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:
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:
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