West Portal property values see drop in second quarter of 2008

The West Portal/Inner Parkside Second Quarter 2008 Real Estate Market Update

By Eric Castongia, Zephyr Real Estate

While we’ve been enjoying stable values for sometime, weakened consumer confidence is having an affect on property values properties in West Portal and Inner Parkside.  Buyers are still out there looking and buying, but are more cautious and picky.  Lucky for us, compared to other areas of California, we are seeing relatively small reductions in value.  Additionally, the number of foreclosures and short sales in our neighborhood are insignificant compared to other neighborhoods where it is the norm.  Following is an interpolation of data from the San Francisco Multiple Listing Service and my analysis of the real estate market in the West Portal/Inner Parkside area.

  • The number of sales in the second quarter of 2008 was 16, up from 12 in both the first quarter of 2008 and the second quarter of 2007.
  • Of the 16 second quarter 2008 sales, 11 sold for over their asking price (nine of them with multiple offers), one sold at and four sold under asking.
  • The number of active listings were stable between the first and second quarters.
  • The total transactions for the second quarter including active properties, is 30; up from 23 in the first quarter.
  • In terms of property values between the second quarters 2007 and 2008, we are down between 6 and 8 percent.  From first to second quarters in 2008, we are down between 2 and 5 percent. 
  • Given the number of multiple and over asking offers, the reduction in values is being expressed in lower list prices, as opposed to below asking offers.
  • Despite property values having gone down over the last year, our neighborhood price range is going up.  A very desirable upper end property sold this quarter, which now sets a new comparable sales price expectation.
  • Desirable, well-priced property with nice remodeling or great potential, are still enjoying ample activity.  Buyers remain selective, however, so quirky floor plans, less than desirable locations, or construction issues affect a property’s salability.
  • The Federal Reserve has raised interest rates over the last few months.  The new increased conforming loan limits, ‘super conforming loans’ are finally having the affect that most of us hoped would happen-giving single family home buyers and home owners refinancing with loan amounts up to $729,750, some interest rate relief.
  • Once financing woes have started working themselves out, I predict higher demand and sales prices.
  • It’s a great time for buyers to come out of the woodwork to take advantage of reduced property values in our market.
  • If you are going to buy, remember location, location, location.  If you are going to sell, prepare your home to make a great first impression and price it correctly.
  • I think we’ll look back and see that this was a good time to buy real estate-2008 is a great time to invest.

Eric Castongia, Residential Sales Specialist at Zephyr Real Estate provided the information in this article.  Eric can be reached by e-mail at Eric@EricsSFHomes.com, or via mobile phone at (415)307-1700.