T
he Sunset District in San Francisco is bucking the trend of a sluggish housing market, with homes selling at nearly pre-pandemic speeds. According to Redfin data, homes in the 94122 and 94116 ZIP codes sold in a median of two weeks between June and August 2024, similar to the same period in 2019. The adjacent 94127 ZIP code also showed strength, with homes selling in a median of 14 days this year.

    In contrast, most other neighborhoods in San Francisco are seeing longer sales periods. Across the city, the overall median time to find a buyer jumped to 35 days in 2024, up from just 24 days in 2019. Redfin's data highlights the sluggish state of the housing market in San Francisco and California as a whole.

    The Sunset District's relative affordability and convenience continue to attract buyers, with typical home prices ranging between $1.4 million and $1.5 million, according to Zillow. The neighborhood boasts small commercial centers, easy access to Golden Gate Park, and proximity to the airport, making it an attractive option for those seeking a balance of affordability and amenities.

    In stark contrast, homes in upscale neighborhoods like Pacific Heights and the Marina District are seeing a significant slowdown. Data from Redfin shows that homes in these areas took a median of 55 days to sell between June and August 2024, more than double the 20-day median in 2019. Experts attribute this slowdown to sky-high prices and rising interest rates.

    The combination of high prices and rising mortgage rates has made it difficult for buyers and sellers to close deals in these areas. Sellers are being more selective about offers, unwilling to take a loss on significant investments. Some are holding out in hopes of lower mortgage rates, unwilling to settle for a deal that would require them to take on a much higher monthly payment.

    Experts predict the housing market will remain sluggish into 2025, especially with the upcoming presidential election and holidays further slowing activity. The "doughnut effect" driven by buyer preferences for suburban areas has driven down property values in downtown San Francisco and nearby Oakland, making homeownership out of reach for many.