Despite persistent negativity hanging over the market (or perhaps because of it?), 2016 has been a banner year for owners of San Francisco apartment buildings. Rents have dropped and inventory has risen, but sale prices now sit at all time highs.
And if asking prices of buildings currently listed for sale are any indication, we may see further records as we wrap up the final few months of the year.
According to CoStar data, sale prices in August hovered around $470 per foot, nearly double pricing we saw just six years ago at the tail end of 2010.
That's high, but 10% below the average asking price for apartments currently listed on MLS. Throw in off-market deals which I am seeing at levels even higher than that, and buyers looking to swoop in on deals at the end of the year may be sorely disappointed.