Posted at 12:00 p.m.
(San Francisco, California) City of all excesses, Los Angeles offers a vast real estate portfolio of properties, each more flamboyant than the next, as the faithful of the real estate reality show know well. Selling Sunset.
Further north, San Francisco is at the heart of the most expensive real estate market in the United States. With Silicon Valley right next door and an average annual household income of US$113,000 — compared to $47,000 for the whole of the United States, according to 2021 figures — San Francisco has continued to see prices real estate prices have skyrocketed since the early 2010s.
PHOTO CARLOS BARRIA, REUTERS ARCHIVES
San Francisco is at the heart of the most expensive real estate market in the United States.
Luxury galore
“We have a lot more demand than supply,” summarizes Isabelle Grotte, a French-born agent who, with her team, made 195 million US in real estate transactions last year in San Francisco. With its famous slopes and hills, the city indeed offers little virgin land to build castles.
The price range for properties in the most enviable neighborhoods will vary between 17 and 25 million US. Which seems modest next to the steroid villas of Southern California.
This does not prevent more luxurious properties from regularly arriving on the market.
PHOTO FROM THE COMPASS WEBSITE
A former home of actress Sharon Stone is currently up for sale for US$39 million.
Thus, a former house of actress Sharon Stone, which dominates the beach of Baker Beach, in the chic district of Sea Cliff, is currently on sale for 39 million US. At this price, you’ll get somewhat dated Italianate decor, stunning views of the Pacific Ocean, Marin County Mountains, and the Golden Gate Bridge, and all the beach goers relieving themselves at the foot of the stairs. of the villa as soon as the fine weather returns. We have witnessed it.
Another neighborhood, other excesses: in Russian Hill, at the top of the hills that make up the charm and reputation of San Francisco, a double penthouse that once belonged to former Secretary of State George Schultz is on sale for 29 million US. This one has more than 5800 sq.2 of living space and floor-to-ceiling windows offering panoramic views of the bay. For more cost-conscious millionaires, it is possible to purchase one of the two units that make up the penthouse.
PHOTO FROM THE SUMMIT PENTHOUSES WEBSITE
In Russian Hill, at the top of the hills that make up the charm and reputation of San Francisco, a double penthouse that once belonged to former Secretary of State George Schultz is on sale for 29 million US.
Post-pandemic market
Post-pandemic, despite the end of compulsory office work announced by major San Francisco employers — Airbnb and Pinterest, in particular — the real estate market continues to grow: + 11.7% growth in one year for San Francisco, 21 .3% in Santa Clara County (which includes much of Silicon Valley) and Alameda County, near Oakland.
That of luxury follows the evolution of prices on the average market, which is still around 1.9 million US for an average single-family home, according to figures provided by the essential real estate site Zillow.
“A house that would have sold for US$900,000 three years ago will now sell for more than US$3 million,” observes Jen Passetti, a San Francisco real estate agent. Note, if you like to browse Zillow, be aware that the prices displayed never reflect the sale price in San Francisco. “It’s a price that is made to call a tsunami: we display much lower to attract more buyers and arouse interest, and emotions”, explains Mr.me Passetti. Single-family homes thus sell in less than a week on average, with an overbid that can represent several hundred thousand dollars.
Continuous rise
The rise in interest rates should not slow down this real estate craze in the San Francisco Bay area, as in several hot markets in the United States (Austin, Texas, in particular).
Ted Stroll bought a house in a modest neighborhood in San Jose, one of Silicon Valley’s most affordable cities, in 2007 for US$600,000. Today, the retired California Court of Appeals lawyer believes it is worth more than double. “If I was still working, I couldn’t shop in San Jose today,” Stroll said. Unfortunately, mortgages are so high that many people cannot retire or have to move. It’s a big problem. »
Nevertheless, the upward trend should continue, according to Zillow’s predictions. “Our modeling predicts another 16.3% price increase through February 2023,” said Jeff Tucker, senior economist at Zillow. But my instinct tells me that it will surely be less, the bay will surely be one of the first regions in the country to experience the effect of the increase in interest rates. It’s still completely incredible to see 15 to 20% price appreciation on a real estate market in such a short time. I never thought I would see this. »
The high-end market in this region is also not experiencing the crisis. “What it shows is that there is a solid base of buyers who have no problem buying a home, and who can even pay more,” said Tucker.
The kingdom of home staging
Polished photos, trendy furniture and plants, garden chairs inviting you to relax. In California, real estate agents do not mess with the marketing of the properties entrusted to them. Unless you have a home that is immaculately tasted and decorated with artwork (which is not impossible here), properties are subject to renovation and a home staging before they are put on sale. Thus, we maximize the potential of a property, we facilitate the ability of future buyers to project themselves there and then we avoid the downward negotiations that could occur. Farewell, therefore, IKEA furniture damaged by years of service, wedding photos and other children’s drawings. This service, often a sine qua non of agents, costs the seller several tens of thousands of dollars. Interestingly, sellers leave their homes several weeks before the sale, and takeovers here are very fast and inflexible.