Newly constructed in 2020, a small but mighty condominium at Mission Modern has landed on the market for its inaugural resale. The one-bedroom residence — one of only four in the boutique development and featuring a private patio of generous scale — was purchased for $745,000 in March 2021. At the time, it was the least expensive sale in the building which struggled to find buyers in the midst the pandemic. Today, its $699,000 list price represents a 6.2 percent drop in value but we’re not writing off 3620 Cesar Chavez Street #104 as just another casualty of the market cool-down yet.

With regard to one-bedroom condos in the Inner Mission neighborhood, the median sales actually increased by 9.5 percent from Q1 2021 through Q4 2022 according to data reported by SFAR MLS. The number of active listings has fallen almost every month since the Fed’s rate hikes began, from 16 in April 2022 to only three at present. 3620 Cesar Chavez Street #104 is, in fact, the one new listing to appear on the market so far this year. It is also the lowest priced market-rate option by more than $100K (although it is considerably smaller and lacks on-site parking as well as a penthouse premium). 

Any prospective buyer waiting for the bottom of the market may find this to be a choice opportunity, if they can act fast. Without fail, home prices have increased citywide from January thru June for at least the past two decades. Already, an early start to the selling season boosted the median price of condos citywide last month, up 7.3 percent from December. Meanwhile, future interest rate hikes this spring threaten to take a bite out of purchasing power and exacerbate pent-up demand until an inevitable break kicks this growth cycle into full gear. It would appear now that sellers — not buyers — have time on their side.