San Francisco May Have Just Had Its Most Expensive Home Sale of 2023

San Francisco May Have Just Had Its Most Expensive Home Sale of 2023

If the asking price for this grand mansion on Pacific Avenue is close to what it sells for, San Francisco could have just experienced its most expensive home sale of 2023.

That's a surprising shift for a city known for its extreme wealth and sky-high home prices. Now, a changing economy and disruptions in the tech industry have caused housing prices to plummet.

The $38 Million Gold Coast Home

For years, San Francisco's home market has experienced tremendous growth. The city's bustling tech sector has fuelled rising housing prices that are now among the highest in America. But recently there has been a slowdown due to rising interest rates, economic uncertainty and layoffs within the tech industry.

However, some buyers have begun looking for a new home this year. These include one of the city's leading real estate agents and the owner of what could have been 2023's most expensive sale.

According to a new report from Compass, San Francisco's luxury home sales are defying the national trend. In June alone, 30 homes accepted offers - the most since June 2017. This number stands in stark contrast to the city's rest of residential real estate market which experienced only 13 closed sales last month.

It could be that this is only a temporary lull in the market, as buyer demand has begun to pick up again after the recent downturn in home sales. According to reports, increased attendance at open houses, more buyer inquiries and homes seeing multiple offers again are signs that things are looking up for sellers in the marketplace.

If this home sells at its original asking price, it will become San Francisco's most expensive home ever sold, surpassing the previous record holder which was listed at $38 million and sold in 2017 (but subsequently reduced to $4.5 million).

Val Steele of Pacific Union International, one of the city's top real estate agents, listed this home for the first time on the market. She said it would be difficult to match its original asking price.

The house offers a wealth of amenities, such as an unobstructed view of San Francisco Bay. It is just steps away from Presidio park with breathtaking views of Angel Island, Alcatraz and the Golden Gate Bridge.

The home sits on an exceptional triple-wide lot, equivalent to 4.62 standard lots in the city - making it all the more special.

The $11.2 Million Cow Hollow Home

The $11.2 million Cow Hollow Home is a stunning triple-wide mansion situated on a quarter-acre lot, only minutes away from the water's edge. According to Zillow's listing, this was the highest priced home for sale in San Francisco at the time.

This property boasts a range of amenities, such as a private pool and garage with room for four cars. Plus, it's situated in one of the city's most sought-after neighborhoods.

It's no secret that the Bay Area housing market has taken a more severe beating than other regions. This is partly due to demographic shifts, mass layoffs in the tech sector and an emptied downtown.

Furthermore, rising interest rates have severely restricted buying power for many buyers, especially those with mortgages. This has created an acute shortage of inventory as people wait until prices decline before finding a new place to live.

Thankfully, the Bay Area's real estate market is recovering and has recently reached a level of stability that allows homebuyers to make offers and purchase properties at prices they can afford. Nonetheless, there are still some warning signs that real estate may experience a decline in 2023.

Due to a faltering economy, rising interest rates and economic uncertainty, many analysts anticipate home values will continue to decrease in the coming years. Low- and mid-tier homes will be among the first to hit bottom in 2023; high-tier residences may start rising again around 2024.

Therefore, it's essential to monitor the real estate market closely. The housing sector will be particularly vulnerable during any potential downturn, so if you plan on buying a home within the next few years, be ready to act quickly.

Though the Bay Area housing market is facing challenges, it remains a great place to buy a home if you're searching for something special and beautiful. Unfortunately, expectations for 2023 indicate that demand will be less active, so start your search now to ensure you don't miss out on finding your dream home before it's too late.

The $35 Million Russian Hill Home

According to real estate agent John Carlisle, San Francisco may have just experienced its most expensive home sale of 2023. This stunning estate situated atop Russian Hill is asking $45 million, setting a record that will go down in city history as the highest home sale to date.

On the crest of Russian Hill, this stunning estate was once the residence of George Sterling - an influential poet whose work was inspired by his childhood in this neighborhood. He had close connections to Joaquin Miller, Ambrose Bierce and Jack London as well.

This property combines Victorian and contemporary architecture, featuring an interesting mix of materials. The facade is constructed out of limestone, wood and wrought iron while the interior boasts a turret, central fireplace and elaborate staircase.

On the top floor, the master bedroom of this house boasts a private terrace overlooking the city and access to its marble bathroom and dressing room, plus access to both patio and pool area.

On the second floor, there are several other bedrooms including one with its own private balcony. The master suite boasts an en suite bath featuring a Jacuzzi tub and steam shower for ultimate relaxation.

On another level of the house, there's a generous living area with walls of windows letting in natural light. Additionally, there's an impressive gourmet kitchen complete with center island and stainless steel appliances.

The home's exterior includes an open-air deck, roof garden and two-car garage. A circular glass elevator provides access to the upper floors via a round glass elevator.

In addition to the master suite, there are four additional bedrooms and five full bathrooms. Plus, there's a spacious bonus room that could be used as an office or playroom.

The expansive rooms in this house are highlighted by original wood floors and a stunning staircase that connects the main level to a double-height living room with spectacular views of the Golden Gate Bridge and Downtown. There's also a media room as well as two car garages for added convenience.

The $45 Million Russian Hill Home

San Francisco may have just experienced its most expensive home sale of 2023, potentially setting a new record for the city. A 9,500 square foot Presidio Heights mansion has recently listed at an eye-popping $45 million price tag, setting an unbeatable benchmark in the Bay Area if sold.

Compass real estate lists the historic residence on a hillside in San Francisco's Presidio as being designed by Albert Farr in 1929. Notable as one of California's first officially licensed architects, Farr created buildings throughout San Francisco's most exclusive neighborhoods such as Russian Hill, Pacific Heights, Sea Cliff and St. Francis Wood.

Compass Magazine recently featured this 9,500 square foot home just a block away from Lombard Street - home to Fisherman's Wharf and the San Francisco Art Museum. Built on two hillside lots, the residence boasts contemporary features designed with attention to detail.

A stunning modern addition has been built onto the original shingled home, connecting four levels with a glass elevator. The top floor suite of bedrooms offers breathtaking views of both cityscape and its surrounding gardens.

Another wellness feature is the sauna and yoga studio. Furthermore, the house has a Japanese water-filtration system that freshens all air in the house every two hours.

This home also features a hidden cigar bar, added after its owner purchased it in 2020. Now the family is selling the property to downsize to a smaller pied a terre in the city.

Although sales of luxury homes in the city have been slowing, some major purchases have occurred over the last year. For example, five million-dollar homes were purchased during July this year compared to less than three million last July, according to Redfin data.

If this spec house sells, it could set a record for the most expensive single-family home sale in San Francisco. Val Steele of Pacific Union International said she wouldn't be surprised if it sells at or above $45 million - making it the most expensive home ever sold there.