Archive for November, 2009

Stocks Vs SF Real Estate the past 10 yrs…

This chart illustrates the difference between an investment made on January 1, 2000 in one of the major U.S. stock indices and one made in either a San Francisco house or condominium. It’s simply a sample analysis to show how real estate usually appreciates over the longer term: numbers may change dramatically according to the period used in the calculation.

Since it is based upon an all-cash purchase, if one made the calculation based upon a 20% or 25% down-payment, the return on investment on real estate purchased would soar into the hundreds of percent.

Even in periods when the stock markets generate a good return on investment, one should note that significant capital gains taxes apply to stocks, but primary residences occupied for a minimum period of time, are exempt from capital gains taxes for the first $250,000 – $500,000 of gain depending on whether the purchaser was one or two persons.

San Francisco real estate has usually proven to be an excellent investment over the longer term due to the advantages of leverage, the incredible tax benefits of home-ownership in the United States, and local demographic and appreciation trends.

We’ll have to wait until 2017 to see how the stock markets fared vs those who purchased homes during the 2007 peaks in real estate prices…

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Emerald Fund Hosted Weigh-In on New Park @ 333 Harrison

Emerald Fund is hosting a neighborhood conversation, to solicit ideas and commentary for their new park and mixed use development at 333 Harrison Street.The event is being moderated by Isabel Wade and Corinne Woods of the Neighborhood Parks Counsel and is a great way to weigh-in on this new Green housing and a new public park on the top of Rincon Hill in San Francisco
Tuesday December 8th
6-8pm
at One Rincon Hill Hospitality Room – 425 1st Street @ Harrison.
333 Harrison [David Baker + Partners]
Emerald Fund Projects [Emerald Fund]
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1st Time Homebuyers Tax Credit revised to help SF purchasers

The $8,000 credit was scheduled to expire on Dec. 1 2009 but will now be in effect through the end of June 2010. Homebuyers must sign a contract before April 30 and close by June 30, 2010. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers — those who have not owned a home in the past three years — still qualify for an $8,000 rebate, which was previously mostly useless for San Francisco due to the previous income cap of $75,000 (which put most out of the running for a minimum SF purchase). However now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

Federal Housing Tax Credit [NAHB]

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Current SF Values off Peak Values – 4th Edition

Neighborhood
or District

Property Type
Price Range

Avg $/sq.ft.
at Peak Value

5/1/09 –
10/30/09

Change from
4/1/09

Today

Bayview*

House
$300k – 800k

$507/sq.ft.

$280/sq.ft.

– 5%

– 45%

Ingleside/ Hghts / Oceanview*

House
$400k – 800k

$580

$444

– 1%

– 23%

Excelsior/Portola*

House
$400k – 800k

$600

$450

– 1.5%

– 25%

Central/Outer Richmond **

House
$700k – 1.4m

$569

$488

– 14%

Inner Mission**

Condo
$500k – $800k

$621

$496

– 20%

Central/ Outer Sunset**

House
$500k – 900k

$626

$501

– 6%

– 20%

Miraloma/ Sunnyside**

House
$500k – 1m

$677

$550

– 8%

– 19%

Hayes Valley/Alamo/Nopa***

Condo
$500k – 900k

$684

$559

– 7%

– 18%

SOMA**

Condo
$500k – 900k

$689

$562

+ 2%

– 18%

Bernal Hghts***

House
$500k – 1m

$651/sq.ft.

$567/sq.ft.

+ 2%

– 13%

St Francis Wd/W.
Portal/Forest H **

House
$800k – 2.5m

$687

$585

– 15%

Noe & Eureka Valley’s***

Condo
$500k – 1m

$751

$613

– 9%

– 18%

South Beach***

Condo
$500k – 1m

$785

$640

– 6%

– 18%

Potrero Hill**

House
$700k – 1.4m

$753

$648

– 14%

Russian/Nob/
Telegraph Hills***

Condo
$600k – 1.2m

$798

$692

– 13%

Noe & Eureka Valley’s***

House
$800k – 1.5m

$891

$707

– 6%

– 21%

Pacific Hghts/ Marina (Dist 7)***

Condo
$600k – 1.2m

$809

$733

– 4%

– 9%

Most Expensive North SF Areas***

House
$1.5m – $4m

$975

$797

– 18%


Key to Estimated Peak-Value Period for the Chart Below:
*Peak values estimated to have been reached 1/1/06 – 6/30/06
**Peak values estimated to have been reached 1/1/07 – 6/30/07
***Peak values estimated to have been reached 1/1/08 – 6/30/08

Revised: Peak Values vs. Current SF Prices [SFHomeBlog]
Peak Value vs Current SF Value Feb 2009 [SFHomeBlog]

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