June 24, 2010
First Mover Disadvantage (And A Few More Cuts) At 1327 7th Ave?
While the listings for 1327 7th Ave #4 (which had been reduced in price by 10%) and 1327 7th Ave #3 have been withdrawn from the MLS after 98 days without a sale, yesterday the list price for 1327 7th Avenue #7 was reduced another $76,000 (7%) now asking $999,000 (18% under its original list price of $1,225,000).
As we wrote about the sale of 1327 7th Avenue #11 which closed escrow in January with a reported contract price of $1,150,000, 2% under its original list price, "while we can’t vouch for whether or not the sale of #11 was an arms length transaction, we have no reason to doubt it was (nor would we really be surprised)."
∙ Listing: 1327 7th Avenue #7 (3/2) - $999,000 [MLS]
∙ Listing: 1327 7th Avenue #9 (3/2.5) 1,631 sqft - $1,149,000 [MLS]
∙ From Rendering To Reality And On The Market For 1327 7th Avenue [SocketSite]
∙ A Couple Of New Cuts For The New Condos At 1327 7Th Avenue [SocketSite]
First Published: June 24, 2010 10:45 AM
Comments from "Plugged In" Readers
as always, I gotta comment on these since they're in Inner Sunset, one of my favorite hoods, ignored too much by the Socketsite folk.
these were always vastly overpriced. 7th ave is very busy and VERY loud, especially this close to Irving.
that stretch of 7th is not residential at all, cropped out photos notwithstanding.
UCSF staff in general can't afford these. it's mainly researchers and residents, and I know FIRST HAND their salaries. Not gonna happen unless they have independent wealth.
besides, the people that want to be close to USCF but spend more money will cross Stanyan, not buy here.
but the location is fantastic. it's great walking distance to UCSF as well as Irving which has some good restaurants and also things to do. right off public transport (the N-Judah) but in the morning forget about boarding here... it is jam packed by the time it gets here.
my only complaint after years of living there was the fog.
Posted by: ex SF-er at June 24, 2010 11:09 AM
wouldn't upper haight (across stanyan) be *more* expensive? unless you mean "across stanyan and across fulton? I suppose the UH has more 60s stucco crap condos, though...
Posted by: EH at June 24, 2010 11:30 AM
Not surprised. This is on anoisy and somewhat dilapidated street. Street level itself in much of the surrounding area is tacky. A million plus bucks - give me a break?
Posted by: Gil at June 24, 2010 11:50 AM
"tacky?" WTF? This is a nice area. A new traffic calming program on 7th and in the area is being completed, and we have new, safer sidewalks and a diverse group of businesses and many new restaurants too. Anyone calling this tacky needs to move back to Walnut Creek.
that said, these units are overpriced and do not bode well for the SOMA-like cube they want to drop on to 9th avenue. Since apparently it's against the law to build things people can afford to buy , and doubly against the law to build market rate rental housing, I guess this is all one can do now?
Posted by: orenthal at June 24, 2010 12:21 PM
If I chose to live on the foggier side of town, I'm pretty sure my 1M could get me a nice spacious Full Floor Condo in a 2 unit Building.
Blocks in any direction and it gets quieter, and still walking distance to USCF, and a bike would get you another 3-4 blocks towards the ocean, and more value for money.
Posted by: BDB at June 24, 2010 12:40 PM
orenthal: the only law it's against is the law of economics - it's just common sense that, when city building fees approach 10% of the construction cost, regardless of the location (excepting Eastern Neighborhoods), for-profit builders will "aim high" and build each unit to a price that just one buyer will pay - that's all it takes, one buyer per unit. The strategy works OK in good times and not so well in bad times but overall they make a living.
And don't make me laugh about building market-rate rentals in this City ...
Posted by: BobTheBuilder at June 24, 2010 1:02 PM
New traffic calming program? What traffic calming program? Every time I drive up 7th ave. (which is at least once a week), there is a line of cars bumper to bumper driving by. And didn't there used to be 2 lanes in each direction? Now there is only 1.
Posted by: satchelfan at June 24, 2010 1:49 PM
satchelfan..that is traffic calming. Traffic calming slows traffic, and makes things safer for pedestrians by widening sidewalks, adding bulbouts and improving crosswalks (among other things). Converting 2 lanes to 1 was part of the project.
Posted by: curmudgeon at June 24, 2010 2:52 PM
Way overpriced for one of the better 'hoods in SF.
What exactly is "tacky" about the neighborhood? Great places to eat and drink, and you've got the park nearby.
Posted by: Fishchum at June 24, 2010 3:07 PM
It appears your million could in fact get you a SFR with some change left over for renovations:
Posted by: location at June 24, 2010 3:17 PM
wouldn't upper haight (across stanyan) be *more* expensive?
yes, that's my point.
Given the demographics of Inner Sunset/Parnassus, I would have built some more affordable units on 7th, not nice expensive units.
People who want to be near UCSF but in a "nicer" nabe and who are willing to spend more will often look East of Stanyan, like near Carl and Cole as example.
this is a nice project that was put in the wrong place and priced incorrectly.
alternatively, it would have done better perhaps on 10th which isn't so busy or 4th/5th and Hugo.
Posted by: ex SF-er at June 24, 2010 4:29 PM
This would actually be good for an older couple/person who did not drive, and had equity built up over time in a previous home to afford it. Younger people are priced out here as elsewhere.
Posted by: fred at June 25, 2010 8:56 AM
fred, I have a friend who has a business doing assisted living in SF condos for older people who don't drive. A nurse runs around and makes sure pills are taken, and occasionally takes blood pressure, pulse, etc. and watches for changes People run meals to them. Others do housework and run errands. You give them a list and the next day they deliver groceries and stuff from Walgreens.
He is in the process of shutting the business down. The seniors who had money and were paying him lost a lot of it in the market crash, and home equity for seniors living outside of SF has been cut drastically so he hasn't gotten any new clients in years.
Seniors who had saved up what they thought was just enough to retire on are worried about running out of money. They aren't going to "save" this place by overpaying for the neighborhood just to get someplace new. They have to live on 2/3 of what they planned on and are watching every penny.
Most of his clients have canceled the service my friend was running and he's losing money so he's shutting it down. He's working nights as a hotel auditor and is looking for a job.
The seniors are just as priced out as young families. These places will never sell for the preposterous prices the first two sold for. The prices of those first two were obviously inflated, either by someone who jumped too fast (not likely) or (more likely) someone who had some sort of arrangement from the developer that would inflate the price. A seller financed mortgage at 2%, or an agreement to pay the HOA for a long time, or the developer bought them himself or a friend did or whatever.
Real estate is the wild west of shopping - a lawless wasteland of fraud. It's carefully constructed theater. I called these first two places out when they "sold" and was right. Watch your back.
Posted by: tipster at June 25, 2010 9:49 AM
Nothing about the sales or developer in the above paragraph is true.
Posted by: sparky-b at June 25, 2010 9:59 AM
i posted on this development a few months ago right after we moved into our place across the street. now that we've been there for 2-3 months, i can say with confidence that we truly couldn't be happier with our place, the location, and the neighborhood. we absolutely love it. i can literally check nextbus and walk onto the N judah as soon as it rolls up (cuts down on my door to door commute time). there are endless places to eat (which can be bad because we have so little incentive to leave our neighborhood!). the farmer's market is there every sunday and fosters a great sense of community.
i only wish that the developer of this project had priced this property better when it first came on the market. we laughed for months watching them sit empty. now we're getting worried that they're going to have to get rid of these at firesale prices and ruin our comps.
Posted by: melon at June 25, 2010 4:17 PM
For 10 years, I've been on the board of directors of the church next to this development. So, I've spent a lot of time in this hood and, like Melon and ex SF'er, I am a big fan for the reasons already given. House-hunters should check on this area.
Posted by: sanfrantim at June 26, 2010 5:06 PM
Everything that will cost you 5K/month + maintenance + taxes + HOA + when you can get that for 3K in a rental is doomed.
Appreciation is out of the picture. Time to pay this area for what it's worth.
Posted by: lol at June 26, 2010 8:48 PM
The listings for both 1327 7th Avenue #7 and 1327 7th Avenue #9 have just been withdrawn from the MLS after 274 days on the market without a reported sale despite 18% price cuts from original list.
Posted by: SocketSite at August 13, 2010 11:35 AM