Condo Alternative Cottage Slips Further Below Its 2016 Price

As we outlined at the end of last year, the light-filled, one-bedroom cottage at 4353 17th Street, which sits above the Castro in Corona Heights and was purchased for $675,000 in January of 2014, re-sold for $915,000 in November of 2016, representing total appreciation of 35.6 percent over those 34 months for the 685-square-foot, free-standing home despite its various imperfections and the “short term hold.”

Having returned to the market priced at $998,000 in October of last year, positioned as a “great alternative to cookie cutter condos in this price range – with easy street parking and opportunities for future expansion,” the list price for 4353 17th Street was reduced to $930,000 after a month on the market and to $899,000 after two, a sale at which would have represented net appreciation of just 1.6 percent for the cottage since the fourth quarter of 2016 on an apples-to-apples basis.

Withdrawn from the MLS in January and then relisted anew for $899,000 this past May, the condo alternative cottage has just been re-listed anew anew, with a further reduced list price of $849,000, a sale at which would represent depreciation of 7.2 percent since the fourth quarter of 2016 on an apples-to-apples basis but would be considered to be “at asking,” and with “only 3 days on the market” as of this morning, at least according to all industry stats and aggregate market reports.

If you thought you knew the market for “condo alternative” properties in San Francisco, and the implications, now’s the time to tell.