2015 West Portal Property Values

The West Portal/Inner Parkside 2015 Year-End Real Estate Market Update

Values stayed strong on most properties throughout the year

 

 

WP street scene-2 2015 started out strong and I expect we will see that again in 2016 as a result of a continued lack of inventory and a flood of buyers coming back into the marketplace after the holidays. Although we had multiple and over asking offers throughout the year, the most aggressive and largest number of bidders occurred mainly before summer; looking back at 2015, I think our high point was July. Buyers tired out faster this year than they did in 2014. So 2015 only had one market bump; not the usual two.

After Labor Day, buyers were more fickle, largely because in other parts of the city, inventory jumped dramatically (mostly condominiums) and all of a sudden, buyers had options; sellers trying to get top dollar couldn’t get quite what they had planned. Properties that were already remodeled sold first, and list prices had to come down to get people in the door. Interestingly, at the end of the year, with most properties that didn’t sell going off the market til after the first, those that did come on, sold quickly at high prices. It’s all about supply and demand.

  • Single family homes in a constrained market kept West Portal/Inner Parkside humming.
  • The total number of sales for 2015 was 42, a big decrease from 60 in 2014 and 64 in 2013. In the old days (three years ago), the normal had been around 50 annual sales, so 2013 and 2014 were already higher than normal.
  • At the close of the fourth quarter of 2015, we had one active, 13 sold (closed) (18 at the same time in 2014) and no failed to sell properties. Of the 13 sold, 11 received multiple offers and 12 sold over their asking price. The amount of over bids ranged from as little as $10,000 to as much as $430,000.
  • Two of the 13 sales (15%), were reported as all cash (no loan); and we had 11 reported for the year (26%).
  • There were no short sales or bank owned properties on the market this year, although a few properties were in difficulties.
  • The best ‘apple’ on the market in the last quarter previously sold in 2005 for $900,000 and recently sold for $1.5m (a 67% increase). Also, a fixer that sold a year ago for $1.1m, that was gutted and beautifully remodeled, just sold for $2.325m.
  • Of note, five of the 13 sales (38%) had been owned by the same people for more than 20 years. Longer ownership means less movement and further tightening of the market; only those who have to sell, are.
  • Forgive me a little human interest. Digging around the tax record means you can find the most interesting things. One property that went quietly to foreclosure was most likely purchased on the courthouse steps and is now being resold. Another home was owned for many years by a World War II veteran, who took advantage of the GI Bill to buy his home.
  • In my analysis to determine market value, I do not use median price. Rather, I compare specific property types, sizes, conditions and locations, from quarter to quarter and year to year.
  • From the third quarter to the fourth, prices stayed even in West Portal/Inner Parkside core and went down as much as three percent North of Ulloa.
  • Year to year, homes that were either remodeled, or needed only cosmetics, went up in value between six and 15%. The upper end of that range seemed to be for less expensive properties, as the market is more competitive in lower price ranges. For properties on busy streets, or needed heavy remodeling, prices went down between seven and 12 percent.
  • Staging companies are telling me that they are booking up at the beginning of the year.
  • I expect the usual first quarter bump up in prices in 2016. Inventory dried up over the holidays and buyers will be back after their holiday nap.

Eric Castongia, Broker Associate at Zephyr Real Estate (BRE Lic. No. 01188380) provided this information. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service, the County Tax Record, the internet and Eric’s observations in the marketplace. Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

West Portal Property Values Third Quarter 2015

Property Values in West Portal continue on the upswing

WP street scene-2 Half the real estate community thinks the market is still roaring, the other half think something is brewing. Given the number of listings we saw come on across the city after Labor Day, some sellers feel something coming too. You will soon see that West Portal/Inner Parkside has not been impacted by this as of yet.

We started seeing isolated instances of no offers on properties citywide at the end of the second quarter and that has lingered throughout the third quarter as well.

On the most premium of properties, the number of potential buyers bidding on a property generally remained high, while those properties with a negative ding or two may have received multiple, but fewer offers; overall prices stayed up. The problem for the isolated cases where no offers were received, seemed mainly to be a case where there was an issue that was difficult to resolve, was priced too aggressively, or buyers had choices of multiple properties. As for us:

  • At the close of the second quarter of 2015, we had no active listings, seven pending, nine sold and two that failed to sell. Of the nine sold, seven received multiple offers and all nine sold over their asking price. In cases where an offer was over asking, but there was one offer, may indicate a ‘pre-emptive’ offer, which means an early offer before an anticipated offer date.
  • The amount of overbids ranged, from as little as $110,000 to as much as $505,000.
  • Comparing the same quarter of multiple years indicated that we are below the expected target for the average number of sales. I went back as far as 2005 and in the third quarter, we have typically had 13 or 14 sales. Our high in 2014 was 17 and right after the financial melt down in 2007 and 2008, we had 10 and 11 sales respectively in the third quarter. Interesting that we have fewer sales than in the depths of the financial melt down. That, I suspect, is largely why we have not seen pauses in the market yet.
  • Of the nine sales, five were reported as all cash (no loan on the property).
  • Looking at average appreciation from the second to the thirds quarters, I estimate an increase between four and eight percent; looking at year to year appreciation, it is closer to 20 percent.
  • Once again, West Portal and Inner Parkside are in their own bubble within a bubble.
  • A word of caution before listing your property, look at comparable sales and trends to establish a price in line with the marketplace and take citywide competition into consideration. Once we start seeing price reductions and withdrawn properties being more common place, that is the start of a market change.

Eric Castongia, Broker Associate at Zephyr Real Estate (BRE Lic. No. 01188380) provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace; he is available to discuss your situation or any questions you may have. He can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

West Portal Property Values Q2 2015

Property values up again in West Portal in the Second Quarter

WP street scene-2 There was a little burst of energy between the first and second quarters. The market is under constant change and evolution, so one has to nimble and active to stay on top of it. I can tell you there are a lot of conversations between real estate agents to keep tabs on the trends of the market!

Toward the end of the quarter, the number of offers seem to have gone down, but not necessarily the amount of the overbids. There have been some isolated instances of no offers being received on a property, but that is not common. We can very likely blame the market changes on the start of the Summer Season, with more people going on vacations, as well as educated (and weary) buyers opting out of competing if they feel they don’t have a chance of winning.

Is there a greater chance of winning with fewer offers? Doubtful, given the amount of the overbids below. One thing seems certain; buyers who embrace the market more quickly will pay less than if it takes longer to find a home.

  • At the close of the second quarter of 2015, we had one active, three pending and 12 sold. Of the 12 sold, 10 received multiple offers and sold over their asking price. The amount of the overbids range, from as little as $210,000 to as much as $550,000. Compare this over bid range with the first quarter at $66,000 to $375,000.
  • The amounts of the homes that sold below asking, ranged from $9,000 to $49,000.
  • There is no rhyme or reason to the amount of an overbid; it is dependent on the list price, the amount of interest in the property, what has sold most recently and the buyers in the marketplace that particular week offers are due. A gut reaction to this is that list prices are staying the same or being set lower (not going up with rising prices). That may be part of the fuel keeping prices going.
  • Comparing the same quarter of multiple years indicated that we are right on target for the expected number of sales. We have ranges from 12 to 14 sold properties over the same quarter in the last six years, with only one exception in 2010 when we had 21 sales.
  • You’ve heard me or other real estate agents moan about inventory and how there isn’t much on the market. Interestingly, I think these numbers indicate that West Portal/Inner Parkside is actually quite stable year in and year out; what is different is the number of buyers; not a reduction in listings.
  • Of the 12 sales, five (42%) were reported as all cash (meaning no loan on the property); compare that to the first quarter of 2015, where one (13%) of the eight sales reported all cash. This is contradictory to what I am seeing and hearing – more transactions with financing; I speculate that cash is saved for only the most in demand properties.
  • On average across the board by house type, appreciation for last quarter to the current quarter looks like it’s up three to five percent.
  • Year to year, appreciation looks to be up as much as 11 percent.

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate (BRE Lic. No. 01188380) provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace; he can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

West Portal Property Values-Spring 2015

2015 property values in West Portal / Inner Parkside San Francisco, CA

2015 started out with a bang. We see it almost every year because of a burst of post holiday energy; it’s amplified because buyers are in competition to buy the same properties.

To give you a quick visual, I did a search for active single family homes for all of districts two and four, which cover all of the Sunset and from West Portal through to Sunnyside. There is a total of 40 homes for sale in all price ranges. That’s an incredibly small number.

Most of the inventory I have been seeing has been from people moving out of town, or passing on. There aren’t many move up buyers (who are also sellers) and I think this is a significant root of the problem to our lack of inventory. Faced with the need to sell their current property first and move into a rental while they look for a home is a daunting thought in a market short of inventory, with prices going up, competition and the need to get financing, that’s a pretty big leap of faith. Most people give up on the thought.

As for market specifics in West Portal/Inner Parkside:

  • At the close of the first quarter of 2015, we had one active, four pending and eight sold. Of the eight sold, all eight received multiple offers and sold over their asking price. The amount of the overbids are a big range, from as little as $66,000 to as much as $375,000. There is no rhyme or reason to the amount of an overbid; it is dependent on the list price and the amount of interest in the property.
  • Eight sales in the first quarter seemed very low to me, so I went back ten years to see if I could find a trend. About half the time, the first quarter has been below 10 sales, the rest has been over; given the historical data, eight seems reasonable to expect.
  • Of the eight sales, only one was reported as all cash (meaning no loan on the property); compare that to the first quarter of 2014, where five of the 15 sales reported all cash. I am hearing of more transactions with financing, so perhaps cash is saved for only the most in demand properties.
  • A few interesting ‘apples’ on the market in the last quarter, meaning properties that have sold in the recent past. One on Ulloa that sold in 2004, sold for $800,000 more in 2015 and another on 18th No of Ulloa that sold in 2013 for $633,000, benefited from a significant makeover and sold for over $1.5 million in 2015.
  • For typical West Portal/Inner Parkside homes, which have two bedrooms and a bath up and rooms down, I didn’t see fluctuation in prices from quarter to quarter. Part of that was hampered by the specific inventory we had to compare.
  • North of Ulloa usually gives us a better sample, because there are more sales in that area over the course of a year. From the end of 2014 to the beginning of 2015, appreciation was about five percent, and year over year it was about 16 percent.
  • List prices have stayed the same or gone down a bit, leaving some room for buyers who expect to overbid.

 

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate (BRE Lic. No. 01188380) provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace. Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

West Portal Property Values up again for 2014

The West Portal/Inner Parkside 2014 Year-End Real Estate Market Update

2014 started out with a bang real estate wise and I expect we will see that again in 2015. A lack of inventory has kept prices on their move up.

Of particular note at the present time, is that a home’s selling price seems to have less to do with their location, as it is with

Eric Castongia-2655 16th Ave.

the type of property and the condition it’s in. A great example is a home on Claremont that was priced appropriately for its location and condition; it received 21 offers. The fact that the home is a grand, two story detached home mean

t more than the busy street; it sold for more over asking than I expected.

Buyers are very educated, so not every home sells for more. Another two story on Forest Side that needed significant work, sold for un

der asking, despite its multiple offers.

  • The total number of sales for 2014 was 60, a slight decrease from 64 last year. Historically, the normal in previous years has been around 50; perhaps we are seeing a new normal.
  • At the close of the fourth quarter of 2014, we had one active, 18 sold (closed) and two failed to sell properties. Of the 18 sold, 15 received multiple offers and 16 sold over their asking price. The amount of over bids ranged from as little as $10,000 to as much as $462,000.
  • There were many similarities comparing the last quarters of 2013 and 2014. There were 18 sold properties in each, both received 16 received multiple offers and the amount of over bids ranged from as little as $31,000 to as much as $405,000.
  • Three of the 18 sales (17 percent) were reported as all cash (meaning no loan on the property); and we had 14 reported for the year (23 percent).
  • There were no short sales or bank owned properties this year.
  • There were four ‘failed to sell’ listings for the year; two in the last quarter. One of these came back on and is still active.
  • A few ‘apples’ on the market in the last quarter, meaning properties that have sold in the recent past. One on 15th that sold in 2004, sold for $502,000 more in 2014.
  • In my analysis to determine market value, I do not use median price. Rather, I compare specific property types, sizes, conditions and locations, from quarter to quarter and year to year. Using that comparison method, I determined that property values went up both quarter to quarter and year over year.
  • From the third quarter to the fourth, prices went up as much as seven percent.
  • Year over year, we gained as much as 19 percent.
  • List prices started to change this year, going up along with the increase in value, but still needing to take into account that buyers expect to overbid.
  • I expect the usual first quarter bump up in prices; as there isn’t much inventory and we haven’t had much on over the holidays.
  • I have also heard from several staging companies that they are poised to be very busy at the beginning of the year.

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate (BRE Lic. No. 01188380) provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace. Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

Property Values in West Portal and Inner Parkside

Eric Castongia-2655 16th Ave.Property Values in West Portal and Inner Parkside-Third Quarter 2014

The market is great, but maybe not as great as you hope.
This summer was a strange one; strange in that it was more normal. Over the last two years, the market plowed right through summer, overbids, multiple offers and all. This year we still had good market activity, but it slowed down-offer dates came and went, in some cases without offers. My observation is that buyers are tired and sellers are wanting to hit the market at the height. Call me conservative; I suggest cautious optimism in the sale of your home.
• At the end of the third quarter 2014, 13 homes had sold. Of the 13, 11 of them sold for more than asking, 10 of them with multiple offers. Compare that to the second quarter where 11 had sold; nine of them received multiple offers and all 11 sold over asking price. This highlights the importance of pricing. Both of the homes that sold below asking in the third quarter had started too high, not letting the market determine price.
• Of the 13, 38% of them reportedly sold for all cash, compared to 10% in the second quarter. If we look to the first quarter, 30% of the sales were reported as all cash. I am dragging the first quarter back into the comparison to shed some light on what may have happened in the second quarter. Did we see a lull? Buyers felt more emboldened to get financing, than to pay all cash; in the third quarter cash was back.
• The amount of the overbids in the second quarter ranged from a low of $51,000 to a high of $467,000 over asking (which in that case was nearly 28% over the asking price). Note that this home sold for 37% percent over its 2007 sale price. I should further note that the high was the exception, not the rule.
• At the end of the third quarter, all properties that were on the market sold, as opposed to the second quarter, where there were two properties that had not sold. Both had been tenant occupied and one of them was in the foreclosure process. This is significant in that even the overpriced properties sold, so there were outside influences in those two properties that made them less desirable, or salable. Note to sellers, get rid of those problems before you go on the market.
• I have seen several instances where sellers have a higher expectation for the value of their home than the market will bear. It’s an expensive lesson for a seller; those homes usually sell for less than they would have if priced correctly to start with.
• As for property values quarter to quarter, it looks like West Portal proper and Inner Parkside, have seen a 2-4% increase in values. This smaller increase could be a result of less on the market and fewer buyers in the market in the Summer.
• The area I call North of Ulloa (NoLoa), which is Inner Parkside North of Ulloa St., is where the majority of sales in the neighborhood occur. I figure we have seen as much as a 15% increase between the last two quarters. My theory is that market pressure is to thank. Prices in West Portal and Inner Parkside have priced many people out. Even the Sunset is seeing sales of a million dollars or more, so the market is squeezing NoLoa up in value. I expect that rate of appreciation will slow down and fall in line with West Portal and Inner Parkside.
• The marketplace is not seeing every property selling at the same level of frenzy as it once was. The best answer remains for sellers to do everything they can to minimize their homes quirks, get rid of problems if possible and price the home for the market, not for their desired outcome.

Eric Castongia, CRS, BRE No. 01188380, Residential Sales Specialist at Zephyr Real Estate provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace. Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

West Portal Property Values Continue up in the 2nd Quarter

Homes in the West Portal Area continue to increase in value

The state of the real estate market is now everyday conversation. If you are an owner, you wonder how much some desperate buyer will pay for it; if you are a tenant, you wonder when your landlord is going to sell and how expensive it will be to find a new rental. Can we keep appreciating at the level we have been for the last few years? No, of course not; we’ve seen this before. The question is always, when? Eric Castongia

  • At the end of the second quarter 11 homes had sold. Of the 11, all of them sold for more than asking, nine of them with multiple offers. In the first quarter of 2014, 15 had sold;13 of them received multiple offers and 13 sold over asking price.
  • One of the 11 in the current quarter (10%) reportedly sold for cash, compared to five of the 15 (33%) in the previous quarter. While there weren’t as many all cash offers this time around, there were a significant number with large down payments, which made it impossible for many buyers to compete.
  • The amount of the overbids in the second quarter ranged from a low of $55,000 to a staggering $500,000 over asking (which in that case was nearly 30% over the asking price); note that this home sold for 35% percent over it’s 2011 sale price. Great timing, happy seller.
  • At the end of the current quarter, there were two failed to sell properties and in the first quarter, there were none. Let’s look at that a bit closer. All properties in the first quarter sold, even if they sold for at or below asking. In the second, they did not. This could be an indication that some sellers have a higher expectation for the value of their home than the market will bear. I have seen other incidents of this trend starting to happen and have even seen some properties list price get increased after their offer date came and went with no offers. I have also seen properties where multiple offers were expected and none were received. I think this could be an indication of a change brewing.
  • Note, that the biggest overbids are for desirable properties-those in great condition, remodeled and premium location, larger size and/or bedroom count, a nice floor plan with no quirks, outdoor space and parking.
  • Property values are getting harder and harder to figure out. The area I call North of Ulloa (how about NoLoa), which is Inner Parkside North of Ulloa St., is where the majority of sales in the neighborhood occur. The area has seen big gains in the last few years; I figure approx. 10-15% in the last year.
  • The area closer to West Portal Village is even harder to gauge, as there are less sales to compare quarter to quarter and year to year. As an educated guess, I would say desirable homes are up 20-25% in the last year. The premium is for location to the village.
  • Prepare your home well and price it appropriately. Stay nimble and listen to the market; it will tell you what your home is worth-just be ready to accept what it tells you.
  • As for when will the market slow down, I think we are already there for properties with quirks. Those are the properties that are not getting the larger overbids, or are missing out on the offers all together. For now, that is the distinction, because clearly, desirable properties are still in a frenzy.

Eric Castongia, BRE No. 01188380, Residential Sales Specialist at Zephyr Real Estate provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace. Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700.

West Portal Real Estate Market 2013

West Portal Real Estate Market goes up for another year

The West Portal/Inner Parkside 2013 Year-End Real Estate Market Update

By Eric Castongia, Zephyr Real Estate

Eric Castongia

This was an interesting year to look back on.  In looking at the analysis I did for 2011 and 2012, it’s amazing how far we’ve come!  In 2011, we had price reductions, withdrawn listings and properties sat on the market.  In February 2012, we roared back to life and we’ve been running ever since, although I felt a pause in the fall.   Even over the holidays this year, we saw properties come on right up to Christmas and then they sold right away.

  • The total number of sales for 2013 was 64, a huge increase from the normal of around 50; that’s a 28 percent jump. 2012 was 50.  Even in a down market, 2011 saw 51 sales because of our consistency and built-in demand.
  • At the close of the fourth quarter of 2013, we had two active, two pending (not yet closed) and 18 sold (closed) properties.  Of the 18 sold, 16 received multiple offers and 16 sold over their asking price.  The amount of over bids ranged from as little as $25,000 to as much as $251,000.
  • Technically, no properties sold under asking, but if you dig a bit deeper, two of the sold properties had been reduced, then sold for over asking.  Another property sold at asking.
  • For a little perspective, at the close of the fourth quarter of 2012, we had 17 sold (closed) properties.  Of the 17 sold, 12 received multiple offers and all 12 of them sold over their asking price.  The amount of over bids ranged from as little as $2,000 to as much as $262,000.
  • There was one short sale this year and it is still pending.  In 2012 there were six.  It seems that property value increases and previous sales have flushed out most of the short sales and foreclosures.
  • There were four ‘failed to sell’ listings for the year; one came back on and is still pending (the short sale mentioned above), so net affect is three; in 2012, we had seven.  Again an indication of an accelerated market.
  • Interestingly, a property that had sold on 17th Ave. in 2008 for $1.3m, sold in the fourth quarter for $1.4m.  That’s a pretty good return considering that three of those nearly five years where in an economic downturn.  The property would have gone down between 2008 and 2011, then recovered between 2011 and 2013.
  • As you may know, my scientific method for establishing value is spreading sold properties from different quarters across my dining room table.  In that way, I can compare apples and apples and avoid median price, which I think is not too useful.
  • By my interpolation, property values went up year over year, but down quarter to quarter.
  • From the third quarter to the fourth, it looks like prices went down as much as three percent; that’s the pause I felt.
  • Year over year, we gained approximately four to eight percent.  That seems like a big spread, but consider this.  The target moves every single quarter.  I compare properties between quarters and the properties I compare change, because I have to find similar properties between quarters.  Since each house and block is different, we have little control in coming up with firm numbers.
  • Interestingly, list prices didn’t seem to change; it was the overbids that did.  Being part of the dotcom mentality, we have to take into account that buyers expect to overbid.  Note that I mentioned above that the minimum overbid was $25,000 in the fourth quarter, in the third it was $2,000.  Price your property near where you think it will sell and you won’t get activity, or a buyer.
  • I expect the usual first quarter bump in prices; there isn’t much inventory, so if you go on the market right now, you’ll likely get a premium.
  • If you read the national news, they expect equilibrium in the real estate market this year; I do not agree for San Francisco.  Our real estate market has always reacted differently and I don’t think this year will be any different.  We are still likely to see short supply and buyers staying the course trying to buy before interest rates go up.

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace.  Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700. DRE Lic. No. 01188380

West Portal Property Values in the third quarter 2013

The West Portal/Inner Parkside Real Estate Market Update

AWP street scene-2 lack of supply and high demand for the number of available homes in West Portal / Inner Parkside is an issue most of the time; there is a predictable lack of inventory that keeps property values up and in demand.  Dot com round two, in the last few years, has accelerated values and created a level of frenzy beyond our normal level of activity. Changes in the marketplace in the last few months have made predicting a home’s value that much more difficult and has left a lot of real estate professionals shaking their heads trying to figure out how to council their clients.  There are lots of theories about why that might be true.  Here’s what I have observed about our neighborhood:

* At the close of the third quarter of this year, we had three active homes, four pending (not yet closed) and 17 sold (closed) properties.  Of the 17 sold, 10 (59%) received multiple offers and 13 (76%) sold over their asking price.

*  Two of the active homes on the market have been on for longer than 60 days, indicating that they are over priced for market conditions.

*  There were no properties that were withdrawn from the market in the third quarter.

*  Of the 24 transactions in this quarter, we had 2 short sales; one active, one pending.

*  Sellers North of Ulloa took advantage of the market to sell.  11 of the 17 (65%) sales were in this area and 6 of the 11 were purchased by their sellers since the year 2000.  Eight of the 11 sales were multiple offers, over asking. The overbid amounts ranged from $81,000 to $405,000.  The most under asking was $67,000.

*  In the second quarter, 13 of the 14 sales had multiple offers over asking.  The range of overbids was $5,000 to $273,000.  The most under asking was $900.

*  While the average number of offers has gone down on all properties, the number of offers and the amount of overbids has accelerated on the best properties on the market. Gone (for now) are the days when all properties in the marketplace are treated the same way.

*  In the first part of this year, large down payments and all cash buyers had been dominating the marketplace; I am now hearing more offers are coming in with financing and 20 percent down payments.

*  The number of offers on listings have been dropping for the last few months; I suspect a combination and buyer fatigue slightly higher interest rates.  The holidays will contribute to that slow down as well.

*  As for values, year over year, it looks like three to seven percent appreciation, while quarter over quarter, it looks like we have stayed even or lost a little.  In comparing two comparable homes that sold within a block of each other for the second and third quarters, it would appear that we had a spike in value in the second quarter.  I think we will look back at the second quarter as a high point in the year.

*  Seller tip; if you are thinking of selling your home, use the remaining time this year to prepare your home for sale and be ready to go on the market in February/March of 2014.  We typically see a bump in prices after the first of the year.  Work with your realtor to come up with the to do list and don’t be afraid to spend a little money to make your home stand out in the best possible light.  Remember, once you decide to sell, it is no longer your home; it is an asset that you need to merchandise and market to it’s best potential.

 

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace.  Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700. DRE Lic. No. 01188380

West Portal Property Values

Eric Castongia - West Portal Avenue West Portal Property Values continue their upward movement in the Second Quarter of 2013

Homes in West Portal and Inner Parkside continue to get snapped up. The lack of inventory in the neighborhood keep buyers interested and waiting to pounce on that right property the moment it comes on. Generally speaking, a property comes on the market and sells within a week; there is a steady demand and not enough homes coming on the market to fill the demand. Even a water main break and sink hole didn’t slow it down! Interest rates are just started to creep up, so we should know by next quarter whether there is any measurable change to property values and the number of buyers out there.

* At the close of the second quarter of this year, we had one active home (it just came on the market and hasn’t taken offers yet), eight pending (not yet closed) and 14 sold (closed) properties. Interestingly, that is what happened at the end of the first quarter; the only difference-we had 13 closed sales.

* Of the 14 sold, 13 received multiple offers (93%) and 13 sold over their asking price. The amount of over bids ranged from as little as $5,000 to as much as $273,000. Overbids in the $200,000 range are not uncommon; the lower the list price, the higher the overbid. The closer you price to your expected sales price, the more likelihood that you will sell at or below asking.

* For a little perspective on the state of the market and how it has accelerated, at the close of the second quarter of 2012, we had 10 sold (closed) properties. Of the 10, seven received multiple offers (70%) and five of them sold over their asking price. Of the 10, three of them (30%) sold under their asking price; in the current quarter we had one of the 14 sell under asking.

* We did not have any short sales and foreclosures this quarter; it was also down citywide.

* In the last few weeks, we saw interest rates go up approximately a percentage point higher. Relatively, that is still low-below five percent, but it does affect buyer’s purchasing power, so I expect that to affect prices.

* Large down payments and all cash buyers are dominating the marketplace, making respectable 20 percent down buyers either lose out, or take larger risks by not having appraisal or financing contingencies and/or paying significantly more than the all cash buyers.

* The number of offers on a listing seems to be dropping; perhaps from buyer fatigue, or the start of the summer doldrums.

* North of Ulloa typically has the most sales in the neighborhood and that is true in this quarter.

* For West Portal and Inner Parkside up to Ulloa, prices are up approximately 20 percent since the second quarter of last year. North of Ulloa has seen an appreciation of approximately 10 percent. This area got hit the hardest when the economy went down and it has regained much of what it lost. Relatively speaking, it is still affordable for the area, so demand is high.

* Another datapoint; a home in West Portal that sold in 2006 recently sold for 12 percent over it’s 2006 price. This is important to note, since property values went down 15 to 20 percent between 2007 and 2011. We have recovered and then some.

* This is a great time to sell; do consider these things when you list your home: 1) buyers still take a hard calculating look at what is available, if there is more than one fatal flaw in the property, they may pass you by, and 2) Iist price is still critical; it must seem like it is a good value in order for buyers to be motivated to act. Pricing a little under neighborhood expectation is still the best way to net you the most on your sale.

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate provided the information in this article. The content of this article is an interpretation of data from the San Francisco Multiple Listing Service and Eric’s observations in the marketplace. Eric can be reached by e-mail at Eric@SFHotBuy.com, or via mobile phone at (415)307-1700. DRE Lic. No. 01188380