With local listings on realtor.com viewed up to three times more frequently than those in other US cities, San Francisco once again takes the top spot among The 20 Hottest Real Estate Markets in 2015. As you can imagine, homebuyers’ fierce competition is resulting in some serious overbids. In 2015 year to date, the vast majority of homes for sale are receiving multiple offers — I can speak from my own experience and share that every single transaction (excluding off-market sales) I’ve been involved in this year has been a multiple offer situation.
11 Hiliritas Avenue in Glen Park (pictured above) recently sold for nearly 70% over asking price, and it’s representative of a trend in the marketplace: High Potential = High Competition, particularly in San Francisco’s southern neighborhoods like the Inner Mission, Bernal Heights and Noe Valley. See the Top 20 recent overbids here and count how many fixers are in the Top 10. How much of a premium would you pay for a property “with potential”?
This listing at 2149 Castro Street in Noe Valley, sold for 31% over asking, gave potential buyers an artist’s rendering of the home’s potential:
Then there’s this teardown candidate in Noe Valley at 311 28th Street on the market for $1,599,000. There aren’t any approved plans or permits — use your imagination and envision a high-tech mega-mansion:
With any luck, the new owner of 311 28th Street could flip it and make a hefty profit. This flip in the neighborhood at 752 Duncan Street recently sold for 3.85 times its 2012 purchase price, just shy of $5 million:
Then, there’s this fixer which just sold for close to $1 million over asking price at 1072 Noe Street:
Virtually every property trading in Noe Valley is selling for more than list price!
With so little housing stock currently on the market and so much wealth to invest in one’s home, there may be a new adage in local real estate: Potential. Potential. Potential.
[Not all of San Francisco is seeing eye-popping overbids, however. And sometimes, you can even buy a turn-key home for less than asking price — See the Top 20 recent underbids here.]
Just for fun: Take this quiz to see which San Francisco neighborhood you should live in.