Why Oh Why Would This House Rent for $9995 a Month?

November 8, 2013November 8, 2013 / Todd_Lappin / 35 Comments

Neighbor Jack noticed something odd this week on the List of Craig: A “Victorian” house on Bennington available for rent at the gobsmackingly high figure of $9995 per month.

What could possibly explain this? Yes, it’s a single-family house with a garage and back yard. But the building itself looks rather unremarkable, with a stucco facade, aging wall-to-wall carpet, and exterior windows that feature those sad fake window panes. The listing doesn’t even include any photos of the kitchen.

Perhaps the house sits on a diamond mine? Or perhaps it includes a vast underground rocket hangar and orbital launch facility?

A quick aerial survey of the premises via Google Maps disproved those theories, so Bernalwood sent an email to the landlord to inquire about the logic of the $9995 monthly rent. We were told:

The reason I am asking $9995 is because my mortgage payment alone is $10,000 and that does not include, taxes, insurance, repairs, etc,. plus it has one of the biggest backyards in Bernal Heights.

This seemed questionable. The yard is definitely nice-sized, but 24 Bennington is hardly big enough to host, say, a backyard motocross track like that giant yard on Alabama.

Plus, a $10,000 monthly mortgage seems far-fetched, especially since a records search shows that the current owner bought the house in 1994, and that it’s been on and off the market several times in the last few years.

So maybe — just maybe — Bernalwood had been fed some heavy-handed shading of the truth regarding that $10,000 monthly nut. Still, why would anyone seek $9995 a month for a place like this?

We turned to celebrity CurbedSF real estate blogger (and suspected Bernalphile) Ms. Sally Kuchar for guidance on the matter. This was Ms. Sally’s hypothesis:

Who knows why it’s that much, right? Anyone can basically put anything on Craigslist. The current owner may have read an article in the Chron that said Bernal was the hottest neighborhood in town for all we know, and decided to try to put it up for rent for a crazy amount of money.

I did a search on several other sites (Zumper, Lovely, Trulia, etc) and Bernal’s pretty much averaging in the $3,000 – $6,000 per month range for single-family homes. That said, when people read these articles all over about how rents are skyrocketing, sometimes they try to cash in by listing their abode for a lot of money with the hopes of some bazillionaire being stupid enough to sign a lease for it. Or their neighbors tell them how much they’re making from Airbnb (usually exaggerating that number) and they think “I can do that too!”

I saw a lot of this when the America’s Cup was coming up. “Oh! We have a house on the Marina Green! Let’s rent it out for $45,000 a month.” These people didn’t get their homes rented for that much, but an A for effort. Or something.

So there you go.

But hey, if you’re a gajillionaire who would like to rent this “Victorian home” for $9995 a month, Bernalwood is quite sure the landlord would be happy to discuss the matter with you.

PHOTOS: 24 Bennington, via Criagslist

Real Estate Report: After Heady Gains, Bernal Heights Home Prices Stabilize

October 31, 2013 / Todd_Lappin / 3 Comments

Our friends at Downing & Company Realtors bring news of a heathy trend in Bernal Heights residential real estate: Despite continued strong buyer demand, home prices in Bernal appear to have stabilized:

After months of rapid appreciation during the tail-end of 2012 and the onset of 2013 it appears home prices in Bernal Heights have finally bumped up against a glass ceiling. For the last five months the average home price in this neighborhood has been roughly $1 million. The September sales produced the same result. Last month 14 homes sold at an average price of $1,066,661. With plenty of buyers in the market these homes traded hands quickly spending an average of only 24 days on the market before going under contract.

Click through to get more detail from Downing & Co. on the September 2013 home sales shown above.

Spiffy Infographic Reveals Pricing Patterns for Residential Rentals in Bernal Heights

September 17, 2013September 17, 2013 / Todd_Lappin / 4 Comments

Yesterday a few of our bloggy friends around town flagged a spiffy infographic created by the online real estate service Trulia which presents a block-by-block picture of residential real estate prices for all of San Francisco. In general, the map has been described as something of a metaphorical “bloodbath,” because a) the infographic shows that rental prices are generally very high in San Francisco and b) the infographic represents these high rental rates via deep shades of red.

Yet when we zoom and enhance the Bernal Heights portion of the map, we see that the picture in our neighborhood is marginally less depressing for would-be renters. That’s because much of central Bernal is orange-colored, which means that rental prices there are somewhat lower, clocking in at “only” $1400-ish per bedroom.

CurbedSF calls out some wonkiness in Trulia’s price calculation methodology:

As noted in Trulia’s disclaimer about their methodology, the price-per-bedroom index low-balls the average prices for the most common units on the market today – studios and one-bedrooms. Smaller units are rarely priced in proportion to larger units with more bedrooms (meaning that in a neighborhood where a three-bedroom rents for $3,600/month, it’s rare that you can get a one-bedroom for as little as $1,300/month). But this type of index does provides a great reminder of what kind of price tag larger units entail.

Indeed. While imperfect, the map the virtue of at least being consistent, so it introduces some potentially interesting and/or useful geographic granularity to our understanding of Bernal’s residential rental market.

Will Fairy Houses Fuel Next Bernal Heights Real Estate Boom?

September 5, 2013 / Todd_Lappin / 7 Comments

Neighbor Tony spotted a rather attractive new subdivision nestled under a tree here in Bernal:

This morning, I spotted a nice house for a fairy family and maybe an elder fairy parent on Bernal Hill next the road that goes to the antenna complex.

If you look closely one can see the orange fairy dust at the entrances of the two of three houses, which of course means that the units are currently occupied. But if one calls Fairy House Realty, I think they could arrange a showing.

It seems this fairy family is taking advantage of the soaring real estate values in Bernal, and I say: Good for them!

PHOTOS: Neighbor Tony. Thanks also to Neighbor Charlie for the tip about this as well.

How to Buy an Affordable House in Bernal Heights

August 15, 2013August 15, 2013 / Todd_Lappin / 37 Comments

Suhl Chin and Bobbi Levenson are longtime Bernal residents, and both are realtors with Zephyr Real Estate. Neighbors Suhl and Bobbi recently approached Bernalwood to see if there was anything they could write for us, so we asked for some practical tips aimed at wannabe homebuyers searching for affordable properties in Bernal Heights.

Here’s what they suggest:

Frustrated by the “white hot market” in Bernal? Here are 10 ways to find more affordable houses in Bernal Heights– even if you’re not a tech millionaire.

1. Look for houses that have been sitting on the market for a while. These may be few and far between, but if you find one that appeals to you then it’s possible to come in at a lower price than listed. Many of the houses that sit are overpriced and that is why they are sitting. Be bold and come in under asking instead of waiting for the price reduction.
2. Find properties with tenants. The costs associated with an owner move-in deters many Buyers from offering on these properties.
3. Search for properties that have “fallen out of escrow.” Sometimes, these “back on the market” properties don’t have a set offer date and take offers as they come because owners want to get back in contract as quickly as possible.
4. Be flexible about the neighborhood. Consider properties not in the center of the neighborhood. Look for properties on the outskirts.
5. Be willing to be in Back-Up position at a lower price than the accepted offer price.
6. Bank-owned properties (REOs) and short sales are good alternatives to avoid the multiple-offer scenario. Although not as prevalent as during the recession, there are still a few out there.
7. Write a personal letter to submit with the offer and attach photos of your cute child, dog, sweetie, and yourself. Hokey as it sounds, the personal touch has been known to work.
8. Get full approval from a lender or mortgage broker. This makes for a stronger offer and possibly a quicker close of escrow.
9. Do your inspections prior to writing the offer so that you can write an offer without an inspection contingency.
10. Don’t pay too much attention to the list price. Some agents price properties absurdly low in order to get people in the door. You need to figure out the fair market value of the property, regardless of list price.

Most importantly, don’t get discouraged! It’s a tough market, but be patient, try to make it fun and stay the course. And remember, what goes up must come down. It’s not going to be a white hot market forever!

Great suggestions, all. I’d add two more tips, based entirely on my own Bernal home-buying experience:

11. Tell everyone you know that you want to buy in Bernal. Someone you know may know someone who has a friend who has a cousin whose uncle just died, and the family wants to liquidate the uncle’s Bernal estate ASAP. (My former landlord tipped me off to the house I now own; he was friends with the seller, who needed to sell quickly to cover some medical expenses. I was able to make an offer on my house before it came on the market.)
12. Look for the fixer-uppers. The more fixy-uppy, the better. Techies may have money, but few have time — and it takes time and attention to upgrade a crapbox house. My house, for example, was positively squalid inside. It included a Bathroom of Horror, but photos really can’t capture how bad it smelled. Renovations are costly and stressful, but so is the commute from Pleasanton.

Bernal Heights Real Estate Goes From “Hot” to “White Hot”

July 31, 2013July 31, 2013 / Todd_Lappin / 8 Comments

And now, more evidence of what you already knew: Bernal Heights real estate is hot. Average sales prices here have topped $1 million, and according to realtor dpaul Brown, Bernal Heights (along with the Inner Mission, Noe Valley/Castro, South Beach, and Hayes Valley) is not merely hot — it’s actually white hot:

Virtually every area of San Francisco and the Bay Area has been experiencing dramatic home-value appreciation in the past 12 to 18 months. Some that were hard hit by distressed property sales, which experienced the largest price declines, have surged in price but remain 20% – 30% below previous peak values reached in 2006 – 2008. As a state, California is still about 25% below its 2007 pre-crash median home price. And in San Francisco itself, many if not most neighborhoods now appear to have re-attained or moved slightly beyond previous high points.

But in this past quarter, a handful of neighborhoods and districts in the city have leapt well beyond the highest average home values achieved in the past. Interestingly, comparing these white-hot areas with one another, there are often huge differences in property type, era and style of construction, and neighborhood culture or ambiance. But all of them have been very affected by affluent – often newly affluent – high-tech professionals of one age group and level of affluence or another. Naturally, these neighborhoods are highly desired by other buyers too – often professionals in finance, bio-tech, medicine and law – but the high-tech-buyer dynamic has generally super-charged these markets in particular.

The article goes on to add that Bernal appeals to people who want “family-friendly neighborhood ambiance, but at a more affordable cost.” And freeways.

IMAGES: Photo, Library of Congress. Chart, via dpaul Brown. Hat tip: Neighbor Anita

New Rental Real Estate Report Functions as Bernal Heights Rorschach Test

July 23, 2013July 22, 2013 / Todd_Lappin / 4 Comments

The number-crunchers at Priceonomics released a new report on San Francisco’s rental market late last week, and it generated a lot of teeth-gnashing around town. Looking at the City as a whole, this was the big takeaway:

Rents aren’t just high in San Francisco, they’re rising quickly. In June 2011, the median price for a one bedroom was $2,195. Two years later, the price of a one bedroom has increased 27% to $2,795. During the same time period, the price of a two bedroom apartment rose 33%. That’s almost 10 times the rate of inflation during those two years.

Oof! So how has the Bernal rental market fared amid all this?

On the bright side, Bernal remains relatively affordable — with the emphasis on relatively. Bernal is the 23rd most expensive neighborhood for 1BR rental units, coming in just ahead of the fogdwellers in the Inner Sunset:

On the downside, Bernal’s reputation for stylish fabulousness is getting around, and glamour-seekers from far and wide now want to live here. That shows up in local price trends:

Nearly all rental apartments in San Francisco are getting more expensive. But some neighborhoods are getting more expensive faster. The neighborhoods that are increasing in price the fastest are the ones that used to be somewhat affordable like Civic Center, Bernal Heights, and the Mission.

In fact, Bernal Heights has experienced the City’s second-largest rise in one-bedroom rental rates since 2011:

And if for some morbid reason you’re curious about the going rates for rental units in Bernal Heights right now, here’s your infographic:

For more in that vein — along with some discussion about causes and effects for the rapid rise in rental costs — read the whole article.

GRAPHICS: via Priceonomics

Average Bernal Home Sale Price Cracks $1 Million Barrier

July 2, 2013July 2, 2013 / Todd_Lappin / 8 Comments

Our friends at Downing & Company have published a new summary of Bernal Heights home sales during May 2013, and it is kind of mind-blowing:

Single-family home prices in Bernal Heights went through the roof last month setting a new record high for this neighborhood in 2013. The average sale price during May cracked the $1 million threshold and came in at $1,088,417.

Home prices in this increasingly popular neighborhood have steadily moved up during 2013. The average sale price in April was $910,559, in March it was $938,091, in February it was $829,429, and in January it was $820,125.

With more and more buyers flocking to Bernal Heights the number of transactions spiked last month. 23properties traded hands spending an average of 40 days on the market before going under contract. 12 of the 23 homes sold for more than $1 million.

Downing & Company has a more detailed breakdown of the properties sold during May on their website, if you are so inclined.

PHOTO: May home sales grid via Downing & Company

Study Shows Insane Apartment Rental Costs in Bernal Heights Are Actually Relatively Uncrazy

May 24, 2013May 24, 2013 / Todd_Lappin / 7 Comments

Our friends at CurbedSF tipped Bernalwood to a new study that looks at the current median cost of rental apartments for various neighborhoods across San Francisco. According to CurbedSF, the methodology is as follows:

– Zumper vets all the brokers, landlords and property managers who list on their site, which means they know how to change market rents. It also means that scammers don’t get listed on Zumper, so you’re not going to see duplications or fake low priced rentals.

– Most units on the current market tend to be newer (read: no rent control) developments built post 1979, since they experience more turnover. Those units are often renovated and have access to many more building amenities than their rent-controlled counterparts, making them more expensive.

The research reveals some good news and some bad news.

First, the bad news: The data shows the median cost of a 1-bedroom rental unit in Bernal Heights is currently $2675. For a 2-bedroom rental unit in Bernal, the median is $3950. These are jaw-dropping amounts of money.

So what’s the good news? The good news is that compared to several surrounding neighborhoods, Bernal looks like a bargain. Citywide, the median cost of a 1BR is $2764 (or $89 more than Bernal). In Noe Valley, the median figures are $2775 for a 1BR, and $4050 for a 2BR. The Mission is even more horrific, at $2850 for the 1BR, and $4705 for the 2BR.

Make of that what you will. Yet on behalf of all the current Citizens of Bernalwood, we would like to send a sincere message to anyone who is currently seeking housing in or around our neighborhood:

We feel your pain.

Counterpoint: A Lifetime Resident Laments the Transformation of Bernal Heights

May 16, 2013 / Todd_Lappin / 78 Comments

Bernal Heights is changing.

Is that a good thing or a bad thing?

Actually, Bernal Heights has been changing for about 180 years. Change is often difficult, yet my sense is that the changes that have taken place here during the last decade or so are particularly unsettling to the generation of residents that came of age in Bernal roughly between 1970 and 1990.

Neighbor Orlando is one of those residents, and since I have great respect for his perspective, I also appreciated his comments in response to a recent Bernalwood post about the transformation of Bernal Heights into an enclave for the so-called “Creative Class” (though he just as easily could have written it in response to the data which shows that Bernal real estate prices are going up, up, up.)

Neighbor Orlando writes:

Bernal Heights originally was a village made up of blue collar, very low educated immigrant families that moved here because they could not afford to live in many other areas of the city. I bared witness to such because my parents were of this class as many of their neighbors also were.

The last time I checked, a home in this neighborhood sold for one-million dollars. This must have made my father roll over in his grave. No home on the hill was ever of such extreme value during the sixties up here. As a matter of fact, it was quite the opposite considering that the hill was a wasteland of debris due to the fact that many San Franciscans would use it as place to dumb old odd size household goods such as mattresses, ceramics tubs, toilets, and wooden furniture.

So rugged a hill it once was, that I as a young boy learned to ride a motorcycle; a honda 50cc that my father bought me one christmas “motorcross” style on many of the trails still visible today! Yes, you read rightly, one once was able to ride a motorcross cycle on that hill.

Todd, I am curious to ask you when was the last time you met a low income non-english speaking family move in recently? I believe you have met many of the original dwellers moving out since this is one of the overall goals of this recent gentrification that is popular for real estate values.

After all, is it not true that before such a movement (when bernal was predominantly made up of these uneducated, non-english speaking middle class families) the prices of homes were indeed affordable to someone whose job was to clean upper middle class homes or work as a baggage handler at SFO?

This is hardly the case when a home on the same property sells for one million dollars. The same block of land ten times more the costs simply because folks that clean houses or work as baggage handlers have recently moved away so that these creative scientist, lawyers, and managers can move in. Who by the way, are not likely to be of negro or hispanic ethnicity.

I only ask that if you truly cannot see this Todd, that the next time you meet the new family on the block, you check off my list to see if this new family fits the Bernal enclave that it once was for many, many generations. Myself included.

Good fodder for discussion. So, dear and respectful neighbors, let’s discuss.

PHOTO: A recent billboard modification on Cortland, photographed April 30, 2012 by Andrew

Average Bernal Heights Home Sale Prices Going Up, Up, Up

May 2, 2013April 30, 2013 / Todd_Lappin / 18 Comments

Residential real estate is booming throughout the Bay Area. Even more locally, San Francisco real estate is white hot, with a year-over-year price gain of 19 percent in February. Naturally, then, as one of the most glamorous neighborhoods in one of the nation’s hottest real estate markets, home sale prices in Bernal Heights are up, up, up too. That’s exciting news for current Bernal homeowners, but it is also also troubling to others (and Bernalwood will represent the latter point of view in a separate post to follow soon).

Still, until someone figures out how to repeal the ironclad laws of supply and demand, the market is what it is, and so we bring you this summary of March 2013 Bernal Heights home sales, prepared by Downing & Company:

As the seller’s market continues, it’s getting more expensive to buy a home in Bernal Heights. During March prices were up for the third month in a row. The rate of home price appreciation in Bernal Heights is starting to mirror the recent gains achieved in the nearby (very hot) neighborhoods of Noe Valley and the Mission District.

Eleven (11) single-family homes sold in Bernal Heights last month. The average sale price came in at an impressive $938,091. This figure compares to the average in February of $829,429 and the average in January of $820,125.

The homes that sold during March were on the market for an average of 31 days before going under contract.

A few notes: 719 Anderson Street and 3 Bennington Street were sold as fixer uppers. The home at 21 Bessie Street was a short sale. The home at 347 Mullen Avenue totals 3,000 square feet and was built in 2011. The lot this home sits on was purchased for $399K in June of 2008.

For whatever its worth, if you knock out that outlying $2mm house at 347 Mullen — the most expensive home sale in recent Bernal Heights history — the March average recalculates to $832,000, which is still uncheap.

There’s more specific sales detail on each of the Bernal homes shown above at Downing & Company.

Big House on Mullen Is New Bernal Sale-Price Champion

March 21, 2013 / Todd_Lappin / 13 Comments

Remember that house at 347 Mullen that hit the market recently? The sale is now complete, and our friends at Curbed SF provide the coda:

In 2008 the property was a vacant lot that sold for $399K. Shoot forward to February 28 and the big abode you see above had landed on the market asking $1,695,000. With that price tag, the 4-bed, 3.5-bath, 3,000 sq. ft. newly constructed home was the most expensive home for sale in the neighborhood. It sold today for $2,000,000, or$305,000 over asking. 347 Mullen is now the most expensive single-family home sale in Bernal Heights for at least the last three years.

Mutant “Mossquatch” Evicted as Strange “Walroctopus” Redecorates Secret Lair on Bocana

March 19, 2013March 19, 2013 / Todd_Lappin / 7 Comments

There has been a change of occupancy in the secret lair on Bocana Street that was until recently home to Bernal’s favorite Bryophyta-Homo Sapien mutant crossbreed. Neighbor Allison reports:

Thought some of your readers might be interested to know that the meter hole formerly occupied by Mossquatch appears to have been taken over by a new tenant. Fellow goes by the name of Walroctupus.

Bernalwood has learned the new guy’s pad also includes some spiffy special effects. Check it out:

PHOTOS AND VIDEO: Neighbor Allison