OceanView Village Property Values 2015

Another banner year for OceanView Village

427491-23_0 A phenomenal 2015 for owners at OceanView Village; 28 owners took advantage of the market this year. All units in the complex enjoyed the fruits of the market to varying degrees.

Most enjoyed multiple offers and over asking prices, if they took advantage of value pricing, which generates interest and gets buyers in the door.

The sold prices ranged from $10,000 below asking to $82,000 over asking. Where a home fell in that range depended on where it started in list price and what else was on the market the same week. Generally, those who started high, took less. Where you were in building contributed of course; top floors, corners, good views and patios dominated.

One bedrooms saw amazing appreciation of between 25 and 39% appreciation for the year, while two bedrooms saw between eight and 14%. Two bedrooms retreated in value in the last quarter by approximately three percent, highlighting the upward pressure on the least expensive starter homes.

A surprising twist: the 669 square foot one bedrooms sold for more than the larger one plus dens in the final quarter of the year.

In the end, OceanView Village has been found, being one of the last remaining affordable condo options in San Francisco-and it’s about time.

 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.

Mistakes Real Estate Agents make

Looking for a house myself has certainly been a sobering experience.   It’s also been very valuable.  Historically buying and selling in San Francisco has admittedly placed me in a bit of a bubble.  There are good and bad real estate agents everywhere, but overall, San Francisco has a pretty good bunch of people.

Looking outside the city has opened my eyes to some situations that have been both troubling and annoying.  I won’t name names or addresses; here are a few of the things that have happened to me so far in the six offers I have written:

 

Not returning phone calls/emails-at all.  That despite email, text and voicemail messages.  I’ll bet the listing agent represented both buyer and seller.  (See below).

Slow response (to be fair, the property in question was bank owned-I can tell lots more stories about that, later)

After the agent responded to me after several calls and emails, I was told to bring my ‘highest and best’ offer.  I guess that should have been pretty self-explanatory, but I can equate it to being told to do something without any direction, like ‘did you know you were supposed to turn back there?’

Once the offer was in hand, tough to find the seller and/or get the offer to them.  We call this ‘shopping’ your offer.

‘I may have a counter offer for you tomorrow’.  That happened for three days.  The movement occurred once I told them I was no longer interested.

Listing agent writing an offer on the property when there are multiple offers.  But wait, it gets better.  The agent told me they were writing an offer AFTER they received my offer and looked at it.  I guess it shouldn’t be a shock that the listing agent also represented the successful buyer.

Agents outside the city seem to represent the buyer as well as the seller a lot more frequently than I see that in San Francisco.  I have NEVER written an offer for a buyer where I represent the seller and there is competition.  Bad form.  Shockingly, it is legal, but I don’t think it should be allowed.

Saying offers were being reviewed as received, then changing their mind after the fact.  I wrote an offer on the first day a property was on the market-so did three other people.  Then the agent said, no, the seller wanted to think about them for a week.  In that week, there were six more buyers.  I didn’t get it.  Wonder if the listing agent got that one too?……

Then, there was one offer I wrote where the agent was great and I just got beat-bad!

If I have anymore experiences, I will update this!  Bottom line is it isn’t surprising how people get a negative impression of Real Estate Agents and it’s sure hard to get people to trust that you won’t pull the same crap to them after they have been stung.  I can assure you and give you references, I don’t pull this crap.

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

By Eric Castongia, Zephyr Real Estate

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.