San Francisco home values ​​are collapsing as buyers have to wait decades to move in

Single-family home located on North View Court in Russian Hill It’s on the market for $488,000 on Zillow two weeks ago. That seems like a steal considering the other homes on the cul-de-sac are valued at more than $1 million, with each one approaching $3 million.

But any buyers will have to wait decades before they actually move in because there’s a tenant living there who’s only paying $416.67 in monthly rent and isn’t going anywhere for a while.

“The tenant’s current lease appears to give tenants strong limits on long-term rent amount, an unconventional method of paying rent, and potential occupancy rights through 2053,” the Zillow listing says. “This sale is as is, and the seller hereby reserves the right to decline, counter and/or accept any offer. The seller and listing agent do not guarantee access to the home and strongly recommend buyers review the seller’s disclosure package/additions and consult with their landlord/tenant attorney in San Francisco before making the offer.

The listing adds that the previous owner of the house was over 100 years old and died of natural causes in the house.

Despite the home’s “gentle appeal” and Edwardian design, its listing price of $488,000 is well below the Zillow price of $526,500.appreciation“It has fallen sharply from its value of $1.5 million just last month, according to New York PostThis represents a decline of more than 60%.

The house still attracted a long line of potential buyers last week, Local TV reports He said. This may be because the listing advertises the home as an “excellent investment opportunity for the right buyer only.”

Douglas Lee, a real estate agent at Compass, told Los Angeles Times That the house represents an opportunity to “hold the land” or postpone the use of the property for a long period.

“You sit and wait until that tenant dies, vacates, or the lease expires,” he said. times. “Once that happens, you realize a lot of your potential. This is a really good buy for trust fund people. If you’re buying it for your child who’s 0 or 1, by 18, you’ll know this thing is going to be up and running.”

The relatively cheap properties contrast with the overall housing market, which has become increasingly unaffordable, especially in places like California.

Nationally, existing home sales prices jumped to a new record high in May even as supply increased. Additionally, Zillow says buyers now must put down nearly 35%, or roughly $128,000, for a typical home.

Meanwhile, high housing prices have a “feudal effect” on California, where policies that limit urban sprawl have pushed up land values, according to the annual report. Demographics of international housing affordability The report was prepared by Chapman University in California and the Frontier Center for Public Policy in Canada.