Woof, it’s foggy out
We’ve come to the fog days of summer. As we prepare for our Native and Indigenous people’s Summer in September — also known as Indian summer — when a bounty of new listings traditionally comes on the market, you can’t be asleep at the wheel. As a few instances below demonstrate, there is quite a bit of strength in the market.
Sure inventory is low, but it’s moving fast and strong. This week we saw properties receive A LOT of attention where there were nearly 100% yield rates on the number of disclosures sent and offers received.
People are paying attention and they are making moves on investment properties, fixer properties, brand new properties and are even moving on properties that are incomplete only to be delivered early next year.
NEW CONSTRUCTION BLOOMS
LineaSF they had their soft opening last Sunday. Of the 110 units slated for completion and delivery sometime early next year, 8 to 10 of them were already sold. That’s 10%! Also for those units coming with parking, owners will have to pay at least $60-$70 more per month in addition to the homeowner association dues at $500-$600 per month. Same story can be said for at 200 Dolores. Each release wave represents more competitive bidding and ever escalating prices. At the ICON SF, 16th and market, the developers have abashedly adopted the approach of raising the prices as supply diminishes going so far in fact to withhold and withdraw their next phase release until the first eight units currently in escrow close. When the unsold units reappear in September, they will be at higher prices most likely. More than 55% of the 63 units over 300 Ivy are in contract. They are on their fifth release. At the Marlow over in Russian Hill, they are nearly 60% sold out.
NEW CONSTRUCTION BLOOMS (RENTAL EDITION)
The large development of 2001 Market St., previously teetering from being a rental building or a market building, seems to have finally decided that it will be a rental building. Over 277 Golden Gate, the brand-new rental building is coming online. Interestingly, more than 25% have been leased out already with studio units at 280 ft.² renting for $2000 a month and one-bedrooms for $3000 a month.
There are at least three more Stanley Saitowitz buildings being built right now apart from the ones open at Ellis Street. Meanwhile from my market intelligence, I know some more buildings geared towards the middle range of the market, and other high-end luxury ones being built too but are still in the demo/foundation phase while others are still in the planning stages. From start to finish it can take up to 2 years to get projects started not to mention built! It can be dizzying but it definitely worth keeping track of what is being built and when we can expect these new projects.
Mortgage Rates Under 4% This Isn’t an Advertisement, But…
Our in-house Citibank representative advises me that interest rates have lowered this week from 4.625% to 4.5%. But with Vanguard’s preferred rate program that qualified applicants would most likely get somewhere in the 4% range. And those for borrowers who have established or establish a relationship with Citibank where they deposit $250,000 for a short time (10 days or something like that) those borrowers will get another 1/8th point off for a final rate of 3.875%. The account can be closed too and the rate stays. For more information, ping me and I’ll put you in touch with the rep.