Noe Valley Voice April 2004
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The Cost of Living in Noe
Homebuyers Say, What's Another $100,000?

By Corrie M. Anders

Thanks to an early '04 property rush, several Noe Valley home sellers are enjoying $100,000 windfalls this spring. That's how much homebuyers overpaid to live in Noe Valley, according to sales data Zephyr Real Estate compiled for the Noe Valley Voice.

Four single-family homes sold during the month of January, for about $1.1 million apiece. During February, six single-family homes sold, with an average $1.05 million price tag. In both months, buyers typically paid a 10 percent premium--or around $100,000 more than the seller's initial asking price.

Stiff competition forced buyers to engage in bidding wars, which sent home prices rocketing, according to Randall Kostick, sales manager at Zephyr's 24th Street office.

Some homes were getting "anywhere from 5 to 25 offers," Kostick said. And in many cases, it took only five weeks from the time the "For Sale" sign went up until the deal closed, he said.

Kostick noted that the most expensive property sold in January was a $1.3 million home, with three bedrooms, 21/2 baths, in the 4200 block of 26th Street. The February winner was a three-bedroom, two-bath home in the 600 block of 27th Street. It closed escrow at $1.2 million.

During February, condominiums were as hot as single-family homes. Buyers purchased six condos--taking an average 23 days to close the deal--and paid 11 percent above the asking price.

The highest-priced condo, a two-bedroom, 21/2-bath unit in the 4100 block of 23rd Street, sold in February for just under $1.1 million. A two-bedroom, one-bath condo in the 200 block of Duncan Street was January's high-priced leader at $645,000.

The vigorous real estate market is a reflection of a shortage of Noe Valley homes for sale, low mortgage interest rates, and buyers' confidence that they can hold on to their jobs, noted Kostick.

"Even though the stock market is taking a little bit of a dive," Kostick said, "people are still feeling good about the economy in general."

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
February 2004 6 $929,000 $1,200,000 $1,051,667 38 110%
January 2004 4 $725,000 $1,289,000 $1,100,250 37 110%
February 2003 6 $660,000 $1,060,000 $843,667 32 103%
Condominiums
February 2004 6 $650,000 $1,086,000 $842,333 23 111%
January 2004 2 $470,000 $645,000 $557,500 28 110%
February 2003 2 $595,000 $780,000 $687,500 87 100%
2 to 4 unit buildings
February 2004 3 $1,200,000 $1,608,000 $1,450,000 73 102%
January 2004 2 $851,000 $1,150,000 $1,000,500 21 130%
February 2003 4 $781,000 $1,400,000 $1,035,875 66 98%
5+ unit buildings
February 2004 0
January 2004 0
February 2003 0

Noe Valley Rents**
Size of Apartment Average Rents
Oct-Dec 2003
Average Rents
one year ago
Oct-Dec 2002
% increase (+)
or decrease (-)
Studio $1099 $1126 -2.4%
1 bedroom $1387 $1570 -11.7%
2 bedrooms $2052 $2093 -2.0%
3+ bedrooms $2628 $2906 -9.6%

*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)