SFHomeBlog.com - A San Francisco Real Estate Blog

Stocks Vs SF Real Estate the past 10 yrs...

2009-11-28T13:01:00.000-08:00

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...

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

2009-11-15T18:39:00.000-08:00

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]

1st Time Homebuyers Tax Credit revised to help SF purchasers

2009-11-12T15:07:00.000-08:00

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]

Current SF Values off Peak Values - 4th Edition

2009-11-06T18:56:00.001-08:00

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]

A Tale of Two SF Septembers

2009-10-20T23:35:00.000-07:00

September 2007 ~ September 2009

4,073 ~ Properties for Sale ~ 3,226 (20% less)
447 ~ Under Contract ~ 648 (45% more)
447 ~ Sold ~ 492 (10% more)
$761,000 ~ Median Sales Price ~ $641,000 (16% less)
38 ~ Days on Market ~ 53

Which means even though there's less inventory to choose from (contrary to popular belief), month's supply of inventory is down nearly 50% from Sept 2007, Buyers are taking their sweet time - evidenced by the significant increase in average days on the market.

How Many Listings Go Pending Within 30 Days?

2009-10-16T16:48:00.000-07:00

In the last 6 months:

37% of SFDs (that sold) went pending within 30 days and those sales closed on average at 102.5% of list price
24% of Condos (that sold) went pending within 30 days and those sales closed on average at 99% of list price
16% of TICs (that sold) went pending within 30 days and those sales closed on average at 99% of list price
60% of REO SFDs (that sold) went pending within 30 days and those sales closed on average at 106.6% of list price

To go pending within 30 days, typically a listing would ratify within 15 days of going on market.

Loan Modification Attorneys Under Investigation

2009-09-30T01:56:00.000-07:00

The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.
Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at http://takeaction.realtoractioncenter.com/ct/d7LOynp1vr1c/.

California Association of Realtors [Car.org]

Bong Su on the Auction Block

2009-09-17T20:40:00.000-07:00

Well, technically it's not being 'auctioned' off - but it is for sale, minimum bid $50,000 (and a base annual rent, not for the amateur restaurateur, at $227,160 through 2020). To this day, Bong Su remains one of my favorite Soma restaurants - albeit a delicious memory now. Great food, on par with Slanted Door, easy to get in - obviously part of the problem - fantastic decor. Ok it was on 3rd Street but I for one miss it tremendously...now if I could just get my hands on some of their imported sandstone carvings, mysteriously missing from the Equipment list...

Update: from Marsha over at Tablehopper Osha Thai soon to take over the venue...

311 Third St [Johnson Hoke]
the Chatterbox Oct 13th [Tablehopper]

A Years Worth of Solds vs Expired Listings

2009-09-16T23:56:00.001-07:00

The following charts show the number of listings that expired (purple) to the number of Solds (green) for the past 12 month period. The spike in both Single Family Homes and Condos expired is for December 2008. In the Single Family Home market for every 10 sales there are 4 expired; for Condominiums there are 9 listings that expire to every 10 sold.

Real Estate Owned, Short Sales and San Francisco

2009-09-16T23:35:00.000-07:00

Foreclosure Sale (REO): a foreclosure/REO sale is the sale of a home by the financial institution which foreclosed upon it. (The term “REO” refers to the bank department “Real Estate Owned”.)

Short Sale: a sale in which the existing property loans, other monetary liens and costs of sale exceed the sale price – i.e. the owner owes more than the property is worth. In a short sale, the lien holders—typically the bank(s)—have to agree to a reduced payoff for the sale to close. Short sales are complicated, usually take much longer to close escrow and may have significant ramifications that need to be recognized, but they can be a preferable alternative to foreclosure for sellers and can present buyers with purchase opportunities worth considering.

In the past year, 20% of all San Francisco house sales -- 403 sales -- have been REO or short sales: 14% REO and 6% short sale. All SF house sales (reported through MLS) totaled just below 2000 for the 12 months ending 8/31/09.

In the past year, 9% of city condo sales -- 130 sales -- have been REO or short sales. All SF condo sales reported through MLS totaled 1452. (Many new-development condo sales are not reported through MLS.)

There were only 2 TIC REO/short sales out of a total of approximately 350 Tenancy-in-Common units sold.

Approximately 80% of all SF REO and short sales of houses occurred in the city’s less affluent, southern border neighborhoods stretching from Ingleside Heights and Oceanview through Crocker Amazon, Excelsior and Portola to Bayview/Bayview Heights.

Approximately 6% were in the Sunset/Parkside district; 3 - 4% occurred in Bernal Heights. There was a Pacific Heights REO sale that exceeded $11,000,000 – the largest SF home sale in 2009 year to date – though other than that 9-bedroom mansion, the higher end has been relatively unaffected so far by foreclosures.

58% of all REO house sales in the past year went pending sale within 30 days of going on market (i.e. very quickly) to close at an average of 6% above the list price: a hot market marked my multiple offers.

Approximately 47% of all SF condo REO/short sales happened in Realtor District 9 which stretches from South Beach and Mission Bay through SOMA, Inner Mission, Potrero Hill and Bernal Heights – SOMA is the area with the greatest number of these distress condo sales.

Another 30% occurred in the southern boundary neighborhoods mentioned above. The rest are scattered throughout the city. As of September 11, 2009, there were 30 active REO house listings and 22 active REO condo listings; there were 56 active short-sale house listings and 46 active short sale condo listings. REO and short-sale listings constitute 15% of the total active houses listed and 8% of the total active condos listed.

As of 9/11/09, there were 43 REO house listings and 31 condo listings that had accepted offers but not yet closed; there were 105 short-sale house listings and and 75 short-sale condo listings that had accepted offers but not yet closed.

Generally, REO sales take longer to close escrow than regular sales (think bank bureaucracy and paperwork) and short sales take much longer – 60 to 120+ days (add complicated buyer/seller/lender negotiations to bank bureaucracy) – which explains the high number of pending REO & short sales as compared to active listings and closed sales for these types of transactions. They just take a lot longer to close.

The median sales price for an REO/short-sale house was from $490,000 to $520,000 as compared to the general median house sales price of $730,000 (all sales) over the past year. The 20% of REO/short sales had a significant lowering effect on the overall median house price. The median REO condo sales price was $437,000; the median short-sale condo price was $539,000. The median sales price for all condo sales over the past year was $679,000.

San Francisco continues to have one of the lowest foreclosure rates in the state. According to DataQuick, in the 2nd quarter of 2009, there were 136 home foreclosures in the city (bank foreclosure repossessions, not bank resales of foreclosed homes) as compared to 1466 in Alameda County, 2048 in Contra Costa County and 6706 in Los Angeles County. On a per capita basis, the SF foreclosure rate was far below even Marin and Napa Counties.

Foreclosure Avoidance Counseling: The Department of Housing & Urban Development (HUD) offers free counseling services. You can find help understanding your options here: http://www.hud.gov/offices/hsg/sfh/hcc/fc/.

Loan Modification Programs: More information about government supported home loan modification programs can be found here: http://makinghomesaffordable.gov/.

Ever Wondered where all the Farmer's Markets Are?

2009-09-11T15:39:00.000-07:00

Alemany

100 Alemany Boulevard

Year Round:
Saturdays: Dawn to dusk, rain or shine

Bayview Hunters Point
3rd Street at Galvez
Mid-May to mid-November
Wednesdays: 8:30am to 12:00pm

Castro
Noe at Market

April 29, 2009 to October 28, 2009

Wednesdays: 4:00pm to 8:00 pm

Crocker Galleria

50 Post at Montgomery

Year Round:
Thursdays: 11:00am to 3:00pm

Divisadero

Grove at Divisadero

Year Round

Sundays: 10:00am to 2:00pm

Ferry Plaza

1 Ferry Plaza (Embaradero)

Year Round

Tuesdays: 10:00am to 2:00pm

Thursdays: 10:00am to 2:00pm

Saturdays: 8:00am to 2:00pm

Fillmore

O'Farrell at Fillmore

Year Round

Saturdays: 9:00am to 1:00pm

Heart of the City

UN Plaza Market between 7th and 8th Streets

Wednesdays: 7:00am-5:30pm
Sundays: 7:00am-5:00pm

Metreon
101 4th St @ Mission
Monday-Saturday: 10:30am-8:00pm

Sunday: 10:30am - 7:00pm

Inner Sunset

9th Avenue and Irving

June 7, 2009 to November 22, 2009

Sundays: 9:00am to 1:00pm

Kaiser Permanente

Geary at St. Joseph's Street

Year Round

Wednesdays: 10:00am to 2:00pm

Noe Valley

3861 24th Street

Year Round

Saturdays: 8:00am to 1:00pm

Parkmerced

Serrano at Arballo

Mid-May to mid-December
Saturdays: 10:00am to 2:00pm

Stonestown

3251 20th Avenue

Year Round

Sundays: 9:00am to 1:00pm

UCSF Mission Bay

Gene Friend between 3rd and 4th Streets

April 22, 2009 to November 25, 2009

Wednesdays: 10:00am to 2:00pm

UCSF Parnassus

505 Parnassus

January 7, 2009 to December 30, 2009

Wednesdays: 10:00am to 3:00pm

USF

Parker at McAllister

August 23, 2009 to November 22, 2009

Sundays: 10:00am-2:00pm

Stats for Sales of Homes in the $500,000 - $649,000 range

2009-08-26T12:52:00.000-07:00

San Francisco HOUSE Sales $500,000 - $649,000

October 15, 2008 – August 1, 2009

Total Sales: 356 (23% of the city’s house sales)
Total REO (bank-owned) Sales: 74

Known Short Sales: 48

This is the most active segment by volume for houses, and unit sales were up 41% year over year. Once again, most of the sales, 63%, occurred in the city’s less affluent southern neighborhoods: Excelsior, Portola, Crocker Amazon, Ingleside & Oceanview. But there were also 53 sales in the Sunset/Parkside districts, 21 in Bernal Heights, 17 in Sunnyside/Miraloma, and 6 in Glen Park.

21% of sales in this price range were REO sales. (In San Francisco, the higher the price range, the fewer the foreclosures.) The neighborhoods with the most REO sales in this price range were again on the southern border, Ingleside/Oceanview across to Portola/Visitacion Valley, though there were also a few each in the Sunset, Glen Park, Bernal Heights and Sunnyside.
53% of these REO sales went pending sale within 30 days of going on market (i.e. very quickly) to close at an average 6% above list price.

Median room configurations and sales prices, and average square footage and dollar per square foot for house sales by neighborhood.

• Bayview: 4-bedroom, 2.5 bath, 1669 sq.ft., $512,500, $325/sq.ft.
• Excelsior/Portola/Visitacion Valley: 3 bedroom, 1.25 bath, 1351 sq.ft., $558,000, $442/sq.ft.
• Sunset/Parkside: 2-bedroom, 1 bath, 1103 sq.ft., $615,000, $564/sq.ft.
• Sunnyside: 2-bedroom, 1bath, 1005 sq.ft., $600,000, $591/sq.ft.
• Bernal Heights: 2-bedroom, 1 bath, 1140 sq.ft., $595,000, $541/sq.ft.

The months-supply-of-inventory is a very low 2 months. High demand, low supply.

Wanna buy a House in SF $500,000 - $649,000?

2009-08-26T11:32:00.000-07:00

There are a few things you should know.

1. It's competitive. I have clients in contract for a SFH (single family home) in Parkside right now. We were the winning bid out of 9 offers - some of which were all cash offers.

2. Be prepared for some expensive repairs either immediately or within a year or two. Homes in this price range generally suffer from some form of deferred maintenance. The home I helped my clients purchase had a $36,000 pest report - which is not uncommon. The expense in this case was caused by rotten wooden stairs (patios, decks and wooden stairs covered by plaster are by far the most common reason for pest reports of this amount).

3. It REALLY helps to have a good agent. I know I know, annoying plug for the industry only it's true. Having a good agent can mean the difference between making 15 offers, only to lose out on all, and only having to make a couple (if there are nine offers on a property chances are one or two of those that wrote had good agents and still lost out).

A good agent with a good reputation in the business can be the difference between getting an offer or not. Think of it this way, if you are a listing agent in a competitive situation and have three offers, all similar terms and pricing (assuming you know you are at the highest price the market will bear); you are going to counsel your client to pick the offer with an agent who has a reputation for getting things done on time, without drama, and without messing around with you and your clients after you are in contract with them.

Which means: good buyer's agents with a great reputation are adept at qualifying their own clients as well as educating them properly about the neighborhood, local laws, what to expect and what is going to be expected of them during the escrow process, developing a rapport with the listing agent, all prior to the time they've made that offer that is sitting in front of you. And if you're a listing agent with a number of offers to sort through, it becomes apparent within moments who has their act together and who doesn't.

Which also means, asking your cousin who just happens to be an agent, and lives and works in Southern California, to write up your offer, is not really going to help you in the long run (and if your cousin is a good agent - they will be the first to tell you that).

Revamped SFOpenHomes.com now Live

2009-08-19T14:51:00.000-07:00

Per yesterday's post I recieved a couple of requests from readers looking for more info regarding SFOpenHomes.com. Since the site has JUST been revamped and is just in the beginning phase of being heavily promoted I thought it was a good time to let you know what this site can do that makes it different from SFGate (the online web companion to the Open Home section of the Chronicle).

The rebuilt site offers a plethora of new features some of the features incorporated into the new site include:

~ A new, consumer-focused look and design;
~ One-click open home reports (open homes this weekend and open homes this Sunday);
~ New search interfaces (quick search and an intuitive advanced search);
~ Easy-to-use flash-based map search;
~ Google map-view reports, in addition to more standard report layouts;
~ Search 2-unit buildings separate from 3- to 4-unit buildings;
~ Search for REOs, short sales;
~ Search for probates;
~ Search for green-certified properties.

I haven't spent as much time myself checking out the new features as I probably should have, but anything is an upgrade from the search filters at SfGate. Sorry Chron but it's bad...

Open Homes Listings in San Francisco [SFOpenHome.com]

Summer's coming to a Close - Fall Selling Season about to Begin

2009-08-18T10:56:00.000-07:00

And so is my hiatus from updating the blog. The time off has been spent wisely as we here at SFHomeBlog have been upgrading the site to a more user friendly interface, while still maintaining our sans advertisement policy.

In the meantime here are a few facts pulled from the 2009 California Association of Realtor Buyer's Survey's that I found of interest:

· On a scale of 1 to 10, 59% of all buyers rated the difficulty of getting a loan as 9 or higher.
· Main reason for dissatisfaction with agent: “did not negotiate aggressively” (83%)
· Why buyers were satisfied with their agents: quick to respond, negotiated a good deal, worked hard on my behalf, listened to what we needed
· 38% of recent home buyers were first time buyers (doubled from previous year)
· Only 37% of escrows closed on time!
· Average time spent considering a purchase, looking around, searching with an agent: over 25 weeks
· Only 13% of home buyers looked at a RE newspaper or magazine ad; 84% used the Internet

That last fact is the primary reason you are seeing less and less advertisements in the Open Home section of the Chronicle...almost all open house times and details can be found at www.SFOpenHomes.com now. It's also the primary reason you'll be seeing riders all over the city pointing buyers to that web site and less and less agents making the choice to spend their marketing budget on expensive and inefficient print advertising. Now if we could just insist that all agents (and you know who you are out of area agents that dont put photo's in) reinvest in high quality photography ...

Open Homes Listings in San Francisco [SFOpenHome.com]

Manic episode triggers $2600 fine from HomeOwners Association

2009-07-18T06:53:00.001-07:00

If you've ever wanted to know anything about HOA rules and regulations - what's legal and what isn't - I highly recommend subscribing to Davis-Sterling's newsletter. They are a law firm that specialize in the often gray area of Condominium HomeOwners Associations in California. Their weekly newsletters are full of what amount to hilarious (but more often legitimate) questions and answers. I keep meaning to post about swim diapers and how the Center for Disease Control has strictly banned them as well as non toilet trained kiddies from public pools.

MANIC BEHAVIOR
QUESTION: When I was manic last year, I put trash in front of another homeowner's door and during the period of one hour, I walked back and forth to her door 13 times which was on the surveillance camera of the pool deck. The board fined me 13 x $200 = $2,600 saying it was justified even though it was one incident. Now they are threatening to file a lien on me if I don't pay it in 30 days. They refused internal dispute resolution and alternative dispute resolution. Can they refuse my request?
ANSWER: Your manic behavior probably scared the daylights out of everyone and earned you a well-deserved fine. The size of the fine may or may not be deemed reasonable by a judge. It will depend on whether the judge believes your actions constitute one incident or 13 incidents. You're lucky the owner didn't seek a restraining order. Regarding the threat of a lien, the board cannot lien your unit for unpaid fines. Civil Code 1367.1(e) As for ADR, the board is not required to accept your request for mediation or arbitration. However, the board should not refuse your request for "internal dispute resolution."

Reprinted from Davis-Stirling.com by Adams Kessler
Previous Newsletters and to sign up [Davis-Stirling.com]

San Francisco #10 Top city worldwide?

2009-07-12T08:48:00.000-07:00

Ever wonder who makes up San Francisco? Thinking of moving here? Here are a few of the statistics...

Population: 809,000 2nd most densely populated city in US (after New York) and there are an estimated 120,000 dogs in this city which means roughly 14% of San Franciscans have a canine best friend.

51% are male 49% are female (and only 16% are gay/lesbian - but it can feel like a lot more to the single women around here). We do have, and proudly so, the highest percentage of same sex-households of the 50 largest US cities.

13% are 14 years old & under
San Francisco has the lowest % of children of any large US cities.
72% are 15 to 65
15% are over 65

53% are Caucasian (non-Hispanic)
32% Asian American
14% Hispanic American
7% African-American

46% speak other than English at home
26% speak Asian language at home
12% speak Spanish at home
7% speak other Indo-European language
37% born in California
27% in another US state
6% born outside of US
16% are not US citizens

54% registered as Democrats
11% as Republicans
4% as Green
28% Decline to State

Travel and Leisure magazine just ranked us #10 of the Worlds Top Cities Overall...but I have to say having lived in Sydney for several years (which ranked #11) and SF I'm gonna have to say Sydney almost has us beat - just on the weather, a bigger prettier bay, and a lot more trees - but I suppose I did settle back here to my hometown so. Back to SF being #10 but it's a really close call.

2009's World's Best Cities -Top 10 Cities Overall [Travel & Leisure Magazine]

No loans for Sellers with Undocumented Income

2009-07-10T14:18:00.001-07:00

The exact reason No Income Verification loans were created in the first place is the exact challenge now facing numerous potential homeowners who no longer can get a loan - unless you know a R E A L L Y good mortgage broker who has a personal and private relationship with some good banks. Oh, and by the way - this is also the same reason Chris Daly's rental assistance law is diabolical. There's no way to account for undocumented income...

With more than $300,000 in combined annual income, tens of thousands of dollars in the bank and credit scores that top 800, Jennifer France and her partner would seem like ideal candidates for a mortgage refinance. But when they applied to swap an interest-only loan on their nearly $1 million San Carlos home for a 30-year fixed that locked in today's low rates, they were summarily denied. The reason: effectively, because both operate their own businesses.
"I was really surprised, I had been preparing to refinance for years," said France, a landscaper and gardener. "It's hard for the self-employed; that puts us in a bind."

While the amount they make is easily enough to qualify for the new loan, tax deductions for self-employed workers dropped their official income below the threshold that banks wanted to see. A few years ago, theirs would have been the ideal scenario for a stated-income or no-documentation loan, which allowed individuals with ample but unconventional sources of income to secure home loans. But after untold numbers of borrowers lied about their financial wherewithal to buy homes they couldn't afford, often with a wink and nod from mortgage brokers, nearly all lenders stopped offering what became known derisively as "liar loans." Now even the well-qualified borrowers for whom the products were first intended can't get them. [more]

Undocumented income makes it hard to get a loan [SFGate]
The Giant Pool of Money - Hands-down best description of the Credit Crisis [SFHomeBlog]
Daly's Draconian Renter's Relief Package Passes [SFHomeBlog]

Bad News for Mission Bay - Pfizer pulls out

2009-07-07T08:21:00.000-07:00

SAN FRANCISCO — The world’s largest drug maker has abandoned plans to move into a new research center in San Francisco’s burgeoning Mission Bay neighborhood. What was hailed last summer by Mayor Gavin Newsom as a “significant win” in the development of Mission Bay is now a loss for the area, which has attracted numerous life science companies in recent years as a result of payroll tax breaks offered by The City.

Pfizer had planned to take up a bulk of a new building on the corner of Third Street and Mission Bay Boulevard. The company negotiated a 15-year lease with the builders, Alexandria Real Estate Equities Inc., and said they planned to move 100 employees there from their South San Francisco office in early 2010. Newsom announced the deal in August 2008, alongside Corey Goodman, the president of Pfizer’s Biotherapeutics and Bioinnovation Center, who said the move would position the center for success. Signs that the deal could be in jeopardy surfaced in November, when Alexandria announced they would be putting two Mission Bay properties on hold, but would not elaborate on the specific sites. Goodman then unexpectedly resigned in April — just months after Pfizer acquired drug maker Wyeth in a $68 billion deal. A spokeswoman for Pfizer, Joan Campion, said the company did notmake its decision based on recent leadership changes, but by analyzing its real estate holdings after acquiring Wyeth. “Economics was a factor,” Campion said. The fate of the building is still unknown. A public relations firm for Alexandria Real Estate Equities did not return calls for comment.

Pfizer drops plans for Mission Bay facility By: Brent Begin [Examiner]

Oooh Oohh Green Couch Warehouse sale Today

2009-07-03T08:15:00.000-07:00

Green Couch, one of my favorite staging companies in the city is dropping a chunck of their inventory today in a one day only sale from 11am to 4pm. Now if only Ken Fulk would jump on the 'letting go' summer bandwagon I would be in decorators heaven.

Come start the Fourth of July weekend with NEW furniture. Great prices on high end furniture used only for staging homes in the Bay Area. IN WITH THE NEW!www.greencouch.com Friday July 3rd 11:00 to 4:00 744 alabama (@ 20th st.) Kick off the 4th of July weekend with a new sofa, coffee table, artwork, etc. Pictures attached are examples of what you'll find tomorrow work!

Going going Gone - $10k CA Tax Credit Used Up (with a caveat)

2009-07-01T10:00:00.000-07:00

So for those of you who follow me on twitter you will have seen this last week. For those of you who were trying to get that tax credit under the wire, chances are you were watching it daily - like me. My client who bought at the Arterra got his tax credit request faxed in the day before the Franchise Tax Board reported they had reached their limit of $100 million in credits issued. On Monday the FTB web site issued this new statement:

Tax Credit for New Home Purchase Important update (06/29/09):
As shown in the numbers below, we have reached $100 million in new home credit applications. Because many of these are duplicates, revised, or invalid, we plan to receive 12,000 applications. This will ensure we have more than enough valid applications to allocate the full $100 million.

These additional applications will be subject to the availability of remaining credits. Now that we have received 11,000 applications, we will update this page each business day with the total number of applications received. We will no longer accept applications once we have received 12,000, and the fax service will be disconnected. We will continue to report certificates issued on a weekly basis until the full $100 million has been allocated. We expect to complete processing all certificates inAugust. We will send a notification in response to all applications received, indicating th amount of credit allocated or denied.
***Important update (07/03/09): FTB No Longer Accepting Applications

Tax Credit for New Home Purchase [Franchise Tax Board]
$10,000 Reasons to Buy a New Development this Year [SFHomeBlog]
The Countdown Begins [SFHomeBlog]

Dept of Real Estate issues fraud warning on Loan Mod's

2009-06-24T16:23:00.000-07:00

The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.

It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.

C.A.R. also has learned of what appears to be a loan modification assistance program and lead generator, from a company using the legislative bill number 3648, that looks as if it’s a government entity, complete with a misleading seal closely resembling a governmental seal but that is not affiliated with the government. C.A.R. cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful. More info

California Department of Real Estate - Fraud Alert [DRE.Ca.Gov]

Daly's Draconian Renters Relief Package Passes - Mayor veto coming

2009-06-24T12:28:00.000-07:00

It's basically on Beven Dufty and Sophie Maxwell who does not have to vote for now...to make sure it does not end up in a veto-proof vote. I have no problem with certain aspects of rent control (although there's a decent argument that it hurts more than it helps) - but this measure weights all the burden, including the burden of proof on one end of the population so completely I cannot believe it's even legal. Sane people do not just think that a tenant who opts to work half time - or ends up with half their income coming from under the table is not going to apply for a reduction in rent and get it - with no recourse on the property owners part...uh, where's the sanity in that?

Oh yeah, it's a Daly proposal what was I thinking...calling for sanity.

Rent Plan Promises Relief - to Lawyers [SF Buisness Times]
Proposed Laws for SF Renters + Mayor Weighs In [SFHomeBlog]
Beware of Supervisors Bearing Gifts - Jeff Woo [SFGate]

Board to Vote on Daly's Renter's Relief Tuesday June 23rd

2009-06-20T13:13:00.000-07:00

Supervisors Will Vote on Renters Economic Relief Package June 23. Vote Delayed Pending FPPC Decision on Maxwell Conflict. The Government Audit & Oversight Committee approved the Renters Economic Relief Package forward at its hearing on May 28 and forwarded it to the Board for a full vote on June 23. The committee adopted some amendments to the package, most significantly limiting the rent increase suspension to periods when the unemployment rate dips below 5%. The full Board vote was delayed to June 23, so that the Fair Political Practices Commission can issue a written decision as to whether or not Sup. Sophie Maxwell–a landlord who usually votes pro-tenant–can vote. Maxwell sought to be recused but there is some dispute as to whther or not she has a conflict of interest under state laws. If the legislation is to survive a Newsom veto, then Maxwell must be able to vote (and then vote for it). Maxwell is typically the 7th vote and Sup. Bevan Dufty would also haveto support it to reach the 8 votes needed to override a Mayoral veto.

The package of amendments to the city’s rent control law consists of three parts:
•Suspend any rent increases which will cause a tenant’s rent to exceed 33% of their income. This provision expands the law’s existing provision which enables the Rent Board to suspend rent increases based on “tenant hardship” by expanding when a tenant can apply for hardship and defining hardship as any rent increase which would cause a tenant’s rent to exceed 33% of their gross income.
•Expand the rights of tenants to add roommates to help pay the rent. This provision will let tenants bring in roommates so that the rent will be more affordable. The number of roommates would be limited by San Francisco Housing Code provisions which establish occupancy limits based on the size and number of bedrooms in an apartment. Currently landlords are able to limit the number of tenants to levels below what the law allows.
•Limit the amount of “banked” rent increases which can be imposed in any one year. Current law allows landlords, to “bank” annual rent increases and impose them all at once at a later date, often resulting in rent increases of 20% or more. This provision will limit these banked rent increases to no more than 8% in any one year.
Supervisors will vote on Renters Economic Relief Package [SF Tenants Union]
Proposed Laws for SF Renters + Mayor Weighs In [SFHomeBlog]
Beware of Supervisors Bearing Gifts - Jeff Woo [SFGate]

New Ban on Permanently Installed Wooden Utility Ladders

2009-06-18T11:56:00.000-07:00

Wooden fixed utility ladders are now illegal in San Francisco. These ladders were commonly added to buildings constructed in the City during the 1930's and earlier. They were never part of a building's fire escape system; but they often were installed as a 'convenience' to building owners who wanted roof access without bringing a portable ladder to the site.

These ladders are now prohibited on residential buildings and must be removed with a proper building permit (click here for ordinance text).

General Contractors Inspection Service [GCIS]

Ordinance Amending the SF Housing Code [SFGov.org]