January 31, 2006
Third Time (And 50% Off) Is Definitely A Charm
A reader’s tip (thank you!) led us to dispatch a team to 2257 Green Street for this morning’s broker’s tour. We’re not sure if it was the free catered brunch, the property itself (gorgeous views and a fantastic remodeling), or the fact that the listing price has just been reduced for the third time, but brokers were swarming the house.
A little history: the original listing price was $5.2M, which was then reduced to $3.495M by McGuire, and has now been reduced to $2.595M by Ritchie-Hallanan. After three brokers and a 50% price reduction, this one might actually be priced right. So go get it. And as always, don’t forget to invite us to the house warming.
∙ Listing: 2257 Green Street - $2,595,000 [MLS]
January 30, 2006
Single Price Reductions Are Just So Early January
Guessed wrong Overly optimistic about the value of your listing? You’re not alone. Looks like “Second Price Reductions” might be a growing trend as you can add 897 Hayes Street (reduced $200K and advertising: “Second Price Reduction - - Bring all offers") to the list.
Update: 2918-2924 Pine Street Price Reduction
The information continues to flow with regard to the recent price reduction of 2918-2924 Pine Street. Apparently it was Hill & Co. that lost the listing, and this is actually the second time the price has been reduced (from an original $1.6m). Despite what the listing advertises, it’s now a $300k (19%) reduction off the original asking price.
Let's just consider that extra $50k a little gift from us to you...
∙ Another Broker Kicked To The Curb [SocketSite]
As The Tide Turns Down South
After years of pointing to skyrocketing sales and price data to hype the market, the Santa Barbara Association of Realtors is now taking the fifth as the market has turned less favorable for the group. From the Santa Barbara News-Press:
“Over the past several years, the News-Press has obtained sales and median price data for the South Coast from the Santa Barbara Association of Realtors. The group recently told the News-Press that it now refuses to make this data available to the newsroom. Other associations of Realtors across the county willingly continue to share sales and price information with the paper.”
Is this the “grown-up” version of taking your ball and going home when you don’t get your way on the playground? This is a foolish decision that’s going to do more harm than good. But perhaps no one will notice...
∙ Home sales on a slide across the county [News-Press]
∙ Santa Barbara Realtors 'Refuse' To Share Data [HousingBubble2]
∙ If It’s Bad News, We Won’t Tell You [Walk-Through/NYT]
∙ Santa Barbara Association of Realtors Refuse to Release Sales Data [BubbleMeter]
Posted by socketadmin at 10:44 AM
January 29, 2006
Another Broker Kicked To The Curb
2918-2924 Pine is back on the market with a new broker, and a new price to match. The property is now listed at $1.3M, a $250K (16%) drop from the original asking price of $1.55M. And insiders tell us that the owners walked away from a below asking offer late last year.
∙ Listing: 2918-2924 Pine Street - $1,300,000 [SF MLS]
Posted by socketadmin at 12:00 AM
January 28, 2006
FSBO: 1551 Filbert
A beautiful renovation, great use of space, and fantastic location...but asking ~$750/sqft is definitely pushing the envelope for TIC units (yes, even with the pre-installed plasmas). Maybe if they had one of those fancy websites...
Be sure to report back if you stop by the open house this weekend (Sunday, 2-4 PM).
∙ Listing: 1551 Filbert - $729,000 to $769,000 [Craigslist]
January 27, 2006
RealRecentReductions: 1914 Greenwich Street
“Reduced $155K – Look Again” the listing begs (that's a discount of 6.6% on a new listing price of $2.195m). The house is in a great location, and it’s spacious, but it still needs a lot of updating (just take a look at the kitchen). And only one parking space?
∙ Listing: 1914 Greenwich Street - $2,195,000 [SF MLS]
Posted by socketadmin at 8:12 PM
January 26, 2006
A Reader Request
A reader writes: “was just curious if you knew what the legal ramifications will be when all these people who have a mortgage in common through a TIC find themselves upside-down?”
Any readers care to comment before we share our two cents?
Posted by socketadmin at 12:15 PM
January 25, 2006
December Prices and Sales Fall In San Francisco
The California Association of REALTORS® (C.A.R.) reports that both prices and sales of single family homes fell this past December in the San Francisco Bay Area. According to C.A.R., the median sales price fell 1.4% while sales volume fell 9.8% from the month prior (down 14.2% from December 2004).
As it stands, year-over-year price appreciation for single family homes in the San Francisco Bay Area now stands at around 8%, well below the double-digit appreciation of the past couple of years. It’s also interesting to note that statewide sales prices for single family homes remained flat (condo prices actually fell by .8%) and sales were off by 17.6% compared to December 2004.
Posted by socketadmin at 12:07 PM
Not A List We Really Wanted To Make
Business 2.0 has just released their list of 101 Dumbest Moments in Business for 2005. And we’re not too thrilled to report that the San Francisco Bay Area real estate market made the list. Coming in at number 67:
67. Can't keep up with the Joneses? Heck, it's bad enough just trying to keep up with the appreciation on their dilapidated Victorians. In March the median price of a single-family detached home in the San Francisco Bay Area rises more than $1,000 per day. By month's end, it swells to $106,000 above the previous year's median -- 43 percent more than the area's estimated average household income of about $74,000.
Well, when you put it that way...
∙ 101 dumbest moments in business: Real estate [Money/CNN]
Posted by socketadmin at 8:23 AM
January 24, 2006
NOPNA Is In The House
The North of Panhandle Neighborhood Association (NOPNA) announces “the first of a series of Community Meetings to discuss the Future of the Lower Divisadero Commercial District (approximately between Haight and Eddy).” This first meeting will be held at 6:30 PM on Wednesday, February 8 at the CPMC Davies Hospital Auditorium, 45 Castro Street, North Tower, B Level near the Cafeteria.
And in case you were not aware, “NOPNA works to foster a sense of neighborhood pride, promote a safe, clean, and fun community, and improve the quality of life for all its residents.” Can't argue with that.
Posted by socketadmin at 4:25 PM
The listing for 66 Cleary Court #708 reminds us of that immortal quote from Inigo Montoya in The Princess Bride: “You keep using that word. I do not think it means what you think it means."
This listing touts a “$24K drastic price reduction!” on a listing price of $675k. That’s right, a “drastic price reduction” of 3.4%. And it’s still available? Inconceivable!
∙ Listing: 66 Cleary Ct #708 ($675k) [SFMLS]
Posted by socketadmin at 7:00 AM
January 23, 2006
2967 Pine Street: New Broker, New Price
It might be listed as “On Tour as New”, but we know better. 2967 Pine Street is back on the market with a new broker and a new price. Apparently Sotheby’s has been kicked to the curb (the property is now listed with Brown & Co.), and the price has been reduced $225k (it was $1.65m, now $1.425m).
Posted by socketadmin at 9:45 AM
We’re Still Not Moving To Texas
Local Market Monitor, a real-estate market research provider, estimates that the San Francisco/Oakland real estate market is overvalued by 53%.
“The level of over-valuation matters in three ways, according to Ingo Wenzer, president of Local Market Monitor. The higher it is, the greater the risk of it correcting; the greater the correction can be; and the longer it will take to return to present-day prices after they fall.”
Nine of the “Top 10” overvalued cities were in California, while Texas had four cities that were actually considered to be undervalued. Hope they’re prepared for a flood of speculators...
∙ Home prices get even more overvalued [CNN/Money]
Posted by socketadmin at 9:00 AM
January 20, 2006
Declining Sales (And Prices) In December
According to DataQuick and the Chronicle, Bay Area single-family home sales were down 15.5% compared to December 2004 and the median sales price dropped 3.5% as compared to November 2005. It should be interesting to see what The California Association of Realtors reports on January 25th.
Slowing sales, increasing inventories, and falling prices in the Bay Area? Who would have thunk it? Oh, wait a minute...
∙ Bay Area home sales down in December, prices slide [SFGate]
∙ Top O’ The Market To You! [SocketSite]
Posted by socketadmin at 10:54 AM
January 18, 2006
Broker's Index Says…Buyers Market In Marin
Real estate broker Nate Sumner developed The MARKET HEAT Index™ to track “the intensity of buyer competition for listed residential properties.”
The Index is derived by “adding the number of closed residential sales in the prior 30 days to the number of current pending residential sales and then dividing this sum by the total number of active and available-for-sale homes & condos.”
According to Nate, an index number above 1.25 indicates a sellers market characterized by multiple offers and above asking closing prices, while an index number below .80 indicates a buyers market characterized by below asking offers and a slower sales cycle.
As of today (January 18th), the Market Heat Index for Marin stands at .67 which is down from 1.54 last year and marks its lowest point since Nate started tracking the Index in 2002.
Posted by socketadmin at 6:53 PM
January 13, 2006
Is Silicon Valley Once Again Leading The Way?
From the Realty Times:
However, a growing number of buyers who purchased homes at peak price periods in 2005 may now be living in homes worth tens of thousands of dollars less than their mortgage. That's more likely if they used heavy leverage financing tools like no-money down and piggyback loans or interest-only and payment-option mortgages -- as an increasing number of buyers do in Silicon Valley's expensive market.
It's not just Silicon Valley's housing market feeling the pressure. Santa Clara County's neighbor to the north, San Mateo County, has a housing market that lopped more than $100,000 off its median single-family home price since it's peak in early 2005.
Anyone who claims that it’s impossible for housing prices to drop in San Francisco (just 20 miles north of San Mateo) is not only ignorant, but irresponsible.
Posted by socketadmin at 3:21 PM
Charles Schwab Says…
...especially when you’ve been tapping into a home equity line of credit to finance your lifestyle (i.e. a plasma, BMW, and dinner at Michael Mina), and you purchased the house with an interest only mortgage, and the market has leveled off (i.e. you haven’t actually built up any equity)...
Posted by socketadmin at 2:38 PM
On Tour as Repeat
Buyers rejoice. Home inventories are once again on the rise as sellers and agents re-list properties that failed to sell last year and which had been withdrawn from the market during the slow holiday season.
Expect a trickle (flood?) of properties marked “On Tour as Repeat” (i.e. re-list, failed sale, or price adjustment) under “Tuesday Tour” on the listing details page of the MLS.
Posted by socketadmin at 2:26 PM
January 9, 2006
Last November we called the top of the San Francisco housing market. Two months later George Soros calls the top of the US housing bubble.
"Soros said he believed the U.S. housing bubble, a major factor behind strong U.S. consumption, had reached its peak and was in the process of being deflated."
Perhaps we should start trading currencies...
Posted by socketadmin at 12:36 PM