Nov. 12 Open Houses
Back to what this blog is really about... observations of the changing real estate market from the streets of San Francisco.
This weekend was a little busy so I wasn't planning on seeing a whole lot. A bit of time freed up on Sunday afternoon so I headed out of the apartment without any list homes in hand. I don't need a list anymore because there are so many signs on every street corner.
The first place I went to is just a block and a half away on Hayes. I was prepared for more lame-ass overpriced places but this one blew my mind... a 3bd1ba+office+dining for 799k. On top of these specs it includes with a huge attic that basically doubles the square footage of the condo. If you've been a close follower of this blog you'll know that the 1271 McAllister 2bd1.5ba+sun room that I saw a couple weeks back was also going 799k. They have not reduced the price to this day.
This is evidence of my theory that as this housing market goes to shit, some people are going to reduce prices much faster than others. And will be based on a number of reasons depending on the person: level of panic, level of patience, original purchase price, amount of money spent on renovations etc... This will lead to huge price mismatches on homes that are very similar, and similar prices on homes that are far apart... like the one I saw today and 1271 McAllister. I think when more buyers see this happening, they won't just jump at the "cheap" units... if they are wise they will just keep waiting. The market is obviously in massive flux and price confusion and I think it's worth letting sellers sweat a lot more until a new equilibrium is reached. Prices are changing so fast, a cheap unit this week could look like a ripoff by the time you close escrow.
Remember, after 1271 McAllister I said that in a year's time we should be able to get an extra bedroom for the same price. I saw one today, plus a whole lot more, only two weeks later.
This weekend was a little busy so I wasn't planning on seeing a whole lot. A bit of time freed up on Sunday afternoon so I headed out of the apartment without any list homes in hand. I don't need a list anymore because there are so many signs on every street corner.
The first place I went to is just a block and a half away on Hayes. I was prepared for more lame-ass overpriced places but this one blew my mind... a 3bd1ba+office+dining for 799k. On top of these specs it includes with a huge attic that basically doubles the square footage of the condo. If you've been a close follower of this blog you'll know that the 1271 McAllister 2bd1.5ba+sun room that I saw a couple weeks back was also going 799k. They have not reduced the price to this day.
This is evidence of my theory that as this housing market goes to shit, some people are going to reduce prices much faster than others. And will be based on a number of reasons depending on the person: level of panic, level of patience, original purchase price, amount of money spent on renovations etc... This will lead to huge price mismatches on homes that are very similar, and similar prices on homes that are far apart... like the one I saw today and 1271 McAllister. I think when more buyers see this happening, they won't just jump at the "cheap" units... if they are wise they will just keep waiting. The market is obviously in massive flux and price confusion and I think it's worth letting sellers sweat a lot more until a new equilibrium is reached. Prices are changing so fast, a cheap unit this week could look like a ripoff by the time you close escrow.
Remember, after 1271 McAllister I said that in a year's time we should be able to get an extra bedroom for the same price. I saw one today, plus a whole lot more, only two weeks later.
posted by bourgeois at 7:19 PM
0 Comments:
Post a Comment
<< Home