Noe Valley Voice July-August 2004
RETURN TO HOME PAGE
FEEDBACK

The Cost of Living in Noe:
Some Make Do with Half a House

By Corrie M. Anders

The average cost of a Noe Valley home these days is more than $1 million. That's far more than many people can afford or want to spend.

But what if you could purchase your own place for half that price?

Buyers found the idea especially appealing in May. They purchased 10 small residential buildings--each with two to four units--which allowed owners to split costs but live in their own individual units.

It was one of the highest monthly sales totals in years for properties known as tenancies-in-common (TICs), and coincided with a blistering rise in prices for detached homes.

"When the average single-family home is going for a million dollars, and you can live in a flat for a little over half of that, it allows you to move into Noe Valley without having to rent," says Randall Kostick, 24th Street sales manager at Zephyr Real Estate. His office supplies monthly sales data to the Voice.

While TIC buyers were opting for a more affordable alternative, the sales report showed that rising prices still didn't faze luxury buyers.

A total of 19 single-family homes closed escrow in May, just under the record 23 sold the previous month. Ten of the 19 homes sold for more than $1 million.

Buyers in May typically paid 8 percent more than the asking price--and that helped push the average cost to nearly $1.1 million for a detached home.

The most expensive was a four-bedroom, three-bath home, with three-car garage, in the 4300 block of 26th Street (between Diamond and Douglass streets). It sold for $1.8 million in a transaction that took just 18 days to complete.

Six condominiums sold in May at an average price of $812,000. The most expensive was a condo in the 1300 block of Noe Street (between 26th and 27th streets) with three bedrooms and 2 3/4 baths. It cost $1,175,000 and closed escrow in 14 days.

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
May 2004 19 $699,000 $1,805,000 $1,093,158 25 108%
April 2004 23 $715,000 $1,625,000 $1,083,522 34 115%
May 2003 14 $615,000 $1,720,000 $986,464 33 103%
Condominiums
May 2004 6 $430,000 $1,175,000 $812,500 24 114%
April 2004 9 $525,000 $1,040,000 $738,556 34 112%
May 2003 3 $645,000 $900,000 $793,333 47 102%
2 to 4 unit buildings
May 2004 10 $650,000 $1,857,000 $1,210,500 29 107%
April 2004 5 $895,000 $1,165,000 $991,800 45 107%
May 2003 6 $549,000 $1,720,000 $1,060,333 48 99%
5+ unit buildings
May 2004 0
April 2004 2 $1,129,000 $1,405,000 $1,267,000 108 107%
May 2003 0

Noe Valley Rents**
Size of Apartment Average Rents
Jan-March 2004
Average Rents
one year ago
Jan-March 2003
% increase (+)
or decrease (-)
Studio $1080 $1058 +2.0%
1 bedroom $1587 $1497 +6.0%
2 bedrooms $2121 $2145 -1.0%
3+ bedrooms $2683 $2728 -1.6%%

*Information provided to the Noe Valley Voice courtesy of Zephyr Real Estate (www.zephyr-re.com) and based on all Noe Valley home sales (escrow 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)