Posts Tagged ‘Home’

The New Mansions of Noe Valley: Part I

 

For many San Franciscans, talk of the city’s mansions conjures images of the so-called “Prestige North” — the trophy properties of Pacific Heights, Presidio Heights and Sea Cliff which are historically the most expensive single-family homes San Francisco has to offer. Indeed, when 2701 Broadway sold earlier this year for $31M it became the highest priced sale of the year. Nonetheless, there’s been a remarkable shift in the number of multi-million dollar home sales in recent years to the city’s more southerly neighborhoods.

Between 2012 and 2014, the number of single-family homes sales $3M+ in Noe Valley increased more than 800%; if the eight homes currently listed [we’ll examine some of these in The New Mansions of Noe Valley: Part II] trade at or above listing price by the end of 2015, that figure will reach 900% over the four year period. See this chart of $3M+ Noe Valley home sales over the past decade:

 

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Earlier this year, Noe Valley saw its record-setting most expensive home sale ever, 625 Duncan (March 2014), matched by 553 Elizabeth (June 2015) — each sold for $7M. [Note: 625 Duncan was then partially gutted and re-sold in April 2015 for $4.4M.] That same month, Noe got its new next priciest sale at 471 Hoffman, sold for $6.7M. In all, 19 $3M+ single-family homes in Noe Valley have sold YTD — compare that to 23 in Pacific Heights.

At various times over the past decade, the average $/sqft sales price in Noe Valley has exceeded that of Pacific Heights, both with consideration to all property types sold and also individually to homes, condos, and TICs leading to some dramatic comparisons between the two neighborhoods. In 2013 it was said “Pacific Heights is cheap compared to Noe Valley” with regard to particular $/sqft figures, and last year it was declared “Noe is the new Pac Heights” following a measured shift of dominance in the number $2M+ single-family home sales from the “Prestige North” to the Noe, Eureka and Cole Valleys.

With regard to median sales prices for single-family homes, Noe Valley led the whole of San Francisco in surpassing the $1M mark by almost five years. Not since May 2009 has the neighborhood seen a six-figure median for houses, and today close to 95% of all properties there — houses, condos and TICs — are valued at $1M+ according to this Zillow report.

 

In fact, having grown from 54.26% in January 2010, the number of $1M+ properties as a percentage of all housing stock in Noe Valley today is the 3rd highest in the city, trailing Inner Sunset (95.67%) and Central Richmond (95.64%). Pacific Heights comes in 4th at 88.24%.

 

 

While neither Noe Valley nor Pacific Heights could claim the highest average $/sqft for houses in September 2015, the spread between their prices — $1,334/sqft and $1,509/sqft, respectively — is relatively small. And while Noe is only one of a handful of neighborhoods in the southern part of San Francisco to experience some of the highest average annual compound appreciation rates in the long term, none of the others come close to touching the “Prestige North” — in terms of ultra-luxury house prices, average $/sqft figures, median single-family home prices, percentage of $1M+ properties, number of $3M+ homes sales or otherwise.

 

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With Noe Valley’s easy access to Silicon Valley, it’s proven to be a desirable area for wealthy tech-employed homebuyers. Furthermore, the neighborhood’s limited capacity for infill luxury housing developments means that any existing structure is an appealing candidate for renovation, expansion and/or rebuild for 21st century sensibilities. Looking at the $3M+ single-family homes sold this year as well as ones currently on the market, it’s evident the neighborhood is experiencing a wave a mansionization every bit as worthy of “Prestige” as Pacific Heights.

In The New Mansions of Noe Valley: Part II, we’ll take a look at some of these properties and offer a professional’s analysis of the draws for these mansions that tech built. Stay tuned!

 

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Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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San Francisco Real Estate on a < $1Million Budget

 

There’s the notion that a million dollars is the price you have to pay if you want to play in San Francisco’s red hot real estate market. After all, the most expensive properties get a lot of media attention– But if the median price is $1,160,000, that means almost half the properties on the market are selling for under $1 million.

Of those sub-million dollar properties, the majority are neither Below Market Rate units nor fixer-uppers, instead livable turn-key homes (search homes here). Socketsite recently published news of a double-digit uptick in the number of six-figure single-family homes for sale. Just this week, this two-bedroom single-family home in San Francisco’s Excelsior neighborhood sold for $630,000. The property is already occupied by an unprotected month-to-month tenant agreeable to paying market rent, making this a positive cashflow investment for the non-occupant buyer:

 

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Year to date, Excelsior has in fact had the most six-figure single-family home sales of any neighborhood:

 

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Last week, this two-bedroom two-bathroom condominium at the amenity-rich Telegraph Landing in San Francisco’s North Waterfront neighborhood sold for $950,000. It’s one of the almost 200 two-bedroom condos that have sold in 2015 so far:

 

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First-time homebuyer, investor, mom & pop… a million dollars is a lot of money to almost everyone, and opportunities do really exist beyond the hype of million dollar listings. Sure, prices have been reaching new peaks month after month, climbing to daunting highs. But actually San Francisco real estate is still more affordable now than at the height of the market in 2007, thanks to low mortgage interest rates:

 

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The frenzy that exists in San Francisco’s real estate market right now may be attributed to many factors: a booming local economy, low inventory, very few new residential developments, consumer confidence, credit availability, etc. As the city continues to stake its place as a world class destination, I believe prices will continue to rise — perhaps up to $3,000 per square foot, on par with Tokyo, Sydney and London. With that in mind, it may be only a matter of time before sub-million dollar home sales in the city are a thing of the past. Never underestimate the voracity of the San Francisco market!

 

Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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