Our real estate-junkie friends at CurbedSF tell the tale of a Bernal Heights home that just snagged a big price premium:
First listed in mid-July for $549,000, 120 Eugenia in Bernal Heights sold today for $671,132, or$122,132 over asking. It would appear this Bernal Heights property had a bit of a bidding war, and we’re curious if it’ll spark the trend that’s happening in other hot neighborhoods like Eureka Valley and Noe Valley. The 2-bed, 1-bath, 1,000 square foot single-family home was owned by the same person for over 40 years and needs a little TLC to “make it amazing.”
Wow. That’s a big bump in price for a modest fixer-upper. Any armchair real estate pundits out there care to theorize about why the house sold for so much?
UPDATE: Promoted from the comments, here are two insightful perspectives on this sale from two typically brilliant Bernalwood readers.
We’ve been looking to buy a place since January, so I sorta qualify as a [real estate] pundit at this point. Looked at over 80 houses so far, offers on 5. Here’s what’s going on, as far as I can see:
Sellers and listing agents intentionally set their asking price way under what they expect to get. If there were only one offer of $549K on this house, the seller would probably have rejected it. Houses that have fantasy list prices generally just sit on the market.
Housing inventory is 45% lower YOY and 30% of sales are to investors. That means there really is hardly anything left for end-users who just need a place to live.
One third of people in SF with mortgages are underwater. SF is different and special and yes they’re not building anymore land but we’re not that different. What’s currently going on here with RE is actually happening around the country.
That and a completely rigged market (shadow inventory of REOs that banks won’t sell and very low interest rates) are creating an artificial market.
Great if you are an investor and already a homeowner, sucks for the rest of us who just need a place to live. Try buying a house right now if you have to get a mortgage. Who are all these folks with $700K in cash???
Sucks to be the 99% in Bernal right now. Or SF for that matter.
Housing is a basic need. It is shelter. We moan and groan when the price of food or health care or gas goes up, but everyone cheers when the price of housing rises. It’s wrong.
Neighbor Andrew adds:
I work in the real estate business and live a couple blocks from this house on Eugenia. I walked through and chatted with the agent, who actually was surprised by the amount of interest. The house has some wonky features, including a not-really-legal addition in the back and a partially (mostly) brick foundation.
But that said it actually has a very cool loft-like feel as it is, and a cozy and private back yard. Add in expansion potential (garage, second floor, remodel, etc) and a great location and it is not really that surprising the house sold close to $700k.
The comment above is dead right in terms of market dynamics though, very hard time to be buying right now. In terms of who are these all cash buyers, lots of foreign nationals armed with cash, investors and just good old fashioned wealthy folks.
I hear the frustration for high home prices. All I would say is that despite market manipulations there is a lot of supply/demand fundamentals playing right now as well.