Why a slice of San Francisco real estate is defying the city's sharp crash
Since the start of the pandemic, rising interest rates have battered real estate across the city. Some ZIP codes have seen price drops of up to 20 percent.
Concerns over crime haven't helped. A spike in burglaries, robberies, and homicides has left some l ongtime residents installing chicken wire to deter break-ins and considering a move out altogether.
But in 94122, 94116, and 94127, prices are creeping back up by between 2 and 3 percent — which equals tens of thousands of dollars.
The Sunset District, West Portal, and Miraloma Park are all seeing a rise in home prices, the new data from Zillow shows.
San Francisco still maintains a notoriously pricey housing market despite the condition the city is currently in.
The average home in San Francisco goes for between $1.5 million and $1.8 million, but compared to price dips everywhere else, it's good news for those neighborhoods.
Realtors say the west side is thriving thanks to family-friendly amenities, limited housing supply, and a strong demand for a suburban feel that comes with a city ZIP code.
'The Sunset is one of the last places in the city where you still see homes going over asking,' Allison Fortini-Crawford, a top agent with Sotheby's International Realty, told the San Francisco Chronicle.
'It's got bigger homes, flatter streets, and easy access to parks — a dream for young families.'
She added that due to a major shortage of new builds in the area, sellers feel little pressure to cut prices. They know they'll likely sell at asking price or over.
Eastern and central San Francisco have seen home price declines in part because they are oversaturated.
Too many condos that come with hefty HOA fees and limited space are sitting on the market.
'People realized during the pandemic that they wanted yards, quiet, and room to breathe,' Judson Gregory, of Compass Realty, told the outlet.
'The Sunset offers that — without leaving the city.'
Buyers actually began to see the Sunset District's appeal prior to the Covid-19 pandemic.
In 2014, the typical home in 94122 was worth around $900,000.
By 2018, that number had hit $1.4 million, and it's now closing in on $1.6 million, which is nearly 60 percent higher than its 2014 value.
Other neighborhoods like Russian Hill and Lower Nob Hill used to be equally priced, but they have since flatlined.
And realtors predict that rising interest rates and growing recession fears could cool the market further — including the currently hot west side.
'The west side isn't immune,' Fortini-Crawford warned.
'It's popular with first-time buyers, and they're the ones hit hardest by high mortgage rates.'
For now, competition for a home may not be like it once was, but it is still there.
'You used to get eight offers on a home. Now maybe it's just two or three,' she said.
'But remember — it only takes one.'
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