November 2010 RETURN TO HOME PAGE FEEDBACK

Noe Valley homebuyers showed less appetite for showcase homes in September, turning instead to condominiums and single-family homes with reduced price tags.

The neighborhood normally sees more house sales than condo deals. But in September, only four single-family homes changed hands. (There were 10 such sales in August and nine the previous September.)

Meanwhile, buyers purchased nine condos, two fewer than in August and five more than in September a year ago, according to sales data supplied to the Voice by Zephyr Real Estate.

“Condos seem to be alive,” said Zephyr sales manager Randall Kostick, noting that they are an easier acquisition than a house in Noe Valley. “It seems like the people who can’t afford $1.5 million for a house can afford $700,000 to $1 million for a condo,” he said.

With the economy recovering in fits and starts, shoppers appeared to shy away from trophy homes in September. Not a single detached home sold in the $2 to $3 million range. Instead, buyers paid an average of just under $1.4 million. Still, that number was higher than the $1.2 million average recorded in August, and in September of last year.

The average price for a condo in September was $890,000. That compared with almost $900,000 in August and $723,000 a year earlier.

Both condo and house buyers worked out deals where they paid 2 to 3 percent less than what the sellers wanted.

One of the more unusual transactions was the sale of a luxury condo located in the 4300 block of 23rd Street between Douglass and Hoffman streets. The sellers originally purchased the three-bedroom, 3.5-bath unit (with 3,120 square feet of space) in 2008 for $1.7 million. The property returned to the market last winter with a $1,749,000 price tag. It languished for 283 days before a buyer acquired the unit for $1,295,000—a 26 percent price break.

Kostick noted that transactions overall took longer to close escrow in September—partly because of delays in the mortgage lending process. He said two of the largest lenders, Bank of America and Wells Fargo Bank, have instituted more stringent appraisal and lending criteria that have slowed the time to complete a sale.

Detached homes in September closed escrow in an average of 70 days, compared to 41 days in August. Condo deals took an average of 96 days, compared to 75 days in August.

A three-bedroom, 2.5-bath house in the 100 block of Clipper Street between Sanchez and Church streets was the most expensive property sold in November. The 2,300-square-foot home sold for $1,775,000—$20,000 below its original asking price—and closed escrow in 49 days.

Noe Valley Home Sales*

  *‑ ‑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 11/10

Noe Valley Rents**

 ** ­‑Survey based on a sample of 65 Noe Valley listings appearing on Craigslist.org from Oct.7 to Oct. 22, 2010. NVV 11/10