SAN FRANCISCO HOMES THIS WEEK: WEDNESDAY, NOVEMBER 22, 2017
WEEKLY SALES MAP
See what sold during the week using this interactive map. It will show you where the home was located, the listing price, the sold price and how many days it was on the market.
Single Family Homes - 49 Sold
• Median Sale Price: $1,295,000
• 39 Sold OVER Asking Price
• 4 Sold UNDER Asking Price
• 6 Sold AT Asking Price
• There are currently 397 Single Family Homes on the market
Condos/Lofts/TICs - 63 Sold
• Median Sale Price: $1,350,000
• 39 Sold OVER Asking Price
• 15 Sold UNDER Asking Price
• 9 Sold AT Asking Price
• There are currently 715 Condos/Lofts/TICs on the market
*Source: San Francisco Association of Realtors®
REPORTS AND UPDATES
Quick Note: The Pros and Cons of Listing a Home Off-Market
Wishing you a warm and very Happy Thanksgiving!
Hill & Co. Sales Manager Jill Gumina was quoted in last Sunday's San Francisco Chronicle, this time responding to the question "What are the pros and cons of listing a home off-market?" Here's her reply:
"Generally speaking, using the Multiple Listing Service is an excellent vehicle for property exposure. Yet there are certain situations that may require a property to be marketed off the MLS."
"Keeping the property off the MLS to help the listing agent sell the property his or herself is not a good reason and could even be a violation of the Realtor Code of Ethics. However, following the seller’s instructions to not use the MLS is a must that agents must respect."
"In a seller’s market when inventory is low, an owner can employ this method to see if they can receive an acceptable offer without having to paint, stage and spend money sprucing up the property. If they don’t receive the offer they want, then the MLS and a full-on marketing program can be their Plan B."
"Sellers should attempt the off MLS method only after a deep discussion with their Realtor to make sure they are maximizing their opportunity to receive the highest price possible with the most favorable terms, which ultimately is the most common goal for almost all sellers."
Mortgage Update: Economy Doing Well, Interest Rates Still Very Good
A key U.S. economic indicator doubled expectations in October. The index suggests that solid growth in the US economy will continue through the holiday season and into the new year.
The index is a closely followed indicator for how healthy the U.S. economy is. The Conference Board tracks 10 components, including manufacturers' new orders, stock prices, and average weekly initial claims for unemployment insurance.
Residential interest rates remain low and favorable for buyers.
This information is provided by Tim Wood at Terra Mortgage Banking/Opes Advisors, a mortgage bank. Tim can be reached at 415.464.1374, by email TWood@TerraMB.com or through his website http://www.tinyurl.com/Tim-Wood-Loans.
INTEREST RATES THIS WEEK
Rates change daily and vary by product. They are provided here to give you a general sense of current average California rates. Your rate will vary and depends on credit and other factors. Rates are not published on weekends. Source: This information is provided by Tim Wood (NMLS #319539) at Terra Mortgage Banking/Opes Advisors, a mortgage bank. Tim can be reached at 415.464.1374, by email TWood@TerraMB.com or through his website http://www.tinyurl.com/Tim-Wood-Loans.
CHARTS AND TRENDS
Percent of Properties Sold Over List Price
This week we thought we would look at three different neighborhoods, each somewhat representative of a specific area or neighborhood type in the City. Pacific Heights is a traditionally affluent neighborhood on the north side of town. Noe Valley is a hot neighborhood on the south side of town that has long been very attractive to young families and technology workers. Excelsior is a neighborhood that is also located in the southern part of San Francisco. Like so many other areas in the City, this once more remote neighborhood is now attracting the attention of a lot of prospective homeowners.
In the above chart you can see that home buyers are very aggressive when submitting offers for the Excelsior neighborhood. Because home prices are more affordable to begin with, buyers tend to be more comfortable making offers over the list price.
86.2 percent of Excelsior properties sold over list price in October of this year, and that's down 7.2 percent from October of 2016. 69.4 percent of Pacific Heights properties sold over list price in October, and that's up 28 percent over last year. 76.0 percent of Noe Valley properties sold over list price in October, up 5.7 percent over 2016, and 71.5 percent of all properties in San Francisco sold over list price last month, up 10.9 percent over last year.
Median Percent of List Price Received
Now that you know that the majority of properties in these neighborhoods sold over list price in October, the next question would be, "How much over?" The percent of list price received parallels the previous chart to some extent — the neighborhoods fall in the same order. Excelsior is on top, Pacific Heights on the bottom.
In October, Excelsior properties received a median 115.1 percent of list price, up 0.3 percent over last year. Pacific Heights properties received a median 103.0 percent of list price, up 1.8 percent over last year. Noe Valley properties received a median 113.0 percent of list price, up 4.5 percent over October 2016. And San Francisco properties in general received a median 107.3 percent of list price, up 3.8 percent over last October's figure.
Median Sales Price
Affordable in San Francisco is of course a relative term. What's affordable in San Francisco would be prohibitively expensive in Cincinnati. Nevertheless, relatively speaking, Excelsior is one of the more affordable neighborhoods in the City. Homes in this neighborhood sell well below the median sales price for San Francisco homes in general.
It's interesting to note how often over the last three years, the median sales price for homes in Noe Valley has been greater than the median sales price for homes in Pacific Heights. But keep in mind that simply means that half of the homes sold in these neighborhoods sold below the median price, and half sold above.
On average, homes in Pacific Heights still sell for a consistently higher amount than homes in Noe Valley. In October for example, the average sales price for homes in Pacific Heights was $2,670,957, compared to the average sales price for homes in Noe Valley of $1,995,468. Pacific Heights has a higher upside ceiling, and because of a greater number of condos in large multi-unit buildings, a larger number of homes at a lower price point as well. The consequence of this wider price range would account for the lower median sales price.
We chose these neighborhoods for these comparisons because they each offer a nice sample size of home sales. In October, Excelsior had 29 sales, up 3.6 percent over last year. Pacific Heights had 49 sales — a good number of sales, but down 16.9 percent from last year. Noe Valley had 50 sales in October, but it was down as well, specifically 12.3 percent from the same month in 2016. There were 1,313 sales throughout the entire City in October, and that figure is down 0.9 percent from last October.
Neighborhood Spotlight: Monterey Heights: Median Sales Price
Monterey Heights is perhaps the City's best kept secret. The residents we know who live in this neighborhood want to keep it that way. It's certainly understandable. The homes in this neighborhood are every bit as gorgeous as the homes found in its more famous neighbor, St. Francis Wood, but homeowners here prize their under the radar status.
The neighborhood is located on the western slope of Mount Davidson, San Francisco's tallest hill at 928 feet. Adjacent Mount Davidson Park features an unparalleled 360-degree view of the City.
Stately Tudors, Mediterranean-inspired villas, and contemporary homes with manicured lawns and plenty of greenery line the winding neighborhood streets — it almost feels like a community outside the City. Yet downtown San Francisco and I-280 are easily accessible from this convenient location. And its close neighbor, West Portal, provides a wide variety of shopping and dining options.
In October the median sales price for homes in Monterey Heights was $2,700,000, at $771 per square foot. In comparison, the median sales price for homes in San Francisco in general was $1,295,000, at $975 per square foot. Most months, there are only one or two home sales in Monterey Heights, and these are all single family home sales, rather than condo sales. That would account for the higher median sales price, and for the lower cost per square foot.