Noe Valley Voice November 2007
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The Cost of Living in Noe

By Corrie M. Anders

Noe Valley homebuyers purchased six single-family properties in September -- the lowest tally in two years -- as a scarcity of homes put the brakes on sales activity in the neighborhood.

The number of houses that changed hands was down from 11 sales in August and 10 in September a year ago, according to data Zephyr Real Estate supplies monthly to the Voice. September of 2005 was the last time just six sales had been recorded in a single month.

However, other statistics showed that buyers still longed to live in the neighborhood. They typically paid 9 percent over the asking price and closed escrow in less than a month -- both indicators of strong demand -- for homes with an average price tag of nearly $1.4 million.

"I think the numbers are once again reflecting low inventory" -- an ongoing condition for the last six months -- said Randall Kostick, Zephyr's general sales manager. "There's nothing to sell."

Homeowners remained married to their properties, not wanting to give up their low mortgage rates or their relatively static property tax rates, he said. And some owners may have opted to delay selling because of pessimism about the overall housing market.

San Francisco has been rated one of the least volatile cities for real estate in the country, and Noe Valley "qualifies in the same way," Kostick said.

"The story for Noe Valley is, it's a protected bubble inside a protected bubble."

The most expensive single-family home sold during September was a three-bedroom, 21/2-bath house, with a two-car garage and 3,100 square feet of space, in the 300 block of 27th Street, between Sanchez and Church streets. It sold in 14 days for $2.5 million, nearly 10 percent over the $2,295,000 asking price.

Noe Valley's condominium market remained steadfast in September.

Seven condos closed escrow during September, two fewer than in August but two more than in September of last year. Once again, buyers paid more than the asking price -- by about 9 percent -- and closed the deal in less than three weeks.

Buyers paid a premium of more than 12 percent, pushing the price to $1,625,000 from $1,449,000, for the priciest condo in September. The four-bedroom, three-bath unit is located in the 4000 block of 26th Street, between Noe and Sanchez 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
September 2007 6 $875,000 $2,515,000 $1,365,500 29 109%
August 2007 11 $850,000 $2,700,000 $1,692,273 35 105%
September 2006 10 $947,000 $2,311,000 $1,378,900 45 99%
Condominiums
September 2007 7 $659,000 $1,625,000 $948,857 20 109%
August 2007 9 $790,000 $1,465,000 $1,157,778 28 106%
September 2006 5 $615,000 $1,225,000 $825,600 37 102%
2 to 4 unit buildings
September 2007 3 $1,250,000 $1,875,000 $1,473,333 60 98%
August 2007 6 $950,000 $1,989,000 $1,348,908 58 101%
September 2006 2 $1,070,000 $1,150,000 $1,110,000 35 106%
5+ unit buildings
September 2007 0 - - - - -
August 2007 0 - - - - -
September 2006 1 $2,350,000 $2,350,000 $2,350,000 27 94%

*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, September 2007 Average Rent, September 2007 Average Rent, One Year Ago
Studio 4 $1000-$1650 $1424 $1200
1 bedroom 20 $1750-$3000 $2042 $1649
2 bedrooms 27 $1995-$5750 $3069 $2605
3 bedrooms 12 $3500-$8500 $4579 $3319
4+ bedrooms 5 $4650-$11,750 $7560 $6000

**These rent averages are based on a sample of 68 Noe Valley rental listings appearing on www.craigslist.com September 26 - October 19, 2007.