San Francisco Condos

On The Ground: Condo Rental Trends

2008-06-05T08:28:00-07:00

I was recently speaking with Jenine Atencio at AMSI, a large property management company in San Francisco. They do standard, corporate, short term and long term rentals. Surprisingly, she mentioned that unfurnished rentals are currently doing quite a bit better than furnished rentals. Her sense was that with the slowing economy there isn't as much corporate rental demand, and that many renters already have their own furniture (perhaps former or future owners biding their time?). So if you're thinking of renting your condo, you may not necessarily be able to charge more by renting it furnished right now... and it could even take longer to rent.

On The Ground: Placing Offers on Condos under $500k

2008-06-04T10:26:14-07:00

Over the weekend I helped a client write two offers on two great studio/ 1 BR's. She was looking for a nice place, in a decent area, and parking was not important to her (while I always recommend purchasing parking if it is an option for resale, I can also understand that it's not an absolute requirement for everyone).

On the first place, which was aggressively priced, we submitted an offer at asking... and got a counteroffer. I can't yet go in to the details, but I can say it was competitive (think all cash offers, short contingencies, etc.) and we ended up getting into contract on a second, similar property (email me if you'd like full details after the close of escrow).

So, firsthand this weekend I've seen all cash offers, multiple offers, and overbidding on condos under $500k (without parking). I encourage you to draw your own conclusions, and I will try to continue to provide as much information from the ground in SF as possible.

SFAR's Fast Facts

2008-05-28T17:16:55-07:00

From the San Francisco Association of Realtors (district map available here):

Fast Facts

2-4 Units

District 1	April 2007	April 2008
Number of Sales	7	8
Median Selling Price	1,450,000	1,380,000
Average DOM	95	90

District 2	April 2007	April 2008
Number of Sales	8	7
Median Selling Price	1,037,500	1,200,000
Average DOM	47	61

District 3	April 2007	April 2008
Number of Sales	1	0
Median Selling Price	800,000
Average DOM	26

District 4	April 2007	April 2008
Number of Sales	0	1
Median Selling Price		1,072,500
Average DOM		57

District 5	April 2007	April 2008
Number of Sales	11	9
Median Selling Price	1,675,000	1,500,000
Average DOM	55	35

District 6	April 2007	April 2008
Number of Sales	6	2
Median Selling Price	1,612,500	1,250,000
Average DOM	55	49

District 7	April 2007	April 2008
Number of Sales	2	2
Median Selling Price	1,685,000	1,875,000
Average DOM	185	15

District 8	April 2007	April 2008
Number of Sales	1	1
Median Selling Price	600,000	1,520,000
Average DOM	32	10

District 9	April 2007	April 2008
Number of Sales	7	3
Median Selling Price	1,160,000	978,000
Average DOM	126	70

District 10	April 2007	April 2008
Number of Sales	1	2
Median Selling Price	770,000	742,500
Average DOM	83	54

District 11	April 2007	April 2008
Number of Sales	0	1
Median Selling Price		650,000
Average DOM		157

Infinity 3 Bedroom Pricing Update

2008-05-22T10:31:53-07:00

The latest on pricing for 3 bedrooms at The Infinity:

Two left in the mid-rise for $1.1-1.2mm, and one left in the mid-rise for $1.5mm with an extra large terrace.

In the tower, pricing starts at $2.2mm for a two story unit on the 28th floor, and up to $3.4mm on the higher floors with two terraces.

It's now possible to walk through the actual units, call me at 415-830-7804 to set up an appointment or for more photos and floorplans.

It's not called the dismal science for nothing...

2008-05-08T11:38:08-07:00

From The Economist comes a pretty decent overview of the current national real estate market. All real estate is local, and San Francisco is certainly a unique (though not completely immune) market, but it's always worthwhile to keep an eye on the big picture

"A recent analysis by Morris Davis of the University of Wisconsin-Madison, and Andreas Lehnert and Robert Martin of the Fed, shows that the rent/price yield in America ranged between 5% and 5.5% from 1960 to 1995, but fell rapidly thereafter to reach a historic low of 3.5% at the height of the boom. Given the typical pace of rental growth, Mr Feroli reckons house prices (as measured by the Case-Shiller index) need to fall by 10-15% over the next year and a half for the rent/price yield to return to its historical average. Again, that suggests the national housing bust is only halfway through."

"Map of misery" The Economist

The Final Countdown at 733 Front

2008-05-02T11:19:34-07:00

I've often advised clients that if they can choose their timing for buying a new development, they should try to get one of the most desirable units at the very beginning of sales or wait for bigger discounts as sales wind down. Now might be the time for the second strategy with 733 Front, as they're down to three units and have just reduced prices. From the sales center:

We invite you to view our remaining three modern and unique residences today:

�?� Residence #506: a spacious two-bedroom, two and a half bathroom corner unit featuring a wrap-around balcony and sweeping views of downtown and the Transamerica Building is priced at $1,595,000.

�?� Residence #605: a light-filled two-bedroom, one-bathroom corner home with a wrap-around balcony and generous deeded storage space is priced at $1,750,000.

�?� Residence #706: this top floor one-bedroom, one-bathroom home offers west-facing views and includes a deeded parking space is priced at $850,000.

733 Front Website