According to their sales office The Hayes is holding a “72-Hour Sale” this weekend during which “twelve select homes at The Hayes will be offered at incredible prices-more than $2million in total price reductions.”
According to a plugged-in tipster, think up to 20% off (but we don’t know if that’s on top of the reductions we previously reported in October). Regardless, we’re pretty sure this constitutes the “real” Hayes Valley (and San Francisco as far as we’re concerned).
UPDATE: A reader’s comment we had to highlight: “Here’s an idea: mount a rotating blue police light on a roller cart. Roll it into various units and announce that there is a special deal on that unit for a limited time only. Kart-MARkeTing.”
∙ New Development “Closeout” Sales: The Potrero And 170 Off Third [SocketSite]
Could be a great time to buy with reduced pricing and low mortgage rates.
Here’s an idea : mount a rotating blue police light on a roller cart. Roll it into various units and announce that there is a special deal on that unit for a limited time only.
Kart-MARkeTing
Kidding aside, props to the developer for being proactive.
Interesting isn’t it : The professional RE sellers are realistic and proactive. But individual home sellers are still wishful and stalling. Seems like there will be a lag before similar pricing discounts occur in independently owned homes.
The professional RE sellers are realistic and proactive. But individual home sellers are still wishful and stalling.
this makes sense
1) the pros have no emotional attachment. thus they’re running a $$$ and cents analysis.
2) the pros have holding costs but no holding benefits. (the homeowners at least have shelter)
3) the pros can cut aggressively so long as they can turn a profit, whereas many individuals are underwater, or see reductions as loss of life’s savings.
4) the pros may be getting pressure from the banks to sell.
that said: I hate “timed” deals. I know they work… but who really thinks that this deal will be revoked in 73 hours?
[Editor’s Note: Not us (re: the 73rd hour) and Bingo (or perhaps even a blackout).]
Ex SF-er, very good points, and I quibble only with one of them: “the pros can cut aggressively so long as they can turn a profit.” At this point development costs are sunk, and they continue to incur carrying and opportunity costs. The pros will sell at whatever it takes to sell even if that means not making a profit or taking a loss. There is no absolute floor at development costs.
I’ve never seen this place in person, but they’ve literally flooded the market with ads over the last few months. You see this place on billboards, sides of buses, everywhere. The other day I even heard Fernando and Greg shilling for them. Reeks of desperation.
Seriously, who buys luxury condos that advertise like car dealers?
SUNDAY SUNDAY SUNDAY!! EVERYTHING MUST GO!! WE’RE BLOWING OUT THE ’08s TO MAKE ROOM FOR THE ’09s! NO CREDIT? BAD CREDIT? OUR SPECIAL FINANCING PLAN MEANS NOBODY IS TURNED AWAY!!
Just cut the prices already and get it over with.
If in fact this will be 20% off of the previous price reductions you could be looking at upwards of 40+% off original pricing, and you could get into the building for under $270k. WOW. This will be interesting once confirmed…
Looks like pricing starting at $299,000 with parking, not bad at all.
Don’t get too excited guys. The 20% cuts are NOT on top of the previously-announced reductions. I went to the Hayes last weekend and they’ve just ratcheted up the “list” prices on units from what SocketSite announced in October. Current “list” for the remaining 1 bed units is $699 (!!!) meaning that the discounted rate is only mid-500s. This isn’t really a “sale” so much as a “we’re only going to announce a moderately overpriced price for one weekend only, because no one wants to spend $700k on a 650 sqft condo at Civic Center right now.”
^^ LOL
What if they threw a phony 72 hour party, and no one came?
I feel so taken advantage of. This isn’t anything special then at all. Dooped by the Hayes…
Actually I was offered a two bedroom / two bath for $630,000 which I thought was a good price. Previously priced at $905,000 which is almost 30% off.
@Menace2200
I was offered that 2/2 as well for that price. It’s actually a really big unit (1100+ sqft) but it has no natural light at all. Its deep down in a well. Now, granted, with so much usable square footage in the middle of town, you could pocket the savings and spend them on some really great designer lighting (I considered it!) It also does have a nice large private patio, but again, its down at the bottom of a “well” in the center of the building with close walls on all sides.
Here’s an idea : mount a rotating blue police light on a roller cart. Roll it into various units and announce that there is a special deal on that unit for a limited time only.
I’m sure they could do some co-marketing with ORH and get them to set the weather beacon to blue and flash it.
I was there with a client on Monday, and while I can’t speak to how many they’re actually selling, I can say it was a lot busier than I expected (the front desk guy looked completely overwhelmed, and it took me three tries to get through on the phone earlier).
this is not the “real” hayes valley. it is on busy franklin st 6 blocks from Hayes st, but only half a block from market. This is mid-Market.
I do however think this is in the “real SF”, at least for 2 more weeks
“I was there with a client on Monday, and while I can’t speak to how many they’re actually selling…”
Um, I can guess from the fact that they’re discounting.
What is going on with unit #222? Its price seemed to have increased by 21.5% yesterday (from 699K to 850K)… Now the 20% discount doesn’t seem like such a deal, huh? Am I missing something?
http://www.redfin.com/CA/San-Francisco/55-Page-St-94102/unit-222/home/18513851
“I was there with a client on Monday, and while I can’t speak to how many they’re actually selling, I can say it was a lot busier than I expected (the front desk guy looked completely overwhelmed”
when i dropped by the Cubix last fall, the sales office was packed. we had to take turns riding the elevator, and a fresh stream of people would enter the model units one group after another. and we all know how sales are going there.
Oops… Just saw Jason’s comment above, making a similar point. Sorry. Jeez, that’s like the oldest trick in the book!
“Looks like pricing starting at $299,000 with parking, not bad at all.”
Maybe a minor point to some, but while parking is available I don’t think it is actually deeded. I think it’s leased from the HOA. And I believe the lease stays with the unit on a resale later if the purchaser wants it. Can’t remember all the details…been a while since I was in there.
Unless you buy the model, you should also notice that on top of the ‘sale’ price, you still have to buy flooring, a refrigerator, washer/dryer, etc. etc. They only have a stove, dishwasher and microwave….no carpets, hardwoods, washing machines…..
I’m a casual reader/observer on this site. I’m amazed by all of the mis-information & negativity. My thoughts and a few facts to counter several inaccurate comments:
-It’s no secret that it’s a tough market and economy out there- whatever the industry, when times are tough, you do what it takes to sell your product.
– The Hayes is definitely located in Hayes Valley- on the corner of Gough & Page, 3 blocks from Hayes St.
-No, the Hayes is not on any buses and billboards or ‘everywhere’ and since when is a radio ad a bad thing?
-Some homes are completely finished out and others are not- some buyers like to select their own finishes.
Anyhow, my point is this site loses a lot of appeal, given all of the inaccurate comments and the constant negative vibe.
my two cents,
Oh the negativity!
I’ll stick with the red pill, thanks.
“inaccurate comments”
the main problem, imo, far too many guesses used as arguments. saying somebody used a neg am when they didn’t. pointing to a foreclosure moratorium that didn’t exist. never being accountable.
^^ Chuckle.
A poster named “anon” complaining about accountability.
That’s about as funny as a salesperson from The Hayes complaining about “negativity.”
I like this location
So what does this mean two bedrooms are going for now roughly?
My Two Cents: You’ll learn soon enough that this site is supported by people who obsessively follow the real estate market, trolling the web for listings, floor plans, and photos, and attending developer parties, which would all indicated that they dream about that first purchase. At the same time, these exact same people desperately search for any information, data, trends and evidence that validates their poor planning and lack of wherewithal, financial and otherwise, that condemns them to forever be “bitter renters.”
…that condemns them to forever be “bitter renters.”
Maybe it’s time to trot out those SS stats indicating that a large number of readers are already owners.
Milkshake: Long ago the SS editor and I had an exchange about what does and doesn’t constitute accurate survey methodology. And the choice of “bitter renters” was meant to be humorous, as the term surfaces every now and then on this site.
Regarding the SS readership, a sizable contingent are just market junkies (call us bears) who end up here because there aren’t many places to participate in compelling real estate banter. That we co-exist with the usual suspects a la The Steelers defense meets the Stanford marching band is beside the point.
“When the doctors and dentists show up, the party is OVAH!” – overheard in NYMEX pit circa 1999
“The way I see it, everyone’s gotta take beatin’ sumtimes.” – Ray Liotta, Goodfellas
the disgruntled “under water” homeowners and RE agents seem to be coming out of the woodworks.
Can you not understand that quite a number of people who were able to buy didn’t because they knew the RE market was SEVERELY overpriced?.
IMHO, anyone who didn’t look at historical macro data (such as rent vs. housing prices, rent vs. income, historical appreciation, supply curve increases,) and see that we were headed for a big downfall had their eyes covered. It was never a matter of “if”, just a matter of “when”.
There is still practically nothing in the city that is fairly priced from a historical macro trend perspective.
This is not negativity. it is reality.
Drinking kool-aid may be OK for kids, but it definitely is not OK for adults making large financial decisions.
personally, i will tkae macro data over micro data as a primary tool everytime. Of course micro data (aka “i’m on the ground man” and “it all about neighborhoods” and it’s not the “real SF”) can be taken into consideration as a secondary or tertiary datapoint.
I should clarify my ‘negativity’ comment. Of course I understand that the real estate market is not a rosy picture. That is very clear. I was referring more to an negative attitude of relishing a person’s or company’s misfortune. A Schadenfreude type of thing, if you will. Again, just my perception.
Of course I understand that the real estate market is not a rosy picture.
Totally disagree. The real estate picture is increasingly rosy. Assets are moving towards their fair value. It’s taking a long time, and there’s still a long way to go in the “glamour” parts of the Bay Area (including the Real SF), but every day we get closer. More accurate pricing (i.e., pricing in line with fundamentals and sustainable credit conditions) will contribute to a healthier economy, with less misallocation of scarce resources. The decline is therefore something to be cheered.
I was referring more to an negative attitude of relishing a person’s or company’s misfortune.
Were you one of the posters criticizing the people who relished “gains” during the bubble period? I recall numerous posts “high fiving” sellers, agents, etc. for “amazing” prices. Many, many posts of the nature, “I’m glad they got that price – great comp for me – great for the neighborhood”. Many other posts derisively calling renters “bitter” or “whining”. I don’t recall any criticism from any of the “bulls” in response to any of those posts. Just the opposite, in fact.
A Schadenfreude type of thing, if you will.
Rational analysis and arguments based on fundamental metrics were dismissed for years. A demonstration that not everyone is sympathetic to homeowners’ plight might help wake some people up (especially current buyers). In any event, again, I don’t recall too many expressions of sympathy during the bubble for the people who were displaced or prevented from putting down roots because of the foolish behavior of housegamblers – just the opposite.
*******
All this behavior by both bulls/bears and people in/out of the market is typical of bubbles, on the way up and during the slide down. Nothing to see here 🙂
my two cents
Regarding ShadenFreude, I think there’s a bit of this going on. There are a few moderately addicted posters and they wouldn’t do it if there wasn’t a bit of serotonin involved…
Sure SS is negative. But it’s a welcome relief to the years of lobotomy we’ve been served. People cheering up, prices going up, people cheering up some more, prices going up even more, there was no end to the party.
I’ll tell you where I come from: I did purchase quite a few rental properties at the right time. I wanted to build a retirement income similar to my take home paycheckk. Prices were cheap. I did a few mistakes at first but got better with time but I wasn’t willing to take on a too big risk on one single property, which why I bought many small. The plan was to retire early, say 50-55. Then came 2002 and the start of the big run up. I wasn’t priced out, but suddenly purchases were too high for me to conside going on with my plan. No way I would pay 50% than 2 years before for almost the same rent. It didn’t add upp.
I decided to stop purchasing. In the mean time, new people came into Real Estate, smelling a way to make a buck. People with no education, no experience, no 2-feet on the ground. If there’s a field where you have both feet on the ground, this is Real Estate. You have to check everything, be sure of every detail, and even if you do your due dilligence there’s something you didn’t provision that hits you. For instance a friend of mine bought a house last year that had a new furnace. He now knows the furnace was not placed correctly and has to be relocated. Yet another few grand gone to where they never come back. You never plan for this, but you have to have wiggle room.
Anyway, to go back to the new oportunists: they were in it for the quick bucks, not the long run. They pumped, they flipped, changing many lives for the worse in the process. What do you tell the family that got suckered into a home too expensive for them? What do you tell the couple friend of mine who got a kid last year and are squeezing into a 2BR rental. Supply was there, but too many places were kept from the market to be redone. Too many second homes left empty. Too many places simply kept empty to be sure you’d be able to resell in 2 years with no renters.
Fast foward to today: millions have been affected by the actions of a few. A whole generation has lost 10 years on its retirement. Families are broken by money troubles. Even worse, millions of good people stuck into a high mortgage who are nailed solid to their houses for years. These will leave a mark, believe me.
There’s nothing positive about all of this. This is the flip side of 15%/year every year.
Still happy with the blue pill?
Fronzi – So where does personal responsibility fit into your post? My wife and I are still in the same rent controlled 1 bedroom Marina apartment (as are some friends of ours) that we’ve been in for years. We were in a position to buy during the runup but none of the prices made any sense to me. I thought just about everything was overpriced. So we took a year off, moved to London and spent what probably could have been a downpayment. People thought we were nuts, and we would be “priced out forever”.
So where are we now? Still in the same apartment in the Marina. Sorry, I have little sympathy for people who got caught up in the hype and bought places that they couldn’t afford.
SFS, I agree with everything you said, but let me point out a pernicious cliche’ you too are falling for when you say “What do you tell the couple friend of mine who got a kid last year and are squeezing into a 2BR rental”.
People the world over raise their families in urban environments in 2-BR apartments, and are doing just fine doing so. You’re from Paris, right? so you know very well, 2BR is standard for a family with 1 or 2 kids. Here we are brainwashed since birth that we need the master bedroom plus one room per child, plus a guest room just in case, plus an office, plus storage for all our useless consumeristic crap, etc. That’s the suburban lifestyle paradigm glibly applied to an urban setting, which ends up fueling the longing for more house.
So I know what to tell your friends “squeezing” into a 2 BR with a kid: you are doing just fine, your kid will grow up just fine, and when you have guests just pull out that sleeper sofa in the living room. That way you won’t mortgage the next 30 years of income to service your home debt and will be able to take some nice vacations and see how the rest of the world lives just fine in 2BR apartments!
I grew in a 2bdr house with my mom, dad and 1 brother and 1 sister. I was happy and never even knew having my own room would be “better”. I felt liek we had a nice close family. IMHO 2bd is fine for a couple with 2kids, at least until they are >7
also, should mention that i would never raise a family in mid-market
Bravo, AsiagoSF!
To san fronzischeme
You’re a pathetic wanker. Jetting off to London because some poor schmuck is paying your housing costs because of the socialist policies of the board of stupidvisors.
Typical Rent Controlled tenant……..upwardly mobile, travelling the world on someone else’s dime…..
Has anyone actually dropped by and gotten a list of price reductions? Anyone care to share?
They had 12 units on sale for the weekend…mostly 1 bedrooms I think…anyone buy there? Thinking of going later to look so if you have any knowledge please share. Thx
Prices?
From the flyer I picked up today (reads “Price Ranges as of January 16th, 2009”, so this might be pre-sale as today is 28th already):
Now, for the inquisitive minds that want to talk about price drops, the “stable” 2BRs are the ones people above mentioned as being offered to them at $630k (yes, that would be a $370k drop from list price!)
The Mark Co. seems to be trying to dump inventory before the long cold winter of SF Real Estate ahead!
(let’s try that again …)
From the flyer I picked up today (reads “Price Ranges as of January 16th, 2009”, so this might be pre-sale as today is 28th already):
Now, for the inquisitive minds that want to talk about price drops, the “stable” 2BRs are the ones people above mentioned as being offered to them at $630k (yes, that would be a $370k drop from list price!)
The Mark Co. seems to be trying to dump inventory before the long cold winter of SF Real Estate ahead!
I’m with my two cents (who I thank for giving spencer remedial geography.) I actually live at 55 Page. It’s a tough market, and they’ll do what they have to in order to sell their product. It doesn’t diminish how well built and soundproofed the building is, that it is very well managed, the beautiful roof deck, the gym, and that I am in the center of everything that is important to me (Zuni Cafe out the back door, MUNI Van Ness a block away, 101 Octavia on ramp nearby, Hayes Street, opera, ballet, symphony, walk to Castro/Mission) – honestly I could go on for paragraphs. Not to mention some really fun, interesting, talented people live here. 55 Page is not much for many of you it would seem, but it is perfect for me.