Purchased for $630,000 in 2004, as plugged-in people knew the remodeled single-family home at 2542 39th Avenue which was listed as a short-sale for $490,000 six months ago was facing foreclosure pressure and a race to the courthouse steps with an auction rescheduled for later this month.
Having fallen over $50,000 past due on a $504,000 first, and with a $63,000 second in place, this past Friday the short-sale of 2542 39th Avenue closed escrow with a reported contract price of $490,000, roughly 22 percent under its 2004 sale price.
∙ The Great Courthouse Race And End Of Year Hail Mary Listing [SocketSite]
Down 22% from 2004. Maybe 30-35% from “peak”.
Definitely not the 8% per year compound growth the realtor promised back when it last sold.
I’m not sure it is fair to assume that the agent promised appreciation. In all of the agents I’ve worked with I only recall one who implied that a property would appreciate at a high rate.
Convincing buyers that real estate investments pay off is the job of NAR via classic advertising spin 🙂
Location in the Outer Sunset might explain the fact that it follows more suburban pricing. It will take some time before these areas recuperate from the 30-40% collapse.
El Bombero – So you were there when the agent had that conversation with the client? That he/she promised 8% per year?
Oh, wait a minute – no you weren’t. You’re just talking out your ass.
Any SF realtor who told their client in 2004 that they could expect 8% a year in appreciation was being extremely conservative, as realtors go.
More likely they said 10-15% a year. That’s what I heard all over the place.
So true!
They just neglected to foresee that down 40% part that followed.
Of course, any fool who believed their realtor with regards to major financial planning is well, a fool. Might as well take stock advice from your bartender.
Agreed. However, your analogy is all wrong. This is more like someone taking stock advice from their stock broker. Not so crazy.
The fact that realtors are routinely full of B.S. and people are fools if they buy the B.S. doesn’t excuse the B.S.
Actually my numbers above were wrong. With inflation, this sale is down about 43% from 2004. So down about 60% from 2007 after having gone up for a few years.
If I resume, this place is almost free then!
Actually Outer Sunset did not really surpass its 2005 peak in 2007 like other better nabes did:
from Zillow
2007 was more like a second testing of the 2005 high.
But an hyperbole is always fun.