The West Portal/Inner Parkside Second Quarter 2010 Real Estate Market Update

By Eric Castongia, Zephyr Real Estate

While the West Portal/Inner Parkside Real Estate Market saw less sales activity in the third quarter compared to our very active second quarter, what was on the market did not stagnate-most properties closed escrow.

  • The number of transactions in this quarter was 29-right between last quarter (34) and the third quarter of 2009 (25).
  • For active listings, we currently have six, as we did last quarter; last year at this time we had 5-very consistent.
  • The number of sales in the second quarter was higher than usual at 21; this quarter we have ten and last year, we had 13.  The second quarter tends to fluctuate more than the third.
  • Of the ten sales in the current quarter, five had multiple offers (50%), 6 were over asking (60%) and three closed under their asking price (30%).  It’s interesting to note that the number of over asking and multiple offers went up and the number of offers closing under asking went down in this quarter compared to last-indicating activity in the marketplace.  The activity does not seem to be raising prices, but houses are selling.
  • For those homes that sold over asking, in general, we’re not talking about a big over-bid.  It seems to run from $2,000-$25,000 or so.  There were two odd balls though, that sold for almost $150,000 over-both in the $900,000 price range; standard (but nicely done) area 2 bedroom houses with rooms and baths down at the garage level.  That fits within the neighborhood expectation of a list price for that type house-then once in the home, if it stands out, buyers will determine the value.
  • The other three of the six currently active listings are in the area outside prime West Portal/Inner Parkside which includes the area around the Safeway on Taraval and 19th Ave.  There are typically more homes for sale in this area, so that’s not a surprise.  What is of note-there were four sales in this area this quarter and there are two withdrawn, or failed to sell listings.  In the second quarter, there were five sales and no withdrawn properties, that indicates that the market activity has slowed in this area.
  • Interest rates remain low for the time being.  Until the Fed sees change in buying patterns, employment and consumer confidence, I don’t see them raising the interest rate.
  • This is unscientific, but I do think there is something in the air.  It feels like people are getting a little less nervous-recognition, that perhaps the economy has hit the bottom.  Now, perhaps low interest rates will work as a motivator.
  • Sales prices continue to be flat from last year at this time.  The changes we are seeing is in listing prices to get buyers enticed to make offers on property.  Looking at values over the last year, values have not moved much.  While we are not seeing appreciation right now, there aren’t a lot of stale listings sitting around dragging down prices.  Other San Francisco neighborhoods cannot boast this.  I suspect that values will remain flat for the balance of the year.

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate provided the information in this article.  Eric can be reached by e-mail at Eric@SFHotBuy.com, via the web at www.SFHotBuy.com  or via mobile phone at (415)307-1700. The data in this article is an interpolation from the San Francisco Multiple Listing Service and Eric’s observation of the real estate market in the West Portal/Inner Parkside area.