October 2010 RETURN TO HOME PAGE FEEDBACK

Noe Valley home buyers purchased 10 single-family homes in August—the same as in July but three more than in August of last year.

Though volume was steady, enthusiasm was down a bit from the previous month. In July, buyers on average paid 4 percent over the seller’s asking price, according to data supplied to the Voice by Zephyr Real Estate. However, in August buyers stuck pretty close to what the sellers were asking, paying an average 100 percent.

August experienced “a little calming” in the amount people were willing to pay, said Randall Kostick, Zephyr’s general sales manager. “I think that’s an indication buyers aren’t competing as much for available houses.”

In fact, the most expensive home sold during the month—a four-bedroom, 3.5-bath dwelling in the 600 block of 30th Street—went for $2,050,000—$48,000 below the original asking price. The 2,900-square-foot house was on the market for 43 days.

 

Condos Outpace Homes

Noe Valley’s condominium sales were relatively brisk in August. Buyers purchased 11 units, paying an average 99 percent of the seller’s list price. That contrasts with July, when 8 units sold at an average 103 percent of asking price, and with August of 2009, which recorded only six sales.

One anomaly was a 2,540-square-foot, three-bedroom, 4.5-bath condo located on the 1000 block of Sanchez Street between 23rd and 24th streets. The unit was on the market for 161 days before selling for $1,762,500—nearly 16 percent below the original $2,095,000 list price.

 

Four Units for the Price of One

Investors in August showed an increased appetite for small rental properties. Five buildings in the two- to four-unit category found new owners during the month.

Generally, two-unit buildings are sold to partners who want to convert them into tenancies-in-common (TICs) and live in the individual units—a less expensive alternative to single-family or condo ownership. Three of the five buildings, however, were four-unit apartments.

“It means investments have loosened up a little bit,” Kostick said, noting that money for investment mortgage loans nearly evaporated two years ago when the banking crisis hit.

The most expensive small building was a four-unit dwelling in the 1300 block of Sanchez Street, between 26th and 27th streets. It sold for $1,150,000, or 11 percent below the $1,299,000 asking price.

 

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 2010	10	$654,000	$2,050,000	$1,229,577	41	100%
July 2010	10	$550,000	$1,605,000	$1,077,000	42	104%
August 2009	7	$818,000	$1,995,000	$1,260,543	53	101%
Condominiums
August 2010	11	$620,000	$1,762,500	$899,264	75	99%
July 2010	8	$610,000	$1,100,000	$864,625	63	103%
August 2009	6	$605,000	$1,225,000	$833,250	67	98%
2- to 4-unit buildings
August 2010	5	$530,000	$1,150,000	$907,000	66	89%
July 2010	1	$1,160,000	$1,160,000	$1,160,000	147	100%
August 2009	1	$938,000	$938,000	$938,000	163	94%
5+-unit buildings
August 2010	0	—	—	—	—	—
July 2010	0	—	—	—	—	—
August 2009	0	—	—	—	—	—

 

 *‑ ‑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 10/10

 

Noe Valley Rents**

Unit	No. in Sample	Range Sept. 2010	Average Sept. 2010	Average Aug. 2010	Average Sept. 2009
Studio	10	$1,195 – $1,750	$1,443 / mo.	$1,513 / mo.	$1,333 / mo.
1-bdrm	17	$1,525 – $3,925	$2,089 / mo.	$1,828 / mo.	$1,987 / mo.
2-bdrm	25	$1,990 – $4,800	$2,876 / mo.	$2,820 / mo.	$2,684 / mo.
3-bdrm	21	$2,995 – $5,995	$4,118 / mo.	$3,872 / mo.	$4,088 / mo.
4+-bdrm	3	$4,700 – $6,000	$5,433 / mo.	$5,850 / mo.	$5,527 / mo.

 

** ­‑Survey based on a sample of 76 Noe Valley listings appearing on Craigslist.org from Aug. 31 to Sept. 14, 2010.   NVV 10/10