The top 3 property sales in San Francisco indicate that 2022 was the year of the buyer.
Ever wondered of the top 3? Well, that is an interesting thing to learn, so let’s talk about it!
Compared to 2021, 2022 was a drastically different year for real estate. The average time it took to sell a home in San Francisco last year was 16 days, and 72.9% of those sales were above the asking price. That madness came to an end in 2022 as a result of circumstances like rising interest rates and a slump in the IT industry, which gave buyers of homes more clout in the second half of the year.
The priciest property sales in San Francisco in 2022 provide as evidence of this change in power. These residential sales, which are listed on the multiple listing service, even if they show purchases in the tens of millions, do not reflect the feeding frenzy luxury real estate saw in 2021.
The three major winners in 2022 show what San Francisco real estate agent Alexander Clark, founder of theFrontSteps, calls a “general shake-up” in the SF metro. “What stands out is the shift in dynamics of the market beginning in June of this year,” he said. “That is when rates really started to climb, and buyers became increasingly more stubborn.”
Only one of the top three on-market sales was subjected to the humiliation of a below-list offer. It appears that in 2022, the ferocious overbidding that marked 2021 may have subsided.
For a change, a single-family mansion wasn’t the most expensive transaction of the year; instead, it was a pair of adjacent penthouse condos. Former Secretary of State (and Theranos investor who was deceived) George Shultz previously united these units in the Summit tower, known as the “crown jewel” of the San Francisco skyline, for use as one residence. He resided there with his wife Charlotte.
A north penthouse (No. 3201) asking $17 million and a south penthouse (No. 3202) asking $12 million) were both offered as part of the property. More than 10,000 square feet of panoramic vistas are provided by the units taken as a whole. Someone paid cash for both of them, probably intending to live in them together in the Shultz family’s manner. The $29 million transaction, which is actually the most expensive on-market sale this year, made news as the most expensive condo sale in San Francisco in 2022.
However, it should be noted that this sale does not involve an overbid transaction. The amount requested, $29 million in total, was paid in full.
The co-op at 2006 Washington St., No. 2, which was advertised for $30 million in January, had a significant price reduction to $19 million in September, and finally sold in November for that amount. It was the second most expensive public sale in San Francisco this year.
Located in one of Pacific Heights’ most recognized trophy structures, a 1920s skyscraper designed by Conrad Alfred Meussdorffer, the residence is a luxurious four-bedroom flat with six terraces, 12-foot ceilings, and two parking spaces.
Only one home currently on the market made the list of top sales and was likewise sold for less than the asking price. The mansion has two addresses because a remodel that was supposed to move the front door to 2895 Broadway is still ongoing. There are eight bedrooms and 12 bathrooms located inside the ancient Gold Coast residence. The whole package for this purchase included the designs for the remodel, a project designed by Snohetta (SFMOMA) and Troon Pacific (whose work is identifiable in LEED-certified new construction in the city’s priciest areas). The purchaser acquired a 12,000 square foot existing mansion with authorized architectural designs that would allow for an expansion to 20,000 square feet.
It was originally marketed for $29.5 million, but was later taken off the market and relisted a few months later with a $20 million sale price. At last, this listing was sold for $17 million.
What’s coming in 2023?
Due to interest rate increases and the IT downturn that made 2022 so substantially different from 2021, experts anticipate that 2023 will begin similarly.
I suspect it will be more of the same as we come to a place of balance. I suspect sellers that were unrealistic might finally come to grips that the market shifted under their feet, they’ll adjust their prices (down) and buyers will pounce,” Clark says.
“Buyers are still hanging out trying to time the bottom, and then, as is almost always the case in SF, many of them are going to miss it.” he then added.