How is the San Francisco BMR market doing?
"Below Market Rate" or BMR from the San Francisco Mayor's Office of Housing (MOH) program seemed like a great program circa 2004 and 2005 when the San Francisco real estate market was climbing to the sky and many who wanted in couldn't afford to buy.
Today? Not so much. In '04 and '05 a BMR would be advertised for a couple of weeks, they'd then collect the offers, all of which were essentially the same exact offer since you were not allowed to pay more for it. And then hold a lottery to select which offer won. But today? I count 17 BMR's listed on the San Francisco MLS with an average Days on Market (DOM) of 81 with 6 over 100 days and a 7th closing in on 1 year on the MLS.
In the past 3 months only 5 BMR's have sold with average DOM of 85 days. So less than 2 are selling per month with 17 on the market.... that's about 10 months worth of inventory. Shockingly slow absorbtion.
Meanwhile, the Avg price per SqFt for the BMR's are around $400 to $425. Not exactly deals anymore, especially in neighborhoods like SOMA, Diamond Heights and Bayview where so many of these are located.
Meanwhile, average price per SqFt at a building like the Beacon, 250 King and 260 King, for 1 BR condos that have sold in the past 6 months is about $488. Why buy a priced fixed unit when for just a little bit more you can get market rate?