It might not be your cup of tea, but 18 buyers showed up to the recent tea party at 274 De Long (4 bed, 2 bath, Single Family in the “Outer Mission”…as pertains to the SFAR Districts Map…think more Crocker Amazon/Oceanview), and 17 of them will go home empty handed and hungry.
We know what you’re thinking, “Eighteen offers on that!?”
Yeah, we’re thinking the same thing.
Asking price: $336,600, and since we know you’re going to ask, last recorded sale in MLS, 1996 at $185,000.
-274 De Long [sfnewsletter.com listing detail page]
From our friends at Roost.com “Every home for sale… (Well almost…)” We bring you their future blog post (how nice of them to let us post it first).
Roost muscled through a large number of public sources of information and found well over one thousand towns/cities across the US that have more square feet tied up in various states of foreclosure than there are currently available for sale in their respective real estate markets. From that group, they identified the above 10 cities and towns with significantly more square footage in various states of “foreclosure” than “for sale” inventory.
-Those 10 markets alone have over 220 million square feet of residential real estate in foreclosure – almost 4,000 football fields (Kurt Warner could handle it).
-Hialeah Florida, just outside Miami, has almost three times as much existing home footprint in foreclosure compared to what is for sale (Where the hell is Hialeah?).
-There are almost 60 million square feet of living area in foreclosure in Las Vegas (How’s that compare to litres of alcohol consumed?)
-Nine out of the ten cities above are located in areas where new home construction was booming during the heyday of 2000-2005. Only Detroit was exempt from the huge new construction build-up (But Kid Rock had a hit single!)
Thanks folks at Roost! Much appreciated. We’d be really curios to see San Francisco in specific, so if you got it, send it our way.
So how many football fields for the whole lot?
Making a long story short:
We had lunch recently with an individual that has a very real interest in today’s San Francisco real estate market (he’s selling a home, but no he’s not our client). We talked about the kids, we talked about the weather, then of course the inevitable “how’s the market”. After getting through how we thought the market was, he informed us that he recently had lunch with a “business friend” of his that kindly informed him the only people looking at open houses at the moment are those people looking to preview homes that will soon be sold at foreclosure! And apparently this “friend” had the data to back it up. Are you f*ing kidding!
That is quite possibly the most ridiculous thing we’ve heard in a while and you can rest assured we’ve heard our share of silly real estate tales.
So who’s got the data to back that ridiculous statement up? Something like that might apply to places in the greater Bay Area, but San Francisco proper? Come on!
Some clarification on the median price drop and the value of your home:
Every Bay Area county experienced double-digit declines in the median price. The annual drops for existing homes ranged from 11.8 percent in San Francisco to 48.4 percent in Contra Costa County.
The median marks the point at which half the homes sold for more, half for less. It reflects the composition of homes sold rather than an across-the-board change in all home values.
“It would be wrong to say that Bay Area home values are half of what they were a year and a half ago,” John Walsh, MDA DataQuick president, said in a statement. “Maybe half of the decline in median is a market mix issue and the rest a drop in value.”
And like we’ve said before, It’s a great time to be a buyer:
Chanthapak [person interviewed in article] bought another Richmond property with two homes on one lot for $90,000. He spent $30,000 on rehab, and now expects that property will have positive cash flow of $1,400 a month. He said renting out one of the homes will cover his mortgage, taxes and insurance, so rent from the other will be all profit.
…and the fine print:
Conversely, areas with few foreclosures, such as San Francisco, also had far fewer sales. The 180 existing homes sold in the city was down about 20 percent from last year; only 12.4 percent of those homes were foreclosures. Marin and San Mateo counties also saw sales volume decline and had relatively low foreclosure activity.
We’re happy to help with your real estate endeavors, but please don’t assume everything on the market is in, or close to, foreclosure.
-Home sales soar as foreclosures drive down prices [SFGate]
This is a question many across the nation will be pondering over the next several months and I’ve long believed that any bailout of homeowners would be ripe for abuse. The Chronicle had a great article this past weekend highlighting this “strategy” quite articulately and comprehensively. This should be really interesting to watch unfold as there will be certain individuals that will benefit from getting you into a loan modification program, and the differential savings from participating in the program may very well be significant. Reduced principle and interest rate, reduced taxes, and capped payments based on income! Isn’t there a downside here somewhere?
Here is the deal according to the article: Primary residence with loan greater than 90% of house “value” and backed by Fannie/Freddie or participating bank. The bank may reduce interest rates to 3% (or higher), extend loan term to 40 years, and reduce principle in an effort to reduce your “payment” to 38% of your income.
The article talks about all of this in more detail and outlines some potentially controversial strategies to best take advantage of this program. I would bet that most in the bay area wouldn’t need to manipulate the system in order to qualify and benefit from this program. Most people I know that purchased real estate in the past few years are closer to 60% of gross income funneled into housing and these are all folks right here in Prime San Francisco. And I’m talking about $1M+ homes / condos. I’m not sure how I feel about the program, but I know what I’d be doing if I were a home owner. What about you?