Welcome to spring and a quick recap on the market from the first quarter of ’18. It’s been very quiet in Sea Cliff and the Lake Street corridor over the past three months. How about one transaction in three months? Yes. That is the lowest I’ve seen the activity in over a decade. Nobody is selling although quite a few of you planned on it, yet recently decided against it. Why? Common responses were (a) concerns over recent stock market volatility, (b) loss of mortgage interest deduction (over $750k) on replacement home and concerns over geo-political impact on US economy in the next few years. Nobody referenced rising interest rates as a motivating factor (not a selling factor although it impacts their replacement cost).
In Lake Street-related data; the 200 Avenue blocks recently experienced some record sales figures. For reference, the Lake Street District “boundary” stops at California Street. Between California & Clement are the 200 Avenue blocks. It’s very rare to see sales over $3M in these blocks although the location is still very desirable. 240 9th Avenue sold for $3,900,000; compare that to 2017 and the average price of a 200 Avenue block home was just under $2M.
As far as the greater San Francisco market over the first quarter; it’s been very active. The median price continues to climb; now at $1,610,000. Properly priced properties continue to receive multiple offers and the supply & demand equation still favors the seller.
What do the neighborhood values look like over the past quarter?
So where does our corner of the City fit into the big picture? Year over year numbers:
Consecutive quarter numbers:
As I mentioned earlier, Lake Street and Sea Cliff inventory is way down right now. If you are on the fence or have been thinking about selling, now may be a good opportunity to have a captive buyer audience with little to no competition. Are you interested but not ready for a full marketing campaign for your property (or your family)? The off-market strategy has been pretty successful lately; especially in the $3.5M+ market. The price is the price; take it or leave it. No real downside since the property never goes on MLS.
That is it for now. See you next quarter.