House of the Month: Posh Living in the Castro
This post first appeared in the July edition of Cirios Trends: Getting to the Bottom of the Housing Market
As jumbo mortgages continue to be extremely difficult to get, we at Cirios keep asking ourselves: Is it a buyer’s market for borrowers who manage to qualify for a jumbo loan? To answer that question, we took a look at a home which seems to have everything: location, updates and parking (which in San Francisco is like gold).
Neighborhood Overview: The Castro district in San Francisco is one of the most desirable areas in the city. It has all the key amenities (shopping, restaurants, grocery stores and numerous public transportation options). Recent price declines can be blamed on the fact that its nigh impossible to get the big loans needed to buy these pricey homes, along with the general downturn in the economy. However, the Castro remains a very desirable place to live and price declines should be moderate, as qualified buyers look to take advantage of 
lower prices.
Original List Price: $1,495,000
List Date: 5/27/2009
Current List Price: $1,495,000
Previous Sale: $1,575,000
Previous Sale Date: 11/2/2007
Estimated Down Payment: $373,750
Estimated Monthly Payment: $8,535.96*
Bedrooms: 3; Bathrooms: 2.5
Liv. Area: 1,915 sqft; Lot Size: 8,000 sqft
Positives:
+ Large back yard, parking
+ Centrally located
+ Wine room, office and sun room
Negatives:
- Common bathroom (upstairs) does not have a shower
- Kitchen is a bit small
- Third bedroom doesn’t have a closet (how is it a bedroom without a closet?)
Value Approach:
Step #1 – Location
As mentioned above, the subject is located within walking distance of bars, restaurants, shopping and all major public transportation lines, and is in an area of well-maintained homes. The property itself is unique in that it has a large flat lot with a well landscaped yard, which is a rarity in San Francisco.
Step #2 – Data Analysis
% of Zip Distressed: 0.27% (Low)
% of Zip For Sale: 0.27% (Low)
% of Zip Sold over last 3 months (year-over-year): -42.7
Elementary School API: N/A**
AHA (Affordable Home Amount): $656,817
The drop in sales activity in the past year is further evidence that high end markets are getting hurt by the lack of jumbo mortgages and the continued economic contraction. We expect sales activity to remain low in the near term, as there are few signs that the jumbo loan market is improving.
Step #3 – Comparable Properties
Click here for our CLEAR Valuation, or on the image to the right.
Step #4 – Value Analysis
The subject is one of the lowest listed properties in its immediate vicinity, which will likely result in a lot of interest from potential buyers. S1 sold for $1,425,000 and is located across the street from the property, which is evidence of demand in the area. Although S1 is a superior home to the subject, it backs up against the Castro Theatre, which should be considered a material negative, due to the noise which is likely to emanate from the bars and restaurants close by.
Cirios Value: $1,375,000
Over Listed Amount: 8.0%
Tags: 25 hartford st, castro, Cirios Trends, san francisco