Closing Time in San Francisco
There were 200 closed properties in the City this past week. Here are some fun numbers and facts…
- 86 Single family homes
- 89 Condos & TICs
- 20 2-4 Units
- 4 5+ units
- 2 Lots
- Houses in the Sunset closed about 5% over asking prices. This was true last week too.
- Houses in the Mission, Inner Mission and Bayview closed anywhere from 15% to 35% over asking prices.
- SOMA and South Beach Condos sold an average of 15% over asking prices.
And Some Stories:
The large redone single family/2 unit at 132 Germania bought last year for $908K in December 2012, renovated extensively with added garage, living area and then listed for $1.998M sold for $2.15M (107% over list) this week after 22 days on the market.
Continuing on the trend of buying two instead of one unit (seen at 23rd and Folsom, 20th and Dolores/Church) another stunningly redone building at 36–38 Camp listed separately and now ultimately sold as a pair sold for 103% of its combined list price of $3.565M at $937/sqft. This is well and fine, but consider it was sold in May 2012 for $1.25M after 12 days on the market at 157% over its then asking price of $795K all-cash with 31 offers, this property has sure seen some change over the past few years not to mention going from 2800 sqft. to over 3800 sqft. along the way.
A new poll conducted using a “demographically representative” group of 630 San Francisco voters found that a vast majority, 68 percent, feel that more housing development is the solution to the city’s current affordability problem.
San Francisco’s real estate market is crazy right now. You know it, we know it, everybody knows it. Besides the weather in October (reliably nice) and Vernon Davis’s hands (reliably soft), the housing market is on the top of San Franciscans’ minds right now like nothing else. So that’s why it was nice to read this morning’s post on Atlantic Cities by SPUR’s executive director Gabriel Metcalf about rising rents and housing horror stories. Metcalf cuts through the rhetoric and clearly analyzes what is—and isn’t—a solution to the cost of housing. Here are our five take-aways from his piece:
As Quoted in Curbed SF: 1100 Sacramento in Nob Hill is San Francisco’s First $100M TIC – Game Changer – Curbed SF
San Francisco’s real estate boundaries are about to be shattered by the Park Lane building at 1100 Sacramento Street. The 33 units in the Nob Hill luxury tower are being converted from rentals into a tenancy-in-common project, and the projected sell out is a whopping $100M. The size of this building is nearly double that of the current largest TIC in The City: the Marina’s Francisco Palms, which has 17 units. What does a TIC of this size and prestige mean for San Francisco’s real estate market?
…“Owners need to have incentive to offer a better product to tenants, but locked-in rents tamp that incentive down,” Ho explains. “Imagine if we had market-hindering policies like rent control laws while San Francisco was being built in the 1800 and 1900s, most places probably would still have split bathrooms that use 6 gallons a flush with gas lamps for lights.”
Blanc is a the new condominium building located at 1080 Sutter Street at Larkin St. It is a boutique building of 35 two and three bedroom residences by award winning San Francisco Architect, Stanley Saitowitz. Click here floorplans on the website
They are beginning to schedule tours this weekend, and are now scheduling appointments to tour their 2 bedroom and 3 bedroom model homes on the second floor. There are 8 homes available in our first release and range in price from $680,000 for the 2 bedroom, 1 bath residences (approximately 753 sq.ft.). The 2 bedroom, 2 bath residences (approximately 1282 sq.ft.) start from $860,000 and the 3 bedroom, 2 bath residences (approximately 1222 sq.ft.) start from $850,000.
The property is still under construction and will be ready for occupancy early November 2013. The tours are done by appointment until the building is further along. They are available from 11am to 5pm daily here on site by appointment.
Woof, it’s foggy out
We’ve come to the fog days of summer. As we prepare for our Native and Indigenous people’s Summer in September — also known as Indian summer — when a bounty of new listings traditionally comes on the market, you can’t be asleep at the wheel. As a few instances below demonstrate, there is quite a bit of strength in the market.
Sure inventory is low, but it’s moving fast and strong. This week we saw properties receive A LOT of attention where there were nearly 100% yield rates on the number of disclosures sent and offers received.
People are paying attention and they are making moves on investment properties, fixer properties, brand new properties and are even moving on properties that are incomplete only to be delivered early next year.
NEW CONSTRUCTION BLOOMS
LineaSF they had their soft opening last Sunday. Of the 110 units slated for completion and delivery sometime early next year, 8 to 10 of them were already sold. That’s 10%! Also for those units coming with parking, owners will have to pay at least $60-$70 more per month in addition to the homeowner association dues at $500-$600 per month. Same story can be said for at 200 Dolores. Each release wave represents more competitive bidding and ever escalating prices. At the ICON SF, 16th and market, the developers have abashedly adopted the approach of raising the prices as supply diminishes going so far in fact to withhold and withdraw their next phase release until the first eight units currently in escrow close. When the unsold units reappear in September, they will be at higher prices most likely. More than 55% of the 63 units over 300 Ivy are in contract. They are on their fifth release. At the Marlow over in Russian Hill, they are nearly 60% sold out.
NEW CONSTRUCTION BLOOMS (RENTAL EDITION)
The large development of 2001 Market St., previously teetering from being a rental building or a market building, seems to have finally decided that it will be a rental building. Over 277 Golden Gate, the brand-new rental building is coming online. Interestingly, more than 25% have been leased out already with studio units at 280 ft.² renting for $2000 a month and one-bedrooms for $3000 a month.
There are at least three more Stanley Saitowitz buildings being built right now apart from the ones open at Ellis Street. Meanwhile from my market intelligence, I know some more buildings geared towards the middle range of the market, and other high-end luxury ones being built too but are still in the demo/foundation phase while others are still in the planning stages. From start to finish it can take up to 2 years to get projects started not to mention built! It can be dizzying but it definitely worth keeping track of what is being built and when we can expect these new projects.
Mortgage Rates Under 4% This Isn’t an Advertisement, But…
Our in-house Citibank representative advises me that interest rates have lowered this week from 4.625% to 4.5%. But with Vanguard’s preferred rate program that qualified applicants would most likely get somewhere in the 4% range. And those for borrowers who have established or establish a relationship with Citibank where they deposit $250,000 for a short time (10 days or something like that) those borrowers will get another 1/8th point off for a final rate of 3.875%. The account can be closed too and the rate stays. For more information, ping me and I’ll put you in touch with the rep.