Location: San Francisco
March 1, 2008
Not even Mark Twain’s brilliant wit succeeded in tarnishing the gleaming image of San Francisco. Sure, Twain accurately informed his readers, and those on down the centuries, that a summer spent in that fair city was the coldest winter he’d ever experienced, thanks to the punishing Pacific fog. Nevertheless, San Francisco retains a singular position in the minds of foreign and domestic visitors alike as a magical Xanadu blessed with a beautiful bay, a vibrant metropolis and stunning natural surroundings.
Not surprisingly, elected officials have worked hard to keep the city in harmony with nature. This has placed San Francisco on the leading edge of urban green movements nationally. Under the current leadership of maverick mayor Gavin Newsom, the city is busy converting all its municipal vehicles to run on biofuel, has banned the use of non-compostable plastic bags and is discontinuing the practice of buying bottled water in favor of on-site filters.
"These sorts of efforts are simply part of our history—the Sierra Club was founded here in the 1800s," says Mark Westlund, spokesman for the city’s environmental department. "We are currently the most aggressive city in the country when it comes to ensuring that both commercial and residential projects meet strict green standards."
If all this talk—from sailboats plying crystalline waters to civic leaders pushing responsible building—makes you want to lose your heart in San Francisco, this could be a good time dip a toe into what is traditionally a daunting real estate whirlpool. Bear in mind that locals have a saying: The market never drops, it stair-steps, with some stairs proving wider than others. This appears to be one of those wide-step times, when prices remain stable and some homes stay on the market longer.
For starters, if you’re not hell-bent on landing in the heart of the city, a number of bedroom communities with easy access to San Francisco are worth a look. To the north, the Marin County towns of Sausalito and Tiburon recall Italy’s Amalfi Coast with their epic water views. To the east, the stately Piedmont enclave cozies up to its funkier cousin, Berkeley. And to the south, retreats such as Woodside and Atherton are home to Google-istas and their tech-savvy kin.
But if only San Francisco will do, take dead aim at some of its more legendary neighborhoods, including the Marina (especially hip with singles and new families), Nob Hill (when you want to feel like a 19th-century railroad kingpin) and Pacific Heights (if nothing but mansions will suffice). Just make sure your checkbook is wide open and you’re quick with a pen.
"Homes priced between $3 million and $4.5 million in San Francisco’s more desirable neighborhoods will sell within a week," says Sotheby’s International Realty agent Gloria Smith, a 20-year veteran of the city’s soaring real estate scene. "People always say the market is peaking here, but it simply never does."
Smith says a good rule of thumb for shoppers is $1,000 per square foot for houses that will need some work (often tallying seven-figures), while $2,000 per square foot will secure a dwelling that has already been renovated and might even offer spectacular views of the bay.
A couple of key factors help keep prices high: limited supply and access to private schools. "They’re simply never going to build any more homes in these neighborhoods," says Smith, who adds that growing families are increasingly opting to stay in the city as opposed to crossing the Golden Gate Bridge to Marin. "When those families decide to stay, they all want to be near great schools, and that makes those homes even more sought after."
advertisement
