Highlights from August sales reports

The number of new listings jumped significantly in the two weeks ending 9/16/24 -- compared to the previous two week period new listings of single family homes rose 78% from 125 to 222; condos went from 147 to 396 (169%).  The total number of new residential listings was 618, about the same as last year in the same two week period, 685.

Not surprisingly, the number of price reductions rose for single family homes from 17 to 35 and for condos from 42 to 86.

Traditionally, we always see a notable increase in listings every year right after Labor Day.  And keep in mind last year we had just experienced a two and a half week period in August when the MLS was not available.

The average sales price for a two-bedroom, one-bath single family homes so far this year is up about 3% compared to last year ($1,219,000 vs $1,180) but still below the all-time high of $1,339,000 in 2021.  Similarly for three-bedroom, two-bath single family homes, the average sales price so far this year is $1,626,000 which is almost 5% higher than last year but still off from their all-time high of $1,773,000 in 2022.

The average sales price for one-bedroom, one-bath condo so far this year is $721,000 which is about 2% higher than last year and is the first year-over-year gain following four years of average sales price declines.  However, the current average sales price is off 17% compared to the peak of $871,000 in 2019.

Similar story with two-bedroom, two-bath condos with an average sales price so far this year of $1,255,000 which is 3% below last  year's average and 14% off the average sales price in 2019 of $1,463,000.

Millenium (leaning) Tower

Here's an example of what can happen to values when your building becomes notorious:
https://www.sfchronicle.com/bayarea/matier-ross/article/Pricey-retrofit-proposed-for-sinking-Millennium-12833795.php

Unit 304 (two bedroom, two bath, approx. 1,200 sq. ft.) last sold in in 2012 for $1,235,000.  Last fall (2017) the owners listed the unit for sale with an asking price of $1,959,000.  It was withdrawn without a sale after 75 days on the market.

The property was listed again this January (2018) for $1,435,000.  After 43 days it went into contract but that transaction failed 7 weeks later.  The unit is now back on the market at a reduced price of $1,300,000.

16 units in the building have come on the market since the first of the year.  3 have sold.  3 listings have been withdrawn or expired without a sale.

A contributing factor to the falling values is that financing is very limited.  Many lenders simply won't make a mortgage for units in the building.  A few lenders may be willing to write a mortgage but will probably require a very large (think 50%) downpayment.

Snapshot of Today's Market

One of the agents in our office just concluded a transaction where he represented the buyer of a one bedroom, one and a half bath condo in the Brannan.  The Brannan is a full service, premier condo building in a great South Beach location with lots of amenities.

Units there are always in demand.

This most recent sale closed at $850,000., 6% over asking.
















The property had been listed back in 2010 asking $679,000 and, after 160 days on the market with no buyer, the property was withdrawn.

The most recent previous sale of the unit was in early 2007 when it closed escrow with a purchase price of $729,000.

The number of days on market went from an average of 46 in 2002, down to 19 in 2007, up to 85 in 2010 and now we're back down to 34.

We're seeing this scenario duplicated in all parts of the city.

Update (2) on Potrero Hill Listings

It's been a month since we took a look at the four high-end listings on Potrero Hill that all hit the market at approximately the same time.  This group includes two single family homes and two condos.  Here's the current status:

The two single family homes include:

746 Kansas which has been completely remodeled from a seriously deteriorated state was originally listed for $1,675,000 or $744/sq. ft.   Six weeks later it was reduced by 5% ($80,000) to $1,595,000.  Two weeks later it went into contract.  Current status is "Active/Contingent" which would suggest that at least one of the contingencies (finance, inspection) have yet to be cleared.

531 Kansas which went through a major remodel and 3rd floor addition about 10 years ago.  Listed in the middle of September, the list price has remained at $1,799,000 or $766/sq. ft.  There has been no price reduction and, as noted in our earlier post, is $100,000 higher than it was when the house was previously listed and then withdrawn in 2009.

The two condos are:

730 Vermont St., the lower unit in a two-unit in a 10-year old building.  It was  listed in mid-September at $1,195.000 or $665/sq. ft.  and then reduced in two steps by 8% ($95,000) to $1,100,000.  After two months on the market the listing has been withdrawn.  According to the listing agent, the owner plans to rent it although it has not been posted in Craigslist.

2101 18th St., the lower unit in another two-unit building that was built just three years ago, is listed for $1,299,000 or $764/sq. ft.  After 7 days on the market the property went into contract.  It closed escrow six weeks after listing with a final sales price of $1,266,525 -- 2.5% below the list price.  However, according to a notation in the MLS, the buyers paid their agent's share of the commission which amounts to 2.5% so, effectively, the buyers paid list price.  Structuring the deal this way will save the buyers a few hundred dollars in annual real estate taxes.



Update on Potrero Hill Listings

Three weeks ago I posted information on four higher-end listings in my immediate Potrero Hill neighborhood and posed the question "Example of Higher Priced Property Rebound?"  Here's a quick update:

The two single family homes include:

746 Kansas
Originally listed for $1,675,000 or $744/sq. ft., now reduced by 5% to $1,595,000 or $709/sq.ft. 

531 Kansas which had been on the market in 2009 for $1,799,000 and subsequently at $1,688,000 with no takers is now currently listed for $1,799,000 or $766/sq. ft.  There has been no price reduction in the 31 days it has been on the market.

The two condos are:

730 Vermont St. #1, originally listed at $1,195.000 or $665/sq. ft. and now reduced -- first to $1,149,000 after 20 days and again to $1,100,000  or $612/sq.ft. after 34 days. 

2101 18th St., was listed for $1,299,000 or $764/sq. ft.  and after only a week on the market went into contract.  18 days later it appears that all contingencies were  removed so this may well close in less than 30 days since the listing became active. 

Since I wrote the original post, a small 2bd/1ba, 1,150 sq. ft. single family home at 1919 Mariposa came on the market as a short sale priced at $749,000 or $651/sq.ft.  Six years ago the house sold for $1,030,000 with 10% down.  This went into contract in 5 days.  Now the seller and the listing agent have to convince the bank to accept a loan payoff somewhere in the neighborhood of $100,000 less than the current loan balance depending on how much the buyer has offered and other variables.