The number of 5+ unit multi-family building sales in Q3 2024 was substantially higher than in Q3 2023, continuing the trend seen in Q2.
Macroeconomically, the big news is that the Federal Reserve Bank dropped its benchmark rate for the first time since 2020, with many analysts expecting one or more additional cuts before the end of the year. Interest rates have been trending lower, but remain volatile.
Virtually all standard metrics of value continue to reflect declines in values in 2024 YTD from previous years, especially from before the pandemic. Apartment rents have been gradually rising in 2024, but are relatively unchanged on a year-over-year basis, and remain well below prepandemic rates.
The office-building vacancy rate continues to increase, office attendance rates remain near historic lows, and the number of employed residents in San Francisco is approximately 7% below the pre-pandemic count – all major factors in SF apartment demand and rent rates.
As of early October, there were 77 5+ unit apartment buildings listed for sale – with no offer accepted – with a median size of 6730 square feet, a median list price of $2,600,000, and a median days on market of 89 days: 60 of the 77 active listings were for buildings of 5 to 16 units. 33 properties were listed as being in contract (pending sale), with a median building size of 9040 square feet, a median list price of $3,250,000, and a median days on market prior to offer acceptance of 49 days.
