Speaking of list price reductions in San Francisco, the asking price for the “rarely available” corner one-bedroom unit #802 on a penthouse level of the Palms at 555 4th Street, a level which is outfitted with gas stoves and Sub-Zero refrigerators, has just been reduced for the fourth time.
Purchased for $770,000 in February of last year, the unit returned to the market this past July listed for $829,000, a sale at which would have represented total appreciation of 7.7 percent, or roughly 5 percent a year, on an apples-to-apples basis.
But having been reduced to $819,000 in September, to $809,000 in early October, to $795,000 at the end of October, and then to $789,000 as of this morning, a sale at asking would now represent total appreciation of 2.5 percent since early 2015, or an average of 1.4 percent a year on a straight-line basis, for the 670 square foot Central SoMa condo with a separate storage unit in the building and a deeded parking space in the garage.
With 20 percent down and the prevailing rate at the time, the 30-year mortgage payment for 555 4th Street #802 would have been roughly $2,800 per month when purchased in early 2015. Based on current rates, the monthly payment would be $3,000 at asking. And in order to match the $2,800 payment today, the purchase price would need to drop to $740,000, which would represent depreciation of 3.9 percent over the past two years.