Robert Merryman
To Appreciate or Not Appreciate 
How much will it appreciate? I’ve heard this question quite a bit lately. The answer depends on where and what you’re buying.
San Francisco’s South of Market (SOMA) and points south are in a “correction” period because of the over speculation and risky lending issues in the area. Thousands of available units create a distraction for anyone buying in that market. Too many choices and short sales have driven down values. On the positive side, there are bargains to be had in the area.
The Marina, Cow Hollow, Pacific Heights and Noe Valley have also seen a drop in value, but inventory is scarce and demand remains high. So when a property comes to market in those neighborhoods, if the price is right, the sellers have an audience. We’re seeing multiple offers over list price. Simple economics, no?
Yes and no. It’s more about desirability. There are plenty of properties that don’t sell quickly because of price. On the north side of San Francisco there is a limited number of short sales and foreclosures which help properties maintain their values. Granted, not many properties are worth what they might have been four years ago, but a patient investor will realize an appreciation in value over time.
Blogged on 1/31/2010
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