Once-notoriously high San Francisco home prices are dropping, but few—if any—as precipitously as one property near Downtown.
A two-bedroom, two-bath condo at 900 Bush St., just blocks north of the city’s notorious Tenderloin neighborhood, can be yours for $399,000. That’s 47% less than when it was first listed just four months ago, at $758,000.
The fire-sale deal drew considerable attention on social media, with a post on X about the home’s rock-bottom price drawing more than a million views.
“This is crazy; my little listing’s viral,” said agent Cara Cavanaugh.
She pointed to several larger factors that have contributed to the condo’s precipitous price drop.
In July, the Federal National Mortgage Association, also known as Fannie Mae, stopped purchasing mortgage loans for homes in buildings with significant deferred maintenance, meaning the building isn’t being kept up.
The move aimed to protect people buying condos—many of whom are first-time home buyers—from skyrocketing repair costs and dangerous structural damage.
The building at 900 Bush St. has a waterproof membrane between the residences and the parking garage, according to Cavanaugh, who added that she is unaware to what extent it has been maintained. She explained that poor upkeep could potentially lead to water leaking into the garage.
“Over time, water creates problems,” Cavanaugh said.
Fannie Mae buys mortgages from other lenders to make home loans more affordable, which is particularly important for people who can’t afford large down payments, such as first-time, younger homebuyers.
Such buyers are being squeezed since the Federal Reserve raised interest rates last year in order to combat surging inflation. This has in turn forced some sellers to lower prices.
That’s what happened with apartment 614 at 900 Bush St., Cavanaugh said.
The relatively low price may also be an opportunity for those looking to invest, she said. The real estate agent is betting that the property’s value will eventually increase. So anyone in a position to buy it while swallowing high interest rates for a few years stands to gain, she said.
“If they can hold the fort for 24 to 36 months, they’re going to make a few hundred thousand,” Cavanaugh said.
In the meantime, they’ll have to cover $1,200 a month in homeowners association fees. But according to the listing, the building includes a gym, secured parking, a door attendant and other security.