Houses in San Francisco are always in demand among buyers. And this property type has stood its ground during our current recession—in fact, the average price of a house from June 1 – August 15th has increased by 6.7% to $2,141,356 in comparison to the same time in 2019.
But single-family home sellers are no strangers to the dreaded price reduction decision. Some homes come on the market with high prices in comparison to their comparable sales; it’s no secret that there’s a tendency for homeowners to believe their house is superior for one reason or another.
I took a look at all the houses that sold from June 1 through August 15th and discovered that 17% sold after having at least one price reduction.
A quarter of these reduced homes changed hands for up to $1.5M. But 58.5% sold in the $1.5M-$3M range, which shows you where there may be a soft spot in this market if a home sits for a while.
Most of the reductions were scattered among various neighborhoods. However, there were two neighborhoods that saw more frequent price reductions—Noe Valley in the $2.6M-$5,375,000 range, and Eureka Valley from $2.1M-$3.4M. Future sellers at these price points, take heed.
The awards for steepest reductions prior to closing go to three homes in the north end of town:
145 25th Avenue (Lake)
Orig Price: $4,295,000
Reduced: $4,080,000 | $3,799,000
Days on market (DOM): 236
123 Laurel (Presidio Heights)
Orig Price: $6,750,000
2837 Greenwich (Cow Hollow)
Orig Price: $5,500,000
Reduced: $5,200,000 | $4,995,000 | $4,500,000
If you’re in those upper price ranges and you see a home spending time on the market, stick with it and you can probably find the sweet spot that will satisfy buyer and seller.