Why SF Condos Favor Buyers While Houses Favor Sellers Right Now

If you've been following the San Francisco real estate market, you've probably noticed something unusual: condos and single-family homes are behaving very differently. While condo buyers often have more negotiating power, many single-family homes continue to attract strong demand and multiple offers.

So what's causing this split market? Let's take a closer look.

Condo Buyers Have More Choices

One reason condos currently favor buyers is inventory. Many neighborhoods have a larger supply of condos available compared to single-family homes, giving buyers more options and reducing competition.

When buyers have more choices, they can:

• Take more time making decisions
• Negotiate price and terms
• Request credits or repairs
• Compare multiple properties before submitting an offer

This creates a more balanced—or even buyer-friendly—environment in many condo segments.

HOA Fees Impact Affordability

Many San Francisco condos come with monthly HOA dues that can significantly increase a buyer's monthly payment.

As mortgage rates remain higher than the ultra-low rates seen a few years ago, buyers are paying closer attention to their total monthly housing costs. Higher HOA fees can make some condos less attractive, which may reduce demand and increase negotiating opportunities.

Single-Family Homes Remain in Short Supply

While condo inventory has grown in many areas, desirable single-family homes remain relatively scarce.

Many homeowners who locked in historically low mortgage rates are choosing not to sell, keeping inventory limited. At the same time, many buyers continue to prioritize features that are typically found in houses, including:

• Private outdoor space
• Additional bedrooms
• Home offices
• Parking
• Greater privacy

This imbalance between supply and demand continues to support sellers.

Lifestyle Preferences Have Shifted

Since the rise of hybrid and remote work, many buyers have placed greater value on space and flexibility. Single-family homes often better accommodate these lifestyle needs, increasing competition for well-priced properties.

Meanwhile, condos continue to appeal to many buyers, but demand is generally spread across a larger number of available listings.

What This Means for Buyers and Sellers

If you're buying a condo, you may have opportunities to negotiate pricing, contingencies, or seller credits.

If you're buying a single-family home, it's important to be prepared for competition, especially for homes that are well-priced and move-in ready.

For sellers, understanding which segment of the market you're in is critical. Condo sellers may need a stronger pricing and marketing strategy, while house sellers may benefit from continued buyer demand.

Final Thoughts

San Francisco isn't a one-size-fits-all market. Right now, condos and single-family homes are telling two very different stories. Buyers looking at condos may find more leverage and options, while sellers of desirable single-family homes continue to benefit from limited inventory and strong demand.

Understanding these market dynamics can help buyers and sellers make smarter decisions and set realistic expectations in today's market.

— Brooke Lau, SF Bay Area Realtor®