October 2005 RETURN TO HOME PAGE FEEDBACK

A house sale that soars past $2 million in Noe Valley can still work up a pretty good buzz at the neighborhood cocktail party. And there has been plenty to talk about these days.

In August, two homes sold for at least $2 million. It was the fourth month this year that homebuyers had broken the $2 million barrier to claim a choice piece of real estate in the neighborhood.

A four-bedroom, 31/2-bath home in the 600 block of 28th Street, between Diamond and Douglass streets, held bragging rights as the most expensive. Buyers paid $2,115,000 for the 3,200-square-foot home, according to sales data supplied monthly by Zephyr Real Estate.

A five-bedroom, 41/2-bath home in the 100 block of Hoffman Avenue, between Alvarado and 23rd streets, was a close second, selling for $2.1 million.

The two pacesetting deals were part of Noe Valley's molten real estate market, which saw 15 homes close escrow in August--two more than in August of last year. Eight of the 15 homes cost $1 million or more.

Buyers also picked up keys to nine condominiums, including one that cost nearly $1.4 million. The pricey condo, in the 4000 block of 25th Street between Noe and Sanchez streets, has three bedrooms, 21/2 baths, and nearly 2,000 square feet of living space.

The vigorous condo and detached-home sales reflect a real estate market that has been going gangbusters for the better part of the decade. Low mortgage interest rates have kept buyers enthusiastic, even in expensive and highly competitive Noe Valley. "There are still multiple offers, and still many offers over asking price," says Randall Kostick, sales manager for Zephyr's 24th Street office.

The strong demand for homes showed up clearly in the August stats, he says. Homebuyers paid an average of 16 percent more than the sellers' asking price. They also closed escrow in a relatively short period, averaging 27 days.

A dearth of homes for sale contributed to the feeding frenzy, Kostick says. But he adds that more properties have come on the market this fall and there could be more available in October, when our summer vacation season is officially over.

"There is clearly increased inventory," says Kostick. "Buyers are clamoring for more properties, and now they're coming on the market."

The larger supply could provide shoppers with "more choices" and "a better possibility" of getting the property they want, he says.

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
August 2005	15	$800,000	$2,115,000	$1,247,533	27	116%
July 2005	24	$750,000	$2,279,000	$1,258,037	21	115%
August 2004	13	$638,000	$1,558,888	$1,107,838	34	116%
Condominiums
August 2005	9	$610,000	$1,395,000	$903,333	25	117%
July 2005	7	$775,000	$1,210,500	$1,030,500	38	108%
August 2004	10	$590,000	$1,155,000	$833,500	24	110%
2 to 4 unit buildings
August 2005	4	$950,000	$1,501,600	$1,264,150	33	116%
July 2005	4	$1,190,000	$2,279,000	$1,706,000	45	108%
August 2004	8	$927,000	$1,700,000	$1,244,625	45	112%
5+ unit buildings
August 2005	0	-	-	-	-	-
July 2005	2	$1,700,000	$1,900,000	$1,800,000	57	107%
August 2004	-	-	-	-	-	-

*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.

Noe Valley Rents**

Type of Unit	Number in Sample	Range of Rents, September 2005	Average Rent, September 2005	Average Rent, August 2005
Studio	5	$1000-1450	$1200	$1149
1 bedroom	17	$850-2200	$1575	$1588
2 bedrooms	22	$1650-$3600	$2502	$2359
3 bedrooms	10	$2600-$4200	$3545	$3274
4 bedrooms	4	$3200-6000	$4613	$6200

**These rent averages are based on a sample of 58 Noe Valley rental listings appearing on www.craigslist.com on September 9-14, 2005. The previous sample of 55 listings was collected August 12-17.