Archive for the ‘sellers market’ Category

San Francisco Market Overview: September 2015

 

September is historically the month San Francisco sees the greatest number of new listings come on the market, and this year it hasn’t disappointed! Since the 1st of the month, more than 800 single-family homes and condos have hit the market, blowing last year’s count out of the water. Further sweetening the situation for prospective home buyers, there are more condos for sale now than any time in the past two years and the most sub-million dollar single-family homes we’ve seen all year.

While median prices for both property types have remained consistently above $1,000,000 for the past seven months, the month-over-month rate of appreciation has cooled recently leading some economists to believe the market is leveling off. Still, there are plenty of buyers out there and the key to home values will continue to be the pace of job growth. On that note, employment is at a record high in San Francisco, and the East Bay (where many people priced out of SF are already putting increasing pressure on the housing market) is in for some major job growth in the coming months, years and decades.

Uber’s recent purchase of the former Sears building in downtown Oakland could prove a huge boon for the city. Aside from the estimated 600 new residents it will bring to the East Bay, it could open the floodgates for startups to establish headquarters in the area. Additionally, Berkeley has a billion-dollar real estate pipeline — one of the largest building booms in its 147-year history — that’ll bring jobs and residents to the area over the next 40 years. If conventional wisdom is correct, the real estate market in the East Bay will be heating up — way up!

A recent study by rental website Zumper found that for every $1 billion in venture capital injected into a local economy, 1-bedroom rents will increase $69 per month, and 2-bedroom rents will increase $99 per month. In San Francisco, $1,069 or 33% of a median 1-bedroom rent can be attributed to this stimulation. As housing prices accelerate around the Bay Area, it should become increasing clear that the housing crunch is a regional issue rather than a strictly San Francisco one, and the solution to it will be best achieved in a coordinated effort.

 

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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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Triple-Digit Temps, Six-Figure Overbids

 

It’s heating up — and I’m not just talking about the triple-digit temperatures around the Bay Area!

More than 145 properties have come on the market in San Francisco in the past seven days, signaling what promises to be a heated post-Labor Day selling season for local real estate. September is historically the biggest month for new listings, and while some things change — year-over-year lower inventory, fewer average days on market, higher median prices, etc. — this looks to be one trend that’s remaining constant.

 

Already this month, nearly a dozen homes have traded for 30% or more over list price; Even with the forthcoming wave of new inventory, sellers who price and market right have a good shot at realizing six-figure overbids. This article from the Wall Street Journal outlines some ways both home sellers and buyers can succeed at bidding wars, surely implemented with success by the sellers of some of San Francisco’s Top 20 Overbids.

Those competing for these properties are primarily high-paid tech professionals (the number of employed San Francisco residents is at a record high) and overseas buyers looking for investment properties. Just recently, San Francisco was named as one of the top cities for Chinese investors. Meanwhile, economic volatility abroad is underscoring the safety and profitability of real estate as an investment, and San Francisco real estate in particular has a proven track record of resilience. With that said…

Two looming events may impact local market performance in the next few weeks: interest rate hikes mandated by the Federal Reserve, and new disclosure rules effective October 3rd that will (at least temporarily) lengthen the escrow process. How will these play out? We’ll have to wait and see.

Are you getting my monthly San Francisco newsletter? You can subscribe here.

 

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

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Quantifying the ROI of San Francisco Real Estate

 

Just how much have San Francisco home values increased since the market recovery began? Try 76 percent!

 

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Clocking in at $1,160,000 and up half a million dollars since 2011, the growth of the city’s median combined home & condo price is nothing short of dramatic — and it’s not even the highest percentage appreciation in the Bay Area. Solano, Alameda and Contra Costa counties measure up with growth over 80%, and Oakland takes the cake at 133%. Checkout how median home and condo prices have increased across San Francisco neighborhoods:

 

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Year to date, there’s been a 144% increase in the number of single-family homes sold in San Francisco for $5,000,000 and above (44 units compared to 18 YTD in 2014). Consumer confidence is riding high and there’s a new breed of luxury homebuyer that favors comfort over opulence, as evidenced by neighborhoods like The Mission, Glen Park and Bernal Heights leading in appreciation.

The number of condo resales in the $2,000,000+ range is also up significantly YTD compared to last year. A total 107 units have sold so far in 2015 representing a 78% increase. Keep in mind that this number would be larger if sales at new luxury developments like LUMINA, 72 Townsend, Amero and Rockwell were counted. As it stands, Russian Hill holds its place as the most coveted neighborhood for condo buyers:

 
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CNN Money recently launched this interactive calculator below allowing homeowners to compare the appreciation of their property to the returns of stocks, bonds and the average US home. Click here to plug in your numbers and see the results.

 

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With so much hype in the media about the unaffordability of San Francisco real estate as the prices reach new record highs month after month, there’s a surprising truth: the annual cost of a mortgaged median price house is actually lower now than at the last peak in 2007. You can thank historically low mortgage interest rates for that!

 

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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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Sunset Boulevard Greenway Project

Sewer Improvement Project

Thanks SFPUC for the photo!

 

Happy Earth Day! A trend is forming in San Francisco.

Originating in the Outer Mission and approved in The Castro, The Sunset District has secured resident’s support of San Francisco Public Utilities Company’s storm water improvement project. Both SFPUC and local property values will benefit from the funding allotted to the improvement of sidewalk landscapes.

To conquer “Greening” the environment, the beautification and storm control of The Sunset neighborhood began in early April. Initiative leader Supervisor Katy Tang of District 4 has mobilized over 40 volunteers, Front Yard Ambassadors, to accomplish the goals of the Sunset Boulevard Greenway project.

Community residents are helping to not only “Green” their yards but are also supporting the environment. Partners Friends of the Urban Forest and the Surfrider Foundation are advising the project. Steering the selection of drought resistant and native plants, the project aims to reduce rain flow into the delicate and aging sewer system, while also beautifying the neighborhood. By replacing concrete slabs with gardens, lovely succulents and low maintenance vegetation drain excess water away from the sewer system. These natural and silent champions are the key to supervisors Katy Tang and SFPUC’s mission.

“Helping San Francisco Residents manage storm water on-site is just one of the many approaches that the SFPUC System is taking on as part of its Sewer System Improvement Program.” Rachel Kraai SFPUC

The Sunset District’s natural environment lends itself very well to the success of this program. Full-scale design and construction are set for completion in Summer 2015. Best of luck with your efforts and thanks for making the city and planet more eco-friendly!

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

 

Front Yard Ambassadors

Help our Front Yard Ambassadors!

Thank you SFPUC Sewer System Communications Team for the photos!

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 Watch the first planting design video, HERE!

 

 

 

 

 

 

 

 

Thanks for the video Front Yard Ambassadors Program and San Francisco Public Utilities Company for the great information resources!

Sunset Front Yard Ambassadors Program Video

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Inventory is low, it’s no joke!

7dayMLSComparisona Chart3Weekly, I pull the numbers. and currently our San Francisco inventory is at a lower point than even last year at this time! With low interest rates and low inventory,  if you or someone you know are considering selling, this could be a great opportunity! Let me know if you would like to discuss your options.

 

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

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