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

Bernal Heights Single Family for under $500,000

They don’t come up too often; well, not that you’d be able to live in, but here’s a single family home in Bernal Heights that is a pretty good value.

Entry gate for 505 Anderson

There’s still some room for personalization, but it’s got a new furnace, updated kitchen, on-demand hot water heater, a laundry room, 1+ bedrooms (the listing agent calls it two bedrooms, but the second is small) and two nice outdoor areas-an entry courtyard and a back garden.  It does NOT have parking, but at $500K, you won’t likely find that in a home you could live in now and in a preferred neighborhood.

Living and kitchen

505 Anderson $489,000  Available to be shown by appointment.  Very convenient to Cortland St. shops.

Open Sunday Dec. 5, 2010.  Time not determined yet, but 2-4 is typical.

back garden

Listed by McGuire

December update: Property withdrawn from the market.  I’d expect for the holidays-and I’m sure it will be back.

Sexy Dolores Heights Single Family home with views and garden

21st St Facade-garden on the left belongs to the property

This is one of those one-of-a-kind properties that you don’t see very often.  3500 21st St. is located on Liberty Hill on a prominent corner of Dolores and 21st.  Fabulous views and a spectacular garden.  Listed for $1,749,000, it’s phenomenally priced and I expect it to sell quickly and for more than asking.

3+ bedrooms, 3 full baths, 2 half baths, and 2 car garage parking.  The circa 1911 interior woodwork/detail is classic and comfortable.  I think my favorite part of the home is the turret on the Northeast corner of the home with the city view; the dining room and one of the bedrooms enjoy this feature.

Welcoming entry hall with detail intact

Looking at the front of the home, it looks like a double wide lot, but it’s actually not.  The home sits smartly on the corner and uses the West side as the garden-it’s very usable and impressive.

Garden with south exposure and easy access to kitchen

Listed by Pacific Union

December 2010 update

The property sold with multiple offers for $1,760,000

3 bedroom, 2 bathroom house in the Castro-and parking!

14 Ford, San Francisco

There is a lot on the market now, but not much new stuff.  This last Tuesday, I have to say I was a bit underwhelmed with the offerings.  The house at 14 Ford was the exception to this feeling.  Fabulous location, loads of potential and a great price at $1,098,000.  A three bedroom, two bathroom house in the Castro-and parking!

The upstairs could use some reconfiguration in my humble opinion, but it’s not impending.  You could live very comfortably in this house and take on some remodeling over many years.

Ford is a quiet one block street.  It’s tremendously located near the Castro, Mission and public transit. Really well-priced AND in a popular price range, this house will sell quickly when so many others are sitting on the market.

Listed by Herth Real Estate

December 2010 update

The home sold with multiple offers at $1,325,000