July 9, 2013

Updated: Bay Area Real Estate Bubble 4.0: Not Over. Nuh Uh Uh.

130708-28th-priceisrightThis weekend we featured a Murky News article claiming that frenzied overbidding on Real Bay Area homes was done. It wasn’t the only such piece claiming that RBA overbids out of suitcases full of cash were coming to a halt.  To which we say: Sure it is. Redfin is tracking the bidding wars, and they say it’s cooling off… outside the RBA.  Specifically, there are fewer multiple bid situations outside California, and in the Golden State, things have eased up a bit in the Southland.  But don’t worry.  It’s Still Special Here.

Let’s find out just how special with this home sent in by Burbed reader mtv-renter.

130708-28th-redfin440 28th St
San Francisco, CA 94131
Sold for $1,756,000

2 Beds
2 Baths
1,057 Sq. Ft.
$1,661 / Sq. Ft.
Built: 1910
Lot Size: —
Sold On: Jul 2, 2013
Status: Sold
Property Type: Attached, Full, Single-Family Home
View: Panoramic, Bay, Hills
County: San Francisco
Style: Victorian
Community: Noe Valley
MLS#: 408763

Much sought after charming single family home with spectacular southern views. Very bright and light. Main level features lovely dining area, spacious living room, office area, stunning remodeled granite kitchen and marble bathroom. Opening to a secluded charming backyard, perfect for entertaining. Second level features two bedrooms with original built-in dresser drawers. Fabulous, new bath with marble walk-in shower. One of the bedrooms overlooks the enchanting garden and the other captures the southern view. There is a lower level just waiting to be finished with great expansion potential!

130708-28th-bedroomTake it away, mtv-renter!

Oh holy hell, the good times are back!

I visited this place myself, but given the line out the door for the open house, didn’t even consider placing a bid. Good thing!

Asking price: $989k, sold for $1,756,000, that rounds up to 78%. This is an astounding $1,661/sqft.

It gets better,

last sold for $749,000 on Sept 24, 2010. That’s $1,007,000 in appreciation over 1012 days, or $995/day.

130708-28th-yellowEveryone should buy in San Francisco. Riches await!

But wait, there’s more!

It gets better, check out the buyer’s agent’s name:

Trim Wellbeloved, 
Pacific Union International
DRE #01209860

You know, we prefer to point ‘n laff at realtard behavior rather than their names, but in this case… well, there it is.  Meanwhile Burbed reader Petsmart Groomer notes that this house has come to the attention of SF Curbed.  Where, asks PG, is the million dollar upgrade?  After all, in 2010 it took 3 price cuts to finally change hands at… $749K despite appearing on television!

130708-28th-redfin2010440 28th St
San Francisco, CA 94131
Sold for $748,000

2 Beds
1 Baths
— Sq. Ft.
Built: 1910
Lot Size: —
Sold On: Sep 27, 2010
Status: Sold
Property Type: Attached, Full, Single-Family Home
View: Panoramic, Hills
County: San Francisco
Style: Victorian
Community: Noe Valley
MLS#: 370108

Big reduction. Please come see this Victorian Noe Valley Home as featured on the TV Show Sell This House. It has amzing Southern Hills Views. Two bedrooms and One Bath. Period detailing throughout the house. Near shops and restaurants.

Why that million dollars is clearly in the kitchen. The stainless steel fridge must be worth $400,000 all by itself.

130708-28th-kitchen-2010130708-28th-kitchen

130708-28th-redfin-restatedBunus: extra bathroom! That’s got to be the other $600,000!

Update 7/10/13: Seems the realtard made a little mistake with that sale price. It’s actually only $1,150,000. However, realtards typing in completely WTF numbers into listings is simply a different kind of Burbed win. So it’s all good, as long as you aren’t the realtard.

See the comments for more details. You should be reading comments on all our articles, anyway. You should be posting in comments, too. Don’t agree? Explain why! In our comments!

Comments (26) -- Posted by: madhaus @ 7:03 am

26 Responses to “Updated: Bay Area Real Estate Bubble 4.0: Not Over. Nuh Uh Uh.”

  1. PK Says:

    $600,000 – definitely the value of a bathroom in toilet poor San Francisco. Of course, in many areas of the country, $600,000 will get you one bathroom, plus 5 bedrooms and 3 other bathrooms on 3 acres. The math checks out!

  2. SFGuy Says:

    You didn’t used to be able to get over a million in Noe unless you had parking. In the new age of the Google bus, this is apparently not so much an issue. This house is in essence a 3rd floor walkup with street parking.

  3. AstroWallaby Says:

    Anyone passing this place had better watch out for the pea soup that’ll soon be spewing out of that attic window. (We all remember those stairs, right?) Whatever you do don’t give the buyers a Ouija board for a housewarming present.

  4. nomadic Says:

    As ridiculous as this sale was, I have to point out that the market can still be cooling off. This place went pending a month ago.

  5. Steve Tyler Says:

    My favorite comment from SF curbed:

    “I hope it came with a ski lift to get to the front door”

  6. wave Says:

    Redfin says this sold for $1,150,000…? Not 1,756,000.

  7. nomadic Says:

    A new comment on the Curbed page says:

    This property was reported in error by the listing agent. They have changed the price to reflect the accurate sales price of $1,150,000.

  8. Petsmart groomer Says:

    > This property was reported in error by the listing agent.

    No typo is too conspicuous for a real estate agent.

  9. mtv-renter Says:

    Aww, bummer on the correction. I almost fell out of my chair when I saw $1.756M. Just think of the untapped potential!

  10. madhaus Says:

    So that means the bubble is over after all, huh.

  11. Petsmart groomer Says:

    madhaus, you could not have picked a more inaccurate picture (“the price is right”) :-)

  12. madhaus Says:

    madhaus, you could not have picked a more inaccurate picture (“the price is right”)

    Yes I could.

  13. Real Estater Says:

    Here’s a good write-up on the pulse of the market

  14. mtv-renter Says:

    I usually disagree with 100% of everything RealEstater says, but I think his article is fairly accurate this time, since I’ve seen the market for myself recently. I’ve been looking for months to buy a house because while I like my rental, it’s too small for kids, and hence, I’m forced into buying since the SFH rental market is basically non-existent. So, I’m basically the person they wrote the article about.

    However, in addition to local buyers needing homes to raise kids, who frequently need mortgages, I’ve seen many Chinese and Russian foreign buyers at open houses, and two of the houses I bid on went for significantly higher cash offers to Chinese absentee buyers.

  15. Real Estater Says:

    >>I usually disagree with 100% of everything RealEstater says

    For starters, that’s where your problem is. If you had listened to RE, or at least been open to advice, you would’ve found out the accuracy of the information a long time ago, and avoided the predicament you’re in now. Where were you when RE advised in 2010 that “Now is the time to buy”? Compared to today’s prices, everything was on fire sale back then. You could have bought low and refinanced to interest rate in the 3’s. Both of these historic opportunities are gone now.

  16. nomadic Says:

    And you should have shorted Facebook stock, RE.

  17. mtv-renter Says:

    Hey, I’m not complaining :) I had no reason to buy two years ago, and I do now. Actually, I did buy. There was a brief downturn to the frenzy at the end of June, and I managed to sneak in an offer.

  18. Real Estater Says:

    If you have reason to buy now, you had better reason to buy 2 years ago. In any case, congrats. There’s a tradition here for a little sharing. What you got?

  19. mtv-renter Says:

    I don’t want to link to my home address on the internet, so I’ll be vague. It’s a modest 4/2 on a big lot in downtown mountain view, a few minutes walking from the train station and Castro St.

    How could you possibly know whether I had a better reason to buy two years ago? :)

  20. Real Estater Says:

    It only takes one reason, called instant equity.

    You bought a prime property in downtown MV and avoided the frenzy? I’m sure you also got it for less than a million, right?

  21. very amused Says:

    Has RE ever NOT said Now is the time to buy? In 2010, sure. Also 2008, 2009, 2011, 2012 and 2013.

  22. mtv-renter Says:

    No, I paid quite a bit over a million.

  23. nomadic Says:

    And two years ago, the owners were probably hunkered down waiting for better prices. They were in my ‘hood, anyway.

  24. Real Estater Says:

    >>Has RE ever NOT said Now is the time to buy? In 2010, sure. Also 2008, 2009, 2011, 2012 and 2013.

    You know why? Because these were exactly the best years to buy real estate. In hindsight, everyone acknowledges this fact today; only RE told you so back then.

    I will also tell you I am personally not planning to buy additional real estate right now. Instead I am solidifying my cash position to get ready for the next “best time to buy” moment. The question to ask yourself is, next time when everyone is cash strapped or fearing an economic event, will you be ready to show your money?

  25. madhaus Says:

    Wait, are you actually saying now is NOT the time to buy? Oops.

  26. Bystander Says:

    I guess if I bought in those winning years I wouldn’t be too motivated to buy at current prices either. I believe you will still make money eventually if you buy real estate now, but the easy money has been made by smart people who did invest when the market was down. Paying full price for RBA right now is not the best way to use your hard earned money IMHO. I’d save for a rainy day now just as RE is doing.


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