By Nancy A. Ruhling

San Francisco’s luxury condo market, which posted a record number of sales in the spring quarter of 2017, could be primed for a repeat performance. Luxury condos, which comprise 10% of the city’s housing market and start at $2 million, are concentrated in the southeast quadrant—south of Market Street in South Beach (SoMa) to the Mission District. The newest crop is there, too. “This area had been filled with commercial lots, and it’s the only area where high rises can be built,” said Patrick Carlisle, chief market analyst at Paragon Real Estate and author of The San Francisco Area Real Estate Market Report.

While there aren’t many developments launching sales this quarter, and those that have been announced have opening dates that are still to be determined, hopes are high for the current inventory. “I’m optimistic for this quarter because the recent stock market volatility notwithstanding, the economic confidence that has been sweeping the nation is also showing up in our luxury home markets,” Mr. Carlisle said. “So far in 2018, luxury home sales have been very strong, higher than in any previous year since the recovery began in 2012.” Sales have been robust in all areas, Mr. Carlisle said, except the Financial District, where the sinking Millennium Tower has also sunk sales in the district by 50%. Meanwhile, Santa Clara is the Bay Area’s biggest condo market, with 4,400 units sold in 2017, according to the latest Paragon report. It is followed by San Francisco and Alameda.