Archive for the ‘best performing housing markets’ Category

Think Long-Term: Best Performing San Francisco Real Estate Investments

 

This past week, 2470 Broadway in Pacific Heights came on the market in San Francisco with a $6,995,000 list price. Purchased by the current owner in 1976 for $176,000, this price represents a nearly 10% average annual appreciation. It’s a story not dissimilar to that of the former Alioto mansion at 2898 Vallejo, purchased in 1973 for $225,000 and sold in 2013 for $11,700,000. These long-term real estate holdings with appreciation rates well above the San Francisco average left me wondering: Which neighborhood (and what property type therein) is the best long-term investment, historically?

Comparing neighborhood median sales price data for single-family homes and condos/co-ops/TICs, respectively, from 1993 (the earliest available data from the San Francisco MLS) to 2015 YTD medians and calculating the average annual appreciation from January 1, 1993 to September 25, 2015 revealed some surprising findings. North Panhandle (11.03%), Hayes Valley (10.94%), Inner Mission (10.31%), Haight Ashbury (10.05%) and Buena Vista / Ashbury Heights (9.81%) represent the five top-performing single-family home markets in San Francisco during that period. With regard to condos/co-ops/TICs, Downtown (10.19%), Haight Ashbury (9.67%), Anza Vista (9.29%), Inner Mission (8.87%) and Mission Dolores (8.87) compose the five top-performing markets since 1993.

It’s been said that San Francisco real estate is a better investment than the stock market. With nearly half the markets analyzed having average annual appreciation above 7% — the assumed long-term average annual return of a diversified stock portfolio — it appears to be true! Check out this CNN Money calculator and see how your home’s appreciation compares, and click below for neighborhood data.

 

northwest

Central Richmond, Inner Richmond, Jordan Park / Laurel Heights, Lake Street, Outer Richmond, Seacliff, Lone Mountain

central west

Golden Gate Heights, Outer Parkside, Outer Sunset, Parkside, Central Sunset, Inner Sunset, Inner Parkside

southwest

Lake Shore, Merced Heights, Pine Lake Park, Stonestown, Lakeside, Merced Manor, Ingleside Heights, Ingleside, Oceanview

twin peaks west

Balboa Terrace, Diamond Heights, Forest Hill, Forest Knolls, Ingleside Terrace, Midtown Terrace, St. Francis Wood, Miraloma Park, Forest Hill Extension, Sherwood Forest, Monterey Heights, Mount Davidson Manor, Westwood Highlands, Westwood Park, Sunnyside, West Portal

upper market

Glen Park, Haight Ashbury, Noe Valley, Twin Peaks, Cole Valley / Parnassus Heights, Buena Vista / Ashbury Heights, Corona Heights, Clarendon Heights, Duboce Triangle, Eureka Valley / Dolores Heights, Mission Dolores

central north

Anza Vista, Hayes Valley, Lower Pacific Heights, Western Addition, Alamo Square, North Panhandle

north

Marina, Pacific Heights, Presidio Heights, Cow Hollow

northeast

Downtown, Financial District / Barbary Coast, Nob Hill, North Beach, Russian Hill, Van Ness / Civic Center, Telegraph Hill, North Waterfront, Tenderloin

central east

Bernal Heights, Inner Mission, Mission Bay, Potrero Hill, South of Market, Yerba Buena, South Beach, Central Waterfront / Dogpatch

southeast

Bayview, Crocker Amazon, Excelsior, Outer Mission, Visitacion Valley, Portola, Silver Terrace, Mission Terrace, Hunters Point, Bayview Heights, Candlestick Point, Little Hollywood

 

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Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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Potential. Potential. Potential.

 

With local listings on realtor.com viewed up to three times more frequently than those in other US cities, San Francisco once again takes the top spot among The 20 Hottest Real Estate Markets in 2015. As you can imagine, homebuyers’ fierce competition is resulting in some serious overbids. In 2015 year to date, the vast majority of homes for sale are receiving multiple offers — I can speak from my own experience and share that every single transaction (excluding off-market sales) I’ve been involved in this year has been a multiple offer situation.

 

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11 Hiliritas Avenue in Glen Park (pictured above) recently sold for nearly 70% over asking price, and it’s representative of a trend in the marketplace: High Potential = High Competition, particularly in San Francisco’s southern neighborhoods like the Inner Mission, Bernal Heights and Noe Valley. See the Top 20 recent overbids here and count how many fixers are in the Top 10. How much of a premium would you pay for a property “with potential”?

This listing at 2149 Castro Street in Noe Valley, sold for 31% over asking, gave potential buyers an artist’s rendering of the home’s potential:

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Then there’s this teardown candidate in Noe Valley at 311 28th Street on the market for $1,599,000. There aren’t any approved plans or permits — use your imagination and envision a high-tech mega-mansion:

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With any luck, the new owner of 311 28th Street could flip it and make a hefty profit. This flip in the neighborhood at 752 Duncan Street recently sold for 3.85 times its 2012 purchase price, just shy of $5 million:

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Then, there’s this fixer which just sold for close to $1 million over asking price at 1072 Noe Street:

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Virtually every property trading in Noe Valley is selling for more than list price!

With so little housing stock currently on the market and so much wealth to invest in one’s home, there may be a new adage in local real estate: Potential. Potential. Potential.

[Not all of San Francisco is seeing eye-popping overbids, however. And sometimes, you can even buy a turn-key home for less than asking price — See the Top 20 recent underbids here.]

Just for fun: Take this quiz to see which San Francisco neighborhood you should live in.

 

Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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Cesar Chavez Street Improvement Project Honored

Before & After CC Ave Project Improvement

Before & After Cesar Chavez St. Project Improvement, Photo Credit: Kimberly Chua

 

Neighbors are celebrating the completion of the 3 year transformation of Cesar Chavez Street! It’s happening Wednesday, January 29th @ 11AM with  ribbon cutting celebration for the safety and street scape improvement project.

Re-named Cesar Chavez Street in 1995 to reflect the passion and cultural shift in the area, the avenue’s original name Army Street,was first designed as a car-centric thoroughfare to connect Twin Peaks and western San Franciscans to a second Trans Bay Bridge development. Years ago, the city and environmentalists shot down the original second bridge design.

2nd Bridge map

2nd Bridge map, Photo Credit: Todd Lappin

Nevertheless, Cesar Chavez Street cuts through the Mission and Bernal Heights neighborhoods and the three lanes of traffic going each way was an unattractive river of concrete to cross if you were on foot.  Despite differences between local special interest groups who wanted easy commuter access, car parking restrictions, traffic calming, school children and cyclist travel safety, and creek daylighting, compromise was reached.

Now, the neighborhood will enjoy:

  • A Road Diet: Three lanes of traffic reduced to two in each direction
  • Left-turn pockets for vehicles
  • A bike lane added in each direction
  • A fourteen foot planted median in the middle
  • Every corner has pedestrian treatments, including bulb-outs, better crosswalks and storm-water catchment planters
  • The end of Capp Street at Mission Street is now a plaza and with crossing distances reduced
  • Upgraded Street Lighting with LED bulbs
  • Sewage & Storm water drainage management

Spearheading civilian interests, Fran Taylor of CC Puede, a local grassroots group, shared her patient success with SF.Streetblog.com reporter Aaron Bialick.

“For me, the most important improvement has been the elimination of the double left-turn that used to feed traffic from southbound Bryant onto eastbound Cesar Chavez and the freeway ramp, making the pedestrian crossing on the east side of Chavez a death-defying experience,” she said. “The median, especially now that it’s landscaped, makes the street feel smaller and cozier.”

Public Service Plan

Public Service Plan, Photo Credit: Rigoberto Hernandez

Bialick has been tracking Taylor’s and others efforts to challenge the status-quo of an outdated plan for Cesar Chavez Street and to serve its local neighbors.

Taylor’s efforts are a success. The intention for Cesar Chavez Street has been re-envisioned to enhance quality of life for the neighborhood, promoting ecological functionality in balance with high-volume traffic patterns. Enhanced greenery, trees and landscaping thanks to our Friends of the Urban Forest, evolved an auto artery into a low impact zone, transforming the livability of the neighborhood. Taylor continues the conversation with SF.Streetblog.com reporter Matthew Roth. “It could be good that it’s taken three years because people have had time to get use to the project.”

Coming together to make the best of a long term public project that impacted residents with noise, dirt and traffic, it seems to me that everyone came out a winner.  We’ve vastly improved the sewer system, created a better traffic flow with bike lanes, and there’s trees and plants where once there was only concrete.  Now on pleasant and safe walks from Precita Park to 24th Street, it is a vast difference for all to enjoy.  Safety, quality of life and neighborhood property value increases are immediate benefits of this project’s completion.

Community Action Planning

Community Action Planning, Photo Credit: Todd Lappin

Join in the celebration Wednesday, January 29th @11AM at the Si Se Puede Plaza in front of the popular eatery The Palace Steak House. To read more on the development of the plan, visit http://www.sfhomeblog.com/2010/05/cesar-chavez-sewer-streetscape-improvement-project-update.html.

References:

http://sf.streetsblog.org/2009/02/04/unclogging-the-caesar-chavez-traffic-sewer/

http://bernalwood.wordpress.com/2013/08/14/a-brief-history-of-how-cesar-chavezarmy-street-became-so-awful-in-the-first-place-3/

http://bernalwood.wordpress.com/2014/01/28/wednesday-cesar-chavez-ribbon-cutting-ceremony-to-celebrate-our-new-infrastructure/#comments

 

Rita Roti is a broker associate / assistant manager at Zephyr Real Estate and can be reached at Rita@ritaroti.com.

 

 

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2014 San Francisco Real Estate is on the Rise…Literally!

City Limits Rise

City Limits Rise

In 2014, the San Francisco skyline will adapt to the high demands for housing. As the country’s top-ranked market construction pipeline, San Francisco has approved the addition of 43, 850 new residential units, many following the trend of micro-housing. For an expanded view, roughly only 35,000 units have been constructed in the city by the bay over the past 14 years. Supporting a thriving bay area economy, positioned by an increase in equity capital and a hot job market, San Francisco’s “sustained improvement in the underlying economic fundamentals” is not the key to its klout says Peter Walker of UrbanLand Institute.  Simple timing and the pace of interest rates are developer’s tickets to rising returns, announced by experts from Emerging Trends in Real Estate.

Foreign investors, institutional investors and private equity financing have flooded the housing market, issuing a “solid buy” stamp for all property types in the gold rush city. 13% of the US real estate market transactions between January and August 2013 were compliments of foreign flex dollars. Furthermore, the increases in available debt from insurance companies, mezzanine lenders and issuers of commercial mortgage-backed securities have the highest bidders snapping up major parcels in hot neighborhoods of South Beach, Mission Dolores and Hayes Valley.

Blanca Torres, reporter for the San Francisco Business Times shares her research. “California was among a handful of states particularly hard hit by the housing bubble, seeing home values decline by 45 percent statewide, according to an analysis by the American Action Forum, a center-right policy institute. San Francisco notably stands as one of the most improved hard-hit markets.”

The next Gold Rush?

The next Gold Rush?

Confidence is spawning as promises of positive results spread to secondary markets. With many developments scheduled to be completed by 2017, if experts are accurate, the keys to success of these billion

dollar developments are simply time and the federal government. Thus, the dawn of the new San Francisco horizon will fulfill its historical destiny of boom or bust!

The next BIG conversation surrounds the basic infrastructure of the city and how it plans to sustain the environmental impact of the additional residents. Stay tuned…

 

References:

http://urbanland.uli.org/economy-markets-trends/san-francisco-is-top-market-for-2014/

http://www.socketsite.com/archives/2013/01/the_43580_units_in_san_franciscos_housing_pipeline.html

 

Rita Roti is a broker associate / assistant manager at Zephyr Real Estate and can be reached at Rita@ritaroti.com.

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San Francisco Real Estate and the Holidays

Happy Holidays from San Francisco!

Happy Holidays from San Francisco!

Are you thinking of buying or selling your home? Perhaps you’re expanding and considering your current home as an investment property and entering it in the rental market? The 4th quarter is historically filled with low-inventory and quiet real estate offices. The holidays are a wonderful time to begin exploring your options.

To begin, set your financial house in order. File tax returns early to ease the process and align with a trusted mortgage lender. Connect with your financial planner to gage stock option sale limits and advantages.

Next, engage a San Francisco realtor. Reach out to friends and family or visit Yelp for community reviews. Most importantly interview a few experienced agents to find a comfortable relationship. Agents will schedule a no obligation initial meeting to discuss your needs and present their skills, strategy and network of professionals to aid in your property transition. A strong realtor is a resource, listening to your interests and priorities to best leverage their knowledge and experience in your market place.

The value of a realtor rests in advising informed decision making, negotiating contracts, competitive advantages and mitigating risk. The holidays are an excellent time to build a relationship with an agent. The limited competition gives agents the extra time and edge to gather property comparisons, market knowledge and customize a team of real estate professionals to represent your interests.

An agent’s thorough preparation prior to sale offers tools to increase the value of your home. A talented realtor will schedule a walk-thru of your property and suggest maintenance and improvement upgrades to maximize your return on investment. An agent will advise on market timing and conditions and design a comprehensive marketing presentation, including home staging, internet marketing, traditional marketing and activate industry networks to improve matching buyers and sellers.

The rental market in San Francisco is amazing. Would you like to be advised on the value of your property in the rental market? According to Colliers Research Report, all rental markets are showing growth of 12% over the past 12 months. This may warrant keeping your current property and expanding to a new one. A seasoned expert will address your lifestyle needs and financial interests to secure a smooth and successful transition.

Beginning the process of buying, selling or renting your San Francisco real estate over the holidays, results in an organized, detailed and opportunistic endeavor. To schedule a no expectation conversation with Zephyr Real Estate Broker and Assistant Sales Manager Rita Roti, please email rita@ritaroti.com or call (415)432-2114. Cheers and happy holidays!

Rita Roti is a broker associate / assistant manager at Zephyr Real Estate and can be reached at Rita@ritaroti.com.

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