Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.
The Median Sales Price was up 17.9 percent to $1,945,000 for single family homes and 2.8 percent to $1,230,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 50.0 percent for single family units and 50.8 percent for Condo/TIC/Coop units.
Client Success Story: A Tale of Two TICs
At the end of 2021, 649-651 Central was potential personified. Standing in a row of 4 distinguished peaked-roof Edwardians in NOPA, she was architecturally beautiful, but tired.
The building had been a rental since the 80s. When the tenants moved out during COVID, the owner decided to sell the building as two TICs. There was a LOT to do, and it took all Pacific Edge hands on deck to enact this dramatic transformation!
THE DREAM TEAM:
ROBYN MIRONOV – DESIGN MAVEN. In charge of all finish selections, from cabinets and countertops to every single light fixture and piece of tile.
ANDREW MIRONOV, GC – HEAD CONSTRUCTION HONCHO. Renovated the building inside and out. Opened up floor plans, new kitchens and baths, all new systems, and even a foundation upgrade.
ALEC MIRONOV and SEAN KOMARMY – AGENTS EXTRAORDINAIRE. Worked with an attorney to set up a TIC agreement before marketing the heck out of both units and selling both for over the asking price.
MARK TOPETCHER – ARCHITECT PHENOM. Our go-to architect for years, Mark always delivers a livable, beautiful design that the new owners will enjoy for years to come.
After a few months of dust and hustle, our client received fantastic prices for both units, and two new homeowners are happy members of the NOPA community. Win-win is how we roll!
As always, here are the “after” shots for your viewing pleasure:
The Inside Scoop
Off-Market Listings: Why they happen and where to find them
People always ask us: What’s up with “off-market” listings? Why would a homeowner sell without listing their property on the MLS first?
A myriad of reasons, but here are the most typical.
#1 – They don’t want to (or can’t) move out for the sale.
Selling your house while living in it is no picnic. Particularly if you have kids, it’s close to impossible to create the kind of aspirational “lifestyle” look of a staged home. Let’s face it – staging looks NOTHING like most real-life households! In real life there are mis-matched dishes, overflowing closets, and Legos on the floor, and none of that looks cute in online marketing. So if sellers aren’t able to move out for the sale, the convenience of an off-market offer can be appealing.
#2 – They’re getting a premium and they value certainty.
In this market, buyers are often willing to pay for the opportunity to lock down a home without competing against other bidders. If the sellers receive an offer in excess of what they were expecting to fetch, they might take a bird-in-the-hand scenario. A premium price plus the peace of mind of a “done” deal can sometimes be appealing enough to a seller so that they’ll forgo exposing the property to the market.
#3 – They’d like to skip prepping and staging, if possible.
It’s not atypical these days for sellers to spend $30k, $40k, even upwards of $80k or more getting a house ready for sale. That takes time, can be a hassle (unless you have our team managing the job, of course!) and can require up-front cash. So we often see properties offered for sale off-market for a brief time in its “before” condition before the seller and agent begin the work of prepping and staging. The seller will usually take less than the house would fetch in its “after” state. But they save themselves some time, headache, and uncertainty.
On the other hand, many sellers prefer to go on the MLS instead of taking the first offer that comes their way. This depends a lot on the type of property and how bullish or nervous a seller feels about the market.
YTD there have been 46 off-market single family home sales and 47 off-market condo sales in San Francisco. That’s about 9% of total sales.
So how do you find these under-the-radar places?
Your agent, of course!
Places your agent should be searching for off-market properties for you:
– Top Agent Network (requires membership and only available to top 10% of agents)
– Aalto (requires membership, which your agent should have)
– “Coming Soon” section of the MLS – only agent-facing and won’t show up in your regular listing alerts.
– Intra-firm networking – As members of the Side brokerage we get inside scoop on listings from our colleagues from all 20+ Side companies here in SF.
Finding under-the-radar properties requires proactivity on your agent’s part. It’s more like a truffle hunting expedition – we have to really get out there and sniff around to find the good stuff!
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Browse the course catalog HERE