San Francisco Real Estate - Residential

New developments in San Francisco

A reader asks:

Do you foresee a change in the market in the next few years with all of the new developments in San Francisco? How do you think it will effect the market?

Reply:

Any time there is a large increase in supply and the demand does not increase at the same pace it does effect the market. In San Francisco each area is a sub-market. So the building in the South of Market area the the 3rd street corridor is going to primarily effect those areas, especially the "older" contemporary projects. It will probably not effect the condos in Victorian or older, smaller buildings since that is a different profile of buyer.

Buyers who like the charm of Victorians and older properties usually are not willing to go into new projects. I doubt it will effect the market in established markets of the north part of the City including Pacific Heights, Marina, Cow Hollow, Presidio Heights, Russian Hill, Telegraph Hill and Nob Hill. These areas still lack adequate supply for the demand.

The buyers that I have worked with in the established areas of San Francisco want to live in those areas and are not willing to go to the newer complexes out of these areas. At the same time, the buyers who like the new projects and easy access to the 280 Freeway and the Bay Bridge want to live in that area of town. Here is an article from the San Francisco Business Times showing the residential development pipeline of projects that were under construction, or were approved and in the planning stages.

So far the demand is keeping up with the supply but this is the first time since I have been a realtor that we have seen so many units coming online at the same time. We will have to wait and see.

- Janis Stone

posted by SFResidence.com @ 7:51 AM