Zephyr SOMA/SoBe Blog

Lowballing

Given all the changes in the market, I guess it isn't too surprising that lowballing has made it into an article at the NY Times.

The article talks about lowballing (which they define as an offer of less than 90% of asking), and where it is happening in the NYC area. The SF market is a different beast, but it does happen out here, and buyers are definitely much more aggressive in asking for things from sellers these days!

Not New News, But Finally Some Reality

This just in, forclosures not all they've cracked up to be!

http://articles.moneycentral.msn.com/Banking/HomeFinancing/ForeclosureCrisisIsOverblown.aspx

Fire Sale Financing at The Hayes

Worried about getting the right loan for your new place? Afraid interest rates are going to go through the roof? Rest assured our friends over at The Hayes don't want that happening to you. The Mark Company has put together loans for qualified buyers at a rate of 5.5% on a 5/1 ARM. Read the following,

Announcing a Limited-Time Special Financing Offer at The Hayes - 5.500% Interest Rate on a Five Year Fixed Loan*

The perfect time you've been waiting for to buy your new home at The Hayes has arrived. Now, for a limited time only, take advantage of special financing on five-year fixed loans for new homes at Hayes Valley's most exciting new community. This exclusive financing offer makes it easier than ever to own a new home at The Hayes, with a permanent interest rate buy-down of 5.500% on a 5/1ARM interest-only loan.* Call or visit the sales center for details.

Or you can call your local SOMA Specialist and have them talk to you about your options. Granted Hayes Valley isn't SOMA but, with the creeping up Market St. of new construction, SOMA feels so much closer than ever.

What's this?

This just in~

There are now 4 units at Radiance available through the MLS. Previously all marketing of these units had been, "In House". 2 of these units have been on for 47 Days; the other 2 just came on today.

With all of the internal marketing and non recording of new construction units, it's always a little hard to see how they are actually selling. With the release of these via the MLS it looks as though BOSA may, "need a little help from their friends........." (think Joe Crocker)

That having been said, the prices range from $985,800 to $1.4M. All are 2/2 units and within 100 sq ft. in size and are on different floors.

I wonder how long before we start seeing resales in these yet to be finished buildings?

Come One Come All........

The latest list of Featured Homes available from The Hayes and Arterra are the following. The Buyer will receive 2 years of free HOA's. Not bad if you like the units they're offering, but remember, they are offering these units for a reason.

The Hayes- Units include 617 (floor plan B), 425 (floor plan E), 413 (floor plan A1), 423 (floor plan A3), 222 (floor plan V).

Artery- Units include 803 (floor plan D opt 2), 704 (floor plan J opt 2), 621 (floor plan U), 710 (floor plan A opt 3), 1313 (floor plan H)

The ball is in your court!

1 and 2 Clarence Way

In earlier blogs, I wrote about walking along Townsend Street and commented on 200 Townsend, a loft condominium building, located at the corner of Townsend and 3rd Street, and about The District, the wine bar, located on Townsend. As you move along Townsend and cross 3rd Street, you will reach Clarence Way, located between 3rd and 2nd Streets. This street goes unnoticed by many who pass by.

Built at the end of the street, are two loft condominium buildings containing 18 units each. The first sales reported in the Multiple List System were in 2000. Over the last six years, 14 first time sales have been reported and 5 re-sales. 6 of these 19 sales occurred in 05 and 06.

Over the last four years, I have toured the units “for sale.” The layout, finishes, and large windows impressed me. I have heard many positive comments about the look from buyers after they have seen the units. However, in addition to the look, buyers always ask about past appreciation of the units resold.

Because of the small number of re-sales, it is difficult to say much about past appreciation in the building. I will offer some information. Two units in 2 Clarence Way sold for $659,000 in 00 and $710,000 in 01 and resold in 05 for $811,000 and $861,000 respectively. In 2005, one unit with 1,840 square feet sold for $1,176,000 and a unit with 1,859 square feet sold for $1,345,000 in 2006.

Just wanted to let you know about these two loft building tucked away on Clarence Way. These two buildings are two of the many buildings which are hidden gems in SoMa.

Sam Vitkowski

SOMA: Appreciate? Depreciate?

In 2005, the average sale price for a 2 bedroom condo (not loft) in SOMA was 935,052 and the average sale was 945,311. There were 47 sales. In 2006 there were 63 sales, and the average list was $933,203 and the average sales price was $928,848. Appreciation for 2 bedroom condos in SOMA was negative, with the average decline being -1.74%.

How does this compare to the city as a whole? In 2005, there were 1,062 sales of 2 bedroom condos with an average list price of $807,456 and an average sales price of $858,955. In 2006, there were 985 sales of 2 bedroom condos, with an average list price of 855,663, and an average sales price of $863,659. Appreciation for 2 bedroom condos in San Francisco was a tad positive, with the average increase being .54%.

A couple of caveats: all data is from the San Francisco MLS, which doesn't include all of the new construction sales. Anything sold that wasn't listed in the MLS isn't reflected in the stats, which raises the question, is the data an accurate snapshot of what happened in SOMA last year?

But here is my real question: how did particular buildings do against the average, and are the numbers useful? Are all 2 bedroom condos created equal? For example, how did a 2 bedroom condo at Museum Parc do against condos at 140 South Van Ness (aka 1655 Mission). 

2 beds at Museum Parc averaged a sales price of 811,700 in 2005 (10 sales), and in 2006 sold for an average of 867,500 (4 sales). Museum Parc appreciation: 6.87%.

2 beds at 140 S. Van Ness averaged a sales price of $694,667 in 2005 (3 sales), and in 2006 sold for an average of $784,500 (1 sale). 140 S. Van Ness appreciation: 12.93%.

Were you really doing twice as good if you lived at 140 S. Van Ness? Or did the low number of sales skew the numbers? And if condos are doing so well at these two buildings, what buildings were doing so badly that the overall SOMA trend for condos skewed downward?

Stay tuned for more adventures in statistics.

And remember, there are lies, damn lies, and then there are statistics!

What’s up with SOMA/SoBe? The home prices!

In a nutshell, prices are rebounding slightly from a previous drop.  This is in direct conflict with what the newspapers are telling you.  But, then they are trying to sell papers J.  Here are the median price comparisons for all residential property in SOMA and South Beach, according to the San Francisco Multiple Listing Service…

• December 2004: $710,000
• December 2005: $655,000 (down 7.75%)
• December 2006: $675,000 (up 3.05%)

From what I see, the big hit was seen when the news outlets were complaining that prices where irrationally escalating and becoming more and more unaffordable.  Now that the sky is *officially* falling, prices are actually up 3.05%.  Huh??

 

Moral of the story is to always get the real information and make your own conclusions.  The market is complex, and even with all the additional new inventory competition in this area, there are opportunities.