Noe Valley Voice June 2012
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The Cost of Living in Noe

All-Cash Buyers Up the Ante

By Corrie M. Anders

Home sales in Noe Valley remained robust for a second consecutive month as 17 houses changed hands in April, including a graceful mini-mansion that sold for $3.4 million.

The April sales total for single-family homes was three shy of March’s 20 transactions, but significantly higher than the six sales recorded in April of last year, according to data collected for the Voice by Zephyr Real Estate.

There also was a strong demand for condominiums. A new luxury condo costing nearly $1.6 million was among the eight units sold during the month. Buyers purchased 11 units in March and 10 in April a year ago.

Bidding wars typified the real estate activity in the neighborhood. “It’s been something spectacular,” said Randall Kostick, Zephyr’s general sales manager. “A lot of people are looking to buy.”

Kostick said a strong local economy, low-interest mortgage loans, and a growing inventory of homes on the market helped propel April sales. In addition, more buyers opted to pay with cash.

“We’re having some of the largest volumes of all-cash buyers that I’ve ever seen,” Kostick said—even bigger crowds than during the dot-com boom of the late 1990s–early 2000s.

Kostick, whose sales region covers several other neighborhoods, did not have specific figures for Noe Valley. But he said that about a third of the April house sales closed escrow in just a few days—a tipoff that the buyers were not relying on bank loans.

He cited as an example a completely gutted home on Fountain Street that was being sold for the value of the lot. With views of downtown and the Bay, the property was a desirable location for a major renovation project.

Kostick said the house sold for $1,355,000—35 percent more than the original $999,000 asking price. The deal closed escrow in 10 days, he said, and was “more than likely all cash.”

The market was so competitive throughout Noe Valley that the typical home for sale in April attracted three to five bids. Multiple offers for the same property tend to push up the price, and Kostick noted that nine of the 17 properties sold above the asking price.

Buyers paid $3.4 million for the most expensive property, a five-bedroom, 4.5-bath home in the 300 block of Fair Oaks Street, between 24th and 25th streets. It sold for the asking price and closed escrow in a mere eight days. The Grand Edwardian–style home, with 4,120 square feet of living space spread across 11 rooms, featured a double lot, numerous decks and gardens, an atrium, and downtown views.

“It was not a pretentious home,” said Mindy Kershner, a Noe Valley real estate agent with Tower Properties who listed the house, which was last renovated in 1990. “But it just had everything that Noe Valleyans like.”

The priciest condo was located in the newly built, contemporary Luxe at 28th and Church streets. It sold for $15,000 more than the $1,584,000 asking price. The unit included three bedrooms, 2.5 baths, and 2,100 square feet of space.


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

April 2012

17

$880,000

$3,400,000

$1,540,177

46

103%

March 2012

20

$725,000

$2,950,000

$1,597,150

48

103%

April 2011a

6

$1,109,500

$4,050,000

$2,090,750

103

99%

Condominiums

April 2012

8

$710,000

$1,584,000

$962,875

61

102%

March 2012

11

$618,000

$1,419,000

$955,182

30

103%

April 2011

10

$515,000

$1,175,000

$832,700

55

99%

2- to 4-unit buildings

April 2012

3

$928,000

$1,300,000

$1,159,333

50

116%

March 2012

4

$939,000

$1,600,000

$1,262,250

101

100%

April 2011

0

5+-unit buildings

April 2012

 0

March 2012

0

April 2011

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.comfor providing sales data. NVV 6/2012

 

Noe Valley Rents**

Unit

No. in Sample

Range

May 2012

Average

May 2012

Average

April 2012

Average

May 2011

Studio

3

$1,400 – $1,500

$1,433 / mo.

$1,715 / mo.

$1,400 / mo.

1-bdrm

11

$2,150 – $3,250

$2,612 / mo.

$2,261 / mo.

$2,070 / mo.

2-bdrm

21

$2,400 – $6,000

$3,977 / mo.

$3,504 / mo.

$3,046 / mo.

3-bdrm

14

 $3,795 – $10,999

$5,249 / mo.

$5,556 / mo.

$3,712 / mo.

4+-bdrm

3

$6,000 – $8,995

$7,332 / mo.

$7,650 / mo.

$5,838 / mo.


** ­‑This survey is based on a sample of 52 Noe Valley apartment listings appearing on Craigslist.org from May 4  to 16, 2012. NVV 6/2012