Hip Hayes Valley Half Pad Asking $449,500

This 2 bed, 2 bath at 829 Oak St #B looks great right? It is actually. It’s really sweet. But it’s not selling.

So what do you do when you can’t sell something for $900,000 in San Francisco? You should know this by now. You reduce the price. In this case, by half. Get out there and make an offer! Ah, but wait. You thought you were in luck, didn’t you? Not so fast…don’t forget where we all live…

If you want to pay half, you only get to use half…this is a 50% fractional ownership of the whole unit. That’s right, for $449,500 you can “Own your own bed & bath, common areas and part of yard”…now you just gotta find someone else to make up the whole, hope they are clean, don’t stink, don’t flake on their loan payments, and aren’t up at all hours of the night – unless you’re into those sorts of things.

Go on then, find that roommate who has $450,000 lying around and go buy yourselves half a pad for the Holidays. Sharing is caring, after all.

829 Oak #B, $899,000
Half of 829 Oak #B

$1 for $1 Match When You Donate To Protect Our Winters

In case you don’t follow me on Instagram, I thought I’d share this “Giving Tuesday” pledge here too, after all, ’tis the season of giving, and I’m giving $2500 to Protect Our Winters (POW). I want you to give too, so I can match your donations (up to another $2500)!

Spread the word, check out Protect Our Winters, and donate by following this link. It is a pledge for “Giving Tuesday”, but I don’t care if you donate today or in 3 months…I’ll match it. Just mention theFrontSteps (you can add it to your first or last name) when you donate, and consider it done.

As a reminder, not only am I donating to POW in this pledge, but I give 1% of ALL closed transactions back to the planet through 1% for the Planet, so let’s get some property sold and keep breathing fresh air, surfing clean oceans, and skiing great mountains without man-made snow!

Donate to Protect Our Winters
Learn about my 1% for the Planet pledge
-Photo Credit: Adam Clark; Skier: Sage Cattabriga-Alosa; Location: Neacola Mountain, Alaska

Supremely Located West Portal Home Sells For $2,500,000

Pleased to report the recent sale of this fantastic West Portal Home:

Beautifully renovated Mediterranean-inspired home has a style and feel that is absolutely unique and special. The spacious lot (124′ frontage) creates a great floor plan with lots of natural light and privacy. Perfect home for entertaining with open chef’s kitchen, dramatic living and dining rooms. Split level floor plan offers three bedrooms, two baths. Top floor closes off as private suite. Fourth bedroom and third bath, family room, wet bar on lower level (direct access from street – no stairs). Decks in backyard are surrounded by open green space/gardens, two car side-by-side parking. Fantastic location close to shops, Metro, parks, and freeway access.

Congratulations to my buyers, and thanks again to all involved for a smooth transaction.

-40 Dorchester Way, West Portal San Francisco, $2,500,000

Is Now A Good Time To Buy In San Francisco? Five Reasons Why The Answer Is YES

…as a follow up to my Market post yesterday, and to answer the age-old question everyone asks, “Is it a good time to buy?”, take it from the head honcho of Keller Williams in San Francisco, and me…the answer is a solid yes. His thoughts are my thoughts exactly, but since he states it so perfectly, all I have to do is cut/paste! ;-)

We finally have more inventory so that the market is more evenly supported by supply and demand. This is still a robust sellers market by all benchmarks and yet buyers are still not pulling the trigger on purchasing. Why is that?

Here are the reasons buyers should really consider buying right now.

1. Interest rates are clearly continuing to rise and projected to rise three more times next year from the economists that I follow closely. [This means even if the cost of the home drops, your cost to borrow goes up, so you might not afford as much home…a wash.]

2. California association of realtors still expects a modest gain in overall prices for 2019 (2 ½ to 3 percent). With our high price points that is a significant amount of money.

3. Buyers can negotiate a little stronger with sellers in this market slightly because of the seasonality in the market but also this shift right now changed the balance of power in the transaction. [I had some buyers secure a home in a trophy Noe Valley location on Vicksburg we thought we had no chance on…but we tried, and got it.]

4. There are finally more favorable loan options for down payments which is one of the biggest challenges right now for first time home buyers to accumulate enough down payment.

5. Sellers might take a contingency sale in this market when they would not have a year ago. [See #3, and I just closed yesterday with some clients in West Portal who had loan and inspection contingencies! What!? Yeah, previously unheard of…]

The fundamentals in our economy are very good with extremely low unemployment rate, high equity in home ownership, great bank balance sheets, strong GDP and CPI and a wobbly stock market that tends to then benefit the real estate sector. The fear of buying in this market is due to lack of correct data and not feeling comfortable about the decision right now based on previous experience. We are in a shifting market and have been due for a correction. However in CA we have already experienced some of this shifting which is why there is now great opportunity to make SMART real estate decisions and make a deal at the offer table.
-Rick Cunningham

Thanks Rick. You saved me a lot of thinking. As for you buyers sitting on the fence, one of you is going to score this amazing Victorian Condo supremely located in the Haight…who’s it gonna be?

1662 Page Street, San Francisco, $1,495,000 [theFront Steps]
-San Francisco Real Estate Market Report – November 2018 [theFrontSteps]
Number of Homes for Sale in SF Remains at a 7-Year Seasonal High [SocketSite]

San Francisco Real Estate Market Report November 2018

Midterms have passed and the Democrats have taken back control of the House, effective January 1st. It remains to be seen if they will attempt to reinstate full deductibility of homeowners’ mortgage interest, which could help keep San Francisco home prices trending upwards.

Over the past four weeks, the stock market has had significant gyrations, including a 1200 point decline in the last two weeks of October which capped that month’s worst performance in seven years. This volatility may negatively impact buyers who depend on stocks for their downpayment.

The economy remains robust and the Federal Reserve Bank is expected to continue raising interest rates to keep it from overheating, resulting in inflation. These rises will be a counterweight to rising home prices because rising interest rates dampen buyers’ purchasing power.

In San Francisco, inventory rose very slightly from last year for both single family homes and condo/loft/TICs, but the market remains very solidly in the sellers’ drivers seat.

Single Family Homes:
The three-month rolling average median sales price of $1,550,000 is up 8.8% over last year’s*.

Year-to-date, new listings are up 5.1% while sales are down 1.5%.

October’s inventory of 2.5 months is 13.6% higher than in 2017.

82% of homes sold over their list price and the median percent of list price received was 113%.

The three-month rolling average median sales price of $1,199,633 is up 6.2% over last year’s*.

Year-to-date, new listings are up 5.6% while sales are up 7.7%.

October’s inventory of 3 months is 3.4% higher than in 2017.

68% of condo/loft/TIC’s sold over their list price and the median percent of list price received was 106%.

All of this said, it is my hunch these numbers do not yet reflect the incredibly quiet and wishy-washy past couple of months. There are still many properties yet to get in contract, and many yet to close…still more pulled off the market. By all accounts our market is still great, but it has definitely shifted.

Overbids…They Still Exist…In Large Quantity…And Still Baffle

It’s been a while since I’ve broken down the top 10 Overbids for you, and although I suspect I’ll be posting Overbids until I retire (I’ve been doing overbids already at least 15 years), the market is doing something weird at the moment…so you should be keeping your eyes on the Recent Sales and Underbids too. It’s getting interesting…

That said, here you go:
Top 10 Overbids for San Francisco

Address BR/BA/Units DOM List Price Sold Price Overbid
556 Mississippi Street 2/2.00/N/A 11 $959,000 $1,487,500 55.11%
1274 Shafter Avenue 2/2.00/N/A 17 $599,950 $850,000 41.68%
1946 42nd Avenue 3/1.00/N/A 14 $995,000 $1,400,000 40.70%
1747 42nd Avenue 0/1.00/N/A 12 $999,000 $1,353,000 35.44%
666 Madrid Street 4/3.00/N/A 34 $998,000 $1,350,000 35.27%
746 Church Street 2/1.00/ 10 $1,395,000 $1,856,250 33.06%
170 Guerrero Street 2/1.00/E 5 $949,000 $1,250,000 31.72%
191 Dublin 4/3.00/N/A 29 $998,888 $1,300,000 30.14%
240 Hartford Street A 1/1.00/ 5 $925,000 $1,200,000 29.73%
60 Coleridge Street 3/2.00/N/A 14 $1,159,000 $1,500,000 29.42%

Looking for an amazing property on an amazing street? Check out 1662 Page, the property so many seek, and is oddly still available and open this weekend.

Have a great weekend everyone!

Bernal Heights Home On Large Lot Gets 12 Offers, Sells In 5 Days

We had to put the battle armor on to get this one (232 Precita in Bernal Heights)…with 12 offers, and negotiations happening at light speed. We offered much lower than the final sales price (given the uncertainty in the market), but had to change our thinking, and change it fast. (This is exactly what I was talking about in my previous post about some properties not getting offers, while others get many multiples.) It was ultimately too nice of a location and lot for my client to pass up. Congratulations to you, sir…well done. It is a great house with major potential.

From the marketing remarks:

Charming 1930’s era Spanish Mediterranean style home with unprecedented 120′ deep x 56′ wide L-shaped lot, offering the most amazing back yard potential you’ll ever find in Bernal Heights! And just a block from beautiful dynamic Precita Park. Versatile, highly desirable floor plan. Living Room with wood burning fireplace, Formal dining room, Kitchen with breakfast nook -all could be opened up for incredible open Living/Dining/Kitchen experience! Two large bedrooms & delightful period bath w exquisite tilework, separate shower & tub. Parquet wood floors. Interior stairs to large home office & guest suite, w obvious further expansion potential. Live the dream & ultimate CA indoor/outdoor lifestyle with fruit orchard, potting shed & Downtown View backdrop! Premium N.Slope location, where Mission meets Bernal.

Property was listed by Vanguard Properties. I represented the buyer. If you want the play by play on how this deal went down, give me a shout.

Potrero Hill TIC With Big Views And Superb Location Fetches $985,000

I’ve been working on this one for the better part of four months, and our timing and strategy couldn’t have gone more smoothly (despite the market shift). Showing it a few times off market back in July helped us gauge the interest, set a good price, know that we definitely needed to spruce it up a bit, and it allowed the co-owners to establish fractional financing, which definitely helped the sale. After painting, staging, and doing what we do, we were able to get multiple offers, allow the other owners to finish getting fractional financing, and close without a hitch. Hats off to everyone involved, including the lender, the buyer’s agent and her clients, photographer, stager, and of course my client, the seller who couldn’t have been more easy and organized to work with. Congratulations to all!

Situated in the heart-center of Potrero Hill, and just steps to 18th Street shops and restaurants, this top floor two bedroom, one bathroom flat with sweeping Northwest views from Corona Heights to City Hall is not to be missed.

San Francisco Real Estate Market Shifts – Will It Last?

It’s an interesting time in the San Francisco real estate market. If you’re one with the ocean, it’s like being caught between the in and out-going tides (the slack). We made it through the Summer Doldrums, hit the Fall listing frenzy and now we are stuck. Still many multiples of properties flying off the shelf and being fiercely competed, and still others languishing on the market without any takers. For those of us that list properties for sale, the offer date is no longer guaranteed to produce multiple offers, the number of emails and “insider” network posts of “still available” homes have risen dramatically, and general buzz and traffic to listings and open houses has definitely declined…mostly. I say mostly, because like I said earlier, some places are still crazy nuts.

As I dig through the data available to me, I was just about to say the market has totally shifted, and then I got stuck on this chart (from Compass’ market report) by way of the data guru Patrick Carlisle, and it reminded me to be patient, and not panic:

As you can see it goes back to 2012, and as you can see there is a definite pattern. The only difference this time around is in this chart, which shows a 28% increase year over year of new listings compared to last…more inventory, which means it will take longer to get through it, and once we get through it, what will the future hold? There is also a ton of other data that takes us way back in time, so I encourage you to check it out.

There is a lot of talk that we may have hit a peak, and there is still other talk from my lender contacts that we have another solid Spring selling season ahead of us before things get really interesting. We are in the midst of mid-term elections (GO VOTE!) and there is definitely weird and toxic fodder coming out of the White House, which could hose us all, but all in all I say it’s still too close to call whether or not the market is making a permanent shift, or just a temporary hiccup like we’ve definitely seen in years past.

I’m happy to chat market, seasonality, prime time to sell and buy, and what your property might currently be worth, just give me a shout.

In the meantime, I have a couple amazing homes for sale that you absolutely must check out:
An awesome Single Family in Cole Valley at 715 Cole (NOT ON MLS); and a spectacular Victorian condominium in the Haight at 1662 Page. Had you been following theFrontSteps you would have already known about these and perhaps even had a chance to snag 215 Cole, which I just sold quietly off market for $1,500,000. I keep telling you, follow my site, and be on my radar and good things will come your way.