September 2001 RETURN TO HOME PAGE FEEDBACK

The dot-com downstroke continues to alter rents in Noe Valley. With many high-tech workers no longer employed in high-paying jobs, apartment shoppers are bypassing one-bedroom rentals in favor of less expensive studios, or opting to share two-bedroom apartments with roommates.

"One-bedrooms are kind of a luxury in a market that is in a downturn," says Grey Todd, president and CEO of Rent Tech.

In reaction, rents for studios and two-bedrooms have gone up slightly, while those for one-bedrooms have started to drop. The average asking price for a one-bedroom apartment in Noe Valley fell $322 to $1,766 at the end of the second quarter of this year, according to Rent Tech.

Meanwhile, the softer rental market may have dampened the enthusiasm of apartment owners and buyers. Only two apartment buildings with five or more units have changed hands since February, and none were sold during June and July, according to statistics compiled by Zephyr Real Estate.

"There is less investment money than there was a year ago," confirms Zephyr manager Randall Kostick.

It's also taking longer for homes to sell. "You can't depend on seven to 10 days" as sellers could a year ago, says Kostick. "Now, three to five weeks is a more realistic outlook."

Seventeen single-family homes sold in Noe Valley during the month of June. In July, as the housing market went into summer vacation mode, that number slipped to 11 sales, the most expensive being a $1.3 million six-bedroom, three-bath home on Vicksburg Street.

Noe Valley House Sales ­ July 2001*

Total Sales Low High Average Average Days Sale Price As

(Closings During Month) Price ($) Price ($) Price ($) on Market % of List Price

Single-family homes

11 390,000 1,300,000 808,181 30 101%

Condominiums

10 320,000 640,000 503,500 36 100%

2 to 4 unit buildings

4 575,000 975,000 720,000 43 98%

5+ unit buildings

0 -- -- -- -- --

Noe Valley House Sales ­ June 2001*

Total Sales Low High Average Average Days Sale Price As

(Closings During Month) Price ($) Price ($) Price ($) on Market % of List Price

Single-family homes

17 500,000 1,130,000 796,323 36 100%

Condominiums

7 425,000 750,000 579,428 20 99%

2 to 4 unit buildings

5 615,000 998,000 801,400 18 103%

5+ unit buildings

0 -- -- -- -- --

Noe Valley Rents**

Average Rents Average Rents % Increase (+)

Apartment Size (April­June 2001) (January­March 2001) or Decrease (­)

Studio $ 1,376 / mo. $ 1,313 / mo. + 4.8%

1 bedroom 1,766 / mo. 2,088 / mo. ­ 15.4%

2 bedrooms 2,651 / mo. 2,604 / mo. + 1.8%

3 or more bedrooms 3,358 / mo. 3,536 / mo. ­ 5.0%

*Information provided to the Noe Valley Voice courtesy of Zephyr Real Estate (www.zephyr-re.com) and based on all Noe Valley home sales (closings) recorded during the month. "Noe Valley" in this survey is defined as the area bordered by Grand View, 22nd, Guerrero, and 30th streets.

**Data based on rentals listed by Rent Tech, Inc. (www.renttech.com), through June 30, 2001. Data for the third quarter (July­September 2001) will be published in the November Voice.