Purchased for $1.5 million in November of 2013, the 1,253-square-foot Dwell-ing at 330 Banks Street resold for $1.7 million in February of 2017, representing total appreciation of 13.3 percent over those three and a quarter years on an apples-to-apples basis, despite the “short term hold” and the property being “used,” which is what happens when values are actually going up versus down.
Yesterday, 330 Banks Street, which “embodies Northern CA living at its finest,” with “the highest quality craftsmanship,” “inviting indoor/ outdoor living spaces,” “abundant natural light,” and a “coveted open floor plan,” returned to the market listed for $1.895 million, a sale at which would represent total appreciation of 11.5 percent since the first quarter of 2017 or just 1.9 percent per year on a straight-line basis for the single-family home. The frequently misreported Case-Shiller Index for “San Francisco” house values is up 61 percent over the same period of time.
The apples-to-apples resale of 330 Banks Street has now closed escrow with a contract price of $1.85 million, representing total appreciation of just 8.8 percent for the single-family home since the first quarter of 2017 or 1.5 percent per year on a straight-line basis with some up and down between.
No mention of the previous threads guess the sales price game?
congrats to sparky-b for the spot-on prediction
Nailed it
Good outcome for seller. I was one of the ones wrong on this listing…SFH’s generally are the last to be hit by declines, but with interest rates still on the rise, this is an unfolding story. Anecdotally, I have some friends who are in escrow in the south eastern part of the city for a starter home they are selling, and they received six above asking offers within 3 weeks of listing so the demand is still there for certain types of dwellings.
Keep in mind that almost any property can generate “six above asking offers,” as fetching “over asking” is primarily a function of pricing.
Yeah…that’s pretty obvious.
Who was I to think this beauty would fail to win a suitable price and an owner willing to commit to a minimalistic lifestyle? Congratulations to the seller, I still think you’re lucky, and congrats to the buyer, I hope you make great memories there for a long time.
While interest rates are on the rise, there seemed to be quite a few cash only buyers in the past, suggesting interest rates might not matter to them. But I think the bear market may have also wiped out their buying capacity.
Keep in mind that inflation has run about 21% cumulatively since 2017. So with only a nominal increase of 8.8% in real terms that’s a 12% real loss.
In contrast, from 2013 to 2017 there was roughly 5% cumulative inflation and the house then had a 13.3% nominal rise for a real gain of 8.3%.
Looked at in real terms, you can definitely see the change in the tone of the market.