Archive for October, 2011

High Tier Case-Schiller August report (pretty much all of San Francisco)

Anyone who reads any of my posts on Case-Schiller knows I’m no fan.  The reasons are many but probably my biggest problem with it is the fact they lump San Francisco and Contra Costa county together calling it one metro neighborhood under the title of San Francisco.  I find that misleading.  A good agent friend of mine who has been in the business a few years longer than I has come to calling them Dumb and Dumber, which pretty much sums up my feelings most days about the report.  Even so, Case-Schiller remains the mostly widely reported real estate index and as such – here is the higher, far less quoted tier of the index – which covers a decent chunk of San Francisco (still lumped in with Contra Costa county and a three other random Bay Area counties).

S&P Case-Shiller publishes 4 main home price indices for the 5-county San Francisco Metro Statistical Area: the low price tier, the middle price tier, high price tier and an aggregate index. The new report for August 2011 was released today: For the SF MSA, the low and middle price tiers showed small declines in values, while the aggregate and the high price tier pretty much stayed the same. (Actually, the high price tier went up the tiniest bit, but not enough to change the rounded-off reading from 144.3.)

The high-tier price index – houses over $608,000 – is the one that most applies to the city and county of San Francisco itself: About 62% of the city’s house sales are over $608,000. If we exclude the 2 less affluent southern districts, running from Bayview to Oceanside, which have been hard hit by distress sales, the percentage of SFD sales in the city’s 8 central and northern districts that is in the high tier is over 84%. If we exclude distress sales (bank-owned and short sales), that percentage goes to 90%. The values indicated on the charts reflect today’s values compared to the values in January 2000. Thus, August’s reading of 144.3 indicates a value 44.3% above that of January 2000, and 22% below that of January 2006. August is typically one of the slower months of the year for sales activity.

 

 

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ForSalebyOwner.com founder fails to sell own home


The Founder and former CEO of ForSalebyOwner.com may be rethinking the value of listing a property with a REALTOR.  Colby Sambrotto listed his New York condominium on his own and promoted it on FSBO websites and in online classified ads.  All to no avail.

After six months, he gave up as a FSBO and listed his 2000 square foot unit with New York broker Jesse Buckler.  His new listing agent recommended retargeting the property to different buyer groups and suggested a new list price.

The Wall Street Journal reports that the listing sold for $2.15 million with a 6% professional fee to the broker.  Since the condo sold for $150,000 more that the original asking price, Sambrotto netted an extra $21,000 after the professional fee was paid.

Bottom line — it paid the FSBO website founder to use a pro!

ForSalebyOwner.com fails to sell own home [Luxury Insights]

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