Category Archives: Pacific Heights

2224jackson

Pacific Heights Property Fetches $1,706,000 Over Asking

You read that correctly, 2224 Jackson Street, a Pacific Heights trophy three unit property listed at $2,095,000, just knocked out last week’s stunner at 2514 Gough (Sold $1.4M over), to take the cake for most insane insanity ever in real estate anywhere, ever, by selling for $1,706,000 over asking price, or a grand total of $3,801,000. It is a vacant multi unit property in one of the best areas of town, but still – that’s nuts.

That was the winner, but there were more. Second place was a paltry $600,000 over asking- that one got kicked off the list today. See the top 10 Overbids list below.

Address BR/BA/Units DOM List Price Sold Price Overbid
2224 Jackson St 2-4 Units 13 $2,095,000 $3,801,000 81.43%
1783 Noe St 2/1.00/N/A 24 $1,195,000 $1,705,000 42.68%
390 Franconia St 2/1.00/N/A 6 $895,000 $1,262,375 41.05%
239 Judah St 3/2.00/N/A 27 $1,199,000 $1,661,000 38.53%
2200 Lyon St 3/2.50/N/A 19 $2,100,000 $2,900,000 38.10%
141 2nd Ave 3/3.50/N/A 9 $1,900,000 $2,600,000 36.84%
3700 Folsom St 2/2.00/N/A 12 $1,049,000 $1,425,000 35.84%
79 Everson St 3/2.50/N/A 24 $1,195,000 $1,610,000 34.73%
5725 Diamond Heights Blvd 4/3.00/N/A 8 $1,595,000 $2,139,250 34.12%
727 35th Ave 5/4.50/N/A 13 $1,525,000 $2,025,000 32.79%

I need a drink. You?

Possible Shift In San Francisco Real Estate Market? Should You Sell Your Home Now?

February 2014 San Francisco Market Report

It is far too early in the year to reach definitive conclusions regarding substantive changes in the market, but there are indications of a number of shifts. From the hurly burly on the street, the word is that the quantity of offers coming in on new listings is declining. Where a new listing might have attracted 10 or 12 offers last spring, 3 or 4 are coming in now; where 3 or 4 offers would have arrived, the seller is getting 1. And, according to Broker Metrics, for every 2 listings that offers in December and January, another listing expired or was withdrawn without selling.

The amount of competition deeply affects home price increases.

There are still a very large number of buyers looking at listings online and at open houses. But more of them appear to be first-time buyers and they are proceeding more cautiously. Some buyers are burned out on the multiple-offer bidding frenzies of last year and are reluctant to participate in them. Though the market remains hot by any reasonable standard, by some statistical measures it is cooling. This may reflect a transition or only a lull before the spring sales season begins.

Recently, the investment-property analysis firm Reis speculated that SF apartment-rent growth — which has been extraordinary by any measure, especially in a period of low inflation — will slow despite intense demand and very low vacancy rates, simply because people can’t pay any more. It’s an idea which may or may not be correct or apply to other types of housing costs. Rent rates do play a role in purchase prices as buyers often compare the net housing costs of the two options.

Median Sales Price Appreciation by Neighborhood

In San Francisco, some of the most affluent neighborhoods — such as the Pacific Heights-Marina district and the Noe, Eureka and Cole Valleys district — started their recoveries in the second half of 2011, well before virtually every place else in the city or country. When 2012 began, prices in these districts soared, while other areas played catch up. In 2013, that dynamic flipped: Appreciation rates in comparatively less expensive neighborhoods surged, while slowing in the most affluent areas.

A big part of this is simple affordability: Priced out in one neighborhood (or city), buyers focused on others, similar in ambiance but less costly. Home prices there looked so good in comparison that buyers were willing to bid them up. The huge decline of distressed sales in areas severely affected, such as in Bayview, has had an outsized effect on median sales prices there. Continuing gentrification, as in the Mission, and increasing “luxury” condo construction in less affluent areas have also played parts in this trend. It’s not as if demand plunged in the Pacific Heights-Marina district (or Noe Valley, for that matter). Quite the contrary: its 9% appreciation rate in 2013 translated into the city’s largest median price increase in dollar terms ($300,000). However, in the previous year, this district saw year over year median price appreciation of 25%.

Note that median price appreciation does not perfectly correlate to changes in home values, as it can be affected by a variety of market factors. It does give an approximate sense of market trends.
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REALLY Expensive Real Estate…Like $35,000,000

Twenty-nine fifty Broadway sold “off market” last month for $35,000,000.

2950BroadwayFacade
[Photo Source: SocketSite]

As reported on SocketSite today:
“Hidden behind non-disclosure agreements and tax records stamped “DO NOT FILM,” you’re not supposed to know about the sale of 2950 Broadway which was purchased for $29,500,000 in 2011, remodeled a little last year, and very quietly sold off the market last month. But now you know. And you’re about to know the record setting sale price as well.

With a sale price of $35,000,000 (roughly $3,182 per square foot) and $875,000 in transfer tax confidentially paid, 2950 Broadway has just displaced 2840 Broadway to become the most expensive single-family home ever sold in San Francisco.”

Wow…and some people will wonder and cry foul that it never hit the MLS.

San Francisco Housing Market Continues to Strengthen

The San Francisco housing market continues to heat up, as evidenced by the increasing sale prices of homes in the city. Compared to one year ago, the median price for a single-family home rose by 10.6 percent to $785,000. And, with a limited supply of homes for sale, the city has remained a seller’s market, with aggressive bidding and multiple offers occurring regularly.

Single-Family Home Sales

Compared to May 2011, the city’s inventory of single-family homes for sale fell by 10.8 percent, while the number of homes under contract rose by 13.9 percent. During the same period, the number of homes sold increased by 23.3 percent.

For homes that were priced below $700,000, the months of supply inventory fell by 70.6 percent to a reading of 0.9. For higher-priced homes between $700,000 and $1.2 million, the months of supply inventory also dropped, by 52.7 percent to 1.1 months.

One area of the city which continues to experience healthy sales activity is Twin Peaks West, located in the mid-western part of town. Since May of last year, the number of homes under contract here has increased by 13.9 percent, while the number of homes sold has jumped by 23.3 percent, with 37 transactions closed. Twin Peaks West offers a variety of neighborhood communities, from the upscale and exclusive St. Francis Wood, to the charming mom and pop shops of the West Portal. Homes for sale here typically receive multiple offers and do not last on the market for very long. The median price for a home in Twin Peaks West is $918,000.

Another area of the city which experienced high sales activity is the northernmost district, which includes classic San Francisco neighborhoods such as the Marina and Pacific Heights. Compared to one year ago, the number of homes for sale in this region rose by 24.4 percent, being one of only three districts in the last month which experienced an increase in for-sale inventory. At the same time, the number of homes under contract increased by 18.8 percent, while the number of homes sold rose by 22.2 percent. Here you will find some of the most impressive views and properties in the city, and whose close proximity to Presidio Park and the waters of the San Francisco Bay, provide an endless array of outdoor recreational activities. The median price for a home here is $2,875,000.

Condominium Sales

In the same fashion as single-family homes, the inventory of condominiums for sale in the city dropped by 38.1 percent compared to May 2011. As a result, the number of condominiums under contract increased by 38.7 percent, while the number of condominiums sold rose by 9.1 percent.

For condominiums that were priced between $500,000 and $900,000, the months of supply inventory contracted by 72.5 percent to a reading of 0.9. For luxury condominiums priced above $900,000, the months of supply inventory also fell by 57.2 percent to 1.4 months.

One area of the city which experienced positive condominium sales activity is Downtown San Francisco, in the northeast section of town. Since May 2011, the number of condominiums under contract here increased by 4 percent to a total of 52 properties, making it the second highest district in the city with the greatest number of condominiums under contract. The number of condominiums sold also rose by 8.5 percent, with 51 units sold. Downtown San Francisco not only includes the center of the city’s commerce, it also features quintessential and historic San Francisco neighborhoods such as North Beach, or “Little Italy” as it is also commonly known, and Nob Hill, home to not only some of the city’s most luxurious condominiums, but also to a number of famous landmark hotels such as the Fairmont and Mark Hopkins. The median price for a condominium here is $734,333.

Outlook

The National Association of REALTORS® reports that, “Pending home sales retrenched in April following three consecutive monthly gains, but are notably higher than a year ago.” Lawrence Yun, NAR chief economist, said a one-month setback against a background of many months of gains does not change the fundamentally improving housing market conditions. “Home contract activity has been above year-ago levels now for 12 consecutive months. The housing recovery momentum continues,” he said.

The consumer confidence index, which had declined slightly in April, fell further in May. The index now stands at 64.9, down from a reading of 68.7 in April. Regarding the short-term outlook, Lynn Franco, director of the Conference Board Consumer Research Center, says that, “Consumers were less positive about current business and labor market conditions, and they were pessimistic about the short-term outlook. However, consumers were more upbeat about their income prospects, which should help sustain spending.”

According to the California Employment Development Department, California’s unemployment rate decreased to 10.8 percent in May, and nonfarm payrolls increased by 33,900 during the month for a total gain of 425,000 jobs since the recovery began in September 2009.

As reported earlier this month in the San Francisco Chronicle, “U.S. mortgage rates dropped to record lows for a sixth straight week as concerns over slowing job growth pushed investors into the safety of government bonds that guide interest costs. The average rate for a 30-year mortgage dropped to 3.67 percent from 3.75 percent in the week ended Thursday, Freddie Mac reported. It was the lowest rate in the mortgage-finance company’s records dating to 1971. The average 15-year rate declined to 2.94 percent, also a record, from 2.97 percent.”

One Million Dollars Over Asking. Market “Crazier Now Than In ’05 And ’06”

Where on Earth!? Right here, 2821-2823 Broderick, San Francisco, CA 94123.

As if $1,000,000 over asking wasn’t enough, how about a two (yes 2) day close of escrow. Still shows Pending in MLS, so look for it to close on Tuesday.

How do I know?

A legit friend of mine offered $3.515 and didn’t get it. I don’t know exact price, heard from another friend the seller accepted $3.56 but not confirmed. Asking price was $2.495. I also tried to buy 2740 Lake St a few weeks ago, it went to an all cash buyer, 5 day close for $620k over asking. There was another house on El Camino in Sea Cliff that went like $1.2MM over asking recently. Market feels crazier now than it did in ’05 and ’06.“–A Trusted Developer Here in San Francisco

-2821-2823 Broderick, Cow Hollow 2 Unit Asking $2,495,000 [MLS]
-Google Earth Fun with 2821-2823 Broderick [Google]

It Is Certainly Brisk Out, And We’re Not Talking Weather

Somebody has certainly turned the tap on with regards to San Francisco real estate. Case in point (like we need to see more), 1998 Broadway #1007.

I just called on this Pacific Heights property to get an appointment for a client to take a look at it next Tuesday. How foolish of me to think it’d still be available! They accepted offers yesterday, received five, and will certainly not be looking for another by next Tuesday.

That’s a two bedroom, one and one half bath, 1030 square foot condominium asking $750,000, gone in seven days.

-1998 Broadway #1007, $750,000 [MLS]

Ditch Your Realtor, Get Ahead Of The Pack By Working With Me

Are you, or any of your friends, looking for a single family home in Noe or Cole Valleys (or anywhere in San Francisco for that matter)? Are you getting beat out by multiple offers in the over million dollar price range ($1.5M+), and showing up late to the party? Is your Realtor telling you they’re doing all they can (simply checking MLS everyday, which you can do too), but really not delivering? If so, you’re not alone, and I can help.

Within the past couple of months my buyers and readers have known about dozens of properties prior to them going to MLS. To think I share all of them online with everyone is simply silly. For example, my circle of clients knew about 707 Cole, 1027 Cole, 313 Parnassus, 785 Cole, 1340 Cole, 121 Beulah, 471 Duncan, 2975 Lake, and many more. There are also a dozen or so homes that never even made it to MLS and were shown without a hint of market activity, such as a mid-century home in Noe Valley, a grand, modern home on Sanchez, an AIA tour home in Golden Gate Heights, a penthouse stunner in SOMA, and a few others that I can’t recall the address off the top of my head.

Today, I present to you two more opportunities in Cole Valley, one in Nob Hill, and another on Lake Street not on MLS. Nowhere near MLS in fact. Not on PocketListings.net, not in my pocket, and not even on anybody’s radar. They are all single family homes, and they are all at least 2 bedrooms, and close to or over $1,500,000. They are not fixers, they are done, done, done…or turnkey as we like to say.

If you are interested, or know somebody that might be, you gotta contact me directly (alexclark@gmail.com), you gotta be unrepresented, and I’m going to ask you to work with me going forward and sign a written agreement confirming exactly that. No co-agents, no “I’ll work with you if you find me the property”, no “let’s try it out on this deal”…none of that. You either marry me as your agent or you don’t. Not sure if you should? Have a look at some recent testimonials I’ve been gathering and come take the plunge.

Like I’ve said, working with and finding a Realtor you like is like dating. If it’s not working out with one, you are free to leave to find another.

I’m also beginning to dabble in Lake Tahoe real estate, so if you’re interested in a second home, ski pad, lake front property, my finger is finding the pulse of that market too (and I know where all the good powder is).

So feel free to give me a shout, and let’s work on getting you ahead of the pack and into the home of your dreams. I’m also happy to help any of you sellers out there sitting on the fence in these markets. It’s a good time to sell in certain areas and certain price-points. I am at your service and available for consultation.

-Prior off market opportunities I presented [theFrontSteps]
-Testimonials
-Lake Tahoe Ski Cabin [theFrontSteps]

Zynga Co-Founder Mark Pincus Sells Presidio Heights Pad For $8,200,000

[Editor's note: I just realized I misspoke. The home is not in Pacific Heights, it is in Presidio Heights. Locals will know the difference, visitors might claim six of one half dozen of another. Regardless, the mistake has been acknowledged and changed.]

In other news to take us to the weekend, Mark Pincus, co-founder of Zynga, has sold his home at 3855 Washington. It just closed escrow for a mere $8,200,000 (originally asking $8,900,000).

Real estate haters will be quick to point out it spent a “long” time on the market (126 days), and was sold under asking, but I’d like to remind people that might be getting a little bit jaded…we’re talking eight million two hundred thousand dollars here folks! You think they’re trading that kind of property in Kansas!

Happy Aloha Friday. Enjoy the weekend. I’m out…and playing “Words With Friends”.

p.s. The buyer of this home, just like 2701 Broadway, came from a Zephyr Real Estate agent. Just sayin’….

2701 Broadway, On San Francisco’s Billionaire Row, Finds Its Billionaire Buyer

It’s big news for the Billionaires on Broadway. We have it on good intel that 2701 Broadway, a little house on the hill just down the street from the likes of the Gettys, Trainas, and Ellisons of the world (and let’s not forget a Monster of Rock), has found a buyer ponying up an undisclosed amount of cash (originally asking $32,000,000 then reduced to $28,500,000 and no longer listed on MLS) for this one of a kind, meticulously remodeled home, last sold in 1998 for $5,500,000.

Break out the bubbly, and call it all cash (pocket change really), some new billionaires are moving to Broadway’s Billionaire Row.











To the gentleman that said to me when visiting this home at 3577 Pacific (before it came on the market) “Zephyr Real Estate doesn’t have clients for this…” You’re right, Zephyr has clients for this instead. Congratulations to Anna and Dennis of Zephyr Real Estate for bringing the buyer to 2701 Broadway.

Just need that invitation to the housewarming party, and we’ll bring the Cazadores for fresh lime margaritas on the deck overlooking San Francisco, the Golden Gate Bridge, and the beautiful Bay!

-2701 Broadway, 7 bed, 7 bath, 16,400 sqft, asking $28,500,000 [MLS]
-Kirk Hammett Finds Buyer For His Pacific Heights Monster Den [theFrontSteps]

Client Testimonials From Way Back

Bear with me while I reorganize my testimonials into individual posts. These are a few put together from way back.

*Alex was very easy to work with. He was straightforward, gave good advice about how the condominium should look when it was being shown, and managed the negotiations with the buyer perfectly. I always felt he was dealing with me honestly, and he kept me fully informed. I will go to Alex any time I want to sell a house in San Francisco. JOHN BARTON

*I don’t know any Realtors in this city [San Francisco] that have a better grasp of technology as it applies to real estate than Alex. His sfnewsletter is a phenomenal resource and great way to begin your home search, or research home sales should you be selling, and he is a pleasure to work with. He seemed to get along great with the other agents involved in our transaction and we’re sure it helped get us the price we want. He negotiated hard, but made everyone laugh the whole way and it was great. Now we live in the suburbs, but if we ever move back, we’ll use Alex for sure. Not to mention he’s a decent golfer too. -Joe Condy

*Carole and I feel that we were very fortunate to have met you at the open house and I am glad we chose you to work with. Be assured in the future when we are ready to look at the market again we will be calling, as well as referring any house hunting friends to you. Read More-Carole and Bruce Derr

*Alex combines an insider’s knowledge of San Francisco, innovative marketingskills and the honesty and integrity of a down to earth guy.-Rich Singer

*Like a lot of SFNewsletter readers, I figured Alex would be either too busy or simply uninterested in representing a first time buyer with a sub-seven figure budget. Ten months of searching and four offers later, we’re homeowners, and he’s still returning my calls…The cool thing about Alex is he’s new-school enough to embrace technology’s influence over his profession, but old-school enough to hold your sweaty hand through every step of escrow. 

Bottom line, if you’re looking to be escorted from property to property in your agent’s Mercedes while being lavishly praised for your exquisite taste and style, Alex ain’t your guy. But if you’re looking for consummate San Francisco market expertise, every tool you’ll ever need to find and evaluate your properties, and a Tiger Woods-like closing mentality – hell, you’re already reading his newsletter, posting to his blog, and god forbid you’re receiving his twitter banter – seriously, why use anyone else?! -Tim Stevens

*We had our condo at the St. Regis listed for close to 8 months with another agent. We hired Alex and he sold it in two weeks! Amazing! Truly amazing and he was fun to work with the whole time, knew the market, knew we should take the offer we received, and knows where I should buy my next place. He is truly a pleasure to work with and really knows his stuff. His newsletter is great too. -Stephanie Morris

*I had been reading Alex’s “sfnewsletter” for over a year, so I knew when I was ready to sell my house in San Francisco, Alex was my choice. His newsletters were very informative and intelligently written. I know this sounds corny, but I really liked his sign-off at the end of each newsletter — “Happy Aloha Friday”. Alex kept on top of all correspondence and paperwork and kept me apprised every step of the selling process. I am happy to say that we accepted an offer after only 2 weeks on the market. I would recommend Alex to anyone in need of a superior REALTOR.-Debra Comstock

*I can and have enthusiastically recommended you to my friends who are looking at purchasing property here in San Francisco. Specifically, I appreciate your diligent work and follow-through, as well as your integrity in working with the seller’s representative and myself that made it possible to get this deal done. Read More.-Larry Singer

*Wanted to let you know how much I appreciated your assistance and help during the purchase of my new [home] in San Francisco. You did a great job of working with me all Summer long trying to find my dream house on my crazy schedule. I didn’t know exactly what I wanted, but by Fall you had identified my criteria and started showing me homes that suited my needs. The house we found has a great ocean view and is close to the beach with a big yard and potential to add on. Read More. -Ryan Seelbach

*Alex and I worked together for over 3 month searching for the right property. He showed me several properties and advised me on the pros and cons of each property. On [my home] he assisted in compiling a very strong offer on property where multiple bids were accepted. I strongly believe it was due to his assistance that I was able to purchase the proeprty despite the other offers being close to or higher than my own. Read More-David Kaneda

*I had met with several real estate agents before I decided on Alex, and it proved to be an excellent decision. He knew the market, had excellent recommendations based on my specific requirements and goals, and most importantly: he knew how to package and position the offer for quick acceptance once I decided on a property. We quickly closed on a condo at 1998 Broadway that was a great fit for me. And I believe the price and conditions make it an exceptional investment. I’d recommend Alex to anybody. Read More-Drew Sechrist