Tuesday, July 29, 2014

Our Market in Microcosm ...

... if anything about a $1,100,000+ 2 bedroom, 2 bath single family home less than 1,000 sq. ft. can be referred to as small.

Four years ago this modest home on Potrero Hill (south slope) sold for $29,000 less than its original asking price.  It took almost 50 days to go into contract during which the asking price was reduced by $20,000.   It took another 50 days to close.

The same house (with a some mostly cosmetic improvements) has just sold for $420,000 more than it's previous sales price.  This time the property went into contract in less than two weeks after it hit the market and closed 40 days later.

I'm not identifying the specific house since that's not the point of this post.  (If anyone wants to know the specifics, feel free to contact me directly).  This particular transaction is of interest since the property is in essentially the same condition it was when it last sold.  That works out to be a 14%+ increase in value per year during the four years the the house was owned by the seller.
DJIA graph 2010 through 2014

That's about the same annual increase as the Dow-Jones Industrial stock overage has achieved over the same period.

Obviously, not every home in San Francisco has seen such increases in value.  There are a lot of variables that can affect pricing.  Nevertheless, our monthly and quarterly statistics tracking suggests that there will be more homes selling for over $1,000,000 in San Francisco than under a million by the end of the year!

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