How COVID Affected Mission Bay Real Estate

January 18, 2022

After taking a beating during the first several months of the coronavirus pandemic, it appears that the market for Mission Bay condos is bouncing back.

Mission Bay is San Francisco’s newest, glitziest, and perhaps hippest neighborhood, set on San Francisco Bay south of the San Francisco-Oakland Bay Bridge. It is a prime example of how COVID-19 affected neighborhoods in city centers as companies closed their offices and residents had to follow stay-at-home orders.

Mission Bay is home to many highly-paid tech workers and scientists who work at various companies that have chosen to build their headquarters in this lively neighborhood.

When the pandemic struck, some tech workers who were renting luxury Mission Bay condos chose to leave the area for less-crowded and cheaper suburbs, or even out of the area altogether. After all, they were able to work remotely, so it didn’t matter where they landed. Plus, they were still drawing their big salaries, so they could afford spacious single-family homes with yards where they could enjoy a slower-paced lifestyle.

What Happened?

The market for Mission Bay condos was one segment of the real estate market in the city that took a big price hit once the pandemic struck.

A big reason for that is that the high-priced condo buildings in Mission Bay were forced to close many common areas and amenities due to state regulations and social distancing guidelines. Among the amenities that were suddenly off-limits to tenants were areas such as gyms, exercise rooms, recreation rooms, swimming pools, and rooftop terraces that had been perfect for social gatherings and getting fresh air as well as a glimpse of the stunning views of downtown and the Bay.

Some residents of Mission Bay real estate decided it didn’t make sense to continue to pay not only the top-end rent but the expensive homeowners association fees that go toward maintenance of common areas that suddenly were off-limits.

Additionally, many people felt unsafe living in buildings with many other people. Although many common areas were closed, there were still some that had to remain open where tenants could come into contact with each other, such as lobbies, hallways, and elevators.

At the same time, offices and tech hubs closed down, leaving employees essentially stuck at home. As soon as they could get out of their leases, many tech workers chose to leave the city. That, in turn, led owners to put their Mission Bay condos on the market. With many properties hitting the listing services at the same time, prices plummeted due to too much inventory and too few buyers.

The market was at its lowest in June 2020, and ever since then, there have been peaks and valleys as it reacted to the continuing uncertainty brought about by the pandemic.

Current Prices in Mission Bay

According to Zillow.com, the median price of Mission Bay real estate is $1,264,409. While prices are up from where they had been during the summer, they are actually down 0.5% over the past year. This could be due to more homes being listed in this time frame. 

By comparison, the median price of homes in the entire city of San Francisco is $1,526,099, Zillow reports. This is up 8% from the median price one year ago. 

Hire an Agent

If you are interested in buying homes for sale in Mission Bay, now’s a great time to sit down with a real estate agent to see what they can do for you. A great real estate agent with several years of experience in the Mission Bay neighborhood is totally plugged into the recent trends, including prices and how to find single-family homes or condos in your price range.

Once you’ve settled on an agent, let them know what kind of property you want, including specific location, floor plan, amenities, and anything else you can think of. Your experienced agent will then be able to identify properties that fit that bill. When you find a property you love, your agent will know what price to offer the seller under current conditions. If anyone can find a bargain in this current market, it will be your knowledgeable agent.

Financing

Another task to take care of ahead of beginning your search for Mission Bay condos is to get preapproved for a home loan. Visit two or three banks and compare rates and terms. Once you settle on a lender, it will determine how big a mortgage you will be able to afford. That, in turn, will help you set your budget. And remember to get that pre-approval letter; it will let sellers know your financing is rock-solid, which is important in case things move quickly and a seller accepts your offer.

What Makes Mission Bay Special

The market for Mission Bay real estate is expected to bounce back as the uncertainty over the pandemic begins to lift. As more and more people receive their vaccinations and the economy continues to recover, workers are expected to return to Mission Bay.

The lifestyle in Mission Bay is just too good to pass up. Mission Bay has been transformed from a dingy railyard into a modern, beautiful neighborhood full of glistening high-rise condos and apartment towers with plenty of open spaces and parks. There are also many tech companies that have set up headquarters in this strategically-located neighborhood.

Many owners of Mission Bay condos work for companies such as Pfizer, Uber, and several other tech and innovation companies that are located in Mission Bay, which is also home to UCSF Mission Bay Medical Center.

Finding houses for sale in Mission Bay sets up families and professionals for a highly desirable work-life balance. The neighborhood is relatively compact and offers everything residents need in terms of dining, nightlife, shopping, attractions, and recreation.

The neighborhood is so attractive that the NBA’s Golden State Warriors, who played across the Bay in Oakland for decades, chose it as the site for their new arena, the Chase Center, which opened in 2019. Mission Bay also adjoins Oracle Park, the home of the San Francisco Giants major league baseball team. Plus, its location makes it easy to get to other parts of San Francisco as well as the entire Bay Area.

If you have imagined yourself living in Mission Bay real estate, let Vi Pavlicevich help turn that dream into reality.

 

 

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Vi's understanding for urban living meets no end when representing her clients in San Francisco. She loves the city life and is passionate about sharing the lifestyle San Francisco has become famous for.

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