Noe Valley Voice December-January 2010
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The Cost of Living in Noe

October Harvest Fest

By Corrie M. Anders 

If homebuyers had anxiety about the state of the local economy, they didn’t show it in October. Instead, they eagerly purchased 16 single-family homes in Noe Valley, the largest number in one month since July of 2009.

The October sales total was four times the number recorded in September and almost double the number in October a year ago, according to housing data supplied to the Voice by Zephyr Real Estate.

Randall Kostick, Zephyr’s general sales manager, said both buyers and sellers appeared motivated to get deals done.

Hoping to avoid the winter doldrums, sellers decided to be “more agreeable” and cut their prices, he said. At the same time, buyers bet on the chance that mortgage interest rates had finally reached rock-bottom.

“Everybody is talking about inflation and [the prospect of] interest rates rising,” Kostick said. “This is exactly what spurs buyers. When they get the feeling they’re at the bottom, they get a little more active.” 

(Ironically, the average rate for a 30-year fixed-rate loan fell further after October buyers sealed their deals. From September to mid-November, rates slid from 4.32 to 4.11 percent.)

The heightened activity forced many buyers into aggressive bidding, Kostick said. In 11 of the 16 sales, buyers offered more than the current asking price to snag the property they wanted.

After paying 98 percent of the list price in September, shoppers paid 102 percent in October—the same rate as one year earlier.

Homes at the top of the luxury ladder got a noticeable share of attention. Four of the single-family homes sold for more than $2 million, while nine traded in the $1 to $2 million range.

The most expensive home—a modern 2,750-square-foot property with four bedrooms, 3.5 baths, and two-car parking—sold in eight days and garnered $2,525,000—$30,000 more than the seller’s asking price. The house is located in the 700 block of Elizabeth Street between Diamond and Douglass streets.

The Noe Valley bargain of the month was a home selling for $585,000. Though it had downtown San Francisco views, the property was a four-room “fixer-­upper,” located in the 1600 block of Diamond Street between 28th and 29th streets.

Condo Sales Steady

There was competition for condos as well in October, with new owners paying an average 1 percent over the asking price. Buyers closed escrow on nine condominiums—the same number as in September and one more than in October of 2009, according to the Zephyr data.

A financially distressed condo in the Noe Valley hills, which a bank owned, sold for $1,043,200. Though the unit was in an older, 1965 building, the 2,316-square-foot home boasted three bedrooms, 3.5 baths, and panoramic views. The bank took $60,000 less than it asked and the transaction took just over two months before the new owner received keys to the condo, located in the 600 block of Grand View Avenue between 24th and 25th streets.

 

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

Oct. 2010

16

$585,000

$2,525,000

$1,446,719

37

102%

Sept. 2010

4

$748,000

$1,775,000

$1,398,250

70

98%

Oct. 2009

9

$849,000

$1,581,000

$1,126,167

51

102%

Condominiums

Oct. 2010

9

$537,000

$1,043,200

$790,022

71

101%

Sept. 2010

9

$715,000

$1,295,000

$890,000

96

97%

Oct. 2009

8

$515,000

$1,275,000

$839,000

62

99%

2- to 4-unit buildings

Oct. 2010

1

$1,150,000

$1,150,000

$1,150,000

27

96%

Sept. 2010

2

$999,900

$1,065,000

$1,032,450

99

104%

Oct. 2009

2

$1,030,000

$1,205,000

$1,117,500

59

95%

5+-unit buildings

Oct. 2010

0

Sept. 2010

0

Oct. 2009

0

 *‑ ‑Sales include all Noe Valley home sales completed during the month. Noe Valley in this survey 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 sales data.  NVV 12/10

 

Noe Valley Rents**

Unit

 

No. in Sample

Range Oct. 2010

Average Oct. 2010

Average Sept. 2010

Average Oct. 2009

Studio

4

$1,195 – $1,975

$1,568 / mo.

$1,560 / mo.

$1,307 / mo.

1-bdrm

18

$1,275 – $2,695

$1,807 / mo.

$1,727 / mo.

$1,775 / mo.

2-bdrm

23

$2,200 – $4,150

$2,906 / mo.

$2,724 / mo.

$2,625 / mo.

3-bdrm

19

$2,900 – $5,000

$3,933 / mo.

$3,936 / mo.

$3,884 / mo.

4+-bdrm

7

$3,995 – $8,500

$6,156 / mo.

$5,948 / mo.

$6,367 / mo.

** ­‑Survey based on a sample of 71 Noe Valley listings appearing on Craigslist.org from Nov. 1 to 13, 2010.  NVV 12/10