October 22, 2013

A Contemporary Potrero Hill And Mortgage Comparison: 2007 To Today

2130 24th Street

As we wrote in July of 2012:

Having hit the market in late 2006 asking $1,295,000, the 1,792 square foot 2130 24th Street #A sold for $1,274,000 in the middle of 2007.
With its Scavolini cabinets, Carrara marble counters, and Black Walnut floors still looking rather fresh, the contemporary Potrero Hill condo is back on the market and listed for $1,389,000.
With twenty percent down and a thirty-year mortgage at current rates, the monthly mortgage payment would be around $5,300 a month at asking. In 2006, the payments on the purchase would have been closer to $6,500 at rate of 6.56 percent.

Having failed to sell in 2012, the Potrero Hill condo is back on the market today and listed for $1,499,000. With the current rate for a 30-year Jumbo loan running around 4.0 percent, the monthly mortgage payment with 20 percent down at asking is now around $5,700 a month, 12 percent less than in 2006 but 8 percent higher than at asking in 2012.

2130 24th Street Kitchen

UPDATE: Our original calculation of a $6,700 monthly payment at asking today included property taxes and HOAs which should not have been included for the sake of comparison and has since been updated above.

∙ Listing: 2130 24th Street #A (3/2) 1,792 sqft - $1,499,000 [Redfin]
Apples-To-Apples: Prices, Rates And Payments...Oh My! [SocketSite]

First Published: October 22, 2013 12:00 PM

Comments from "Plugged In" Readers

May I ask a question: Is is now the norm to build a home with no backyard/soft scape? No grass? No trees?

Posted by: Mark at October 22, 2013 1:20 PM

I would say it's more the old norm, while the house was built in 2006, I would bet the lot was defined long before that.

Also, if you check the satellite view there is a very small yard behind the house with some trees. I suspect that since it's a fairly steep hillside, at an angle the builder decided a deck was more valuable than a very small, very shaded yard.

Posted by: lyqwyd at October 22, 2013 1:32 PM

Its not located in what one would call a more desirable part of Potrero Hill. To be kind.

Posted by: $AN FRANCI$CO at October 23, 2013 9:09 AM

You know the street is steep when it is level with both the bottom and top of the garage, within the 25' lot width. The listing agent screwed up and didn't employ mad photoslop skillz to make the street appear level.

Posted by: The Milkshake of Despair at October 23, 2013 9:57 AM

Calculation is incorrect. If you buy it for $1.5M with 20% down, your mortgage is $1.2M. Payments on a 30 year fixed $1.2M mortgage at 4% interest would be $5,729/month, not $6,700.

[Editor's Note: Great catch. Our original calculation of the monthly payment at asking today included property taxes and HOAs which should not have been included for the sake of comparison and has since been updated above.]

Posted by: John at October 23, 2013 12:30 PM

One other thing to consider when comparing the monthly payment is the amount of down payment required to get the 30 year mortgage. A 20% down payment on $1,389,000 versus $1,499,000 requires $22,000 more of your capital to be tied up for that larger purchase.

Posted by: PotreroSF at October 23, 2013 2:10 PM

The grade on that block is 28.8% according to hillmapper.com

Posted by: formidable doer of the nasty at October 23, 2013 6:57 PM

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