Average Home Sales Prices in Bernal Heights Now Exceed Pre-Bust Highs

Bernal_Non-Dist_SFD_Avg-SP_DolSqFt_by_YEAR

These charts were compiled by the Paragon Real Estate Group. If the data is correct (and I’m reading it correctly), it would appear that the real estate bust has all but ended in Bernal Heights, with average home sale prices now exceeding their pre-bust highs.

Paragon did a little hocus-pocus with their calculations by stripping distressed property sales (i.e. foreclosures) from the mix. Yet that seems like a reasonable methodology, given that the accompanying table indicates the number of distress sales has also dropped in the last year:

Bernal_Non-Dist_SFD_Avgs_Numbers

Notice also that while average sales prices are at a new high of $907K, prices per square foot have not yet topped their 2007 peak of $666. For better or for worse.

This Is the Most Expensive Home For Sale in Bernal Heights

347MullenOur real estate-obsessed friends at the excellent CurbedSF blog call our attention to this newly renovated home on Mullen that has just hit the market:

In 2008, 347 Mullen was just a vacant lot. It sold for $399K and plans were drawn up for a big house to be built. Shoot forward to today and said house is above and asking $1,695,000, which means it’s the most expensive home currently for sale in Bernal Heights. The 4-bed, 3.5-bath, 3,000 sq. ft. single-family home was completed in 2011. From the listing we learn that the “location is in the secret balmy banana belt of coveted Bernal Heights,” so there’s that.

PHOTO: AFARMLS via CurbedSF

New Mission Theater Plan Will Also Bring New Housing to North Bernal Borderlands

ChavezShotwell

Last week, the City’s Planning Commission approved a very exciting proposal to restore and renovate the abandoned New Mission Theater on Mission at 22nd Street. It’s a promising development that will bring some grandeur back to the old theater, which will be operated by the much-loved Alamo Drafthouse cinema chain. Yay!

In addition, the project includes 114 market-rate housing units to be built on the site of today’s Giant Value store. Yet as our journo-friends at MissionLocal pointed out, this will also result in the development of a new affordable-housing complex in the Bernalwood borderlands, on the northwest corner of Cesar Chavez and Shotwell:

The developer will dedicate a piece of land near Shotwell and Cesar Chavez streets to the Mayor’s Office on Housing to construct affordable housing to comply with the city’s affordable housing requirement.

Typically developers are required by law to dedicate 15 percent of their units to inclusionary housing or pay a fee that, once the project is completed, will go toward financing affordable housing elsewhere.

The idea behind the land dedication, which is unprecedented, is that the city can turn that land around and build up to 46 affordable housing units as opposed to settling for fewer units being built on-site.

Grande, who was among the nonprofits’ directors that negotiated the deal with the developer, said this would allow the city to have more say on how the affordable housing units are built.

“It’s better because you get more bang for your buck,” he said. “With off-site affordable housing units this also gives us more community control on how the development will happen. It means partnering with affordable housing developers, who would abide by local hiring, and hire union workers.”

However for Howard Ruy, the owner of Auto Smog & Oil Changers at 1296 Shotwell St., which is on the site of the would-be affordable housing building, was told by his landlord that he would have to leave the shop once the land is transferred to the city.

“It means I’m going to have to close shop,” he said. “Honestly I am just waiting for (the landlord) to call me to say ‘you have to move out.’”

Innnnnnnnnteresting.

I have yet to see any renderings of the proposed Chavez/Shotwell development, so no word on how it will look. I will be watching closely, however, if only because I live a block from the site. So for now, consider me a YIMBY-inclined, interested party.

PHOTO: The future building site on Cesar Chavez Blvd at Shotwell Street in January 2013. Photo by Telstar Logistics 

Your 2012 Bernal Heights Real Estate Year-In-Review

BernalHouses.pbo31

Yesterday, our Interweb neighbors at CurbedSF told us about a 1 bath, 640 square-foot fixer-upper on Manchester Street in Bernal Heights that was listed recently for $399,000. It ultimately sold for $685,000 — a mind-boggling $286K over the asking price. What to make of this?

Viewed in isolation, stories like that can make you dizzy. (In a good way… or, maybe not.) Don’t dwell on it. The trend that matters most is what happens to the overall Bernal Heights marketplace over a longer period of time. So for that, I asked our friends at Downing & Company to pull together a year-end summary of the Bernal Heights real estate market in 2012.

The data in 2012 looked pretty good for existing homeowners in our geographically sexy stretch of San Francisco:

For the most part, the theme of the year was reduced inventory levels and cheap debt. With these factors, home prices in San Francisco rapidly appreciated. This was even more pronounced in the popular central neighborhoods of the Mission District, Noe Valley, and Bernal Heights – the preferred ‘hoods of many tech employees. With the Facebook IPO and new hirings this year in the City from Twitter, Zynga, Yelp and other social network companies the competition for homes heated up. In Noe Valley and the Mission District neighborhoods things quickly got out of hand with multiple offers and bidding wars producing a spill over effect into Bernal Heights. While price increases were not as dramatic in Bernal Heights, the charts below reveals some decent lift.

Here’s how that dynamic played out on a neighborhood-by-neighborhood basis for single-family homes:

SFR-SFHoods

Executive Summary: Noe was insanely ridiculously crazyhot, the Mission social-climbed upscale, and Bernal turned in some rather impressive results.

The story gets even clearer when you look at the sales picture for Bernal single-family homes in isolation:

Bernal-Heights-SFR-Home-Prices-2012-1024x615The bottom line? For single-family homes in Bernal Heights, prices increased by 17.9% in 2012. The story was similar for condos, with Bernal condo prices increasing by 13.5%.

Again, this may be a good thing or a bad thing, depending on which side of the homeowner fence you sit on. We understand. Yet those are the facts (and just the facts) told to us by the aggregate home sales data for 2012.

For more detail, check Downing & Company’s full 2012 Bernal Heights year-end market report.

PHOTO: South Bernal homes, as seen from Bernal Hill, by Patrick Boury. Graphs courtesy of Downing & Company

Occupy Bernal vs. Wells Fargo in Bayview

occupybernalwellsfargo

Occupy Bernal staged an anti-foreclosure protest at a Wells Fargo branch in Bayshore yesterday, and KGO-TV carries the story:

A group of protesters who said they are fighting to protect homeowners shut down a bank in San Francisco’s Bayview neighborhood this morning.

The roughly 25 protesters shut down the Wells Fargo branch at 3801 Third St. at about 11 a.m. as part of a day of action organized by the Alliance of Californians for Community Empowerment, the National Association for the Advancement of Colored People and Occupy Bernal.

The group is demanding that the bank stop foreclosures, evictions and predatory lending. An Occupy Bernal founder who goes by Stardust said, “We don’t want banks to rob more and more people of their homes.”

As of 1 p.m., the branch remained closed and about a dozen police officers who had been monitoring the protest were leaving.

Police said the demonstration was peaceful.

PHOTO: Ross Rhodes, Occupy Bernal and SF ACCE member, outside Wells Fargo yesterday. Photo by CalOrganize.

Your October 2012 Single Family Home Sales Report: Average Sale Price in Bernal Heights Approaches $1 Million

According to the realtors at Downing & Company, the average home sales price for Bernal Heights approached $1 million last month:

Eleven (11) single-family homes sold in the Bernal Heights neighborhood of San Francisco during October. With ultra low interest rates and more buyers than sellers in the marketplace combined with the limited inventory of homes offered for sale – prices continued to move up.

The average sale price for October came it at $989,409 – a two year high for this neighborhood. The homes that traded hands last month were on the market for an average of 37 days before going under contract. All of these homes sold above their respective list price and all were conventional sales, meaning no short sales or bank-owned foreclosures.

Understandably, these eye-popping statistics will cause much teeth-gnashing among aspiring Bernal home buyers — and quiet euphoria among existing homeowners.

Yet in either case, the usual caveat still applies: Monthly average home sales say more about the available inventory mix for a given month than they do about longer-term price trends. (A little less than a year ago, the average sales price in Bernal was $655,000.)

That said, thanks to a tech-fueled local economy, favorable geography, and Bernal’s glamorous reputation, home prices here are clearly heading upward. To assess the trends, I’ll conspire with some of our local realtors to pull together a year-end real estate summary in the weeks ahead.

IMAGE: Downing & Company

Your Dystopian-Style Bernal Heights Real Estate Market Summary Video for September 2012

Completely independent of the actual data it provides about the state of the Bernal Heights real estate market in September 2012, I think there is something unsettling about the tone and style of this video.

Apart from the fact that I can’t tell if the narrator is a real human or a synthetic text-to-voice robot, the video’s production style reminds me those glossy propaganda messages projected on gigantic, larger-than-life video displays in dystopian sci-fi movies like Minority Report or Blade Runner. And not in a good way.

On the bright side, it seems our local real estate market is doing just fine.

Have a nice tomorrow!

Neighbor David Talbot Laments the Tech-Fueled Gentrification of Bernal Heights

Yesterday’s post about the impact the Silicon Valley commuter shuttle network is having on Bernal Heights pairs neatly with the article by Bernal neighbor David Talbot that appears on the cover of the current issue of San Francisco magazine.

Under the headline “How Much Tech Can One City Take?” Neighbor David considers how the growth of the tech industry is changing the texture of San Francisco, and in one part of the article, he looks at this through the prism of our own Precita Park:

I’m sitting at a table outside the new Precita Park café in Bernal Heights, a gourmet sandwich shop that’s one sign of the changing times. When I moved to this neighborhood in 1993, just before the first dot-com boom, I avoided taking my two toddlers to the playground across the street from the café, because local gangs sometimes stashed their guns in the sand. And yet, despite gunfire from the old Army Street projects that often shattered the neighborhood’s sleep, Bernal Heights in those years was a glorious urban mix of deeply rooted blue-collar families, underground artists, radical activists, and lesbian settlers. The neighborhood had a funky character as well as a history. The famed cartoonist R. Crumb once hung his hat there, and his old Zap Comics sidekick, the brilliant Spain Rodriguez, still does.

But at some point the new tech boom began to make its presence felt in Bernal Heights, whose sunny hills are close to not only SoMa startups but also the Highway 101 shuttle line to Silicon Valley. Nowadays, you see Lexus SUVs parked in the driveways on Precita Avenue. Young masters of the universe in Ivy League sweatshirts buy yogurt and organic peaches at the corner stores where Cuervo flasks and cans of Colt 45 were once the most popular items.

“We cleaned up this neighborhood—stopped the violence in the projects—but now we can’t afford to live here anymore,” says Buck Bagot who has been a Bernal Heights community organizer and housing activist since 1976. “When I moved here, every house on my block had a different ethnicity. There were Latinos, blacks, American Indians, Samoans, Filipinos. They had good union jobs, and they could raise their families here. Now they’re all gone.” These days Bagot fights to block home foreclosures as the cofounder of Occupy Bernal, engaged in a battle to preserve the neighborhood’s diverse character that he admits often feels futile.

Sitting outside the café, I’m joined by another longtime Bernal resident, a 47-year-old San Francisco public school librarian. She moved to the neighborhood in 1994 with her partner, a public school teacher, when many of their lesbian friends were settling here, attracted by the relatively cheap rents. “There were a lot of us—we were young, politically active, and underpaid, but we could afford to live here in those days,” she says. “But now that we have kids, we’re being priced out.” The librarian—who asks that her name not be used because she’s concerned that any notoriety will hurt her chances of entering the tight housing market—says that she and her partner have bid on five houses this year. But they lost each time to buyers who could afford to put up tens of thousands of dollars over the sellers’ asking price—and all in cash. “Who are these people, with that kind of money?” she asks.

The librarian and her partner dread the idea of moving out of the city. San Francisco is in their souls: They fell in love here, they took to the streets here as young dyke activists, and they have a combination of 22 years seniority in the public school system. They can’t imagine moving their family to some remote suburb, where their kids would likely be the only ones with two moms. But it’s getting harder each day to hold on. To make ends meet, they have begun to moonlight as dog trainers “I don’t want to blame young tech workers,” says the librarian. “I’d hate to sound like some grumpy ‘get off my lawn’ type. I mean, I love technology. I’m an early adopter. But if people like us, who helped make San Francisco what it is, get pushed out of the city, who’s going to teach the next generation of kids? Who’s going to take care of them in the hospital?”

OK, so… This kind of “Woe Unto Bernal” essay is fast becoming a local sub-genre; Neighbor Peter Orner recently penned a similar lament, also about Precita Park, for The New York Times.

The issues both describe are very real: Gentrification, change, displacement, uncertainty, and the pain of watching longtime neighbors forced to move because of the inexorable economics of local real estate. Nevertherless, I had a much more sympathetic reaction to Neighbor’s Peter’s piece in the NYT than to Neighbor David’s piece in San Francisco.

Why? I’m not exactly sure, except perhaps because Peter’s piece felt more like an open-ended question to me, while David’s article was infused with an unfortunate kind of Baby Boomer myopia, as if all meaningful culture ended sometime around the time when Fleetwood Mac released the “Rumours” album.

More importantly, though, while the underlying issues of gentrification are real and challenging, it’s unfortunate that Neighbor David neglects to recognize that Bernal Heights is now a home to a glorious urban mix of deeply rooted families, underground artists, technology innovators, cutting-edge musicians, groundbreaking journalists, stalwart activists, assorted oddballs, and lesbian gentry. Plus: The Bikini Jogger.

Yes, the mix is changing. But it remains deeply funky, and passionately connected to this place we all love to call home. Of course we mourn the loss of friends and neighbors who, for whatever reason, cannot stay. The problems of gentrification defy easy solutions. Yet many of us also see meaningful continuity amid the tumult and change, because we know that Bernal Heights has never been a better or stronger neighborhood than it is today.

IMAGE: Original photo illustration by Peter Belanger for San Francisco, photo illustrated by Bernalwood

Tech Shuttle Transit Map Reveals Hidden Logic of the Bernal Heights Real Estate Market

As Bernalwood has previously noted, there are some hidden dynamics at work in the North Bernal real estate market along the Cesar Chavez corridor, where home-price inflation has been fueled in part by the neighborhood’s proximity to the private shuttle-bus routes that carry tech workers from San Francisco to Silicon Valley:

[Bernalwood has] heard from realtor sources that this corridor is already attracting interest from [tech-employed] buyers, precisely because it offers convenient access to freeways, public transit, and the arterial routes for those Wi-Fi-equipped, private commuter busses operated by the likes of Apple, Google, Yahoo, etc.

Thanks to the data-visualization wizards at San Francisco’s Stamen Design, we now have a way to actually see this, by way of a fascinating subway-style map that indicates the location of common shuttle bus routes, the companies they represent, and the approximate volume of people they carry:

Several Stamen staff live on Google shuttle routes, so we see those shuttles every day. They’re ubiquitous in San Francisco, but the scale and shape of the network is invisible.

We decided to try some dedicated observation. We sat 18th & Dolores one morning, and counted shuttles. We counted a new shuttle every five minutes or so; several different companies, high frequency. We also researched online sources like Foursquare to look for shuttle movements, and a 2011 San Francisco city report helped fill in gaps and establish basic routes. […]

We enlisted people to go to stops, measure traffic and count people getting off and on and we hired bike messengers to see where the buses went. The cyclists used Field Papers to transcribe the various routes and what they found out, which we recompiled back into a database of trips, stops, companies and frequency. At a rough estimate, these shuttles transport about 35% of the amount of passengers Caltrain moves each day. Google alone runs about 150 trips daily, all over the city.

The result is the map you see above, which I annotated slightly to help the Citizens of Bernalwood orient the routes to our neighborhood. What the map reveals is that — no surprise — Cesar Chavez Blvd. is a major artery for tech shuttles carrying residents of San Francisco’s southern neighborhoods to and from Silicon Valley.

Another handy-dandy map (again, annotated by Bernalwood) reveals the actual location of the shuttle stops on the perimeters of Bernal Heights:

This is fascinating stuff, because while the shuttle buses themselves are highly conspicuous, their representation and scope has, until now, been largely hidden from view. Meanwhile, the impact of all this on Bernal Heights is also quite tangible.

IMAGES: Base maps from Stamen Design and Dotspotter

How Much Is This Cute 1BR For Sale on Powhattan Really Worth?

Miss Sally, our real estate-obsessed friend at the tony CurbedSF blog, directed our attention to a new listing for a home at 9 Powhattan that just hit the market. It’s a rather adorable 1BR, 1BA , and the realtor propaganda says:

High on the Hill – Bernal Hill, you will find this one of a kind & rarely available view cottage with fantastic outlooks & great light. Perched high in a secluded & private setting, on a quiet street, yet just steps to the heart of Bernal Village, & all that makes this neighborhood so great! Cute beyond belief, this 1 bedroom house has tremendous views over Bernal to the Southern Hills, a large & protected deck, & an expansive yard with gardens featuring native grasses, trees & shrubs. The yard backs up to the very top of Bernal Hill itself, so you can exit your back gate to walk the dog around the Hill! A quite exceptional opportunity to enjoy the indoor/outdoor environment so sought after in sunny Bernal Heights. Prime -just off Cortland!

Isn’t that just so quaint? Don’t you suddenly find yourself craving chamomile tea and that old Indigo Girls CD you haven’t listened to since the Clinton Administration? The starting price is $499,000, and there’s an open house on Sunday from 2-4.

Meanwhile, Miss Sally wonders, “I’m always curious how 1-bed single-family homes like this will sell, since the buyers’ pool is pretty limited.” Great question. If you do go take a look this weekend, report back here to let us know what you thought of the place

IMAGE: SFARMLS

The Ten Cheapest Homes For Sale in Bernal Heights Right Now

Looking for an inexpensive home to buy in glamorous Bernal Heights? You already know this, but such a thing does not really exist. Ack.

Nevertheless. on a relative basis, what does an entry-level Bernal Heights home look like these days? This week our real estate-obsessed friends at Curbed SF pulled together an illuminating list of “The Ten Least Expensive Properties For Sale in Bernal Heights:”

This week we’re heading up a hill to check out the current residential real estate scene in Bernal Heights. At first we thought there was a plethora of inventory, but it turns out a good portion (and the least expensive) of the listings were for land, not homes on land. Boundaries are above (you can click the map for a larger view) and are set by the realtors. As always, no property with a sale that’s currently pending were included on this list.

Prices range from $478,000 (2BR, 1,024 sq. ft. on Putnam) to $819,000 (2BR, 1,730 sq. ft. on College Terrace). See all ten houses, with details and commentary, over at Curbed SF.

Then let’s discuss… right here.

UPDATE: In the comments, Miss Sally from CurbedSF tells us: “The real estate market moves quickly.  4 of the homes that were for sale on Monday have already gone into contract, and the least expensive has been taken off the market.”

The photo at the top of this post has been revised accordingly.

Peter Orner Ponders the Gentrification of Precita Park in the New York Times

Neighbor Peter Orner is a “bold-faced name” in the literary world and an esteemed Citizen of Bernalwood. From his home in North Bernal, he has been an eyewitness to the increasing glamification of Precita Park — a process that has included a recent home sale that displaced two renters (he calls them Josie and Steve) who have been mainstays of the neighborhood.

Neighbor Peter considers all this in a thoughtful piece published in the Opinionator section of yesterday’s New York Times:

Our neighborhood, at the base of Bernal Hill, has been changing for years, becoming more and more upscale. Lately, the realtors have begun calling it “Desirable Precita Park.” We now have all the necessary amenities: a comically overpriced organic convenience store and wine emporium, a new coffee shop with toddler play area, and yes, our very own pop-up restaurant. The playground at the east end of the park, which doesn’t need to be renovated, is being renovated. Celestially fit women march down our sidewalks with yoga mats slung over their shoulders like muskets.

Precita Park

It wasn’t always like this. Precita Park used to be a lot funkier, in a militant hippie sort of way. In 1975, Patty Hearst’s kidnappers were caught a few doors down from my apartment. A longtime resident once told me that the F.B.I. agents staking out the place wore long hair and beads and sat in their car smoking dope, and still everybody on the block knew they were cops.

Precita Park is getting nicer. But Joise and Steve are gone. Peter wonders if the tradeoff is worth it:

In Precita Park, the loss of this one family may not be calculable in dollars. But I fear that the more affluent this area becomes, neighbors — people who look out for each other — will become fewer and farther between. Lately in San Francisco, we seem to be comfortable tackling every progressive cause except for the question of where middle-class people like Josie and Steve, and so many others, are supposed to live.

These are difficult questions, and Peter’s essay generated some thoughtful commentary in the NYTimes.com discussion thread.

For example, Neighbor Robert posted this:

I also live in Bernal Heights. I am an owner. I find that the people who are most involved on my street are the owners, and the people who are least involved are the renters. I realize that there are renters who care about their neighborhood, but I do take issue with Mr. Orner’s characterization of owners. New owners in my neighborhood, including me, formed a neighborhood association and worked with the city on street beautification and traffic calming. We care about our neighborhood.

Neighbor TeeVee writes:

I know how the author feels. It’s not easy to see good neighbors and friends leave the neighborhood. And San Francisco, for all its charms, is a place where you’re constantly reminded of how much money you do NOT have.

But as a resident of Bernal, I really think he needs to get out more and meet more people who own houses in the area. Many of them, like me, aren’t rich. In fact they pretty much sacrificed all disposable income to buy in the neighborhood. I take on as much freelance work as I can scare up in addition to my regular job to pay my mortgage. As a result, I don’t have a lot of time to hang out in Precita Park reading E.M. Forster and stereotyping people. For a writer, he makes a lot of unfair assumptions about owners, lumping them all together when there is vast income disparity in Bernal among homeowners. […]

Having grown up in a dying automotive town in Michigan, I guess I take a different view of Bernal. Having seen what happens when the housing market collapses completely, I know there are much worse things than a few yuppies moving into a neighborhood.

And this from KJ, who now lives in Portland:

I grew up in Bernal Heights. Born at St. Luke’s Hospital — blocks from Precita Park. I swam at Garfield Pool on Army (now Caesar Chavez) for 10cents in the ’60s. My generation was gentrified out of SF in the 1980s…so I find it hard to feel sorry for the displacement of today’s generation of gentrifiers. Very few of my generation can afford to live in our native city.

Finally, Neighbor Catherine adds:

I love the dream that a place could be your home because you feel deeply connected to it, whether you own it or not. We experimented with exactly this – living in a house in Bernal Heights that we did not own, but were meant to own. But it didn’t end up being ours in the end, because it’s not ours. We knew deep down that no serendipitious moment would change this in reality, but it seemed wise to give it a shot and trust the fates; we enjoyed our time there immensely. In the big picture, there are many factors that go into what makes you happy in the place you reside, and there is also a very random nature to the place you land in a competitive market like San Francisco.

Whether an owner or a renter, folks who moved in or bought in to a neighborhood in 1971, or 1989, or 2009, or yesterday all have the same right to contribute to their neighborhood and be embraced by their community. I see people feeling great ownership and entitlement over neighborhoods because of their longevity, but that isn’t more legitimate than your new neighbor next door, and isn’t categorically what’s right or best.

The message in my mind is to focus on what it means to be a neighbor and part of a community, however you landed there, and for however long you stay. Our city will continue to change – that’s the nature of urban life, and that dynamism is part of what we love about it. You can’t have one without the other.

This is an extremely complicated issue that defies simple solutions, and when you scratch the surface even the most absurd Bernal real estate stories often become more nuanced than they might seem at first glance.

So by all means please do read Peter’s NYT piece, and let’s carry on the discussion about the impact of change on Bernal Heights right here.

PHOTOS: Top, by the Adithya Sambamurthy/The Bay Citizen. Precita Park by Telstar Logistics.

House on Eugenia Sells for Waaaaaaaay Over Asking Price

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.

SFhillrunner says:

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.