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Hi everyone! While the roller coaster of financial and world news continues its ups and downs. Our city seems to be staying quite resilient. We’re just finishing the spring selling season, which typically is our busiest of the year. The volatility as of late has certainly kept some consumers on the sidelines. Understandably so when you’re talking about SF and Bay Area housing prices. |
News Worth Noting
While most Bay Area counties saw a small year over year decline in median price - SF County, Santa Clara County were the only two to buck this trend. Most likely fueled by the AI boom, Santa Clara County hit a new all time price peak - and for the first time, took first place for highest 3-month-rolling median house sales price in the Bay Area.
Total sales in May fell approximately 12% year over year (except for our counties), while sales of $5 million+ homes rose 21% to hit their highest monthly count since the peak of the pandemic boom 3 years ago. Regardless of market conditions, desirable homes on the Gold Coast in Pac Heights were snapped up quickly.
2780 Vallejo went into contract after thirteen days on the market - listed at $12.775m
The late Dianne Feinstein’s home at 2460 Lyon St recently went into contract without going on the open market
One of the coolest beach homes at 2020 Great Highway just closed for $7.1m (7.67% higher than their 2021 trade)
Summer Slowdown? Maybe Not...
Competition for other price points is just as stiff and one of the most competitive in the City...the Sunset district! We recall not that long ago that we couldn’t pay people to even look at the Sunset, they were like, what? that’s
not even SF 😂
Those same homes now sell the fastest with an average of just 19 days on market. The neighborhood also had the highest percentage of listings that sold over asking at 20% over asking, making the average price 1.6m. A few neighborhoods also having a moment (in our opinion) are Miraloma Park and Midtown Terr. Both are still very much under the radar but oh so central! You can find a home for an average 1.4m for one that needs work while a fully remodeled home averages 2.3m.
We’re not suggesting that every home is selling quickly for over the asking. There are plenty, including in Pac Heights or Presidio Heights or Noe Valley, lingering on the market. There’s multiple reasons it’s not selling; light, lay-out, location, lack of outdoor space, price, etc. Don’t assume there’s something wrong with the home - dig down and pursue THESE opportunities especially during our slow summer months. You might just get the home that you thought was out of your reach.
San Francisco Market Update
City On The Rise
Allan Graves and his team at Love Tours include the Tenderloin. Except lately, the neighborhood’s struggles haven’t felt nearly as conspicuous. He said tourists are struck by the general cleanliness and order — an indication, he believes, that San Francisco has shrugged off its role as national punching bag. Booking revenue for his 13-year-old company is in recovery from its post-pandemic slump: “We’re in the higher thresholds, maybe even projecting toward 2019 numbers,” he said.
An increase in relocations and low inventory is pushing up prices. Our very own luxury leasing agent, Inna Rubinchik, sealed her biggest lease so far this year: a house in Cow Hollow with five bedrooms and 4,000 square feet for $25,000 per month.
While Mayor Lurie has called for all city workers to show up to their jobs in person four days a week (labor unions have succeeded in delaying the rollout of this policy until August.), the majority of the local CEO’s have not done the same. (SF Biz Times). We’ll say it again....there is no downtown rebound until humans are back.
Did You Know...
The Fed kept its key borrowing rate to 4.25%-4.5%, where it has been since December. Add two points to this to gauge the average home interest rate. Two more rate reductions coming later this year, according to the closely watched “dot plot.” (CNBC)
In Switzerland rates dipped to .....zero! A strong Swiss Franc has helped drive inflation all the way down. A fixed rate mortgage (5-15 years) costs between 1-2.5% with 20% down. The median sale price for a home in Switzerland is around $1.68 million, just less than Singapore and Monaco. (CNBC)
Almost 70,000 people have allegedly applied for the Gold Visa program that offers a green card in return for a $5 million investment in the US. (FT)
What is the latest, greatest home amenity? THE LONGEVITY ROOM. It's not about lifespan - extending life - but rather HEALTHspan, or quality of life. Maybe it houses a $150,000+ Human Regenerator, whose cold atmospheric plasma helps optimize cellular function and speeds healing? A Red-light therapy chamber? NAD+ IV treatments? What about a hyperbaric oxygen chamber? An Ophora system to treat all water? (FT)
Lastly...First Impressions
This is the first photo of a beautifully renovated home on the market. What do you think this first shot conveys? I’m a tad boring on the exterior but PLEASE, I have everything you and your family need on the inside?! Curb appeal matters a lot in real estate - “To me, the facade of a building is like the first sentence of a novel — it sets the tone, the mood, and hints at what’s to come” - says architect Alexis Dornier.
What if just a little effort was made by adding soft grasses, mature plantings, or an incredible paint color from Farrow & Ball...what story would it tell then? Remember these important factors when you’re thinking of selling, also, we won’t let you forget when we work together
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