Noe Valley Voice November 2006
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The Cost of Living in Noe

By Corrie M. Anders

Noe Valley homebuyers took advantage of a retreating housing market to purchase real estate at less than full price in September--the first time that has happened in years.

Ten single-family houses closed escrow during the first month of fall, according to Zephyr Real Estate, which provides monthly sales data to the Voice. That compared with 15 sales in August and 6 transactions in September of 2005.

Home shoppers paid an average of 99 percent of the asking price--a far cry from the 115 percent they ponied up a year ago.

Picky buyers also took longer to close the deal. The average buyer in September closed escrow in 45 days, compared to 40 days in August and 41 days a year ago.

Randall Kostick, Zephyr's general sales manager, said two homes in particular were responsible for the reduction in the average sales price and the lengthier sales period.

Kostick said one home in the $2 million range sold for 5 percent below the asking price and was on the market for 97 days. And buyers closed escrow on a $1.1 million home, after 87 days on the market, for 14 percent below its initial price tag.

The lower sales figures and long waits were examples of "both sellers and realtors not taking into account that the market is not what it was a year ago," Kostick said. "If you overprice your home or don't price it correctly, it just sits there."

The most expensive home sold in September was in the 500 block of Eureka Street, between 22nd and 23rd streets. Buyers paid $2.3 million for the three-bedroom, 31/2-bath home with 2,700 square feet of living space.

Five condominiums changed hands during September, compared with 12 in August and 5 in September a year earlier.

The costliest, at $1,225,000, was a three-bedroom, 21/2-bath, 2,000-square-foot unit in the 500 block of 29th Street, between Noe and Castro 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 2006 10 $947,000 $2,311,000 $1,378,900 45 99%
August 2006 15 $657,000 $2,800,000 $1,597,000 40 102%
September 2005 6 $825,000 $1,325,000 $1,103,501 41 115%
Condominiums
September 2006 5 $615,000 $1,225,000 $825,600 37 102%
August 2006 12 $635,000 $1,200,000 $866,258 44 103%
September 2005 6 $750,000 $1,179,000 $924,167 15 111%
2 to 4 unit buildings
September 2006 2 $1,070,000 $1,150,000 $1,110,000 35 106%
August 2006 7 $865,000 $1,750,000 $1,401,143 52 105%
September 2005 2 $1,100,000 $1,200,007 $1,150,004 23 119%
5+ unit buildings
September 2006 1 $2,350,000 $2,350,000 $2,350,000 27 94%
August 2006 1 $1,530,000 $1,530,000 $1,530,000 84 97%
September 2005 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, October 2006 Average Rent, October 2006 Average Rent, One Year Ago
Studio 5 $950-$1425 $1200 $1082
1 bedroom 4 $1400-$1900 $1649 $1692
2 bedrooms 17 $2150-$3200 $2605 $2213
3 bedrooms 4 $2700-$3700 $3319 $3269
4+ bedrooms 2 $6000-$6000 $6000 -

**These rent averages are based on a sample of 32 Noe Valley rental listings appearing on www.craigslist.com October 13-22, 2006.