West Portal Property Values up again for 2014

By:
Eric Castongia, CRS
Residential Sales Specialist

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.