Luxury Home Sales Surge Past Pre-Recession Heights

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In the new San Francisco, the average dollar is a luxury dollar. Paragon reportsthat luxury home values in San Francisco have blown past their pre-recession peaks, lending handy graphic form to the thing we all feel in our gut.

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Not only that, but proportion of home and condo sales that fall in the category of luxe has also jumped. Since 2007, the number of luxury dwellings—defined as more than $2M for single-family homes and $1.5M for condos and co-ops—changing hands has increased twofold. That somewhat arbitrary benchmark holds whether you’re looking at a true manse or a Bernal fixer-upper.
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The increase is part self-fulfilling prophecy (when prices go up, more properties will beat that luxury benchmark) and part legacy of all the high-end condo construction of the previous decade-plus. Even though condo sales lagged in the downturn, many pre-recession properties are reaching the MLS for the first time as their original owners put them on the market.
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Indeed, condos are capturing a larger share of the luxury housing cache. And now they’ve even overtaken luxury home sales in San Francisco. Though the briskest activity is in the predictable places—Pac Heights, the Marina, Russian Hill—historically scrappy neighborhoods like the Mission and Mid-Market are seeing rapid growth. And with the building frenzy back in full force, we should be seeing more of the same.

 

Source: Paragon

8 Octavia Tops Out at Corner of Market Street in Hayes Valley

 

San Francisco’s newest high-profile condominium building reached its maximum height this week. 8 Octavia, by award-winning architect Stanley Saitowitz,topped out its eight and final floor at the gateway location of Market and Octavia streets. The uber-luxury building will feature a mix of 47 one-and two-bedroom condos over ground-floor retail. The Saitowitz-signature glass panels have begun to be installed along the lower levels of the Market Street side while the rest of the building is still getting mechanicals outfitted. Expect a sales office this summer and occupancy late this year.

Source: Curbed

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Value of New Condos Up 14 Percent From Last Year

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The value of newly constructed condos in San Francisco was $1,011 per square foot in November, up 14 percent from last year. The Mark Company Condominium Pricing Index for November shows new condo construction selling for an average $1,011 per square foot, which is unchanged from October. The big developments (20+ units) that solidified that figure were 300 Ivy in Hayes Valley, Linea on Market Street, and Marlow and Park Lane, both in Nob Hill. 300 Ivy’s 63 units are all in contract, with the approximate price per square at $1,050. The highest price per square goes to Park Lane at 1100 Sacramento Street in Nob Hill, which has 33 units and is averaging $1,300 per square.

New construction inventory was 80 percent lower than a year ago, and down 31 percent from the previous month, with 125 units currently available.
· The Mark Company Trend Sheet (PDF) [Mark Company]

 

Source: curbed

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SPOSFI: A message for Condo Conversion Applicants

SPOSFI: A message for Condo Conversion Applicants

Attention Condo Conversion Applicants:

We have heard from a good source that disgruntled owners of a 5 unit building intend to file a lawsuit. Although this is a rumor, it has been predicted with nearly 100% certainty that someone will do so.

If you intend to convert, get your application in immediately, hoping that once started the lawsuit when filed will not stop your process.
Here is the website for the Expedited Conversion Program effective July 29, 2013.  The document is 51 pages long but most of the text will not apply to your size building.

http://www.sfdpw.org/modules/showdocument.aspx?documentid=3499

The full text of the Ordinance passed can be found at the website below. Note that there are different types of lawsuits, questioning lifetime leases, sizes of buildings included in future years, suspending the lottery, etc. Each has slightly different repercussions, but essentially suspend the right to convert.

http://www.sfbos.org/ftp/uploadedfiles/bdsupvrs/ordinances13/o0117-13.pdf

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AMENDED CONDO BYPASS LEGISLATION IS A WOLF IN SHEEP’S CLOTHING

AMENDED CONDO BYPASS LEGISLATION IS A WOLF IN SHEEP’S CLOTHING

At the most recent Land Use Committee meeting on June 4, the committee voted to approve (2-1) the Yee/Chiu Amended Condo Bypass legislation for a vote before the Board of Supervisors on Tuesday, June 11. The goal of the original legislation was to help the 2,000+ current TIC owners to access historically low interest rates. The amended legislation has perverted the original legislation into one that would help these 2,000 TIC owners at the expense of all future condo lottery participants. The amended legislation MUST be opposed because it will permanently cripple the condo lottery by:

  • Suspending the condo lottery for 10 years, no matter how few TICs elect to go through the condo bypass;
  • Creating a “Poison Pill” whereby if anyone sues to challenge the legislation, the condo bypass and the condo lottery are automatically suspended until the litigation is resolved;
  • Preventing qualification for other TIC owners for 3 years from the condo lottery if just one OMI eviction is done;
  • Removing 5- and 6-unit buildings from the condo lottery when it resumes in 10 years; and
  • Increasing the owner occupancy requirements for 3- and 4-unit buildings to qualify for the condo lottery to 2 owners to live in 3-unit buildings and 3 owners to live in 4-unit buildings for 3 years.

The amended legislation effectively eliminates 4-unit buildings from the condo lottery because it would be impossible for a 4-unit building to maintain the same three owner occupancy requirement over the years it would take to win the condo lottery. Buildings of 4, 5 and 6 units are a very important part of the inventory of potential first-time, homeowner housing stock.  As an example, if this legislation were in effect last year, it would have eliminated 47.4% of the units in the lottery.

It is not an exaggeration to say that this legislation will significantly harm the TIC market, an important source of relatively affordable, first-time, homeowner housing stock.

Please let your Supervisors know that the amended legislation hurts homeownership. It only attempts to help current TIC owners as a cover to destroy the condo lottery. In particular, let Board President David Chiu and Supervisor Norman Yee know that you oppose the legislation as amended. They can be contacted at:

David Chiu – David.Chiu@sfgov.org(415) 554-7450

Norman Yee – Norman.Yee@sfgov.org(415) 554-6516

If you live or work in District 10, let Supervisor Malia Cohen know that the amended legislation is a wolf in sheep’s clothing.

Malia Cohen – Malia.Cohen@sfgov.org(415) 554-7670

 

MESSAGE PROVIDED BY SAN FRANCISCO ASSOCIATION OF REALTORS

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