Noe Valley Voice December 2002 - January 2003
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The Cost of Living in Noe:
Price War Ceasefire

By Corrie M. Anders

Don't look for Noe Valley home prices to plummet next year. (The California Association of Realtors predicts that a rebound in the technology sector in 2003 will perk up the Bay Area economy.) But there may be fewer buyers in the hunt, and a continuing lull in the local bidding wars.

According to the latest data supplied by Zephyr Real Estate, buyers purchased a total of nine single-family homes in Noe Valley during October. And on average, they paid just 1 percent over the initial asking price--not the extra 10 and 12 percent that buyers often forked over in recent months. Four condominiums exchanged hands during October--and buyers merely met the original price tag.

"The Noe Valley market has been pretty good"--thanks to the lowest mortgage interest rates in 30 years, said Randall Kostick, manager of Zephyr's 24th Street office.

"But not everything is selling," he said. "Some people are putting prices on homes that are a bit high," and savvy shoppers are passing them by.

There is one housing niche that continued to attract homebuyer attention in October: two- and three-unit flats that offer a less expensive alternative to detached homes and condos. Four were sold in October, and buyers paid on average 6 percent more than sellers originally sought.

For example, a two-unit building in the 800 block of Douglass Street carried a price tag of $925,000. But the successful buyers offered an even $1 million, an 8 percent premium. Then there was the three-unit building with two vacant flats, in the 3700 block of 24th Street, which sold for $1,395,000. "These buildings oftentimes are very valuable because rent control still allows people to make them into homes," said Kostick. When two or three families share the building, that also lowers the individual purchase price.

The most expensive property sold in October was a four-bedroom, four-bath home in the 300 block of Day Street. Buyers paid $1,612,500.

The highest-priced condo, with two bedrooms and two baths, was located in the 4500 block of 25th Street. Buyers paid $760,000 for the newly constructed condominium.

Noe Valley Home Sales*
Total Sales Low Price ($) High Price ($) Average Price ($) Average Days
on Market
Sale Price as
% of List Price
Single-family homes
October 2002 9 $545,000 $1,612,500 $896,056 33 101%
September 2002 5 $690,000 $2,105,000 $1,075,400 37 97%
October 2001 6 $655,000 $1,260,000 $886,500 33 99%
Condominiums
October 2002 4 $575,000 $760,000 $630,000 35 100%
September 2002 10 $440,000 $1,000,000 $697,800 32 103%
October 2001 3 $399,000 $938,000 $689,000 26 97%
2 to 4 unit buildings
October 2002 4 $850,000 $1,395,000 $1,056,250 33 106%
September 2002 5 $685,000 $1,140,000 $888,000 30 104%
October 2001 5 $695,000 $1,200,000 $989,000 26 91%
5+ unit buildings
October 2002 0
September 2002 0
October 2001 1 $1,300,000 $1,300,000 $1,300,000 135 94%

Noe Valley Rents**
Size of Apartment Average Rents
July-Sept. 2002
Average Rents
one year ago
July-Sept. 2001
% increase (+)
or decrease (-)
Studio $1079 $1220 -11.6%
1 bedroom $1560 $1730 -9.8%
2 bedrooms $2261 $2415 -6.4%
3+ bedrooms $2744 $3118 -12.0%

*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 courtesy of Rent Tech, Inc (www.renttech.com)