Resale At Fulton 555 Tries Again, Lists Below 2020 Price
More than seven years since Fulton 555 began selling and at 80+ percent of homes purchased, the sales team marketing this Hayes Valley newcomer pulled its remaining inventory from the MLS this past summer. (That’s not to say those 19 brand new residences are not available, however. Contact us today for additional information.) In their absence, several units in the development listed for resale have entered the limelight. While two of those listings failed to sell and were eventually canceled, a third has emerged to shoot its shot: 555 Fulton Street #307.
Source: SFAR MLS
The last time this 2-bed/2-bath/719sqft condominium was listed for sale was in late 2021. At the time, it was priced at $989,000 — an amount at which the seller could hope to break even on their investment after paying broker fees. Despite being the least expensive comparable unit in the building by more than $100K, it failed to hook a buyer and slipped off the MLS by the end of the year.
As our tuned-in readers know, the past few months have been brutal for home sellers and buyers alike. Just as the condo market was showing promise in finding a post-pandemic footing, skyrocketing mortgage interest rates dealt a blow to borrowers’ purchasing power. In March, the benchmark 30-year fixed rate skyrocketed above 4 percent for the first time since 2019, and it has rapidly climbed to a 20-year high at nearly 7 percent. Bidding wars are all but completely nonexistent and offer dates now leave most sellers empty handed. The market has shifted dramatically.
Relisted and marked down to $899,000, 555 Fulton Street #307 is slated to join so many other homes sold for less than their previous purchase price. When all is said and done — assuming this property does sell — the current owner is likely to realize a six-figure loss on their $940,000 investment. In fact, at its list price, the home would be the lowest price sale of any 2-bedroom unit at Fulton 555 to date.
For borrowers eyeing a monthly payment that’s still about 40 percent higher than it would have been last year, the listing’s modest price adjustment may be little to get excited about. But it is an opportunity to lock in a better-than-average interest rate in addition to a deal on equity in San Francisco’s perpetually undersupplied and globally coveted real estate market. It’s a home run in the long term.
Contact us to talk about our buyer services and to arrange a private showing.
Here are a few things for prospective buyers to consider:
› Low interest rates are still out there. By historical standards, benchmark rates in the 6-7 percent range are not high. Lenders’ relationship pricing for existing customers is a good place to start shopping for the best 30-year fixed product. Adjustable-rate mortgages are another option. A number of new developments are offering promotional rates to qualified buyers. Remember: You can always refinance in the future.
› New listing numbers are down from last year. While there has not been a wild surge of desperate sellers, there are some very motivated ones willing to settle with a major price discount. It’s possible to buy homes today at prices paid 5, 6, even 7 years ago (and lock in that low property tax basis). This is especially true for newer condominium properties. Inventory is expected to be lower next year as the market becomes more balanced.
› Market fundamentals are strong. Housing payments as a percentage of income, and loan delinquency rates are both close to all-time lows. Stock market volatility cannot compare with the declines seen in 2008-2009, and employment is very strong. The factors that precipitated the Great Recession simply do not apply today. Moreover, San Francisco historically recovers faster from economic downturns than other areas of the state and country.
You can always live chat with us to get real-time data and a qualitative take on the market. We’re actively identifying unique opportunities and making deals happen. We know what’s good!
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