Purchased for $1.18 million in late 2014, the lavishly remodeled unit #1 in the former Smitty Knitting Factory building at 75 Lansing Street, a 1,400-square-foot unit which features Venetian plaster, Italian tile, exotic wood finishes, returned to the market priced at $1.295 million this past June, a sale at which would have represented total appreciation of 9.7 percent since the fourth quarter of 2014.
Reduced to $1.198 million in September and then to $1.145 million last month, at which point the listing was updated to note that the seller would also pre-pay one year worth of HOA dues ($496 per month) along with one year of parking fees ($300 per month) or grant a comparable credit toward closing costs, the re-sale of 75 Lansing Street #1 has now closed escrow with a contact price of $1.1 million, representing total depreciation of 6.8 percent over the past five years on an apples-to-apples versus “median price” basis, not accounting for the value of the any credits.
Bizarrely designed ground floor unit fails to fetch what previous owner overpaid. Film at eleven!
Overpaid seems to be the theme of 2015-2017, regardless of owner or design.
And of new construction in Rincon Hill, no less. This part of town seems to be on the leading edge of a luxury real estate slump.
Of course, that’s just a small serving of the apples-to-apples story. And in fact, there should be enough footage for a feature length film when compiled, in addition to a short.
Also let us pour one out for the fact this is on an isolated alleyway only accessible via a perennially gridlocked freeway onramp. I for one find this new residential neighborhood a fairly unappealing place to put down roots.
When did they build a new freeway? Apparently since the original sale in 2014, or otherwise, that fact would have been baked into the original price /s.
And where were the realtors “advising” these buyers, all of whom apparently “overpaid” (so that we can pretend prices aren’t rolling over). This seller is the head of a long standing design/build firm, I’m pretty sure he knew the market really well in 2014. And he probably knows the market just as well now, which is why he got out.
“And where were the realtors”
– You do understand that plenty of buyers go against the advice of their agent, right?
You do understand that there are some realtors who were telling clients that those prices were a sign of how hot the market was at the time and are now saying that the previous buyer overpaid and coming up with other rationalizations for a growing list of down market apples.
I’m not an SF housing bear. More properties are trading lower but some, esp some SFH, are still trading well. But the long list of – buyer overpaid, bad this or that, wrong neighborhood, wrong holding period, etc is tired when the overall numbers indicate otherwise and there are plenty of down apples showing a mixed market. I get it – it’s a sales job regardless of market conditions.
Despite not being a housing bear, it is a little worrisome that SF is not doing better than this given the backdrop of lower rates and tech doing very well. The tech component of the SP is up 40% this year. Big tech names like FB and Apple are up dramatically more. Meanwhile the SP500 is at record highs.
The moves by central banks have gotten progressively larger from the 90’s through now. Easing 75 bps between meetings in 1998 and taking Fed Funds to 1% for one year in 2003 were unheard of at the time. But that was nothing compared to the last ten years of ZIRP and $4.5T of QE. Each move to save various markets and the economy has gotten successively larger and more unprecedented. Yes, SF housing is up but all risk assets have been pumped up by these policies; the SP is up nearly 5x from its 2009 low. There are all sorts of secondary and beyond effects much beyond lower mortgage rates that have helped buoy the housing market.
Fewer buyers from China, right?
Yep. That feels correct. Rincon hill / east cut has all the stylings of a new district of foreign ownership, not unlike west 57th in Manhattan.
So there is only 1 Window in the whole condo? Well that sucks.
That’s incorrect.
So you need to watch TV from the dining room table? Who stages this stuff?
Those quarter inch grout joints and square tiles scream remodel will be needed. Polished floors also not giving off the 2020 look. (and were not in favor in ’14) Mall tiles. Spec projects need to be in the middle.