Noe Valley Voice September 2008
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The Cost of Living in Noe: Homebuyers Getting Picky

By Corrie M. Anders

The catbird seat where Noe Valley home sellers have perched for the past eight years was a tad less comfy this summer, as the realities of a changing real estate market finally started to intrude on the nesting habits of the neighborhood.

A total of 19 single-family detached homes sold in June and July, the lowest two-month tally this decade, according to Zephyr Real Estate, which provides monthly sales data to the Voice. That was a marked contrast to the 23 homes sold in the summer of last year, 29 sales in the same period in 2006, and 39 sales in 2005--the peak of our most recent real estate frenzy.

And for the first time since June 2001, the typical home seller got less than his or her asking price. Buyers in July paid 99 percent of the list price to own a single-family home, the same percentage that condominium buyers paid in June. A year ago July, single-family buyers were so eager for a Noe Valley address that their rampant overbidding gave sellers a 19 percent windfall. Similar competition rewarded condo sellers in June 2007 with an 11 percent premium over the list price.

Condo sales increased to 20 in June and July, compared to 16 last summer. But it took buyers three times as long to close escrow.

"It's a different world this summer than last summer," said Randall Kostick, general sales manager of Zephyr Real Estate. "It's a bit slower pace."

The nation's mortgage and foreclosure crisis may finally be coming home to roost. "We're seeing buyers questioning whether the time is right to buy," he said.

Consequently, sellers are becoming more realistic. "I think sellers are coming around and realizing they can't just get what they want when they want it," Kostick said. "They have to cooperate."

Not all do, however. Kostick said some deals have fallen apart, because "buyers and sellers are at loggerheads, and sellers won't close [escrow]."

Mortgage lenders also are contributing to the slowdown. They have been hurt by the country's record rate of loan defaults, and, said Kostick, "they're taking their time and making sure all the i's are dotted and t's crossed."

Despite the trends, the price tags show that Noe Valley remains a very desirable place to live.

In July, a four-bedroom, 31/2-bath house on 25th Street sold for around $3 million. The buyers refused to reveal the sales price, and provided only its list price of $2,950,000. The house sold quickly, however, in only 23 days. It is located in the 4200 block of 25th Street between Castro and Diamond streets.

Buyers in June paid $1,725,000 for a three-bedroom, 21/2-bath home in the 1300 block of Guerrero Street between 25th and 26th streets.

The most expensive condos both sold for $1.3 million. June saw buyers close on a three-bedroom, three-bath unit in the 600 block of Clipper Street between Douglass Street and Hoffman Avenue. One month later, buyers picked up keys for a two-bedroom, two-bath condo in the 300 block of Valley Street between Sanchez and Church 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
July 2008 12 $975,000 $2,950,000 $1,847,417 29 99%
June 2008 7 $850,000 $1,725,000 $1,243,000 33 100%
May 2008 14 $850,000 $2,675,000 $1,409,714 33 105%
July 2007 10 $1,037,000 $2,300,000 $1,497,800 13 119%
June 2007 13 $900,000 $2,725,000 $1,485,962 26 104%
Condominiums
July 2008 13 $563,000 $1,300,000 $894,538 59 100%
June 2008 7 $399,000 $1,300,000 $781,857 75 99%
May 2008 3 $525,000 $1,249,000 $783,333 23 102%
July 2007 10 $457,000 $1,910,000 $1,198,305 20 109%
June 2007 6 $703,000 $1,525,000 $1,000,333 22 111%
2 to 4 unit buildings
July 2008 3 $947,000 $1,575,000 $1,234,333 74 100%
June 2008 1 $1,155,000 $1,155,000 $1,155,000 17 103%
May 2008 4 $1,185,000 $2,000,000 $1,615,000 23 104%
July 2007 7 $1,100,000 $1,765,000 $1,389,571 76 101%
June 2007 3 $1,575,000 $1,789,000 $1,698,000 32 100%
5+ unit buildings
July 2008 0 - - - - -
June 2008 0 - - - - -
May 2008 0 - - - - -
July 2007 0 - - - - -
June 2007 0 - - - - -

*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, July-August 2008 Average Rent, July-August 2008 Average Rent, July-August 2007
Studio 2 $1450-$1550 $1500 $1338
1 bedroom 25 $1400-$3200 $1995 $2059
2 bedrooms 28 $2195-$4450 $2995 $3305
3 bedrooms 19 $2900-$6450 $4357 $4364
4+ bedrooms 2 $5500-$9400 $7450 $6500

**These rent averages are based on a sample of 76 Noe Valley rental listings appearing on www.craigslist.com from July 28 to August 12, 2008.