September 2006 RETURN TO HOME PAGE FEEDBACK

The number of homes sold in Noe Valley during July dropped by a third from one year ago--the latest indication that the neighborhood's hyperactive housing market is finally calming down.

Sixteen single-family homes closed escrow in July, compared to 24 sales the previous July, according to data provided to the Voice by Zephyr Real Estate.

Prices remained the purview of the well-heeled, however. All but three of the homes sold for $1 million or more--and the average sales price topped $1.2 million.

Still, home shoppers, sensing that the market was shifting toward buyers, paid closer attention to their pocketbooks than in the past. Buyers on average paid 7 percent above the seller's asking price in July, a significant reduction from the 15 percent extra they were willing to pay one year earlier.

The sales pace was also slower in June of this year, as compared with June of 2005. A total of 13 homes changed hands, compared with 15 sales the previous year. Buyers also reined in their overbidding, paying just 5 percent more than the asking price instead of an extra 14 percent as they did in June of last year.

The data show that Noe Valley's real estate market has become less robust, and that five straight years of mercurial appreciation has sharply reduced the number of people who can afford to buy homes in the neighborhood.

One oddity in Noe Valley's market is that prices remain high--and are rising in some cases--while sales have tumbled. There's about a six-month lag time between a period of softer sales and when prices level off, explains Randall Kostick, general sales manager of Zephyr Real Estate on 24th Street.

"[What] happens when the market starts to cool a little bit is that we get buyers and sellers in conflict with one another," says Kostick.

"Sellers think they should be getting the prices and ease of sales that was taking place six months ago," he says, "and buyers think they should be getting a deal and not be paying prices they paid six months ago."

That keeps buyers and sellers from making quicker deals, and creates a stalemate.

If you're curious about the most expensive homes sold during the summer, here's a quick rundown:

* A 4,000-square-foot, three-bedroom, 21/2-bath home, located in the 200 block of Fair Oaks Street, between 23rd and 24th streets, sold in July for $2,450,000.

* In June, buyers paid $2,425,000 for a 3,300-square-foot, four-bedroom, 31/2-bath home, in the 500 block of Diamond Street, between 22nd and 23rd streets.

* A three-bedroom, 21/2-bath condominium, in the 300 block of Duncan Street, between Church and Sanchez streets, sold in July for $1.4 million.

* In June, a condo in the 900 block of Elizabeth Street, between Hoffman and Grand View avenues, set back the new owners $1,350,000. The condo featured three bedrooms and 21/2 baths.

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
July 2006	16	$764,000	$2,450,000	$1,230,250	27	107%
June 2006	13	$865,000	$2,425,000	$1,496,692	26	105%
May 2006	13	$900,000	$2,400,000	$1,476,769	21	108%
July 2005	24	$750,000	$2,279,000	$1,258,037	21	115%
June 2005	15	$805,000	$1,862,500	$1,214,767	24	114%
Condominiums
July 2006	14	$635,000	$1,400,000	$888,206	34	103%
June 2006	11	$675,000	$1,350,000	$892,545	42	102%
May 2006	6	$629,000	$1,110,000	$817,500	33	106%
July 2005	7	$775,000	$1,210,500	$1,030,500	38	108%
June 2005	15	$712,500	$1,342,000	$925,367	32	114%
2 to 4 unit buildings
July 2006	6	$1,050,000	$2,450,000	$1,381,667	40	94%
June 2006	4	$1,295,000	$2,820,000	$1,847,500	46	97%
May 2006	2	$1,123,000	$1,630,000	$1,376,500	33	109%
July 2005	4	$1,190,000	$2,279,000	$1,706,000	45	108%
June 2005	3	$985,000	$1,436,093	$1,256,364	44	107%
5+ unit buildings
July 2006	0	-	-	-	-	-
June 2006	0	-	-	-	-	-
May 2006	0	-	-	-	-	-
July 2005	2	$1,700,000	$1,900,000	$1,800,000	57	107%
June 2005	1	$1,975,000	$1,975,000	$1,975,000	50	104%

*Sales figures include all Noe Valley home sales completed during the month. In this survey, Noe Valley is defined as the area bordered by Grand View, 22nd, Guerrero, and 30th streets. The Voice thanks Zephyr Real Estate (www.zephyrsf.com) for supplying the data.

Noe Valley Rents**

Type of Unit	Number in Sample	Range of Rents, August 2006	Average Rent, August 2006	Average Rent, One Year Ago
Studio	3	$1275-$1350	$1300	$1149
1 bedroom	15	$1250-$2500	$1772	$1588
2 bedrooms	14	$2000-$5000	$2891	$2359
3 bedrooms	15	$2695-$4800	$3438	$3274
4+ bedrooms	5	$4200-$6900	$5300	$6200

**These rent averages are based on a sample of 52 Noe Valley rental listings appearing on www.craigslist.com August 2-14, 2006.