Pricing is just about everything in this market. Buyers are value conscious and edgy. They’re talking themselves out of doing something more times than not with the rare exception of when they see a value they-just-can’t-pass-up. Then they move and move decisively. This past week the house at 21 Beaver generated just such movement.

21 Beaver Street, San Francisco

21 Beaver Street Living Room

This house was priced in a range that generated not just two offers but 6! This is incredible and goes to show the power of pricing. Most sellers do not see pricing as the most powerful marketing tool they have. To capture immediate attention and push the price up (this house is in contract for just shy of $1.4million), the seller needs to abandon the idea of penny-pinching and get on board with getting the best out of the current market. This will not only give the seller the best price (moving up versus down) but save the seller money by buying time. And time in this market is probably the most valuable commodity of all.

All the Best,

Lance

was a plethora of new inventory just about everywhere. I did focus on all the new luxury homes in District 5 which I’ve posted about before. There were a lot of so-so properties that will undoubtedly come down off the ‘asking’ prices but there were some standouts. The best one in design and price has to be 10 Deming.

10 Deming Street, San Francisco

This property has sweeping views, gorgeous finishes and a great floor plan. It seems very well priced to me and makes the others in this category pale in comparison.

The new townhomes at 480 14th Street rank as best design and best price when comparing properties in the condo category.

480 14th Street, San Francisco

The two-level floor plan provides separation of the bedrooms from the living space, there is a private deeded deck off the living room thereby expanding the living space substantially and a private deeded roof deck. Most condos have no outdoor space and the design here maximizes outdoor space which is a rare treat in a City condo.

The two bedroom is priced at $799,000 with parking and storage.

Have fun on the search.

All the Best,   Lance

District 5 (Noe Valley, Ashbury Heights, et al) and its $2mil+ single family home segment is one I’ve posted on previously and been watching diligently as it has been a progressively deteriorating market seemingly isolated to these neighborhoods. The continuing abundance of inventory compared to the pace of sales is taking its toll on the bottom line for sellers.

The numbers are in for August and using ‘pending’ sales the inventory level has risen from 12months to 17 months. The high point was last fall with 19 months of inventory.

This is not lookng good for sellers but is providing an opportunity for buyers. A wide swath of homes have been on the market for so long that the prices are falling ..more…and …more.  One example is 206 Palo Alto in Clarendon Heights. This neighborhood is awash in these high end homes.

All the Best,

Lance

Sure fire ways to put money in your pocketare to recognize where the opportunities are in this market. Today, our Wells Fargo loan rep told us that rates have continued to drop to the point that jumbo loans are around 4.5% and adjustible loans are the 2% range! Wow, maybe now is a great time to refi.

Second, when I search property segments in San Francisco the one segment that continues to weaken are luxury homes over $2million in District 5 (Noe Valley, et. al.). The deals are continuing to get better and better. Pick one and offer at least 20% less than asking.

Third, buy in Sonoma wine country. This desirable market is down by 50% and will rebound in a big way as the recovery kicks in. I see folks making big returns here. I’ve joined the North Bay Board of Realtors and I’m showing property in Sonoma to City clients. Let me know when you’re ready to go.

Here’s to finding the ’silver’ lining….

All the Best,

Lance

The beginning of September and we’re returning from the Labor Day weekend and gearing up for what is traditionally one of the busier seasonal real estate markets. The Spring market, March and April, were the busiest months we’ve seen all year so we’re on the lookout for higher activity.

The latest statistics give us some indication of what we’ll be looking at as the ‘market’ is hyper-local and neighborhood driven. The August numbers haven’t come up yet so to get in the groove in anticipation I’m re-visiting the trends thru July. The overall San Francisco County single family home inventory increased from 3 months to 3.7 months – still very healthy – but my prediction is that number will increase a bit when we see the August figures. The same can be said for the overall condo market which went up from 4.4 months in June to 5.6 months in July. I’m prepared for it to hit 6 months of inventory as the condo market definitely deteriorated in July.

I’ve been closely watching the breakdown of the individual neighborhood single family home markets throughout the summer. The best recovery was in District 7 (Pacific Heights, et. al) which started out the year with 5 months of inventory but has fallen to skip around under 3 months – this is a very stable market.

Likewise, District 9 (the Mission, et al) started with a tight supply but has increased and stayed around 3 months – again a very stable market.

The problem child has been District 5 (Noe Valley, et al). When the overall numbers are viewed it increased from 2.5 months to 4 months by the end of July. This isn’t bad. Break it down into segments however and there is real deterioration going on in the $2mil+ market. This market has gone from bad to worse ending July with 24 months of inventory and my guess is it will show an increase in the month of August and September both. I do not see this coming down soon as more inventory is slated to come on and buyers are not rushing to purchase. This is the best market for a buyer to get a ‘great’ deal.

I believe this segment of the market is slated to take a 20% haircut before it’s over. Watch and wait. I’ll keep you posted.

All the Best,

Lance