In addition to the short sales and foreclosures that are creeping into San Francisco, there’s another trend afoot: Owners are putting their homes on the market at prices which indicate they’ll lose money or barely break even if their homes sell at list price.
One neighborhood where the trend is growing is Noe Valley. A check on the details behind the 38 single-family homes currently for sale reveals that 12 were purchased five or fewer years ago, at prices that don’t add up to appreciation now. Here’s the rundown:
469 Clipper
Sold for $1,020,000 in 7/08
Current Price: $825,000
*Construction project
4214 26th Street
Sold for $1,553,000 in 6/07
Current Price: $1,499,000
1504 Sanchez
Sold for $840,000 in 6/04
Current Price: $885,000
601 Grand View
Sold for $1,076,000 in 3/04
Current Price: $1,095,000
*Short sale
3730 26th Street
Sold for $1,250,000 in 6/04
Current Price: $1,148,000
1507 Dolores
Sold for $1,310,000 in 2/06
Current Price: $1,198,000
3963 22nd Street
Sold for $1,337,500 in 12/06
Current Price: $1,295,000
826 Duncan
Sold for $1,325,000 in 5/05
Current Price: $1,295,000
414 27th Street
Sold for $1,550,000 in 4/07
Current Price: $1,544,000
76 Jersey
Sold for $1,590,000 in 2/06
Current Price: $1,595,000
4545 25th Street
Sold for $2,725,000 in 2/07
Current Price: $2,625,000
1424 Sanchez
Sold for $1,335,000 in 11/06
Current Price: $1,360,000
Note to buyers: This type of activity doesn’t necessarily indicate that there will be bargains afoot in Noe Valley. The only way that will happen is if any of the owners of the above homes—and the other properties on the market—absolutely have to sell, and will be able to accept sales prices for their homes that are reflective of the current market.
When 141 27th Street in Noe Valley (above, left) came on the market in the summer of 2008, I got a little nervous. This is the property directly behind me, and visions of vertical growth danced through my head.
I saw 884 Douglass on my Tuesday broker tour last week, and thought it was a great project house. Given the overall size, and the fact that the the 4BR/1BA floorplan is reasonable and intact, a good down-to-the-studs situation may be in order, with plumbing/electrical system upgrades, and the addition of a bath or two. But you don’t have to necessarily expand horizontally or vertically, so you could probably get permits fairly easily. In fact, the neighbors and the Building Department would appreciate the improvements. And the location within Noe is excellent. We will wait and see who has the financial means to purchase the property and complete the renovation. My guess is it will be an owner occupier.
