the mortgage lock-in effect. Following the usual seasonal pattern, the market cooled over the summer, slowing down from the typically active spring season. New listings and sales decreased, overbidding became less common, and homes took longer to go under contract. While the median house sales price often dips in the summer after peaking in spring, it still remained higher year-over-year, as did the median condo sales price, which saw a jump in July. August has seen increased buying opportunities, particularly at the lower end of the market, thanks to these lower interest rates.

There are three factors that are playing into the minds of buyers in the city since January - interest rates, return to work, and growth of AI opportunities. With interest rates becoming more appealing, we're expecting even more activity in Q4. Year over year, the number of 2024 sales was up about 12% from 2023, but home sales of $2M+ saw much larger percentage gains.

In 2022, Christie's experienced an extraordinary year, achieving $8.4B in sales of art and luxury items. The Paul Allen Visionary Sale and The Getty's auctions set high benchmarks for 2023, which saw auction sales amounting to $5.02B, marking a 26% decline. Private sales reached $1.2B, while luxury sales, including jewelry, handbags, watches, and wine, contributed $1B. Despite this, the luxury market exhibited caution, with global buyers demonstrating increased selectivity.

Laurene Powell Jobs just bought the most expensive home in SF history for $70M!

The most expensive condo was 2288 Broadway St #8 which closed for $16,000,000 after 12 days on the market with an original list price of $12,900,000. At 3,555 square feet, this Pacific penthouse sold at $4,500.70 per foot.

I'm getting a lot of questions about the recent legislation so I wanted to provide a summary. Please feel free to reach out to me to discuss how this impacts our relationship.

NAR agreed to create a new MLS rule prohibiting offers of compensation on the MLS. This would mean that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals. NAR also agreed to create a new rule requiring MLS participants working with buyers to enter into written agreements with their buyers before the buyer tours a home.

If you are a San Francisco voter, please be sure to vote NO on Prop 33.

Here are four key changes to San Francisco real estate law that may have a direct impact on your home:

• Renters in California will no longer be asked for a security deposit larger than one month's rent.
• The Empty Homes Tax was approved by San Francisco voters on November 8, 2022 and becomes effective on January 1, 2024. Generally, it imposes a tax on keeping certain residential units vacant for more than 182 days in a calendar year.
• "Flippers" of residential 1 to 4 properties must disclose recent repairs and renovations to the property in addition to all other existing disclosures. Applies to properties that are resold within 18 months of closing. Standard TDS categories, exemptions and cancellation rights apply.
• Allows local agencies to adopt ordinances to allow the separate conveyance of an ADU from the primary residence as a condominium.

The Island is in CONTRACT! Lots of speculation, but only one buyer. 🤐

In prime Pacific Heights, this elegant co-op features 3 beds, 3.5 baths, and Bay views. Inside, period details and classic proportions set the stage for gracious entertaining. Two elevators provide direct access to a private vestibule and foyer. I sold this home for $4,225,000 on August 1st.

I'm partnering with Lynn Bell to sell the final 10% of The Shipyard: single-family homes around $1M and 77 new condos at The Madison starting at $416,000. Visit our new website as we represent Lennar.

Be sure to see my ass at 47th and Noriega. Never in a million years would I ever think of saying that!

We're now open at 200 Brannan Street. After 3.5 years as the President of the global network, I'm still affiliated with Christie's in San Francisco backed by Sereno Group, Northern California's largest independent brokerage.

Our team's new website in partnership with the real estate arm of Christie's famed auction house. Bay Group has expertise throughout the San Francisco Bay Area from San Francisco to Oakland, Marin to Truckee, and even Alameda.

Christie’s International Real Estate has successfully marketed high-value real estate around the world for more than 30 years. Through its invitation-only Affiliate network spanning nearly 50 countries and territories, Christie’s International Real Estate offers incomparable services to a global clientele at the luxury end of the residential property market.