Speaking of a sharp drop in asking prices across San Francisco despite (mis)reports of a “surging” market, the 838-square-foot Yerba Buena Loft unit #911 at 855 Folsom Street, which had returned to the market priced at $1,198,000 last year, was reduced, withdrawn from the MLS and then re-listed anew for $779,000 this past March, has just re-sold.
And while the re-sale of the modern industrial loft with high ceilings, a wall of windows, a “sleek and stylish” floor plan, and a deeded parking space in the building’s garage was officially “at asking” according to all industry stats and pivotal market reports, the contract price of $779,000 was 29.1 percent below the condo’s previous sale at $1,098,000 in the second quarter of 2017 on an apples-to-apples basis, despite the fact that the widely misreported index for San Francisco condo values is “still up nearly 10 percent” over the same period of time.
I was able to tour these condos at the time of substantial completion of the building. They are brutal in terms of aesthetics and acoustics. There was visible pollution fallout in and around the window vents because of the density and volume of traffic on the Folsom St side. Another Saitowitz mausoleum.
With that, I’d counter with I love these lofts and missed my only chance to buy after the 2008 market crash. The building’s absolutely amazing and the area is super convenient. The loss of value simply represents the reduced demand for SF real estate in general, sorry.
Having lived with one of the architect’s doing the construction administration of this project I can tell you that you dodged a bullet by not buying here.
Do tell.
I just did.
I’m guessing what he means is that if you have some knowledge of construction shortcuts taken in this building that somehow aren’t being incorporated into and reflected by re-sales prices, potential buyers for units in this building (Apt 519, a 2 bedroom, 2 bathroom unit is still on the market, currently asking $1.475 million) would like to know what they could be in for years down the road when the HOA has to impose a special assessment to address any defects.
The closing price still amounts to $930 per ft.², which is about half a percent above the current average asking price for a home in San Francisco, so considering current market conditions, this seller did okay. Perhaps the seller of Unit 519 (a 2 bedroom, 2 bathroom) in this building, which has been on and off the market since at least the first quarter of this year and currently asking $1,057 per ft.² after an asking price cut yesterday should start thinking about capitulating before the market really gets going downward as mortgage interest rates rise.
You don’t think we are at bottom for SF condos?
Now is a great time to buy a condo in SF, if you can pay cash. Otherwise, not so much.
Even if you can afford the 7% interest rate, many lenders won’t even deign to lend on projects over 25 years old.
Well, it’s also marketed at 838 sq. ft, but per the budget, it’s 996 sq. ft.
That’s 158 sq. ft. difference.
So $779k is a good price for the marketed 838, sq. ft, but the Buyer got an absolutely great deal for 996 sq. ft. Way to go.
Another example where in 2017 there was good reason to think the neighborhood scene was on the upswing. No such reason for optimism now.