What a difference a year makes.  I am sitting with two reports next to my computer--the first, a snapshot of the North Beach Condo Market that I prepared last July.  The second, a report that I created this morning.  Both reports look at all condos currently on the market--the ones for sale and those in contract, as well as all condos that have sold in the past 6 months. 

In 2008, there were 8 condos for sale or in contract, with prices ranging from $699,000 for a 2 bedroom condo that desperately needed a new kitchen and two new baths (all tired and looked like the 80s) to $989,000, for a 2 bedroom 2 bath condo at 520 Chestnut Street, a fabulous building that was built in 2006, well designed with a very contemporary feel.  Not much outdoor space, but a fabulous place.  

The July 2008 report has 10 condos in the neighborhood that closed escrow in the previous six months.  

The current report shows 3 condos available for sale, 2 that are in contract, and only one that has sold in the last six months.

So, what happenned to the two condos that I mentioned from last years report?  The first, 950 Columbus Ave, #2, the pleasant unit with the bathrooms and kitchen in need of renovation was withdrawn from the market.  The second condo, 520 Chestnut #404, is a lovely condo.  It was listed last June for $989k and withdrawn after a few months.  It was relisted in September 2008 for $969k.  Withdrawn in December.  Back on in June (the same list date both years was 6/11) for its current list price of $899,000.  The Sellers purchased in April 2007 for $904,000.  It's a fantastic condo, still available...

The condo that sold most recently, 650 Chestnut Street, #405 is a terrific 3 bedroom condo with 2 baths and 2 parking spots.  It sold recently for $815,000, close to the same price that 2 bedroom condos (with only 1 parking spot) sold one year earlier.

Although this is difficult to measure, it seems as if we have far fewer buyers than we did one year ago and it has become increasingly more difficult for many of these buyers to get loans.  Some lost their down payment funds if they were invested in equities last fall.  Lenders have made it difficult for all to get loans--even those with large downpayments, excellent credit and good incomes.  The Home Valuation Code of Conduct, adopted earlier this year by Fannie Mae (and applies to most home loans being made)imposes strict guidelines for how appraisals are conducted.  It has created barriers between lenders and appraisers and was designed to increase the integrity of appraisals.  In practice, it has created 'middle-men' companies that charge consumers more money, pay appraisers less for their analysis, and often means appraisers are assigned to work in markets that they are not familiar with.

At the same time, it seems like we have fewer properties for sale in many desirable neighborhoods in the city.  Perhaps this is because those who don't need to sell are not listing their properties for sale.  Many homes that are on the market are not appropriately priced. 

In the meantime, I'll be watching two units at 520 Chestnut Street--unit 404, listed for $899,000 and unit 302, currently listed for $849,000.