The tenancy-in-common (TIC) market in San Francisco is a small one, with about a tenth of the condo volume at any given time. Buyers tend to shy away from TICs when there’s a glut of condo inventory, as the former are a bit more complicated. But if you’re looking for more space and a better location than your condo budget allows, you may want to consider one of the TICs currently on the market.
A total of 112 TIC interests sold from May 1 – October 9th, for an average of $1,250,000. Eighty percent were in buildings with three or more units, with the balance situated in two-unit buildings that can still eventually condo convert. (For more on TIC basics, check out this blog post.)
TIC buyers were no strangers to overbidding. They paid more than the list price in 42% of those recent sales, which is surprising for the corona market. Not surprising is the fact that most of the sales took place in the most popular neighborhoods—the Haight, Noe Valley, Mission Dolores, NoPa, Russian Hill and Pacific Heights.
But let’s get back to that total number of sales over the past several months. 112 TIC interests have sold and only 33 are in contract. However, there are currently 160 units on the market. I’m sensing some oversupply, which could put downward pressure on values.
If you’d like to explore your TIC options, I highly recommend contacting one of the handful of fractional financing lenders to figure out whether you can qualify. If you’re cool with all the details, start looking in your favorite neighborhoods for your next home. And please get in touch if you’d like any lender recommendations (firstname.lastname@example.org | 415.823.4656).
[Photo above of 30-34 Wayne #32 in Nob Hill courtesy of Carol Solfanelli at Compass Real Estate. That’s a 2BR/1BA with in-unit laundry and a view of Coit Tower for $765,000.)