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The latest Zephyr Market Tracker shines the spotlight on the Mission, from what’s happening in the new “Mission Creek” microhood to the deets on one of the hottest new condo developments.
And you can also check out the most recent sales across the city, too. It’s all here in the Zephyr Market Tracker!
Welcome to our $1.4M smackdown, pitting one one house in need of updating vs one condo that’s good to go, in two different but equally tony neighborhoods. Which property would you choose?
Contestant #1
30 Santa Rita Avenue
Forest Hill
4BR/2.5BA, 2078 sq ft
$1,395,000
This Spanish-Mediterranean “diamond in the rough” on a lovely tree-lined block of Forest Hill is perfect for buyers looking for a house with good bones that would vastly benefit from a sound remodel. One key factor is that all four bedrooms and two bathrooms are upstairs on the same level, including a master with sweeping views of Twin Peaks.
Contestant #2
66 5th Avenue
Lake District
3BR/1.5BA, 1599 sq ft, 1 pkg
$1,399,000
Located on a prime north of Lake block, 66 5th Avenue is a large condo that opens directly on to its own private deck and garden. The master bedroom also opens to a deck and has nice yard access; the third bedroom has no closet and is probably best for an office or baby’s room. There’s also a huge private storage room and independent parking. Half a block to the Presidio and about three blocks to the restaurants and shops on Clement. This unit was last sold in…July 2013 for $1,422,000.
So which one would you buy?
My clients purchased a single-family home in the Crocker Amazon neighborhood last year, and aimed to complete an extensive remodel prior to moving in. They just moved in a few weeks ago, and I stopped in to see the renovations this week.
This was an older house that sorely needed a new kitchen, bathroom, and a better “flow.” My clients worked with their contractor to totally revamp the kitchen, move doorways, add closet space and create a more open living/dining room area, among the more major items. They agreed to let me post a few before and after photos, as I thought it would be cool for my readers to see just what you can do when you buy a cosmetic fixer.
The living room got a fireplace facelift, with lovely stonework, a darker wood stain and new wall color:
Here’s the before and after of their kitchen. I love their choice of new countertops, cabinets and finishes:
It’s always encouraging to see what can be done to make a home more enjoyable, and ulimately, more valuable.
The San Francisco market has been somewhat off the hook in 2014, with eye-popping sales happening in full force in seemingly every neighborhood in the city. But even I’m caught off guard by some buyers’ willingness to fork over disarming amounts of money on certain properties.
Case in point: The 3BR/2BA, 1358-square foot home on 315 Coleridge. Sold in January 2012 for $850,000, the house had two bedrooms and one bath on the main level, a remodeled kitchen and a bedroom/bath on the garage level. Outdoor space consisted of a small patio area just outside the main level, with stairs going up to a deck with views.
Fast forward to March 2014, when 315 Coleridge was listed for $1,150,000. The selling price? $1,501,000. I would have liked to been at the table when that winning offer was revealed.
Time is running out for RSVPs—Get in shape for the Spring real estate market by attending our Home Buyer Boot Camp! Back by popular demand, Boot Camp will whip you through the ins and outs of getting financing, writing a winning offer and completing a smooth transaction. We’ll give you tons of practical, useful information you won’t find anywhere else.
Here are the deets:
Date: Saturday, April 19th
Time: 10:00-noon
Place: 1746 18th Street (betw Arkansas & Carolina in Potrero Hill)
Your Hosts: Yours truly, blogger-Realtor Eileen Bermingham of Zephyr Real Estate, and loan extraordinaire Mike Koran of Primary Residential Mortgage.
We’ll have refreshments and we won’t make you do push-ups. RSVP today to Eileen at ebermingham@zephyrsf.com, or call/text at 415.823.4656. I’ll confirm your reservation. Space fills up quickly, so please RSVP as soon as you can so we can guarantee you a seat.
Buyers are paying an average of 12% over asking for houses and 10% for condos in the current San Francisco market. So I always catch a little thrill when I spot properties that sell for under the list price.
A handful of homes sold for under asking in April in popular neighborhoods. Let’s take a look at some sales that were possible without overbidding and waiving contingencies:
301 Main #20B
South Beach
List Price: $2.1M
Sale Price: $1,975,000
Days on Market (DOM): 50
Cash Sale: Yes
Shed no tears for this seller, who managed to flip this unit for significantly more money. Purchased in October 2013 for $1.6M, this 2BR/2BA unit at The Infinity was listed again in February for $2.1M. That price apparently didn’t fly, but $1,975,000 did. If there’s ever a case that needs to be made for the strength of the 2014 market, #20B is a good sale to reference.
229 States
Corona Heights
List Price: $2,050,000
Sale Price: $1,925,000
DOM: 27
Cash Sale: No
This ultra-modern, 2BR/2.5BA view townhouse on a great block in the neighborhood was designed by well-known architect Zack de Vito. The property was very well appointed, but a little on the small side (1545 sq feet) for buyers in the $2M range.
1806 20th Street
Potrero Hill
List Price: $1,650,000
Sale Price: $1,585,000
DOM: 38
Cash Sale: No
1806 20th is a two-level condo on a prime Potrero block, in the 86-unit development called Victoria Mews. Featuring three bedrooms and technically one bathroom—one bath was converted to a laundry room—the unit had stunning city views and a remodeled kitchen.
Who doesn’t love to look at sales reports hot off the presses? This edition of the Zephyr Market Tracker shows you what sold, and for how much above or below the list price.
We also look at what’s for sale in SoMa, and what Project Open Hand recently did for the community.
It’s all here in the Zephyr Market Tracker!
The first quarter of 2014 is history, but the sales stats and other market conditions I’m experiencing give us an idea as to where the market is heading this year.
Let’s take a look at activity for single-family homes and condos first:
Single-Family Home Market
# Sold: 442
Average Price: $1,401,901
Percentage of Cash Sales: 25%
# Homes Sold for $1M or Less: 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 Lower, Prices Higher: It was full speed ahead for the single-family home market in the first quarter. Though volume was down slightly from the first quarter of 2013 when 497 houses sold, the average price was up from $1,164,962 (Q1 2013). Of the 109 cash sales, more than half were for homes above $1M, including a $10M home on Green Street in Pacific Heights and a $7M property on Duncan in Noe Valley.
Condo Market
# Sold: 568
Average Price: $1,033,560
Percentage of Cash Sales: 24%
# Homes Sold for $1M or Less: 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.
Volume Again Lower, Prices Higher: The condo market also didn’t miss a beat where prices were concerned. A total of 546 condos sold for an average of $901,046 in Q1 2013. A year later, the average has broken $1M.
Where Are We Headed in 2014?
I’ve received at least half a dozen calls or emails from clients in the past two weeks asking whether it’s a good time to sell. The concern is that selling now may find them leaving money on the table if prices increase.
I think that if you own a home right now and are in a position to sell it, you should take advantage of this market. For one thing, interest rates are on the rise. And though 25% of buyers are running around with cash, the other 75% of the buyer pool will be sensitive to higher interest rates, and will be watching their offer prices a bit more closely. I also believe that we’re in somewhat of a peak period, and that prices have only so much further to go this year before they flatten. I didn’t feel that way in 2010, 2011, 2012 or 2013. But based on market activity to date, it feels like 2014 will be different.
Another major factor that may keep resale prices even in 2014 is the expected increase in inventory. We’ll see the typical inventory bump in Spring and Fall, as well as many new construction condo projects kicking off sales on many buildings in the city pipline. This means that buyers will have more properties to choose from. And for sellers, that will translate into less offers per property and less intense overbidding.
The average condo price in San Francisco in the first quarter was just over $1M, and for houses, it was around $1.4M. So what can you buy if you can afford…half that amount or less?
I surveyed first-quarter sales to nail down specifics about what you can expect to be available in the $500,000 range. So let’s get to the point and look at each property category:
Condos
The condo category will have the most inventory in this range. Studios or one bedrooms will come up most frequently in larger buildings in neighborhoods such as Ingleside Heights, South Beach, Downtown, the Van Ness corridor and Potrero. For example, a 400-square-foot studio with parking at 750 Van Ness in Symphony Towers (pictured above) sold for $454,000 and overlooked the courtyard.
Other buildings that often have units in this range are 631 O’Farrell and 900 Bush, along with 8400 Oceanview Terrace in Ingleside Heights.
Two-bedroom condos do come up for under $500,000, but are typically located in Hunters Point or Crocker Amazon.
About a quarter of condos in this range were purchased in cash transactions in the first quarter.
Single-Family Homes
Inventory here mostly consists of houses that need work or are tenant occupied (or both) in the city’s southeastern neighborhoods such as Bayview and Visitacion Valley. Many of these are purchased in cash transactions.
TICs
It’s possible to purchase a TIC in this range that will be in a smaller, more charming type of building, in a more popular neighborhood, However, such units will be in properties with three or more units and will require fractional financing.
