Market Softens for $2M+ Homes, Condos in Big Buildings

July 28, 2014 By Leave a Comment

The media and local blogs love to grab headlines by touting the latest crazy overbids made by buyers who don’t think much of throwing hundreds of thousands of dollars at sellers. (Yes, I cover these overbids occasionally, as well, because they’re an intrinsic part of the current market here.) Homeowners love those headlines, but would-be buyers cringe.

But the latest news is that there are certain segments of the market that are softening, as evidenced by several July sales:

2M+ Single-Family Homes: Houses in this price range are spending an average of 51 days before they go into contract. Several buyers got pretty good deals in July on these properties:

324 3rd Avenue (5BR/4.5BA)
Inner Richmond
List Price: $2,995,000 Sale Price: $2,900,000

1926 Lake Street (5BR/3.5BA)
Lake District
$2,895,000 / $2,850,000

271 Upper Terrace (1BR/1BA)
Ashbury Heights
$2,995,000 / $2,200,000

1450 Masonic (6BR/5.5BA)
Buena Vista/Ashbury Heights
$5,995,000 / $5,375,000

1909 Vallejo (4BR/3.5BA)
Pacific Heights
$3,750,000 / $3,625,000

68 Presidio Avenue (5BR/5.5BA)
Presidio Heights
$8,995,000 / $7,750,000

2602 Pacific (6BR/6.5BA)
Pacific Heights
$8,995,000 / $8,250,000

Condos in Big Buildings: Units in larger properties in South Beach and Mission Bay are definitely seeing a fair amount of under-asking sales. Buyers should target The Beacon, Metropolitan, Infinity, The Brannan and Watermark, particularly at the $1.5M+ price point. Here’s a lineup of sales that probably weren’t what their sellers had hoped for:
260 King #509
List Price: 665,000 Sale Price: $659,000

250 King #706
$749,000 / $723,000

207 King #512
$1,325,000 / $1,125,000

435 China Basin #444
$1,399,000 / $1,350,000

300 3rd Street #1007
$759,000 / $750,000

333 Main #7H
$679,000 / $650,000

355 1st Street #S807
$1,195,000 / $1,120,000

501 Beale #12D
$1,488,000 / $1,450,000

338 Spear #14F
$1,525,000 / $1,465,000

229 Brannan #12G
$1,629,000 / $1,525,000

501 Beale #18D
$1,885,000 / $1,860,000

338 Spear #41E
$2,690,000 / $2,600,000

Filed Under: Neighborhoods

What You Can Buy: 21 Days & Counting

July 23, 2014 By Leave a Comment

Properties in San Francisco commonly go into contract within a week or two of being on the market. Which means that things move quickly. However, there are many homes that have been on the market for three weeks or more. In my never-ending quest to unearth buyer opportunities, I wanted to profile a trio of properties that are available with no offer date—and potentially, no competition:

424 28th Street
Noe Valley
Days on Market (DOM): 24
3BR/2BA, no parking
List price: $1,595,000
424_28th
Finding a spacious, detached single-family home in a good location in Noe Valley for less than $2M is a bit of a challenge these days. That’s why I’m surprised no one’s snapped up 424 28th Street. Yes, this house is a little quirky, with bedrooms scattered among three levels, and no, there’s not a garage. But you can take it upon yourself to add parking (there’s an estimate on file for $120,000 for a garage installation). The sellers have secured a leased parking space in the interim that’s only half a block away. You also have front and rear backyards, views, and a family room. The house is situated two and a half blocks from the J Church Muni station and the shops/restaurants in the south end of Noe.

1334 Chestnut
Marina
DOM: 25
3BR/2BA, 1640 sq ft
1 parking
List price: $1,595,000
1334chestnut
I’m a big fan of 1334 Chestnut, a spacious top-floor condo with a very functional floor plan and lots of natural light throughout. The balcony off the living room offers Bay and bridge views, too. There’s also a decent amount of closet space, in-unit, side-by-side washer/dryer, and additional storage in the garage. Finishes are mid range, but that is certainly an easy thing to upgrade. Constructed in 1982, the building has a concrete foundation and is situated outside the liquefaction zone. The building is just around the corner from the Amero, a new-construction condo building that’s selling units for $1100/square foot. The heart of the Chestnut Street retail area is seven or so blocks west of 1334 Chestnut, but it’s a healthy walk (and you’re not in a liquefaction zone). And if you cross Van Ness and head south on Polk, you’re approximately five blocks from the heart of the Russian Hill restaurants and shops.

460 5th Avenue
Inner Richmond
3BR/2BA, 1729 sq ft
1 parking
List price: $1,395,000
460_5th
460 5th Avenue is a house-like condo on the top floor of a two-unit building. Built in 2004, the property features modern updating and a very liveable floor plan. Two bedrooms, one bathroom and kitchen/living space are on the main level, with a master suite upstairs. There are also four decks and a nice array of tech amenities, such as in-ceiling speakers, Nest thermostat, iPad control and digital light switches. 460 5th Avenue is extremely central to the Clement retail area just across Geary, and is only about three and a half blocks north of Golden Gate Park. The fact that you have Kaiser’s French campus directly across the street takes a bit of charm out of the location, but if you’re a Kaiser member, the convenience factor will be high.

Give me shout if you’d like to schedule a showing, I’m at 415.823.4656 / ebermingham@zephyrsf.com.

Filed Under: Marina, Neighborhoods, Noe/Eureka Valley, Richmond/Lake, What You Can Buy Tagged With: , ,

Let’s Start Pushing for “Blue” Construction in SF

July 21, 2014 By Leave a Comment

Two things are certain right now: Our California drought doesn’t have an end in sight, and construction is booming in San Francisco.

The push for “green,” or eco-friendly construction erupted several years ago. But what I’m wondering is whether architects and builders can start including “blue,” or drought-friendly features in future renovations and new construction.

A recent piece on NPR discussed how Australia—which has a nine-year drought in its history—began addressing its water shortage problem by revamping home plumbing systems. Consider Melbourne, which gets 23 inches of rain annually (similar to that of San Francisco in a typical year). Half the homes in Melbourne now have systems to capture and store rain, and newer homes are being built with dual plumbing systems to recycle graywater. For example, rinse water from the washing machine goes to the toilet for flushing.

Melbourne is now down to 40 gallons per person per day, including outside watering. Californians average two to four times that amount.

Green construction is great, and should continue. But it would be awesome if, in the future, homeowners and builders would take the lead from Melbourne and create “blue” construction properties.

Filed Under: Home Owner Tips, Neighborhoods Tagged With: , ,

Real Estate Near Fort Mason, Twist in Latest Sales

July 15, 2014 By Leave a Comment

There are plenty of events happening in Fort Mason, the Marina outpost that hosts food truck gatherings, the city’s best vegetarian restaurant, a music school and other more interesting enterprises. Welcome the Epic Foodie Festival to the mix, which is sponsored by the Golden Gate Restaurant Association and features multiple events such as The Grand Tasting.

And if you’re interested in real estate that’s in walking distance of Fort Mason, we profile three new listings that fit the bill.

All that plus a market overview that shows that not every sale in San Francisco sells for way over the asking price. In fact, this batch has several sales that show under-asking prices.

It’s all here in the Zephyr Market Tracker!

Filed Under: Marina Tagged With: ,

Hard Hat Tour: Amero in Cow Hollow

July 11, 2014 By Leave a Comment

Exterior_Amero
I went on a hard hat tour of the new Amero condo building at 1501 Filbert between Van Ness and Franklin last week. Featuring 27 two- and three-bedroom units, Amero also includes one parking space per unit. (Many other properties only provide one space for every two units.) There are four penthouses, as well.

Units range from just over 1,000 square feet to 2500 square feet. Finishes will feature natural stone countertops, walls and flooring; carpeting in bedrooms; European grey oak/wide plank flooring. The kitchen will be fully stocked with Italian cabinetry, Bertazzoni ranges and Thermador refrigerators, along with polished quartz countertops.

We checked out the fifth floor, penthouse level. Some of the units had drywall up, but others are just shells at this point. Here’s a look at one of the corner units:
Corner Unit

To give you a sense for the size of the kitchens and baths, here are a couple shots of both as they’re being constructed:
Kitchen

Penthouse_Bath

One of the townhomes we walked through had three levels. The first included a large patio and living/dining/kitchen area; the second level had a family room, bedroom, bath and storage and the master bedroom/bath were on the third level. Though there aren’t any views, buyers looking for a lot of space in the north end of town should seriously consider one of the townhomes. Here is the future living room:
Topfloor_master_north

Pricing will be in the $1100-$1300/sq foot range, with penthouses/townhomes listed for close to $4M. HOA dues will range from $550-$850/month, and common areas include a shared rooftop terrace with outdoor grills, fireplace and seating areas. There will also be bike storage available. The sales office is accepting offers from buyers now, with move-in dates projected for the Fall. If you’d like independent representation, please give me a shout at ebermingham@zephyrsf.com / 415-823-4656 and I can arrange a tour!

Filed Under: Condos, Cow Hollow, Neighborhoods, New Developments Tagged With:

Q2 Goes Out Like a Lion for SF Real Estate

July 7, 2014 By Leave a Comment

Has San Francisco real estate hit its peak for 2014? That’s the word on the street among many of my colleagues, and the second quarter stats certainly point to a buyer frenzy over the past three months.

Let’s hit up the single-family home and condo markets and see how they stack up against first-quarter numbers:

Single-Family Home Market
# Sold
Q2: 607
Q1: 442

Average Price
Q2: $1,537,074
Q1: $1,401,901

Percentage of Cash Sales
Q2: 20%
Q2: 25%

# Homes Sold for $1M or Less
Q2: 257
Q1: 226

Where to Buy for $1M or Less
Outer Parkside/Sunset; Parkside/Central Sunset; Merced Heights; Ingleside; Midtown Terrace; Miraloma Park; Sunnyside; Bayview; Crocker Amazon; Excelsior; Outer Mission; Visitacion Valley; Portola; Silver Terrace.

Volume and Prices Up, Cash Sales Down: Prices and volume increased over the past quarter, but cash sales dropped 5%. Given that trend, we may see less cash buyers snapping up homes over the summer.

Condo Market
# Sold
Q2: 786
Q1: 568

Average Price
Q2: $1,145,328
Q1: $1,033,560

Percentage of Cash Sales
Q2: 25%
Q1: 24%

# Homes Sold for $1M or Less
Q2: 420
Q1: 321

Where to Buy for $1M or Less: Ingleside Heights; Diamond Heights; 1BRs in Eureka Valley and NoPa; Western Addition; Downtown; Van Ness Corridor; Bernal Heights; Mission; Mission Bay; Potrero; SoMa; South Beach; Dogpatch.

Numbers Up Across the Board: Volume and sales prices also increased in the condo market over the last quarter, though cash sales remained roughly the same. The one-bedroom market is particularly strong, with an average selling price of $720,505.

What’s On Tap for the Summer?
This time of year tends to be slower in terms of buyer activity and inventory. Blame it on vacations, as many buyers and sellers schedule trips and simply aren’t focused on real estate. However, I’m not expecting sellers to hold off until the Fall to list their properties. There are still more buyers out there than available properties, and the committed buyers don’t let vacations prevent them from writing offers.

Filed Under: Neighborhoods

Happy Independence Day!

July 4, 2014 By Leave a Comment

fireworks
Thank you for continuing to read and support my blog! Best wishes for a Happy July 4th and great holiday weekend.

Please stop in on Monday 7/7 for my second quarter market update!

(Photo courtesy of Brandon Ku)

Filed Under: Neighborhoods

Ignore the “Homestead” Scam

July 2, 2014 By Leave a Comment

It’s inevitable that after you complete the purchase or refinance of your home, you receive a notice in the mail from a company with a random name like “TRS” offering to prepare a Declaration of Homestead for you. They typically request anywhere from $25-$75 to draw up the declaration and send it back to you so you can take it to City Hall to record the document.

When you get the letter, throw it out. It’s a scam.

A homestead declaration, in a nutshell, is a legal document that protects the equity in your home from creditors. The reality is that homestead protection is automatic in California, so there’s no need to pay anyone to create it for you. These companies target first-time home buyers who may not be aware of all the facts.

Filed Under: Home Buyer Tips, Home Owner Tips Tagged With: ,

Just Sold: 3BR Bernal Condo

July 2, 2014 By Leave a Comment

267a_anderson
My clients just purchased a spacious three-bedroom Victorian condo on a prime Bernal Heights street, just half a block from the popular Cortland Avenue neighborhood hub.

Featuring lovely period detailing, a living room with gas fireplace and an open kitchen/dining area, 267A Anderson also has three good-sized bedrooms. There’s a private deck, independent parking and storage. List price was $899,000.

Filed Under: Bernal/Excelsior, Condos Tagged With:

5 Ways to Avoid Home-Buying Closing Delays

June 30, 2014 By Leave a Comment

Contract timelines are always tight in the current San Francisco market. That means that buyers are typically removing appraisal and loan approval contingencies within days of having offers accepted. If you’re not prepared to jump on the fast track to completing your purchase, drama can ensue.

Here are five ways to avoid major closing delays, courtesy of my colleagues at Guarantee Mortgage who presented at our Zephyr sales meeting this week:
1. Be ready to pay for your appraisal. In order to meet a fast appraisal approval turnaround, the lender has to order the appraisal immediately. You should be sufficiently committed to the property to pay for your appraisal within the first day of offer acceptance.

2. Don’t switch your bank accounts around. The lender will typically require re-verification of all money you wire into escrow for your cash balance. If that money is suddenly coming from an account previously undisclosed during your preapproval period, the lender will demand that you provide documentation for that account. The statements will then have to be resubmitted and reviewed by underwriting while time is ticking.

3. Make sure your cash balance is liquid and ready to be transferred to the escrow account. The lender will want to see that the balance of your down payment and closing costs have been wired into the escrow account prior to funding the loan. Best strategy? Wire in that cash balance a few days prior to close of escrow to ensure that your loan funds on time.

4. Watch the AMEX charges. Lenders are picky about American Express credit card balances. If you have a high balance on your AMEX, a lender may want to see proof that you have the money to pay off that balance in full. This proof of funds should be separate from the funds you’ll need to pay your cash balance and any reserves required.

5. Lock in your homeowners insurance early. You should select your home insurance policy no later than a week prior to signing your loan documents. The latter are usually issued about a week ahead of the closing date.

Filed Under: Home Buyer Tips Tagged With: , , ,