June 18, 2010
7 Percent Under Asking But 24 Percent Under Its Closest 2008 Comp
In August 2008 the sales office at One Rincon Hill closed escrow on the sale of 425 1st Street #4705 for $796,000 ($1,121 per square) and 425 1st Street #5005 for $817,500 ($1,151 per square), contracts which were likely written in 2006.
In October '09 the sales office sold 425 1st Street #4805 for $620,000 ($873 per square).
And yesterday, the sale of 425 1st Street #4905 closed escrow with a reported contract price of $625,000 ($880 per square), an official 7 percent under “list” according to MLS statistics but 24 percent under its closest 2008 comp (#5005).
All the above tower one one-bedrooms are 710 square feet.
∙ One Rincon Hill Update: Closings, Construction, Inventory And Tower 2 [SocketSite]
∙ First Impressions: ∙ One Rincon Hill Sales Center [SocketSite]
∙ Interesting Indeed As One Rincon Hill #4308 Falls Out Of Escrow [SocketSite]
First Published: June 18, 2010 2:30 PM
Comments from "Plugged In" Readers
rarely do you get such pricing information in real estate!
I know these units well and would argue that there are only minor differences between 4705, 4805, 4905, and 5005. they all have identical floor layouts, and basically the same view.
so we can clearly see that pricing went from $1120-$1150/sq ft in 2006-2008 and fell down to $870-880/sq ft in 2009-2010.
the bear argument: it droped 23%
the bull argument: it has stabilized over the last year.
I think we'll continue to see a fair amount of turnover in the coming years given the number of renters, landlords, part time residents in the building. This is good for buyers because it means there will be a lot of sales to use as adequate comps.
obviously, it hurts to lose $180k on a small apartment in just 2 years.
Posted by: ex SF-er at June 18, 2010 3:37 PM
"the bull argument: it has stabilized over the last year."
Only with 6 foreclosure moratoria, $18,000 worth of government cheese, artificially lower interest rates and nothing down loans, and god knows how much in closing costs and free HOA did it "stabilize". If you pull all that out, it's down by quite a bit.
The moratoria are ending, the cheese is almost gone. The headfake to CON-vince people that prices have stopped falling is almost out of steam.
Posted by: tipster at June 18, 2010 4:50 PM
"the bear argument: it droped 23%
the bull argument: it has stabilized over the last year."
Thanks for the balanced perspective ex SF-er. All too often in very short supply on SocketSite.
Hey, anyone got any details on the garage drill for the 2nd tower? The valet only can't be helping the resale potential on tower one. Any chance for full access parking for tower two?
Posted by: GoodBuyBadTimes at June 18, 2010 6:44 PM
If tower II ever gets built, I highly doubt there is space for a self parking garage given the tiny amount of land designated for the tower. The Infinity may be the last large scale new condo development with 1:1 deeded parking. SF Blu uses a stacker system which is worse than valet, in my opinion.
Posted by: Outsider at June 19, 2010 9:32 AM