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.

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.

330 Edgehill gets sold

Courtyard at 330 Edgehill

It’s been quite a long road for 330 Edgehill.  Starting out at $1,595,000 with a series of reductions, the very interesting home finally closed escrow at the end of April 2011 for $1,100,000.  That’s a heck of a deal for that location, including a main house AND a guest house.  Here’s my earlier post.

 

Listed by Pacific Union.

Home deals in West Portal

Remodeled kitchen at 153 Granville

153 Granville is a really great deal now!  Starting out at $1,189,000, it’s a lot of house, in a great neighborhood, with an Ocean view from the bedrooms.

Despite the pluses, detached, remodeled, big, parking, no offers as of yet.  The house is now $995,000!!  No typo.  It really is now a screamin’ deal.

Open on Sunday, June 5th, 2011 from 2-4pm.  Please come by and say hello.

Here’s the previous post.

Remodeled 3 Bedroom West Portal Home

Welcome to 153 Granville

Period detail, fantastic location and thoughtful remodeling come together in this large Marina Style home with three levels of space.

153 Granville has 3+ bedrooms, 1+ baths and a  1+ car garage.  All for $1,189,000 which is a fantastic price for this vintage home, with original gum wood trim and paneling.
You are warmly welcomed on the main level of this elegant home in the formal entry. Both the living and dining rooms ooze charm with hardwood floors, period woodwork, coved ceilings, built-in cabinetry and a wood-burning fireplace.
The kitchen is the most recent upgrade with many thoughtful details.  The bedrooms and lower level enjoy Ocean views.  The garage, accessed from the rear of the home, generously accommodates one plus cars and additional storage.

Open Sunday, April 17th, 2011 2-4pm.

WestPortalCharm.com

Living room with wood burning fireplace
Formal dining room with paneling, hardwood floors and coved ceilings

Remodeled 3 bedroom home in the Sunset / Parkside

I have a great new listing in the Parkside area of San Francisco.  For those living in the city who don’t know the distinction, you’d think of the area as the Sunset.  I lovingly call the area San Francisco’s Suburbs.  I’ll be open this Sunday, March 27th, 2011 from 2-4pm.  Please stop by and see it.  2425 22nd Ave.  Heck of a deal at $749,000

2425 22nd Ave.-Garden

Detached remodeled Edwardian Era Home built in 1923

1964 Square feet per tax record

3 bedrooms (two are master suites)

2 1/2 baths

Living room with decorative bungalow style fireplace

Open, light dining room

Hardwood floors

Remodeled kitchen

Two car tandem garage

Over-sized lot with whimsical South and West facing landscaped garden

Convenient to public transit, shopping, grocery store, library and freeways

www.TheJewelofParkside.com

April update:

After two and a half weeks on the market, the property received four offers and it’s due to close at the end of May.

2425 22nd Ave.-Living Room
2425 22nd Ave.-Kitchen

Sunny Pacifica

I’m expanding my business into Daly City and Pacifica, as I’ve had some clients ask me to help them out outside of SF city limits.

I’m learning that there is a part of Pacifica that is sunny.  And the listing agent of the following house tells me it is in that area.

Poking around Pacifica, I’ve found some very nice homes in cute neighborhoods-for very good (by SF standards) prices.

Here’s one I found at 1468 Madeira listed for $534,000.

1468 Madeira-exterior

A remodeled three bedroom, one bath home with two car parking.

1468 Madeira-kitchen

The thing I found most appealing about it:

Secluded setting, adjacent to San Pedro Creek, views of the mountains from inside the house and from the garden.

Listed by Fisher Realty.

February update:

I saw this on a Monday, and it was in contract by Wednesday.  Interestingly, the home had been on the market since October of 2010. I’ve found that Murphy’s Law has a lot to do with that.  One person gets interested, so others do too!

March update:

Recently closed for $525,000.  This was a nice house.  Makes me feel great about the house I just sold in Pacifica with 3 bedrooms and 2 bathrooms, remodeled for $510,000!

Marin in San Francisco-Edgehill Mountain home and guest house

I saw this interesting home at 330 Edgehill on tour.

Edgehill-main house

On Edgehill Mountain near Forest Hill Extension, this unusual home is at the pinnacle with a great wooded setting, views, a guest cottage and two car garage.

The home has been in the same family for over 40 years.  The home is rich with period detail and the floor plan in comfortable and formal.

Formal dining

The main house has two bedrooms, one and half baths, formal entry, formal dining room, sun room and den.  Great views and very secluded.

Sunroom

The guest house is a studio apartment, complete with kitchen, bathroom and balcony.  Wonderful for a home office, guest quarters, or extended family.

Guest house

Listed for $1,395,000 (It was on the market last year for $1,595,000) Available to see by appointment.

Listed by Pacific Union

 

April update:

After two months on the market at the reduced price of $1,395,000, the home was reduced to $1,200,000 and got into contract within a week.