Kevin V. Nguyen

On paper, the condos at the Serif and OneEleven SF buildings in Mid-Market check off a lot of boxes for a first-time home buyer in San Francisco.

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On paper, the condos at the Serif and OneEleven SF buildings in Mid-Market check off a lot of boxes for a first-time home buyer in San Francisco.

They’re newly constructed, have great views and are stuffed with luxe amenities. In a city known for its <a href="https://sfstandard.com/2024/04/27/why-owning-a-home-in-san-francisco-has-never-cost-more/">exorbitant housing costs</a> and <a href="https://sfstandard.com/2024/04/08/san-francisco-new-housing-permits-pace/">dismal record on housing production</a>, these are the kind of move-in ready listings that would normally be grabbed quickly, particularly with the discount that comes from buying directly from the builder.&nbsp;

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They’re newly constructed, have great views and are stuffed with luxe amenities. In a city known for its <a href="https://sfstandard.com/2024/04/27/why-owning-a-home-in-san-francisco-has-never-cost-more/">exorbitant housing costs</a> and <a href="https://sfstandard.com/2024/04/08/san-francisco-new-housing-permits-pace/">dismal record on housing production</a>, these are the kind of move-in ready listings that would normally be grabbed quickly, particularly with the discount that comes from buying directly from the builder.&nbsp;

But these are not normal times. In downtown, a combination of a <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">mass office exodus</a> and interest rate spike has eliminated a large swath of would-be buyers from the market, resulting in condo prices falling across the board.

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But these are not normal times. In downtown, a combination of a <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">mass office exodus</a> and interest rate spike has eliminated a large swath of would-be buyers from the market, resulting in condo prices falling across the board.

A quick scan on Zillow highlights a handful of similar properties—mainly centered in SoMa— with the following qualities: Newly built, never occupied, and experiencing major price cuts.&nbsp;

A quick scan on Zillow highlights a handful of similar properties—mainly centered in SoMa— with the following qualities: Newly built, never occupied, and experiencing major price cuts.&nbsp;

Granted, these apartment-sized dwellings might not fit the stereotypical image of the American Dream, but they are still property one can own and trade (or rent out) down the line.&nbsp;

Granted, these apartment-sized dwellings might not fit the stereotypical image of the American Dream, but they are still property one can own and trade (or rent out) down the line.&nbsp;

People disembark a MUNI bus on in front of Serif SF at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined01_20240531-newemptycondos.jpg?w=1668" alt="A busy urban street scene with people walking, a modern multi-story building, trees, a city bus labeled &quot;Clean Air Vehicle,&quot; and scattered orange traffic cones." class="wp-image-280044"/><figcaption class="wp-element-caption">The Serif SF at 960 Market Street opened in 2022 during the latest residential market contraction, fueled by an exodus of office workers and high interest rates.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined01_20240531-newemptycondos.jpg?w=1668" alt="A busy urban street scene with people walking, a modern multi-story building, trees, a city bus labeled &quot;Clean Air Vehicle,&quot; and scattered orange traffic cones." class="wp-image-280044"/><figcaption class="wp-element-caption">The Serif SF at 960 Market Street opened in 2022 during the latest residential market contraction, fueled by an exodus of office workers and high interest rates.</figcaption></figure>

A sliding glass door opens to a solarium to the rooftop at Serif SF at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined02_20240531-newemptycondos.jpg?w=2500" alt="A modern room with large windows, couches, a person standing, bookshelves, a table with chairs, and some greenery inside and outside. The room has an outdoor view." class="wp-image-280045"/><figcaption class="wp-element-caption">A sliding glass door opens to a solarium to the rooftop at Serif SF at 960 Market St. The building is stuffed with other luxury amenities including a pet spa and sharable ZipCars.</figcaption></figure>

Historically, condos have served as a sort of stepping stone for younger buyers in between renting and owning a single-family home, said Robyn Kaufman, a longtime real estate agent who specializes in downtown high-rises. “The past two years have thrown a wrench in many of those plans,” she said.&nbsp;

Historically, condos have served as a sort of stepping stone for younger buyers in between renting and owning a single-family home, said Robyn Kaufman, a longtime real estate agent who specializes in downtown high-rises. “The past two years have thrown a wrench in many of those plans,” she said.&nbsp;

Since mortgages are still prohibitively expensive for many because of high interest rates, motivated sellers are beginning to acknowledge it’s time to meet buyers where they are. That means price cuts of more than 25% off the top of the market.&nbsp;&nbsp;

Since mortgages are still prohibitively expensive for many because of high interest rates, motivated sellers are beginning to acknowledge it’s time to meet buyers where they are. That means price cuts of more than 25% off the top of the market.&nbsp;&nbsp;

Builders of these new properties are also driven to get properties off their hands. “[Individual] sellers might not have the room or motivation to budge on their price,” Kaufman said. “But a developer does. They want the building to sell out as quickly as possible so they can get out.”&nbsp;

Builders of these new properties are also driven to get properties off their hands. “[Individual] sellers might not have the room or motivation to budge on their price,” Kaufman said. “But a developer does. They want the building to sell out as quickly as possible so they can get out.”&nbsp;

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In real estate, timing is everything. Consider the Serif, for example, which contains 242 units. The luxury complex, with views of Market Street on one side and Turk Street on the other, opened in 2022 in the midst of a residential market contraction. Today, it is still less than half occupied. As a result, studios originally priced at around $500,000 are now being listed for about $350,000.&nbsp;

In real estate, timing is everything. Consider the Serif, for example, which contains 242 units. The luxury complex, with views of Market Street on one side and Turk Street on the other, opened in 2022 in the midst of a residential market contraction. Today, it is still less than half occupied. As a result, studios originally priced at around $500,000 are now being listed for about $350,000.&nbsp;

Local developer Group I conceived of the project back when an influx of new housing was built to meet the demand of tech companies flocking to Mid-Market. The Serif includes a fitness center, a pet spa, a rooftop lounge, and even ZipCars for residents to share. The white modernist flatiron-style building is also connected to the newly opened 236-room Line Hotel and a branch of LA cult-favorite café Alfred Coffee on the ground floor.&nbsp;

Local developer Group I conceived of the project back when an influx of new housing was built to meet the demand of tech companies flocking to Mid-Market. The Serif includes a fitness center, a pet spa, a rooftop lounge, and even ZipCars for residents to share. The white modernist flatiron-style building is also connected to the newly opened 236-room Line Hotel and a branch of LA cult-favorite café Alfred Coffee on the ground floor.&nbsp;

A Market Street-facing condo on the market at Serif SF at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large is-resized"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined06_20240531-newemptycondos.jpg?w=2500" alt="A modern living room with wooden chairs around a black table, a large window, a plant, a white cabinet, and a vibrant painting on a white wall." class="wp-image-280049" style="width:670px;height:auto"/><figcaption class="wp-element-caption">At least half of the 242 units at the Serif SF are still on the market. </figcaption></figure>

The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined05_20240531-newemptycondos.jpg?w=2500" alt="The image shows several tall glass skyscrapers closely packed together, reflecting the sky and neighboring buildings. The buildings have a modern, sleek design." class="wp-image-280048"/><figcaption class="wp-element-caption">The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street. San Francisco&#8217;s eastern waterfront transformed in the last 20 years from an industrial center.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined05_20240531-newemptycondos.jpg?w=2500" alt="The image shows several tall glass skyscrapers closely packed together, reflecting the sky and neighboring buildings. The buildings have a modern, sleek design." class="wp-image-280048"/><figcaption class="wp-element-caption">The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street. San Francisco's eastern waterfront transformed in the last 20 years from an industrial center.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined05_20240531-newemptycondos.jpg?w=2500" alt="The image shows several tall glass skyscrapers closely packed together, reflecting the sky and neighboring buildings. The buildings have a modern, sleek design." class="wp-image-280048"/><figcaption class="wp-element-caption">The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street. San Francisco&#8217;s eastern waterfront transformed in the last 20 years from an industrial center.</figcaption></figure>

“You’re only going to get those sorts of amenities in downtown,” said realtor Nick Spangler, who showed The Standard another brand new condo down the street at 588 Minna St.&nbsp;

“You’re only going to get those sorts of amenities in downtown,” said realtor Nick Spangler, who showed The Standard another brand new condo down the street at 588 Minna St.&nbsp;

The seller purchased the unit last year for $475,000 in anticipation of moving to San Francisco, but has now listed it for sale at the same price after those plans fell apart.&nbsp;

The seller purchased the unit last year for $475,000 in anticipation of moving to San Francisco, but has now listed it for sale at the same price after those plans fell apart.&nbsp;

The building, known as OneEleven, is a collection of 39 units, and is also only about half full. When it first opened in 2021, online reviews skewered the property for its proximity to the corner of 7th and Market Street, which has <a href="https://sfstandard.com/2023/10/27/san-francisco-drug-crisis-worst-corner-un-plaza-sfpd-enforcement/">struggled with issues around drug dealing and crime</a>.&nbsp;

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The building, known as OneEleven, is a collection of 39 units, and is also only about half full. When it first opened in 2021, online reviews skewered the property for its proximity to the corner of 7th and Market Street, which has <a href="https://sfstandard.com/2023/10/27/san-francisco-drug-crisis-worst-corner-un-plaza-sfpd-enforcement/">struggled with issues around drug dealing and crime</a>.&nbsp;

But the <a href="https://www.sfchronicle.com/sf/article/s-f-new-hotels-troubled-street-18465754.php">recent reopenings of three hotels</a> across the street from OneEleven late last year have improved street conditions drastically, according to Spangler. During a recent visit last week, the entrance and alleyway flanking the property were clean and clear.&nbsp;

But the <a href="https://www.sfchronicle.com/sf/article/s-f-new-hotels-troubled-street-18465754.php">recent reopenings of three hotels</a> across the street from OneEleven late last year have improved street conditions drastically, according to Spangler. During a recent visit last week, the entrance and alleyway flanking the property were clean and clear.&nbsp;

Looking down at Market Street from the rooftop at Serif SF located at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined04_20240531-newemptycondos.jpg?w=2500" alt="This image shows a busy urban street lined with buildings, trees, and red bus lanes, with skyscrapers in the background under a clear blue sky." class="wp-image-280047"/><figcaption class="wp-element-caption">The luxury complex Serif which has spectacular views of downtown, is still less than half occupied and the studios originally priced at roughly $500,000 are now being listed near $350,000.&nbsp;</figcaption></figure>

“Everyone who’s toured recently has been pleasantly surprised,” Spangler said.

“Everyone who’s toured recently has been pleasantly surprised,” Spangler said.

According to Compass data, the median price for a downtown San Francisco condo right now is just shy of $1 million. In areas close to Van Ness and Civic Center, that number drops as low as $590,000. In contrast, the median price for a single-family home, depending on the neighborhood, ranges between $1 million to $6.7 million.&nbsp;

According to Compass data, the median price for a downtown San Francisco condo right now is just shy of $1 million. In areas close to Van Ness and Civic Center, that number drops as low as $590,000. In contrast, the median price for a single-family home, depending on the neighborhood, ranges between $1 million to $6.7 million.&nbsp;

Spangler and Kaufman are practicing what they preach to prospective buyers in choosing downtown over other neighborhoods. Spangler himself lives at One Rincon Hill and Kaufman at The Metropolitan—both skyscrapers erected in the 2000s as San Francisco’s eastern waterfront started its transformation from an industrial center.

Spangler and Kaufman are practicing what they preach to prospective buyers in choosing downtown over other neighborhoods. Spangler himself lives at One Rincon Hill and Kaufman at The Metropolitan—both skyscrapers erected in the 2000s as San Francisco’s eastern waterfront started its transformation from an industrial center.

Before then, the city’s condo stock was concentrated on the north side of the city, where the best views of the bay were. However, restrictive height and density limits meant new developments were scarce, thus driving sale prices and maintenance costs up as those buildings aged.&nbsp;

Before then, the city’s condo stock was concentrated on the north side of the city, where the best views of the bay were. However, restrictive height and density limits meant new developments were scarce, thus driving sale prices and maintenance costs up as those buildings aged.&nbsp;

Real estate agent Nicholas Spangler inside unit #705 at OneEleven at 588 Minna Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined03_20240531-newemptycondos.jpg?w=2500" alt="A tidy and brightly lit room with modern furniture features a man standing near a window. The room includes a sofa, round coffee table, large paintings, and houseplants." class="wp-image-280046"/><figcaption class="wp-element-caption">Real estate agent Nicholas Spangler inside a new condo for sale at OneEleven at 588 Minna Street. The seller is listing the home for the same price they paid for it last year. </figcaption></figure>

Real estate agent Robyn Kaufman in a soon to be on the market unit at The Metropolitan at 333 1st Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined08_20240531-newemptycondos.jpg?w=2500" alt="A woman stands in an empty, sunlit room with large floor-to-ceiling windows showcasing a cityscape of tall buildings, and she points towards the outside view." class="wp-image-280051"/><figcaption class="wp-element-caption">Real estate agent Robyn Kaufman in a soon to be on the market condo at The Metropolitan. In today&#8217;s market, she thinks the 1,200 square feet unit can fetch around $1.5 million. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined08_20240531-newemptycondos.jpg?w=2500" alt="A woman stands in an empty, sunlit room with large floor-to-ceiling windows showcasing a cityscape of tall buildings, and she points towards the outside view." class="wp-image-280051"/><figcaption class="wp-element-caption">Real estate agent Robyn Kaufman in a soon to be on the market condo at The Metropolitan. In today's market, she thinks the 1,200 square feet unit can fetch around $1.5 million. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined08_20240531-newemptycondos.jpg?w=2500" alt="A woman stands in an empty, sunlit room with large floor-to-ceiling windows showcasing a cityscape of tall buildings, and she points towards the outside view." class="wp-image-280051"/><figcaption class="wp-element-caption">Real estate agent Robyn Kaufman in a soon to be on the market condo at The Metropolitan. In today&#8217;s market, she thinks the 1,200 square feet unit can fetch around $1.5 million. </figcaption></figure>

Therefore, if you’re a buyer in the market, downtown is the place to go if you’re looking for the best value, Kaufman says. “Don’t just think of it as negotiating on price,” she said. “Depending on the developer, you can get credit back towards upgrades [renovations], HOA dues, or even bigger storage units.”&nbsp;

Therefore, if you’re a buyer in the market, downtown is the place to go if you’re looking for the best value, Kaufman says. “Don’t just think of it as negotiating on price,” she said. “Depending on the developer, you can get credit back towards upgrades [renovations], HOA dues, or even bigger storage units.”&nbsp;

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Whereas for truly motivated sellers, Kaufman said there’s a fine line between sparking a bidding war and languishing on the market.&nbsp;

Whereas for truly motivated sellers, Kaufman said there’s a fine line between sparking a bidding war and languishing on the market.&nbsp;

Recently, a $50,000 haircut helped move a sale along for her client at 333 Bush St., a rare commercial skyscraper with condos on the top seven floors.&nbsp;

Recently, a $50,000 haircut helped move a sale along for her client at 333 Bush St., a rare commercial skyscraper with condos on the top seven floors.&nbsp;

“At the end of the day, the buyer has to feel like they got a good deal too,” she said.

“At the end of the day, the buyer has to feel like they got a good deal too,” she said.

Brand new downtown condos are selling for deep discounts—or just sitting empty

Kevin Truong

When Oliver and Danielle Wang received the 2023 property tax bill for their San Francisco condo, they were aghast. The city had priced their unit in the Lumina — a glass-encased high-rise downtown — at more than $1.6 million.&nbsp;

When Oliver and Danielle Wang received the 2023 property tax bill for their San Francisco condo, they were aghast. The city had priced their unit in the Lumina — a glass-encased high-rise downtown — at more than $1.6 million.&nbsp;

By their back-of-the-envelope calculations based on recent sales of similar properties, that was 40% higher than the home’s market value. This meant a tax bill thousands more than what they thought they should be paying.&nbsp;

By their back-of-the-envelope calculations based on recent sales of similar properties, that was 40% higher than the home’s market value. This meant a tax bill thousands more than what they thought they should be paying.&nbsp;

San Francisco and other local governments allow residents to <a href="https://sfstandard.com/2023/12/26/want-to-lower-your-property-tax-bill-in-san-francisco-heres-what-to-know/">appeal a property assessment</a> using evidence of comparable sales. If successful at a hearing with the assessor’s office and an appeals board, the owner gets a property tax refund, with interest.&nbsp;

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San Francisco and other local governments allow residents to <a href="https://sfstandard.com/2023/12/26/want-to-lower-your-property-tax-bill-in-san-francisco-heres-what-to-know/">appeal a property assessment</a> using evidence of comparable sales. If successful at a hearing with the assessor’s office and an appeals board, the owner gets a property tax refund, with interest.&nbsp;

Professionals and commercial real estate owners have created a cottage industry navigating the complex and bureaucratic process, but the Wangs weren’t able to find a lawyer who would do it for them at a reasonable price. So, utilizing their technical expertise, they turned to AI.&nbsp;

Professionals and commercial real estate owners have created a cottage industry navigating the complex and bureaucratic process, but the Wangs weren’t able to find a lawyer who would do it for them at a reasonable price. So, utilizing their technical expertise, they turned to AI.&nbsp;

They built a tool, <a href="https://app.compfinder.app/signin?callbackUrl=https%3A%2F%2Fapp.compfinder.app%2Fpayments">CompFinder</a>, that uses AI to pull up real estate “comps.” The sales prices of these comps are accepted by the city as a benchmark for fair market value. The tool asks for the size, location, and age of the property, while allowing a user to write in specific features and amenities —&nbsp;such as a specific view, parking availability, or a swimming pool — to get more accurate comparisons.&nbsp;

They built a tool, <a href="https://app.compfinder.app/signin?callbackUrl=https%3A%2F%2Fapp.compfinder.app%2Fpayments">CompFinder</a>, that uses AI to pull up real estate “comps.” The sales prices of these comps are accepted by the city as a benchmark for fair market value. The tool asks for the size, location, and age of the property, while allowing a user to write in specific features and amenities —&nbsp;such as a specific view, parking availability, or a swimming pool — to get more accurate comparisons.&nbsp;

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/featured_20240531-newemptycondos.jpg?w=1908" alt="A person stands inside, silhouetted against floor-to-ceiling windows, overlooking a cityscape with tall, modern buildings and a bridge in the background." class="wp-image-280326"/><figcaption class="wp-element-caption">Condos in downtown San Francisco have yet to recover to pre-pandemic values due to remote work and spiking interest rates.</figcaption></figure>

For now, CompFinder results are limited to condos in San Francisco and San Jose.&nbsp;

For now, CompFinder results are limited to condos in San Francisco and San Jose.&nbsp;

While the market for single-family homes in San Francisco has remained relatively competitive, the market for downtown condos is a <a href="https://sfstandard.com/2023/12/08/heres-why-this-viral-san-francisco-condo-is-selling-for-nearly-half-price/">different story</a>. <a href="https://sfstandard.com/2024/06/02/san-francisco-homebuyers-find-best-deals-downtown/">Factors</a> including remote work, spiking interest rates, and public safety failures have depressed the condo market from its 2021 peak.

While the market for single-family homes in San Francisco has remained relatively competitive, the market for downtown condos is a <a href="https://sfstandard.com/2023/12/08/heres-why-this-viral-san-francisco-condo-is-selling-for-nearly-half-price/">different story</a>. <a href="https://sfstandard.com/2024/06/02/san-francisco-homebuyers-find-best-deals-downtown/">Factors</a> including remote work, spiking interest rates, and public safety failures have depressed the condo market from its 2021 peak.

“I’m seeing about a 10% drop in the last five years,” said Robyn Kaufman, a San Francisco broker specializing in sales of high-rise condos.&nbsp;

“I’m seeing about a 10% drop in the last five years,” said Robyn Kaufman, a San Francisco broker specializing in sales of high-rise condos.&nbsp;

The Wangs aren’t just the developers of CompFinder; they’re users too. When it came time for their assessment hearing, the couple used the tool to triangulate a new value for their unit and find comparable sales.&nbsp;

The Wangs aren’t just the developers of CompFinder; they’re users too. When it came time for their assessment hearing, the couple used the tool to triangulate a new value for their unit and find comparable sales.&nbsp;

“It actually was spot on to what the city adjuster gave,” Oliver said. “We were actually slightly better,” Danielle chimed in.&nbsp;

“It actually was spot on to what the city adjuster gave,” Oliver said. “We were actually slightly better,” Danielle chimed in.&nbsp;

The adjuster offered a new value within 5% of the Wangs’ estimate and was annoyed when they decided against accepting the deal.&nbsp;

The adjuster offered a new value within 5% of the Wangs’ estimate and was annoyed when they decided against accepting the deal.&nbsp;

“He was like, ‘We’re so close, what the hell?’ But he said it under his breath,” Oliver said. The next step was going to a full hearing, where the Wangs and the assessor would present their comps at the same time.

“He was like, ‘We’re so close, what the hell?’ But he said it under his breath,” Oliver said. The next step was going to a full hearing, where the Wangs and the assessor would present their comps at the same time.

“When we mentioned that, by the way, we built an AI tool to actually spit out our comps, and our justification, the whole hearing just kind of turned,” Oliver said. “It basically ended up turning into a 10-minute pitch.”

“When we mentioned that, by the way, we built an AI tool to actually spit out our comps, and our justification, the whole hearing just kind of turned,” Oliver said. “It basically ended up turning into a 10-minute pitch.”

In the end, the couple were able to lower their condo’s assessed value by more than $300,000, saving them $3,000 in taxes.&nbsp;&nbsp;

In the end, the couple were able to lower their condo’s assessed value by more than $300,000, saving them $3,000 in taxes.&nbsp;&nbsp;

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Peter Fatooh, president of S.F. Property Tax Appeals and a former member of the appeals board, said many inexperienced homeowners fail to choose comps that meet the narrow criteria accepted by city officials.&nbsp;

Peter Fatooh, president of S.F. Property Tax Appeals and a former member of the appeals board, said many inexperienced homeowners fail to choose comps that meet the narrow criteria accepted by city officials.&nbsp;

“It’s a tough road if you go by yourself,” Fatooh said of the appeals process. “The assessor is not going to help you, and if you choose the wrong comps, they’re gonna kick you in the ass.”

“It’s a tough road if you go by yourself,” Fatooh said of the appeals process. “The assessor is not going to help you, and if you choose the wrong comps, they’re gonna kick you in the ass.”

The Wangs hope CompFinder, which costs $20 to download, can save users thousands of dollars in property tax bills, or at least allow them to avoid the $60 appeal application fee. In San Francisco, property owners are typically required to appeal their values every year, which can lead to even more confusion.&nbsp;

The Wangs hope CompFinder, which costs $20 to download, can save users thousands of dollars in property tax bills, or at least allow them to avoid the $60 appeal application fee. In San Francisco, property owners are typically required to appeal their values every year, which can lead to even more confusion.&nbsp;

 Our office is dedicated to ensuring fair and accurate property assessments—it&#8217;s our responsibility to ensure taxpayers pay their fair share, no more and no less,&#8221; said Abby Fay, a spokesperson with the assessor&#8217;s office. &#8220;We take pride in our work educating taxpayers on California&#8217;s assessment laws and we value any tool that empowers people to engage in this process.&#8221;   

Our office is dedicated to ensuring fair and accurate property assessments—it's our responsibility to ensure taxpayers pay their fair share, no more and no less," said Abby Fay, a spokesperson with the assessor's office. "We take pride in our work educating taxpayers on California's assessment laws and we value any tool that empowers people to engage in this process."

Our office is dedicated to ensuring fair and accurate property assessments—it&#8217;s our responsibility to ensure taxpayers pay their fair share, no more and no less,&#8221; said Abby Fay, a spokesperson with the assessor&#8217;s office. &#8220;We take pride in our work educating taxpayers on California&#8217;s assessment laws and we value any tool that empowers people to engage in this process.&#8221;

Kathy Sittnick, who also owns a unit in the Lumina, found out about CompFinder from a neighborhood social media group. Sittnick and her husband purchased their condo in early 2021 and have seen its value dip considerably.&nbsp;

Kathy Sittnick, who also owns a unit in the Lumina, found out about CompFinder from a neighborhood social media group. Sittnick and her husband purchased their condo in early 2021 and have seen its value dip considerably.&nbsp;

“We weren’t distressed that the value went down,” Sittnick said. “The problem was units all around us were all selling for less, and the taxes we were paying kept increasing.”

“We weren’t distressed that the value went down,” Sittnick said. “The problem was units all around us were all selling for less, and the taxes we were paying kept increasing.”

She attempted to go it alone, spending many frustrating hours cross-checking applicable Zillow sales, before using CompFinder, which did the work in minutes. Her property tax bill was reduced, saving her around $5,000. Sittnick said the city officials at her hearing referenced the exact same comps she found by using the tool.&nbsp;

She attempted to go it alone, spending many frustrating hours cross-checking applicable Zillow sales, before using CompFinder, which did the work in minutes. Her property tax bill was reduced, saving her around $5,000. Sittnick said the city officials at her hearing referenced the exact same comps she found by using the tool.&nbsp;

Danielle (right) and Oliver Cui (left) pose for a portrait outside of their condo building at 338 Main St. in San Francisco on Saturday, Feb. 8, 2025. A couple who owns a condo in SF were hit by falling real estate prices and they wanted to lower their property taxes but ran into troubles. They built an AI-based tool to help.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/02/8432779001_aipropertytax_6.jpg?w=2000" alt="Two people stand side by side. One wears a dark green sweater, and the other a gray cardigan over a striped shirt. They are in front of a glass building." class="wp-image-369896"/><figcaption class="wp-element-caption">The Wangs ended up cutting around $300,000 from the assessed value of their property, saving thousands in taxes.</figcaption></figure>

In a follow-up call with the assessor, the Wangs learned that a major pain point for officials is that appealing homeowners submit comps that are unreasonable, then they must be educated during the hearing.

In a follow-up call with the assessor, the Wangs learned that a major pain point for officials is that appealing homeowners submit comps that are unreasonable, then they must be educated during the hearing.

“He does this, like, three times a week, and each hearing is four hours, so he spends most of his time giving the same lecture about how property evaluation works,” Oliver said. “At the same time, if you’re the taxpayer, how are you supposed to know? It’s like going up against a professional athlete on the basketball court.”

“He does this, like, three times a week, and each hearing is four hours, so he spends most of his time giving the same lecture about how property evaluation works,” Oliver said. “At the same time, if you’re the taxpayer, how are you supposed to know? It’s like going up against a professional athlete on the basketball court.”

The Wangs used the conversation with the assessor to improve their tool and learn more about how city officials value properties.&nbsp;

The Wangs used the conversation with the assessor to improve their tool and learn more about how city officials value properties.&nbsp;

“He said, ‘There&#8217;s a potential conflict of interest here because I&#8217;m teaching you how to fight me,’” Oliver said.&nbsp;

“He said, ‘There's a potential conflict of interest here because I'm teaching you how to fight me,’” Oliver said.&nbsp;

“He said, ‘There&#8217;s a potential conflict of interest here because I&#8217;m teaching you how to fight me,’” Oliver said.&nbsp;

The app that’s saving homeowners thousands in property tax

Liz Lindqwister

Condos account for the bulk of San Francisco’s new housing inventory. But with concerns about a possible recession, legions of <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">tech layoffs</a> and a downtown corridor that closely resembles a ghost town, nobody’s willing to buy—and it looks like <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">economists’ grim prediction</a> of an epic commercial real estate crash is already unfolding in San Francisco.&nbsp;

Condos account for the bulk of San Francisco’s new housing inventory. But with concerns about a possible recession, legions of <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">tech layoffs</a> and a downtown corridor that closely resembles a ghost town, nobody’s willing to buy—and it looks like <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">economists’ grim prediction</a> of an epic commercial real estate crash is already unfolding in San Francisco.&nbsp;

New data from Compass Real Estate Group indicates that the city’s Greater Downtown condo market is showing the devastating effects of remote work and tech’s economic woes.&nbsp;

New data from Compass Real Estate Group indicates that the city’s Greater Downtown condo market is showing the devastating effects of remote work and tech’s economic woes.&nbsp;

Looking at sales of two-bedroom units sold between August and November, condo prices in SF’s Downtown and SoMa District have slipped by 16% in the past year. It is a decline that far outpaces surrounding regions: Condo sales prices in the rest of San Francisco dropped by just 7% from 2021 to 2022.&nbsp;

Looking at sales of two-bedroom units sold between August and November, condo prices in SF’s Downtown and SoMa District have slipped by 16% in the past year. It is a decline that far outpaces surrounding regions: Condo sales prices in the rest of San Francisco dropped by just 7% from 2021 to 2022.&nbsp;

Condo prices in SoMa/Downtown are the lowest they’ve been since 2017.&nbsp;

Condo prices in SoMa/Downtown are the lowest they’ve been since 2017.&nbsp;

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Other factors point to a stagnating condo market in Downtown San Francisco, where most of the city’s new housing is being built—and, conversely, the region with the <a href="https://sfstandard.com/housing-development/sfs-downtown-condos-are-piling-up-and-pricing-down-as-housing-market-cools/">most number of empty condos</a> and <a href="https://sfstandard.com/business/empty-offices-are-dragging-down-san-francisco-home-prices/">empty office spaces</a>.&nbsp;

Other factors point to a stagnating condo market in Downtown San Francisco, where most of the city’s new housing is being built—and, conversely, the region with the <a href="https://sfstandard.com/housing-development/sfs-downtown-condos-are-piling-up-and-pricing-down-as-housing-market-cools/">most number of empty condos</a> and <a href="https://sfstandard.com/business/empty-offices-are-dragging-down-san-francisco-home-prices/">empty office spaces</a>.&nbsp;

Compass data shows Downtown condos also tend to stay on the market longer, averaging 65 days on the market, compared with the rest of the city’s 40-day average. The difficulty in selling these units—combined with the high number of condo vacancies and the lack of demand for them—means that the city’s Downtown neighborhood now has a condo inventory (or “Monthly Supply of Inventory”) more than twice as high as the rest of the city.&nbsp;

Compass data shows Downtown condos also tend to stay on the market longer, averaging 65 days on the market, compared with the rest of the city’s 40-day average. The difficulty in selling these units—combined with the high number of condo vacancies and the lack of demand for them—means that the city’s Downtown neighborhood now has a condo inventory (or “Monthly Supply of Inventory”) more than twice as high as the rest of the city.&nbsp;

In other words, it would take double the amount of time to sell all the vacant units in the Greater Downtown region than in the rest of San Francisco.&nbsp;

In other words, it would take double the amount of time to sell all the vacant units in the Greater Downtown region than in the rest of San Francisco.&nbsp;

Luxury condo sales, in particular, took a huge hit during the pandemic and are now selling at a <a href="https://sfstandard.com/housing-development/sfs-downtown-condos-are-piling-up-and-pricing-down-as-housing-market-cools/">fraction of their previous listing prices</a>—a statistic that is especially true in SoMa and Downtown SF.&nbsp;

Luxury condo sales, in particular, took a huge hit during the pandemic and are now selling at a <a href="https://sfstandard.com/housing-development/sfs-downtown-condos-are-piling-up-and-pricing-down-as-housing-market-cools/">fraction of their previous listing prices</a>—a statistic that is especially true in SoMa and Downtown SF.&nbsp;

Just 19% of SoMa/Downtown condos sell over the final list price, compared with 40% of condo sales outside of this region. And the median sales price for Downtown condos sits at 4% below the original list price, according to Compass.

Just 19% of SoMa/Downtown condos sell over the final list price, compared with 40% of condo sales outside of this region. And the median sales price for Downtown condos sits at 4% below the original list price, according to Compass.

SF condo prices continue to drop, but it’s the worst in this neighborhood

New listings of homes for sale in San Francisco are <a href="https://www.compass.com/marketing-center/editor/v2/flipbook/934cb09b-0e29-4946-b4f8-cf1bda852147" target="_blank" rel="noreferrer noopener">down more than 40% from last year</a>, a slowdown that persists even amid signs of rising buyer interest.

New listings of homes for sale in San Francisco are <a href="https://www.compass.com/marketing-center/editor/v2/flipbook/934cb09b-0e29-4946-b4f8-cf1bda852147" target="_blank" rel="noreferrer noopener">down more than 40% from last year</a>, a slowdown that persists even amid signs of rising buyer interest.

Patrick Carlisle, a chief market analyst at Compass, attributes this to a phenomenon he termed “the mortgage lock-in.” Essentially, people who purchased their homes with, say, a 3% interest rate are now looking at homes with mortgage rates that have more than doubled.

Patrick Carlisle, a chief market analyst at Compass, attributes this to a phenomenon he termed “the mortgage lock-in.” Essentially, people who purchased their homes with, say, a 3% interest rate are now looking at homes with mortgage rates that have more than doubled.

“That’s shocking to a lot of people, and that has convinced a fair number of potential home sellers not to sell,” Carlisle said.&nbsp;

“That’s shocking to a lot of people, and that has convinced a fair number of potential home sellers not to sell,” Carlisle said.&nbsp;

Home prices have dipped some 20% year over year in San Francisco, a data point that has caused sellers consternation alongside broader worries about the city’s economic health. But the numbers today are compared with the “frenzied, absurd, peak” the market experienced in 2022, according to Carlisle.&nbsp;

Home prices have dipped some 20% year over year in San Francisco, a data point that has caused sellers consternation alongside broader worries about the city’s economic health. But the numbers today are compared with the “frenzied, absurd, peak” the market experienced in 2022, according to Carlisle.&nbsp;

A fuller picture comes with more data. Home prices have been essentially flat since the pandemic hit, and they are up 81% over the last 10 years.&nbsp;

A fuller picture comes with more data. Home prices have been essentially flat since the pandemic hit, and they are up 81% over the last 10 years.&nbsp;

“There’s just a small group of people who happened to buy at that peak, unlucky as they might be,&#8221; Carlisle said. &#8220;But it doesn’t apply to the vast majority of homeowners.&#8221;

“There’s just a small group of people who happened to buy at that peak, unlucky as they might be," Carlisle said. "But it doesn’t apply to the vast majority of homeowners."

“There’s just a small group of people who happened to buy at that peak, unlucky as they might be,&#8221; Carlisle said. &#8220;But it doesn’t apply to the vast majority of homeowners.&#8221;

Home sales fell off a cliff in the second half of last year as interest rates rose and mortgages became more expensive. But there are signs that homebuyers are coming out of hibernation, with an increasing number of properties receiving multiple offers.

Home sales fell off a cliff in the second half of last year as interest rates rose and mortgages became more expensive. But there are signs that homebuyers are coming out of hibernation, with an increasing number of properties receiving multiple offers.

Boom and Bust&nbsp;

San Francisco has weathered numerous economic storms in the last 40 years: the 1989 Loma Prieta earthquake, the early 2000s dot-com bubble burst, the 2008 housing crisis and the <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">more recent tech bust</a>. Each period of volatility flung the real estate market into overdrive, before prices fell and markets crashed once more.&nbsp;&nbsp;

San Francisco has weathered numerous economic storms in the last 40 years: the 1989 Loma Prieta earthquake, the early 2000s dot-com bubble burst, the 2008 housing crisis and the <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">more recent tech bust</a>. Each period of volatility flung the real estate market into overdrive, before prices fell and markets crashed once more.&nbsp;&nbsp;

“In every time there’s an upcycle and a boom, there becomes a narrative—not just in the San Francisco Bay Area—where people come forward and say that the world has changed,” said Carlisle, who noted that boom times can lead to “irrational exuberance,” or excessive optimism about the markets.&nbsp;

“In every time there’s an upcycle and a boom, there becomes a narrative—not just in the San Francisco Bay Area—where people come forward and say that the world has changed,” said Carlisle, who noted that boom times can lead to “irrational exuberance,” or excessive optimism about the markets.&nbsp;

Conversely, during down cycles, the opposite unfolds into a sort of irrational pessimism, according to Carlisle.&nbsp;&nbsp;&nbsp;

Conversely, during down cycles, the opposite unfolds into a sort of irrational pessimism, according to Carlisle.&nbsp;&nbsp;&nbsp;

Real estate price fluctuations tend to follow broader macroeconomic trends, such as rising interest rates or the 2008 national housing market collapse. San Francisco’s proximity to Silicon Valley and its position as a tech powerhouse means the Bay Area real estate market is particularly sensitive to local tech-driven market trends as well.

Real estate price fluctuations tend to follow broader macroeconomic trends, such as rising interest rates or the 2008 national housing market collapse. San Francisco’s proximity to Silicon Valley and its position as a tech powerhouse means the Bay Area real estate market is particularly sensitive to local tech-driven market trends as well.

READ MORE: <a href="https://sfstandard.com/research-data/san-francisco-dot-com-bubble-burst-pandemic-tech-stocks-nasdaq/">Is San Francisco on Track for Another Dot-Com Bust?</a>

READ MORE: <a href="https://sfstandard.com/research-data/san-francisco-dot-com-bubble-burst-pandemic-tech-stocks-nasdaq/">Is San Francisco on Track for Another Dot-Com Bust?</a>

SF’s ties to dot-com startups, for example, exposed the city to financial volatility in the early 2000s as the bubble burst. Today, San Francisco’s Covid recovery has faltered after the shift to remote work gutted Downtown San Francisco and emptied office buildings.&nbsp;

SF’s ties to dot-com startups, for example, exposed the city to financial volatility in the early 2000s as the bubble burst. Today, San Francisco’s Covid recovery has faltered after the shift to remote work gutted Downtown San Francisco and emptied office buildings.&nbsp;

Downtown Troubles Continue

<h2 class="wp-block-heading" id="h-downtown-troubles-continue">Downtown Troubles Continue</h2>

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<h2 id="h-downtown-troubles-continue">Downtown Troubles Continue</h2>

Brand new downtown condos are selling for deep discounts—or just sitting empty

The app that’s saving homeowners thousands in property tax

SF condo prices continue to drop, but it’s the worst in this neighborhood

San Francisco home listings down 40% as ‘mortgage lock-in’ scares off sellers

Empty offices are dragging down San Francisco home prices

Search Results for: downtown condos

Brand new downtown condos are selling for deep discounts—or just sitting empty

The app that’s saving homeowners thousands in property tax

SF condo prices continue to drop, but it’s the worst in this neighborhood

San Francisco home listings down 40% as ‘mortgage lock-in’ scares off sellers

Empty offices are dragging down San Francisco home prices