The West Portal/Inner Parkside 2012 Year-End Real Estate Market Update
By Eric Castongia, Zephyr Real Estate
This was an interesting year to look back on. In looking at my analysis for 2011, I was reminded as to how many price reductions, withdrawn listings and how much longer properties sat on the market. It was much harder to motivate buyers to move and it was more of a challenge to set a list price than it is now, and we were lucky, since our property values stayed stable over that year.
2012 was different from the start. Mid February was the beginning of the frenzy and it really didn’t slow down all year. I believe it would have plowed right through the last week of December if Christmas and New Years hadn’t landed on broker’s tour day.
The total number of sales for 2012 was 50, neck and neck with 2011’s 51.
At the close of the fourth quarter of 2012, we had six active, four pending (not yet closed) and 17 sold (closed) properties. Of the 17 sold, 12 received multiple offers (71%) and 12 sold over their asking price. The amount of over bids ranged from as little as $2,000 to as much as $262,000 (no typo). Conversely, the most under asking offer, was sold at $148,000 under asking (again no typo).
For a little perspective, at the close of the fourth quarter of 2011, we had 15 sold (closed) properties. Of the 15 sold, seven received multiple offers (47%) and six of them sold over their asking price. The amount of over bids ranged from as little as $1,000 to as much as $105,000. That in a slow market, so one can see how we have a built-in demand.
Only two of the 17 sold properties in the last quarter of 2012 was a short sale or foreclosure; the total for the year was six-that was the same number in 2011.
There were 6 ‘failed to sell’ listings for the year, of which two came back on and sold, so net affect is four; in 2011, we had 8. Again an indication of an accelerated market and motivated sellers.
Interest rates have bounced around a bit, but remain historically low. Now that buyers feel that the housing market has reached it’s low point, interest rates are having the effect that they are supposed to have.
Property values went up this year, mostly as a supply and demand problem. For West Portal and Inner Parkside up to Ulloa, prices were up between four and eight percent from a year ago. Larger homes generally had more bidders and larger overbids than smaller homes, so on a percentage basis, they went up more in value than smaller homes; in one instance, it was 13 percent higher.
Inner Parkside on the North side of Ulloa has seen the biggest change in property values for the better. This area got hit the hardest when the economy went down and it has gone up the most this year; between 10 and 20 percent from it’s low.
This may be a great time to sell if you have been waiting, BUT, buyers still take a hard calculating look at what is available. If there is a fatal flaw in the property, they will take that into account. If there are choices of homes to look at, that will affect pricing as well.
List price is still critical; it must seem like it is a good value in order for buyers to be motivated to act. Overpricing will still yield you less on your net than pricing it correctly to start with.
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