September 30, 2010
Another Year For Super Conforming Limits (Assuming Obama Signs)
Passed by congress last night, H.R. 3081 will once again extend $729,750 "super conforming" loan limits for high cost areas like San Francisco, this time through September 30, 2011 assuming President Obama signs.
Planning Commission Today, Randolph Tomorrow As Proposed
In addition to the fates of 673 Brussels and 448 Diamond, the appeal of the proposed development at 1050 Valencia and an application to build at 380-398 Randolph Street will be heard by San Francisco’s Planning Commission this afternoon as well.
With respect to the development on Randolph:
The proposed project includes the construction of a new, three-story, mixed-use structure on the existing paved parking lot. As proposed, the new building would provide two retail spaces at the ground level, eight residential units with eight off-street, below grade parking spaces, and an 18-room Residential Care Facility that can accommodate up to 36 occupants.
The Department recommends the Commission approve the development on Randolph.
∙ A Family's Plea To Rebuild Their Home (And Planning’s Objections) [SocketSite]
∙ The Planning Department’s Very Different Criterion For 448 Diamond [SocketSite]
∙ San Francisco Planning Commission Calendar: September 30, 2010 [sf-planning.org]
∙ Don’t Put A Fork In Spork Quite Yet (The Appeal Of 1050 Valencia) [SocketSite]
Appreciation For An Apple With Improved Curb Appeal (49 Hill)
The sale of 49 Hill closed escrow yesterday with a reported contract price of $2,500,000.
While not perfectly apples-to-apples as the curb appeal has improved, the real remodeling occurred prior to its purchase for $2,000,000 in 2004 so let's call it average annual appreciation of 3.5% for the renovated single-family home over the past six years.
∙ Comments: A Previously Remodeled (And Since Repainted) 49 Hill Returns [SocketSite]
Posted by socketadmin at 10:45 AM
QuickLinks: Term Sheet For San Francisco's Bid For America’s Cup
∙ Term Sheet For Hosting 34th America’s Cup In San Francisco [oewd.org]
∙ Mayor Newsom's America’s Cup Term Sheet Summary Memorandum [oewd.org]
∙ San Francisco’s America’s Cup Fundraising And Property Pledge [SocketSite]
∙ The Pitch To Sail The America’s Cup Into San Francisco's Bay [SocketSite]
From Seven To Three (And Rebuilt Facade) Over The Past Thirty Years
Seven units with a stucco façade when purchased in 1977, over the past thirty years the owners of 2409 Octavia have rebuilt the façade and recombined a few of the units; it’s now a three-level home over two legal units.
Back on the market and asking $3,447,000, bonus points for a photoshopped solution for finishing off the garage a bit more.
September 29, 2010
The Planning Department’s Very Different Criterion For 448 Diamond
While San Francisco’s Planning Department recommends the Planning Commission deny a family's application to demolish and rebuild their long-time single-family home at 673 Brussels, at the same time they’re recommending the Commission approve the demolition and rebuilding of the recently purchased (2007) single-family home at 448 Diamond.
The basis for the Planning Department’s recommendation for 448 Diamond:
1. The Project will replace one, three bedroom family-sized dwelling-unit with a new, five bedroom family-sized single-family home.
2. No tenants will be displaced as a result of this Project.
3. Given the scale of the Project, there will be no significant impact on the existing capacity of the local street system or MUNI.
4. Although the structure is more than 50-years old, a review of the Historic Resource Evaluation resulted in a determination that the existing building is not an historic resource or landmark.
Point number one was actually held against the bid for 673 Brussels ("The Project will not result in a net gain of dwelling-units") while the other three points hold true for both.
And while the specter of losing affordable housing stock is raised with respect to 673 Brussels (even though it’s not speculative development), it’s brushed aside with respect to 448 Diamond (which fails Planning’s protection of affordable housing criterion as well).
∙ A Family's Plea To Rebuild Their Home (And Planning’s Objections) [SocketSite]
∙ Discretionary Review Analysis: 448 Diamond [sf-planning.org]
Before, After, And Back On The Market At 3878 Jackson
Picked up for $3,841,000 this past April (35 percent below expectations in 2008), the exterior and interior of 3878 Jackson have since been toned down with varying results (the
monkey cage faux tortoise shell master bath is gone but so is the warmth of the façade).
The Presidio Heights home is now back on the market and asking $4,200,000.
∙ Listing: 3878 Jackson (5/3.5) 4,609 sqft - $4,200,000 [MLS]
∙ Details, Details, Details (And Another Adjustment In Expectations) [SocketSite]
Purchase Mortgage Volume Down 32.4% YOY And Refi Activity Slips
With average 30-year mortgage rates falling by 12 basis points over the past three weeks, mortgage application volume for purchases in the U.S. is running 32.4% lower on a year-over-year basis (versus 38.8% lower three weeks ago) while refinancing activity fell 1.6% last week, a fourth straight weekly decline according to the latest MBA survey.
∙ Purchase Mortgage Volume Remains Down 38.8% YOY [SocketSite]
∙ Mortgage Bankers Association Applications Survey: 9/24/10 [mortgagebankers.org]
San Francisco’s America’s Cup Fundraising And Property Pledge
San Francisco’s pitch to host the 2013 America’s Cup now includes a promise "to raise at least $270 million from businesses and other sponsors" as well as "helping event participants to secure drivers licenses, trying to obtain federal legislation to allow foreign-flagged vessels for the event to stop in more than one U.S. port, and promoting the premier regatta with publicly controlled advertising space."
No word on what happens, or who's on the hook, if fundraising efforts fall short.
And once again, "Mayor Gavin Newsom's administration is proposing the free use of Port of San Francisco property stretching south of the Bay Bridge from Pier 28 to Pier 50 and a rent-free lease of 66 to 75 years and future development rights for Piers 30-32, an adjacent parking lot and Pier 50" in a bid to secure the race.
∙ The Pitch To Sail The America’s Cup Into San Francisco's Bay [SocketSite]
∙ S.F. promises money, land for America's Cup [SFGate]
September 28, 2010
1167 Bosworth Is Back And Seeking Another Outlier Bid
While the sale of 48 Chenery closed escrow on Friday, 1167 Bosworth returned to the market. Having sold for $1,000,000 in 2004, the single-family Glen Park home was listed for $850,000 this past February and closed escrow for $1,051,000 this past March.
If a plugged-in tipster recalls correctly, the second highest bid this past March was under $900,000. There’s nothing quite like finding out you paid over $150,000 (18 percent) more than the next highest bidder.
Perhaps hoping for another 30 percent over asking outcome (and another outlier bid), 1167 Bosworth has been listed for $925,000 (the sellers are "relocating"), a sale at which would represent a 7.5 percent decline in value below its year 2004 price (12 percent less than this past March).
∙ Listing: 1167 Bosworth (3/2) - $925,000 [MLS]
∙ While One Glen Park
Apple Improved Resale Is Picked… [SocketSite]
July Case-Shiller: "San Francisco's" Top Tier Slips For Second Month
According to the July 2010 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA rose 0.5% from June ’10 to July '10, down 34.4% from a peak in May 2006 and up 11.2% year-over-year (YOY) versus a 14.3% YOY gain reported in June.
For the broader 10-City composite (CSXR), home values rose 0.8% from June to July for a fourth straight monthly gain but remain down 28.3% from a peak in June 2006 as the year-over-year gain slipped to 4.1%.
The year-over-year growth rates for 16 of the cities and both Composites weakened in July compared to June. While we could still see some residual support from the homebuyers’ tax credit, which covers purchases closing through September 30th, anyone looking for home price to return to the lofty 2005-2006 might be disappointed. Judging from the recent behavior of the housing market, stable prices seem more likely.
In the monthly data, 12 of the 20 MSAs and the two Composites were up in July over June; but the monthly rates also seem to be weakening. The next few months may give us an idea of the true strength of the housing market, as the temporary economic stimuli will have ended. Housing starts, sales and inventory data reported for August do not show signs of a robust market, and foreclosures continue.
Prices were up across the bottom two price tiers on a month-over-month basis but declined for the top third of San Francisco MSA single-family homes for the second month in a row.
The bottom third (under $342,906 at the time of acquisition) gained 2.2% from June to July (up 15.1% YOY); the middle third gained 1.2% from June to July (up 9.6% YOY); and the top third (over $621,684 at the time of acquisition) fell 0.4% from June to July (up 2.8% YOY versus 5.1% in June).
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA returned to October 2000 levels having fallen 55% from a peak in August 2006, the middle third is back to just below May 2003 levels having fallen 34% from a peak in May 2006, and the top third is back to just below April 2004 levels having fallen 22% from a peak in August 2007.
Condo values in the San Francisco MSA rose 1.7% from June ’10 to July '10, falling to a 2.2% gain on a year-over-year basis (down 25.9% from an December 2005 high).
Our standard SocketSite S&P/Case-Shiller footnote: The S&P/Case-Shiller home price indices include San Francisco, San Mateo, Marin, Contra Costa, and Alameda in the "San Francisco" index (i.e., greater MSA) and are imperfect in factoring out changes in property values due to improvements versus appreciation (although they try their best).
∙ Home Prices Remain Stable Around Recent Lows [Standard & Poor's]
∙ June Case-Shiller: San Francisco MSA Tips Atop As YOY Gains Retreat [SocketSite]
September 27, 2010
A Family's Plea To Rebuild Their Home (And Planning’s Objections)
This isn’t a case of neighbors objecting while those outside the neighborhood with a vested interest in the project make up the majority of support. It isn’t a case of alleged willful neglect in order to circumvent a needed demolition permit. And it isn’t a case of speculative development in somebody else’s backyard.
No, this is a case of 21 letters from neighbors in support of the project without a single voice opposed. It’s a case of children being overwhelmed while trying to manage their deceased parents’ long-time family home. And it’s a case of a family wanting to replace their outdated single-family home with another they plan to occupy themselves.
All that being said, the Planning Department recommends the Planning Commission disapprove the application to demolish and rebuild 673 Brussels Street. The basis for the Planning Department's recommendation:
1. The Project will not result in a net gain of dwelling-units.
2. The condition of the existing building was a result of deferred maintenance.
3. The existing housing stock is the Cityʹs major source of relatively affordable housing. It is very difficult to replace given the cost of new construction. Priority should be given to the retention of existing units as a primary means to provide affordable housing.
And while we're at a loss for words, or perhaps tongue tied by a choice few too many, we can only hope the Planning Commission manages but one on Thursday: approved.
∙ The "Resourceful" Demolition Of A Historic Resource? (1268 Lombard) [SocketSite]
∙ The Vanguards Of Development For 35 Lloyd [SocketSite]
∙ Discretionary Review Analysis: 673 Brussels Street [sf-planning.org]
A Green Apple To Be Atop 3280 22nd Street (#D)
New construction in 2007 featuring siding from reclaimed olive oil barrels, hardwood floors from reclaimed mine timbers, and bathrooms with Zuma tubs and Duravit sinks, 3280 Mission Street #D was listed for $1,399,000 that July and sold for $1,450,000.
It’s now three years later, the Valencia Streetscape Improvement Project has been completed, and the three-bedroom atop 3280 22nd Street has returned to the market asking $1,550,000.
∙ Listing: 3280 22nd Street #D (3/2) 1,808 sqft - $1,550,000 [MLS]
∙ Going Green In The Mission (3280 22nd St.): Prices/Additional Details [SocketSite]
A New High For Listed San Francisco Housing Supply
Inventory of listed single-family homes, condos, and TICs in San Francisco increased 8.2% over the past two weeks establishing a new five year high. On average, inventory has increased 5.1% during the same two weeks over the past four years.
Current listed inventory is up 30% on a year-over-year basis, up 20% versus the average of the past four years, and up 30% as compared to an average of 2006 and 2007. At the same time, listed sales in August (362) were down nearly 30% on a year-over-year basis, the slowest August in San Francisco in well over a decade and versus a 13% year-over-year drop in listed sales in July (385).
The inventory of single-family homes for sale in San Francisco is up 35% on a year-over-year basis to a five year high of 786 while listed condo inventory is up 26% to 1,159.
34% of all active listings in San Francisco have undergone at least one price reduction and the percentage of active listings that are either already bank owned (92) or seeking a short sale (179) is 14%, up 6% on an absolute basis over the past two weeks.
The standard SocketSite Listed Inventory footnote: Keep in mind that our listed inventory count does not include listings in any stage of contract (even those which are simply contingent) nor does it include listings for multi-family properties (unless the units are individually listed).
∙ San Francisco's Listed Inventory Spikes As Listed Sales Slide [SocketSite]
∙ San Francisco Listed Housing Supply Hits New High [SocketSite]
The Traffic They Are a-Changin' Into And In The Presidio
On October 1, 2010 the Presidio Trust will implement the long-planned traffic circulation changes for the Public Health Service District (PHSD). The gate at 14th Avenue will be re-opened and will serve as the vehicular entrance to the district. At the 14th Avenue Gate, traffic flow will become one-way entering the Presidio, and at the 15th Avenue Gate, traffic flow will become one-way exiting the park.
A contraflow bike lane on 15th Avenue will allow cyclists to continue to enter via the 15th Avenue Gate. The traffic flow on 14th and 15th Avenues between Lake Street and the gates will continue to be two-way, and access to homes on these City blocks from Lake Street will be unchanged.
A public meeting on the proposed changes to Battery Caulfield Road will be held on 10/5.
∙ Will The Presidio Belles Toll For Thee? [SocketSite]
∙ Presidio Landmark Building 1801 Recovering Nicely From Wingectomy [SocketSite]
∙ Will There Be A(nother) Battle Over Battery Caulfield Road? [SocketSite]
A One Rincon Hill Resale Right Where We Called It: Down 22.8%
On Friday the resale of One Rincon Hill (425 1st Street) #3908 closed escrow with a reported contract price of $660,000 ($874 per square foot). Purchased from the sales office for $855,000 in June 2008 ($1,132 per square), call it a 22.8% drop in value for the big view one-bedroom over the past two years.
As we wrote in July, "we’ll call it a 20-25 percent drop in value for One Rincon Hill #4308 and its comps over the past two years."
∙ Still Not "Cheap" But Now Five Percent Even Cheaper [SocketSite]
∙ The First Listed Foreclosure At 425 First (One Rincon Hill) [SocketSite]
∙ Additional One Rincon Hill '08 Stack (And Year) Perspective Redux [SocketSite]
While One Glen Park
Apple Improved Resale Is Picked…
The sale of 48 Chenery Street closed escrow this past Friday with a reported contract price of $1,260,000 ($683 per square foot), up a net 2% since the Glen Park single-family home was purchased for $1,235,000 in May 2006 [see UPDATE below].
And it’s 1 percent over asking on three offers if a reader’s hearsay is correct.
As we noted last month, from July 2006 to July 2010 the median sale price for listed District 5 single-family homes increased over 30 percent while the median sale price in Glen Park was up over 50 percent year-over-year in July (on five sales), down 47% year-over-year in August (on four sales).
UPDATE: While we missed it, luckily a plugged-in reader didn’t.
With a two bathroom remodel in 2008, the resale of 48 Chenery isn’t apples-to-apples. And while the value of the single family home increased $25,000 from 2006 to 2010, that’s perhaps less than half the cost of what was invested in said remodel.
So let's just say up a gross 2% in price but down a net 3% in value over the past four years after accounting for recorded improvements.
∙ Apples To Apples (Versus Median To Median) In Glen Park [SocketSite]
∙ Medians Are Up, But Don’t Confuse That With Increasing "Prices" [SocketSite]
September 24, 2010
Rincon Center Towers: Disputed Default Now Foreclosure In Process
Residents received a letter [Wednesday] from Default Resolution Network -- a division of Fidelity National Title Co. -- telling them that the property was default and that they were “in the process of foreclosing on behalf of the lender.”
The letter goes onto say that the “if the lender takes title to the property at the foreclosure sale, the lender intends to honor your lease so long as you comply with the terms of your lease.”
Once again, the 320-unit Rincon Center Residential Towers at 88 Howard was purchased for $143 million in 2007 with an additional $10 million invested since.
∙ Rincon Center Towers $110M (And Possibly In Default) Debt For Sale [SocketSite]
∙ Rincon Center faces foreclosure [San Francisco Business Times]
1940 Buchanan: Not Only Restaged, But Relisted And Reduced As Well
Purchased for $729,000 in August 2000, 1940 Buchanan resold at $800,000 in June 2004, returned to the market this past January asking $879,000, and was withdrawn from the market in May having been reduced to $799,000 ("Restaged: come for a 2nd look").
Now relisted, the list price for the Lower Pacific Heights condo has also been reduced to $759,000 (5 percent below its 2004 sale and within 4 percent of its year 2000 price).
∙ Listing: 1940 Buchanan (2/1) 1,480 sqft - $759,000 [1940buchanan.com] [MLS]
∙ It Must Have Been The Staging: 1940 Buchanan Edition [SocketSite]
Mmmm...Margarido Even More Happy Hour Pricing (If You're Buying)
As we wrote last month:
In contract this past March after reducing its list price from $5,500,000 to $4,795,000, as plugged-in people know 5950 Margarido over in Rockridge fell out of contract when the sale of the buyer’s house fell out of contract as well.
Relisted for $4,300,000 in June, on Friday its list price was reduced to $3,950,000.
As we write today, the asking price for 5950 Maragrido has been reduced to $3,395,000.
∙ Listing: 5950 Margarido (5/5) - $3,395,000 [5950margarido.com] [Redfin]
∙ The (5950) Margarido Happy Hour Now Starts At (Just Under) Four [SocketSite]
∙ March Madness For 5950 Margarido (Coincidence?) [SocketSite]
March Margarita Margarido Madness As 5950 Goes Live At $5.5M [SocketSite]
∙ There’s Green (And Perhaps Even Platinum) Up In Them Thar Hills [SocketSite]
∙ A Margarido (Sale) On The Rocks [SocketSite]