Dolores Park Hive Now Listed at a LossOctober 5, 2017
Purchased by the founder of Hive Communities for $6.495 million in April of last year, the 5,493-square-foot “Light House” condo at 651 Dolores Street, one of four condos within the converted Second Church of Christ Scientist, returned to the market this past August priced at $6.795 million, as we first reported at the time.
As we also noted in August, while 651 Dolores Street fetched an “over asking” price of $6.495 million last year, it was by way of a $4.495 million loan that was provided by the re-developer of the property (Light House Development, LLC).
And while the marketing site for the property has yet to be updated, the asking price for 651 Dolores Street has just been dropped to $6.349 million with no mention of potential seller financing.
Comments from Plugged-In Readers
Interest rates are up 10% from last year and rising. That means to sell it to someone who will pay the same cost as last year, the price has to be 10% less, and even less in a few months.
The lenders were smart enough to protect themselves, so the buyer’s downpayment takes the entire hit. That’s the problem with buying when interest rates have nowhere to go but up. And when they are very low, even slight increases make huge differences. This buyer will probably lose a sizeable portion of their down payment. If interest rates rise, the next buyer will have the same effect to deal with.
Makes the still-rising SF home prices all the more remarkable, huh? Here are three more just from yesterday:
3032 Clement St #201 (3/2) sold new at $1,375,000 in July 2016 and just sold again for $1,545,000 (+12.4%)
937 Dolores St #5 (1/1) sold in July 2016 for $815,000 and just sold again for $875,000 (+7.4%)
911 Central Ave. (4/2) sold in March for $1,495,000 and just sold again for $1,665,000 (+11.4%).
Two years ago, you would have posted 100 of these. Now, down to only 3. Sad.
100 recent apples-to-apples sales closed on the same day? Dude, SF only has about 20 properties close on a typical day. And it’s pretty rare that a place turns over after just a year or two. That three popped up in one day is pretty remarkable. What’s not remarkable is that they are all consistent with the broader case shiller numbers of single digit % annual gains.
For a variety of reasons the correlation between the increase in rates and the increase in costs is not 1:1 as you say it is, but certainly rates impact affordability. Rates are still so low today that I don’t think we are seeing a dramatic impact of rate increases yet.
And NASDAQ hit yet another record today despite the bad jobs report. Up 21% in 2017. I suspect the hundreds of billions of dollars of Bay Area wealth this has created trumps the tiny recent up-tick in mortgage rates, which remain well below their levels at the start of the year in any event.
I feel as if traditional, flat-type condos and single family houses are up from 2015-2016. We tried to buy a flat on Masonic the other day. It had last traded for 800 in 2015. It got five offers, and they’re in contract for over 900. Nothing too special about it, just a traditional Haight type of flat with a cool backyard like a lot of Haight properties have.
Anything quote unquote “affordable” for people with good salaries is up YoY. I think quote unqote luxury is more like where the hits have happened. That and loft or SOMA condos. The property that anchors this thread is a funny one to generalize upon. Anyway, look around and you’ll see. There are many, many anecdotes of apples gains to be found from what looks like peak years on like a Shiller chart or similar. I do agree about the “sad” part. Where are the good deals?
What do you know, another one. 28 Parker Ave, #201, sold for $950,000 on Oct. 9, 2016 and today, almost exactly one year later, sold for $1,015,000 (+6.8%), just a bit better than the case shiller broader index.
UPDATE: The list price for 651 Dolores Street has just been reduced another $200,000 (3.2 percent) to $6.149 million.
UPDATE: Dolores Park Hive Now Listed at a Larger Loss and Plying Crypto
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