A once-coveted San Francisco mansion at 2626 Larkin Street has sold for a sum that's half of its original asking price. After being listed over a year ago for $20 million, the Russian Hill property, boasting breathtaking city and bay views, recently closed for a sobering $10 million. The selling price marks a striking departure from its 2020 sale price of $20 million and an even steeper drop from its 2018 price tag of $25 million, as reported by Compass Real Estate.
Experts in the field are calling the 50% price cut "very unusual," with Patrick Carlisle, Compass's chief market analyst, noting that high mortgage rates have to particularly affect all buyers, in turn making even deep-pocketed novely reachers more circumspect about lavish expenditures. Nina Hatvany from Compass, who could not comment specifically due to a nondisclosure agreement, previously told the Real Deal, as cited by SF Chronicle, that the owners had upgraded to smart-home technology and added two car lifts to a three-car garage, among other luxury enhancements.
Amidst the landscape of changing values, Hatvany has observed that "some sellers are more willing to take offers below their asking price." This trend coincides with a general downturn in San Francisco's median home sale prices, which have regressed to levels not seen since 2018, falling below $1.6 million this year, according to recent Compass data mentioned in an article by SFGate. While overbidding continues to be prevalent, the condo market, in particular, has seen its fair share of struggle, with units like 2222 Hyde St. No. 1 selling for far below their previous sales price 15 years prior.
Data shows that the tail-end of the year may prompt buyers to actively seek deals, and this environment is echoed in Hatvany's observation that the end of the year "brings out buyers seeking a 'deal' and sellers willing to participate," as revealed in an interview with SF Chronicle. Regardless, the market's future remains a subject of speculation with uncertain outcomes, especially as the city's economic indicators pivot to a potentially more positive position in 2024.