Pulled from the comments made by “boomtime” on “636 Steiner, an offer and a UFC style beat down”. We edited slightly and added property links so everyone is on the same page.
I call it the way I see it. It is an incredible Boomtime now, and I can’t wait to get my bonus this year. I have never experienced such a tight labor market, and salaries and bonuses are reaching new record highs. Imagine a 23 yr old, 1 yr out of school, clearing $115,000 in total compensation? Now, imagine the legions of more experienced people in my industry, and what they are getting paid. It is not uncommon for a 28 year old to get paid $300,000 and a 32 year old to get paid $500,000+. This is the prime demographic of home buyers in SF. Add a spouse, and you get another $50,000 AT LEAST + income.
1330 Chestnut St. anyone? In contract after one Sunday open house for $1.495 million purchased last year for $1.025 mil with a $200K remodel.
2255 Steiner St.[we think you mean 2255 Washington], a 2/2 asking $1.498 mil at under 1,500sqft with no view. Impressive! I bet it gets into contract by another $500,000/yr couple.
2249 Washington St., a 2/2 in contract for $1.525 mil. Who’s buying this?
2745 Laguna St., a 3/2 in contract for over $1.55 mil, purchased for $1.20 mil a couple yrs ago? Who’s buying this?
3042 Jackson, a 2/2 in contract for $1.595 mil, who’s buying this?
2865 Jackson, a 3/2, 1700sqft place with $775/month HOAs… who’s buying this?
2138 Beach St., a 3/2 in contract for $1.799+ mil. Nice location, lower unit. Who’s buying this?
The list goes on, and on and on. I’ve never seen so much strength in th $1.3 and higher condo market. Personally, I would look to buy a Single Family Home over a condo in this price range, but maybe these buyers just want simplicity?
The key is LOCATION and distinction of the property. Think about the best properties sitting atop a pyramid. The base, which is demand, gets wider and wider due to rising incomes, inflation, population=demand, as the supply remains fixed. Think of fine art appreciating over time. Same thing, and that’s why I’m amazed people are plunking down $1,000sqft+ for new properties in SOMA where there is an endless supply, and NEW becomes NOT NEW in 5 years. People start screaming the market is falling when a SOMA condo gets reduced. I’m just giddy because prices there, in my opinion, should be no more than $600/sqft, yet people are paying $800-1,600sqft.
Finally, I have met an incredible amount of people in SF who have help from Mom & Dad. Even kids in their late 20’s and older are getting help from Bank of Mom & Dad. Heck, on my block there are two 26 yr old kids living at home with Grandma! One underestimates the wealth in SF.
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–1330 Chestnut…How much for the remodel? [theFrontSteps]