The five-bedroom, 10,000-square-foot home in Russian Hill, just one block from San Francisco’s famous winding Lombard Street, was listed for $20 million just over a year ago. This is the same price owners paid in January. 2020. But last month it sold for just under $10 million, half that amount.
Patrick Carlisle, chief market analyst at Compass, a Bay Area real estate group, said the 50% drop in value for the home at 2626 Larkin St. is “highly unusual.”
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While this home is an extreme example, Carlisle noted that homes in the higher end of the price range tend to have larger declines from their original list price than the general market. He said this is because there are fewer buyers at the top end of the market, making it difficult to purchase such homes. On price. He said San Francisco’s luxury housing market is suffering from a “drum of negative news” about the city’s economic and social woes and “absurdly overreaching speculation that the city is stuck in a ‘loop of doom.'” He added that he was affected.
Data shows that the more expensive a home is, the more likely it is to sell for less than the asking price. So far in 2023, San Francisco homes priced above $7.5 million have sold for about 90% of the asking price, slightly lower than in 2021 and 2022, which was seen in home sales. That’s far more than a 50% discount. Larkin Street House.
Carlisle also said the city’s economic indicators have recently turned more positive, which could mean a strong market in 2024.
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Nina Hatvany, the real estate agent who sold the property, said she could not comment specifically on the sale because she signed a non-disclosure agreement. Public records show the title to the home was transferred to a limited liability company formed days before the sale. This LLC is registered with a Glendale corporation that submits business information to the state on behalf of other companies, a tactic people use to protect their privacy.
Last year, in a feature article about the home, Hatvany told The Real Deal that the owners, Leslie Stretch, former CEO of software company Medallia, and his wife, Heather, owned the He said he was thinking of selling the house because his youngest child went to university. And they wanted to downsize to an urban pied-a-terre. She added that her family has also purchased “some ‘amazing'” second homes during the pandemic.
According to a press release, Stretch stepped down from the CEO position in March of this year after four and a half years and transitioned to an “advisory role” with the company.
Hutbunny also said the couple spent hundreds of thousands of dollars upgrading the home’s smart home features and added two car elevators to create space for five cars in the three-car garage. Told.
At the time, she told The Real Deal that while the team had other homes for sale in the $18 million to $25 million range, “none of them were as complete as this one.” Ta.
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Hatvany said in an email to the Chronicle that her team has found that “some sellers are willing to accept offers below asking price,” and that the data shows that “even for single-person households, “This indicates that the value of the stock has been revised downward,” he said. The idea is to build a house in the most desirable area. ”
In general, home sales over $5 million in San Francisco tend to spike in the spring and slow down in the middle of winter, according to Compass’ December market report. Hatvany said prices per square foot also rise in the spring, flatten out in the summer, and decline slightly toward the end of the year.
Data shows that as the year ends, “there will be buyers looking for ‘deals’ and sellers willing to participate,” he said.
Contact Danielle Echevria: danielle.echeverria@sfchronicle.com; Twitter: @DanielleEchev