SFHomeBlog.com - A San Francisco Real Estate Blog

Oooh Oohh Green Couch Warehouse sale Today

mm@meredithmartin.com (Meredith Martin) — Fri, 03 Jul 2009 15:15:00 +0000

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)

mm@meredithmartin.com (Meredith Martin) — Wed, 01 Jul 2009 17:00:00 +0000

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.

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

mm@meredithmartin.com (Meredith Martin) — Wed, 24 Jun 2009 23:23:00 +0000

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

mm@meredithmartin.com (Meredith Martin) — Wed, 24 Jun 2009 19:28:00 +0000

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

mm@meredithmartin.com (Meredith Martin) — Sat, 20 Jun 2009 20:13:00 +0000

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

mm@meredithmartin.com (Meredith Martin) — Thu, 18 Jun 2009 18:56:00 +0000

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]

2009/2010 Property Tax Appeals Close August 28th 2009

mm@meredithmartin.com (Meredith Martin) — Thu, 11 Jun 2009 19:01:00 +0000

If you believe your home may be eligible for a reduction in property taxes based upon a decline in value, there are two ways to go about it. An informal review by the Assessor's office and/or a formal appeal with Assessment Appeals Board. The formal appeal, can be a complicated and time consuming but may be worth the effort for the savings in property taxes. Typically, the Assessor's "valuation date" is January 1, 2009 and any sales comparables submitted must have closed before March 31, 2009.

Very generally (it all depends on the neighborhood and other details), homes purchased 2006 through mid-2008 probably have the best case for property tax reduction. The less affluent areas of the city typically peaked in value around 2006 and the more affluent in 2007 - 2008. Declines from peak value generally run in the 10% to 30% range, with the less affluent southern neighborhoods being hit with the largest reductions.

If your appeal is successful, the reduction in assessed value only applies to the 7/1/09 - 6/30/10 tax year. A decline-in-market appeal is only good for 1 year, the year for which it is filed. You have to refile every subsequent year.

Informal Review
The Assessor's Office is now accepting, through 8/28/09, "Requests For Informal Review Of Assessed Value" for tax year 2009/2010. This applies only to single-family dwellings, residential condominiums, townhouses, live-work lofts and cooperative units. The SF Assessor's website offers information regarding Decline-in-Value Informal Reviews:
SF Assessor's Office Forms and FAQs

Formal Appeal
The next open formal appeal filing period for San Francisco will be July 2, 2009 to September 15, 2009 -- to appeal the 2009/2010 assessed value of your property. A formal appeal can be made for multi-unit and commercial properties, as well as for houses, condos & cooperative units.These 2 websites offer details regarding the filing of a formal appeal - the instructional videos are highly recommended for those who wish to proceed:
SF Assessment Appeals Board
Informational Videos on Property Tax Appeals

Warning on Scams
There are a number of property-tax-appeal service companies, who have been sending out their solicitations on stationery that suggests a government agency affiliation. SF Assessor-Recorder Phil Ting has stated the following:"We've received reports from dozens of taxpayers who have received a letter from companies offering to facilitate the property tax reassessment for $179 [or more]. This is unnecessary and deceptive. Taxpayers can fill out a simple, one-page application for a review of their property in my office, free of charge, starting on April 15. There is no need to pay for this service." Many of the solicitations received by San Francisco homeowners may be illegal. More on this subject:
Home Reassessment Scams a

Apply for Informal Review of Assessed Value for 2009-2010 Tax Year [SFGov.org]
Peak Value vs Current SF Value Feb 2009 [SFHomeBlog]
Revised: Peak Values vs. Current SF Prices - Single Family Homes [SFHomeBlog]

Voter Approved High Speed Rail - It's coming to SF

mm@meredithmartin.com (Meredith Martin) — Thu, 11 Jun 2009 18:49:00 +0000

South of Market Residents have a new reason to lose their cars - as well as yet another major construction project planned for the hood. Just like the Bay Bridge retrofit, this one promises to be delayed, long, debated and probably pretty cool once it's complete.

As real estate agents, we're being advised to take this into consideration when selling properties in the surrounding area...

On November 5, 2008, California voters approved Proposition 1A authorizing funding of a high-speed rail transportation system linking various cities in the State. Both the location of the proposed rail system and the possible effect that the construction and operation of that system will have on residential areas has been the subject of concern and debate. Some news reports have indicated that, depending upon the location of the high-speed rail system, it may have a negative effect on some properties in the San Francisco Bay Area. It is anticipated that construction is
likely to begin as early as 2011.

Precisely what impact, if any, the proposed high-speed rail transportation system will have on any given property is unknown either before, during or after construction. The construction and/or use of the transportation system may affect people differently. Real estate agents are not experts in this area and buyers are advised to satisfy themselves with regard to this issue during their inspection contingency period.

www.CAHighSpeedRail.ca.gov [California High Speed Rail Authority]

Market Update as of June 5th 2009

mm@meredithmartin.com (Meredith Martin) — Sat, 06 Jun 2009 00:39:00 +0000

I read a lot of real estate blogs. I am always curious to see what other people are writing about and I can't resist adding my 2 cents if I have an opinion on topic. I swear off a few of those blogs every couple of months when the comments and editorial get particularly vicious towards real estate agents, as they often do - then get sucked back in when there's an interesting story I can't resist.

What I've noticed is that both on the blogs, and in the press, the overall 'mood' seems to be that we've hit a bottom of sorts. I wrote a post back in March titled 'Signs of a Real Estate Rebound' about a CBS report on the multiple offers that were happening in the low end of the market, and you would have thought the title was 'OMG YOU'RE ABOUT TO LOSE OUT ON YOUR ONLY OPPPORTUNITY TO BUY EVER'. Nowadays the venom when people are suggesting we are at a bottom is far less vicious although that opinion is definitely still present.

You will always get the side who vehemently insists there is more pain to go through, and there are certainly numerous statistical analysis, and intelligently written articles to make that case. My personal opinion is that prices and the economy as a whole are far more emotional in nature, and that consumer confidence, more than most anything determines whether the market is going either up or down. Right now confidence is up, I'm not certain it still will be this fall, but at the moment we seem to be headed in the right direction - and that is reflected both in the press, and in the subtle changes we've been seeing in real estate sales as a whole. I would say on record, I'm not really a bull or a bear, and that as always buying real estate is a personal decision. What is going to be the right choice for one is not going to be for another.

That being said let's take a look at some of the most recent numbers.

Hotsheet Statistics for the past 2 weeks:

New Listings: 339 (down from 370 from the 2-week period ending May 1st, a not unusual reduction as spring moves into summer)
Back on Market: 78 - 20% of all properties going contingent sale or pending sale are coming back on market
Price Reductions: 252 – the number of price reductions is still very high – for every property that sold, 1.6 properties reduced their prices
Went Contingent Sale: 198 (basically unchanged from 1 month ago, but a significant increase over previous months)
Went Pending Sale: 193 (basically unchanged from 1 month ago, but a significant increase over previous months)
Sold: 157 (basically unchanged from 1 month ago, but a significant increase over previous months)
Sold REO: 13 – 8.5% of home sales were REO sales (Note: there are currently 95 REO sales contingent or pending sale.)
Expired/Withdrawn: 163 (a bit lower than one month ago)

The overview, as of today June 5th 2009, is that market activity has continued to get stronger over the past month, continuing a trend that began in March/April. Median prices of those properties that have accepted offers have increased, which suggests that values are stabilizing. The number of properties that have accepted offers but not yet closed are up in every category and inventory levels of Active properties (available for purchase) is down, slightly. This is all compared to the data collected as of May 1st 2009.

Signs of a Real Estate Recovery [SFHomeBlog]

Current Trends in San Francisco Real Estate 3.2.09 [SFHomeBlog]

Signs Of Real Estate Rebound In San Francisco [CBS5.com]

The Countdown Begins - 17.5% of CA New Home Tax Credit left...

mm@meredithmartin.com (Meredith Martin) — Fri, 05 Jun 2009 19:08:00 +0000

Basically, if you're not closing escrow in the next two weeks on your never been lived in home - don't plan on getting that $10,000 CA new home tax credit. What's going to be interesting is to see if the sales in new developments, that spiked in May, slow down as the news goes out that the tax credit is gone.

Tax Credit for New Home Purchase [Franchise Tax Board]
CA Tax Credit more than 65% gone in 3 months [SF Home Blog]
$10,000 Reasons to Buy a New Development this Year [SF Home Blog]

If Case-Shiller March Figures were accurate...

mm@meredithmartin.com (Meredith Martin) — Wed, 27 May 2009 22:10:00 +0000

I know, I've been on this rant before ... but every year or so, I just have to vent again. Mostly because I get tired of hearing one of my very good friends and/or highly intelligent financial advisors my clients are working with quote the index ... 'According to the Case-Schiller index prices are down over 40% in SF.'

Case-Schiller, oft touted as being the most unbiased, thereby accurate measurement of home prices is an index that started 21 years ago. There are no data points prior to 1988. It uses the year 2000 as it's base-line and tracks the same single family homes that have re-sold. According to the Case-Shiller index for March 2009 home prices in San Francisco are down 46.1% from their peak in 2006.

Which means, if you are going to rely on those numbers literally, according to the Case-Schiller index, a Single Family Home that sold for $1,000,000 in San Francisco in 2006, was as of March 2009 selling for $539,000.

Now go find that sale!

Case-Shiller March 2009 Press Release [Standard & Poor's]

Here goes my Pet Peeve again the Case-Shiller Index [SFHomeBlog]

Prices over the Years: 2 Bedroom Tenancies-in-Common

mm@meredithmartin.com (Meredith Martin) — Wed, 27 May 2009 20:53:00 +0000

2 Bedroom Tenancies-in-Common

Click on graph

The periods in which both the lowest and highest number of sales occurred in each area are noted. When the number of sales is very low, statistical analysis is generally not meaningful.

The Median Sales Price is that price at which half the properties sold for more and half for less. It may be affected by “unusual” events in any particular period or by changes in buying trends, such as a market shift to lower-end home sales (such as is happening today -- to a large degree due to the current difficulty in financing the purchase of more expensive homes, and for houses, due to the significant increase in foreclosure sales in some neighborhoods).

$10,000 CA Tax Credit more than 65% gone in 3 months

mm@meredithmartin.com (Meredith Martin) — Wed, 27 May 2009 20:00:00 +0000

As of May 20th 2009 the new home California $10,000 tax credit is over 65% gone. May has seen a huge spike in new home sales and being as the credit cannot be applied for until escrow closes, and is on a first come first serve basis, the window to qualify may be gone as early as mid June. New numbers are updated every Friday.

Two state lawmakers have applied to extend that credit from $100m, to $300m (the argument being the state takes in more money per new home sale then it loses issuing the credit) but it remains to be seen whether that measure will fly.

Just purchasing a home that has never been lived in does not automatically qualify you. You must close escrow and submit your application to the Franchise Tax board via Fax only, within 7 days of close of escrow. Clear instructions and forms for applying for the credit can be found here

Legislation Introduced to Extend $10k New Home Tax Credit [The Desert Sun]

Tax Credit for New Home Purchase [Franchise Tax Board]
$10,000 Reasons to Buy a New Development this Year [SF Home Blog]

Credit Cards and FICO Scores

noreply@blogger.com (Matt Lanning) — Wed, 20 May 2009 20:48:00 +0000

This one has always bugged me. And the FICO folks don't seem to see the irony in it (meaning, they have no plans to change it)...

NPR's Planet Money blogged about this today, and I think it's worth posting, as I imagine that many are not aware of the ramifications of doing something that would seem like the 'right thing to do'.

Basically, if you close a credit card account, it hits you negatively in multiple ways. First, it stays on your credit record, even though it's listed as closed. Second, you reduce your 'available credit' (which is obviously the whole point of closing the account), but this negatively affects your ratio of credit to available credit. If you have a second mortgage on your home for $50,000 (remember when you could still get those?), you are using 100% of your available credit on that line. It is looked at as a revolving line of credit, just like a credit card, and really hurts your credit score to have 100% (or even 90% if you've paid some of that down) of that line used.

Apparently, you want to have a 30% ratio of credit used to credit available. I currently don't have any second loans, and am carrying a bit on my credit cards. But since I no longer have any second mortgages, my credit score has shot up. Doesn't make sense to me, but FICO thinks otherwise. I still have flawless credit, never missed a payment on anything, etc, but from time to time have carried MUCH more debt (both secured and unsecured). Strangely, with less secured debt right now and more unsecured debt, I'm apparently a more viable borrower. Go figure.

And third, it results in putting an end date on the 'longevity' of that account, regardless of why you closed the account. You 'could' have kept the account open, but you didn't, so you get dinged for not having greater longevity with that card.

From the Planet Money blog today...

Gail Cunningham of the National Foundation for Credit Counseling has an answer. FICO scores, which banks and other lenders use to consider how risky a borrower you are, weigh five major categories, Cunningham says.

1) Paying your bills on time -- 35 percent of your FICO score.
2) Ratio of credit available to credit used -- 30 percent.
3) Longevity of credit accounts -- 15 percent.
4) Applications for new credit -- 10 percent.
5) Using a range of credit, from fixed payments like a house note to open-ended payments like credit cards -- 10 percent.

Canceling a credit card would nick your points in the second and third categories. If you close an account, you obviously affect its longevity -- bad for that portion.

If you close an account worth $5,000, Cunningham says, that means you have less overall credit available, which would affect the ratio of credit available to credit used.

So yes, closing accounts and applying for new ones threaten your FICO score.

What's the optimum ratio of credit available to credit used? "I don't want to see anyone use more than 30 percent of their available credit," Cunningham says. "That makes you look as though you don't have any cash and you're desperate for credit."

And a note to people like me who have cards but almost never use them: Take those cards out and buy a little something, Cunningham says. Pay them off at the end of the month, but do use them. "New credit is hard to come by these days," she says. "You want to keep all of your existing lines of credit. All in the world you represent to a credit card company with your unused card is risk -- because you could go out tonight and spend it all."

So, even though it seems incredibly counter-intuitive right now to keep unused credit card accounts open, that might be your best bet (if you're looking to buy a home, refinance your home, or do anything that involves your FICO score). Unless you have little or no will power when it comes to buying that new flat-screen TV, and then can't pay your cards off every month... Then that credit score ding might be worth it.

A Credit Card Dilemma [Planet Money - NPR]
Some good info on how your credit cards relate to your credit score [SFHomeBlog]

Prices Over the Years: Appreciation & Depreciation in Selected San Francisco Neighborhoods

mm@meredithmartin.com (Meredith Martin) — Mon, 11 May 2009 20:20:00 +0000

3 Bedroom Houses*

Click on Graph

* For St. Francis Woods, both 3 and 4 bedroom houses are included in the analysis to achieve a statistically meaningful number of sales.

** With so few sales in these areas during this period, the median price is not statistically meaningful.

Changes in median price do not necessarily reflect changes in value for any particular property.

Different neighborhoods may feature larger or smaller 3-BR houses and 2-BR condos on a square footage basis, as well as radically different eras of construction. Some neighborhoods have a much greater quantity of sales or may be impacted by large new-development sales. The data herein is from the San Francisco Multiple Listing Service and subject to errors, omissions or revisions and not warranted.

Prices Over the Years: Appreciation & Depreciation in Selected San Francisco Neighborhoods

mm@meredithmartin.com (Meredith Martin) — Mon, 11 May 2009 19:41:00 +0000

2 Bedroom Condominiums*

Click on the graph

* Sales of condos up to a sales price of $2,000,000. New-development condo sales unreported to MLS are not included.
** With so few sales in these areas during this period, the median price is not statistically meaningful.
*** South Beach and SOMA have been particularly impacted by the large inventory of new-development condos on the market at this time.

Average 2-bedroom condo sizes vary by neighborhood. For example, in 2007, Marina 2-bedroom condos averaged 1430 square feet; in Pacific Heights, they averaged 1398 square feet; in Russian Hill 1347 square feet; in Noe & Eureka Valleys 1267 square feet; and in South Beach 1254 square feet.

The Median Sales Price is that price at which half the properties sold for more and half for less. It may be affected by “unusual” events in any particular period or by changes in buying trends, such as a market shift to lower-end home sales (such as is happening today). Some neighborhoods have a much greater quantity of sales or may be impacted by large new-development sales. The data herein is from the San Francisco Multiple Listing Service and subject to errors, omissions or revisions and not warranted.

Revised: Peak Values vs. Current SF Prices - Condominiums

mm@meredithmartin.com (Meredith Martin) — Mon, 11 May 2009 19:07:00 +0000

Peak values: Generally, the first half of 2007, before the subprime crisis started to break big time, is considered to be the home-value peak for the city – and that is the period used for comparison below. But some of areas of the city actually peaked in 2006, while others – generally the most affluent neighborhoods – peaked in the first half of 2008. For those areas that peaked earlier or later, the declines from peak values are higher than shown below.

Revised: Peak Values vs. Current SF Prices - Single Family Homes [SFHomeBlog]
Peak Value vs Current SF Value Feb 2009 [SFHomeBlog]

Revised: Peak Values vs Current SF prices - Single Family Homes

mm@meredithmartin.com (Meredith Martin) — Tue, 05 May 2009 19:05:00 +0000

Below, median and average sales prices and average dollars per square foot are given for the last 6 months of sales, and then the percentage change is calculated as compared to the first half of 2007. To get a sense of changes in value, it’s often best to come at the subject from a variety of ways, and then compare. To make it more complicated, sometimes the analyses seem to point to different conclusions – which one must compare, juggle and balance as best one can. Sometimes the results are simply abnormal due to unusual events that occurred within one of the comparison periods.
In the charts below, current values are based upon sales occurring after 10/12/08, reported through 4/10/09.

Peak values: Generally, the first half of 2007, before the subprime crisis started to break big time, is considered to be the home-value peak for the city – and that is the period used for comparison below. But some of areas of the city actually peaked in 2006, while others – generally the most affluent neighborhoods – peaked in the first half of 2008. For those areas that peaked earlier or later, the declines from peak values are higher than shown below.

All House Sales of Every Size
Note: District sales statistics, in particular, are generalities since neighborhoods of differing values are averaged together.

4 Bedroom Houses

3 Bedroom Houses

2 Bedroom Houses

The above statistics probably understate the decline in values as of today, for three reasons:

1. In a declining market, sales data – which typically shows up 30 to 45 days after acceptance of offers – will always be a step behind current activity, i.e. offers being accepted right now. Also, this analysis averages sales for the entire 6 month period – and it is generally accepted that the market has declined somewhat since mid-October.

2. The market has shifted to smaller, less expensive homes. All things being equal, a smaller home will have a higher dollar per square foot value than a larger one, therefore skewing current values higher than they ought to be in an apples-to-apples comparison. (This applies particularly to the analyses of homes “of all sizes.”)

3. In a sellers’ market, virtually everything sells, but in a buyers’ market, typically just the best homes sell – best appearing, best condition, overall best value as perceived by a willing and able buyer. Thus statistics for the current period apply to “best-value homes” while those for 2007 apply to homes of a much wider range of quality. This also skews the apples-to-apples comparison.

Definitions:
Dollar per Square Foot is based upon the home’s interior living space and does not include garages, unfinished attics and basements, rooms built without permit, or exterior spaces (though all those can add value to a home). These figures are usually derived from appraisals or tax records, but are sometimes unreliable (especially for older homes) or unreported altogether. All things being equal a house will sell for a higher dollar per square foot than a condo, a condo higher than a TIC, and a TIC higher than a multi-unit building. All things being equal, a smaller home will sell for a higher $/sqft than a larger one. There are often surprisingly wide variations of value within neighborhoods and averages may be distorted by one or two sales substantially higher or lower than the norm. Location, condition, amenities, parking, views, lot size & outdoor space all affect $/sq.ft. In SF, the highest numbers—over $1500/sqft—are typically achieved by relatively small penthouse condos, with staggering views, in very prestigious buildings.

Median Sales Price is that price at which half the properties sold for more and half for less. It may be affected by unusual events or by changes in buying trends. Median prices do not necessarily reflect the value or changes in value for any particular home.

Average Sales Price is the total dollar volume of sales divided by the number of sales. Especially when sales quantities are small, averages can be easily distorted by one or two sales abnormally higher or lower than common for an area.

Peak Value Vs Current SF Value Feb 2009 [SFHomeBlog]

Last 2 Weeks of San Fransisco Real Estate

mm@meredithmartin.com (Meredith Martin) — Mon, 04 May 2009 19:35:00 +0000

The last 2 weeks had the highest number of listings going contingent or pending since September 2008 indicating a significant pick up in the number of listings accepting offers.

New Listings: 370 – up from 315
Back-on-Market: 74 – up from 64
Price Reductions: 221 – up from 207 -- (65% of price reductions are for condos)
Went Contingent: 200-up from 171
Went Pending: 191 – up from 164
Sold: 153 – up from 104

Sold REO: 14 – up from 9
Expired/Withdrawn: 174 – up from 131

The number of active listings is staying stable, while the number accepting offers is rising. The median list price of homes accepting offers continues to be relatively stable, even rising a little for SFDs, TICs and 2-4 units. The average days on market for properties accepting offers is high, especially for TICs and condos. There continues to be a large difference between the median list price of all active listings and the median list price of those accepting offers, continued proof that the upper-end home market has been hit particularly hard since September 15th, 2008.

Scientists Study How Room Designs Affect your Work and Mood

mm@meredithmartin.com (Meredith Martin) — Wed, 29 Apr 2009 06:24:00 +0000

While it's not exactly a scientific study of Feng Shui as the Chinese practice it, research is beginning to prove how room qualities such as ceiling height, views, and type of light affect peoples moods, ability to socialize, and critical thinking. All of which lend more weight to what artists and stagers have long known...

Architects have long intuited that the places we inhabit can affect our thoughts, feelings and behaviors. But now, half a century after Salk’s inspiring excursion, behavioral scientists are giving these hunches an empirical basis. They are unearthing tantalizing clues about how to design spaces that promote creativity, keep students focused and alert, and lead to relaxation and social intimacy. Institutions such as the Academy of Neuroscience for Architecture in San Diego are encouraging interdisciplinary research into how a planned environment influences the mind, and some architecture schools are now offering classes in introductory neuroscience.
Such efforts are already informing design, leading to cutting-edge projects, such as residences for seniors with dementia in which the building itself is part of the treatment. Similarly, the Kingsdale School in London was redesigned, with the help of psychologists, to promote social cohesion; the new structure also includes elements that foster alertness and creativity. What is more, researchers are just getting started. “All this is in its infancy,” says architect David Allison, who heads the Architecture + Health program at Clemson University. “But the emerging neuroscience research might give us even better insights into how the built environment impacts our health and well-being, how we perform in environments and how we feel in environments.”
“Ceiling height affects the way you process information,” Meyers-Levy says. “You’re focusing on the specific details in the lower-ceiling condition.”full story

How Room Designs Affect Your Work and Mood [Scientific American Mind]

Takin' It To The Streets

mm@meredithmartin.com (Meredith Martin) — Thu, 23 Apr 2009 20:03:00 +0000

City officials decided to shave costs, given the city's huge budget deficit and Muni's fiscal problem, by cutting street sweeping in more than 20 neighborhoods, in August, but what they didn't anticipate was the loss of almost four times more money than it saved. City officials knew the change would lead to a loss in revenue from parking tickets but are they willing to keep with the trend? If so, the transit agency will be out more than $3.8 million per year in exchange for $1 million in savings for the Department of Public Works.

There has been concern from both city officials and residents of whether or not these cuts, in both cash and service, make any sense. But Muni officials claim that there has been a decline in parking tickets, in general, on all routes during the same time period therefore figuring the loss of revenue isn't that high. The agency, also, states that the $3 million, in lost revenue, is a little misleading considering on average only 80% of ticket fines are recouped which brings the annual lost revenue, on those routes, closer to $1.6 million. However, the amount of lost revenue still may potentially increase because some of the street-sweeping cuts didn't take effect until December.

All in all, transport agency spokesman Judson True made himself very clear by saying, "his transportation agency doesn't base its tickets on possible revenue and doesn't decide when streets need cleaning." In turn Public Works officials claim the changes are about efficiency, not just cost-savings.

Street-sweeper reductions costing Muni money [SFGate]

New Appraisal Rules Adopted by Fannie Mae & Freddic Mac

mm@meredithmartin.com (Meredith Martin) — Wed, 22 Apr 2009 18:02:00 +0000

As of May 1st, the Federal Housing Finance Agency has mandated that loan officers CANNOT select or pay appraisers. The Home Value Code of Conduct (HVCC), as it's called, outlines appraisal-related practices to which lenders must adhere with respect to so-called "conventional" or "conforming" loans that they want to sell to Fannie Mae or Freddie Mac. It's intended to remove conflicts of interest some feel are inherent in the loan officer/appraiser relationship.

In the coming months these new rules from HVCC potentially mean appraisals and perhaps escrow periods may take longer. Instead of the current practice of a loan officer ordering directly from the appraiser , the HVCC model is that a bank has a stable of appraisers, a loan officer submits an appraisal order, and any appraiser in the stable will be randomly assigned to the order. Banks will either have internal appraisal divisions or be contracted with an appraisal management company, therefore, leaving the loan officer at the mercy of the process regarding turn around times considering the FHFA (using Fannie and Freddie) has to approve each bank's entire appraisal process.

Lag time may be inevitable, but proponents say the new rules will result in more-reliable appraisals, less fraud, lower costs and minimal disruption. As opposed to critics who expect less-accurate appraisals, delays in loan processing, higher costs and general misery for all concerned.

San Francisco Real Estate Activity Over the Past Two Weeks

mm@meredithmartin.com (Meredith Martin) — Mon, 20 Apr 2009 19:19:00 +0000

Statistics for the Past Two Weeks, SF homes, condo's and TIC's

New Listings: 315 – slightly up from 306

Back-on-Market: 64 – slightly down from 67

Price Reductions: 207 – substantially down from 273

Went into Contract (Contingent): 171 – down from 185

Contingent REO (bank owned): 7 – down from 11

Went Pending: 164 – up from 151

Sold: 104 – down from 133

Sold REO (bank owned): 9 – down from 20

Expired/Withdrawn: 131 – substantially down from 199

The median list price for active houses is $913,000; the median list price for contingent/pending houses is $640,000; the median list price for contingent/pending REO houses is $419,000.

The median list price for active condos is $703,000; the median list price for contingent/pending condos is $640,000; the median list price for contingent/pending REO condos is $385,000.

Current Trends in San Francisco Real Estate - April Edition

mm@meredithmartin.com (Meredith Martin) — Sat, 28 Mar 2009 19:11:00 +0000

At current market trends, over the next month:*

- 1400 active house & condo listings will be joined by 600 new listings.
- 1 in 7 or 8 of those listings will accept an offer to purchase.
- 1 in 8 will expire or be withdrawn from the market (didn’t sell).
- 1 in 4 will reduce its asking price.
- 75 active bank-owned (REO) homes will be joined by 45 new REO listings:
- 1 in 3 will accept offers.

Of the listings that do accept offers, 1 in 3 or 4 will come back on market because the purchase fell through -- typically due to financing difficulties, property condition issues or buyer remorse.

Of the house and condo listings that SOLD in the first 2.5 months of 2009:**

- 1 in 4 accepted offers within about 15 days of going on market, i.e. almost immediately. Of these, the houses averaged a sales price of about 1% over asking price, while condos averaged about 4% below asking.
- Those accepting offers after 45 to 75 days on market sold at an average of 3% to 4% below last asking price and 7% to 10% below original list price.
- Those accepting offers after 105 days on market sold, on average, 4% to 5% below last asking price and 14% to 18% below original price.

No matter how long a home was for sale, it still sold, on average, within 3% to 5% of the last asking price, even as -- with price reductions -- the discount off the original price grew significantly larger as time passed. The vast majority of buyers and buyers' agents will NOT make an offer until they perceive the property's asking price to be within 5% of “market value” (i.e. what they're willing to pay).

*All numbers are approximate; neither TIC sales nor non-MLS new-development sales are included.
** For SF house and condo sales reported to MLS by 3/17/09. City districts with high foreclosure rates, as well as confidential sales and ultra high-end sales were excluded to avoid distorting general market statistics.

Current Trends in SF Real Estate 3.2.09 [SFHomeBlog]

Property Owners in Haight/Cole Valley/Inner Sunset Let Your Voice Be Heard

mm@meredithmartin.com (Meredith Martin) — Wed, 25 Mar 2009 20:11:00 +0000

Property Owners in District 5 are encouraged to attend a community outreach meeting on Tuesday March 31st at 7pm at Park Branch Library, 1833 Page to help weigh-in on San Francisco's housing element of the general plan which, updated every five years, guides overall San Francisco policy regarding housing.

The City is embarking upon a Citywide outreach campaign for the 2009 Housing Element update. The Planning Department and the Mayor’s Office of Housing have been working closely with a Community Advisory Body to develop initial ideas for that update. We’d like to hear about your needs related to housing, so that we can adequately incorporate policy ideas that address these needs. The Housing Element is the component of the City's General Plan that provides a five year vision for housing. San Francisco, along with all the municipalities, is required by state law to update the Housing Element of the General Plan every five years. The State requires that a complete and approved draft be submitted by June 26th, 2009...[more]

Objectives (From the previous Housing Element of the General Plan adopted May 13th 2004)

This second part of the Housing Element sets forth objectives, policies, and implementing programs to address the critical housing needs identified in Part I. In the last decade, San Francisco's population grew while new housing construction failed to keep pace. San Francisco households grew an average 2,400 annually, yet addition to the housing stock averaged just about 1,000 a year. Vacancy rates plummeted and even middle-income householders found themselves paying 50% or more of their income to rents.

The State Department of Housing and Community Development (HCD), with the Association of Bay Area Governments (ABAG), has estimated that San Francisco needs to build over 2,700 new units a year to meet its share of the region's projected housing demand. As recent production fell short of this annual target, 3,200 new units a year must be built between 2001 and 2006 to meet regional housing goals. At least 40% of these new housing construction should be affordable to low and very low income households, and 32% affordable to households of moderate means.

Objectives and policies are general in nature and serve as the framework for decision making and priority-setting. They address specific needs and are followed by related implementation actions. For these implementation actions to succeed, three major prerequisites must be met:

An adequate supply of land must be identified;

Regulatory and other impediments must be removed while incentives are identified and provided; and

Adequate financing must be available for both private and non-profit housing development. [more]

If you've ever wanted a say in how the city uses it's valuable resources, now is the time to speak up and let your voice be heard. While this meeting is set up specifically for property owners in District 5, there are plenty of ways to get involved including if you can't make this meeting.

Join the Mailing List

Take the Housing Survey

Host your own Community Conversation- Contact:Abigail.kiefer@sfgov.org or call 415.575.9065

Housing Element 2009 Update [SF Planning Dept]
General Plan SF Housing Element [SF Gov]
District 5 Map PDF [SFGov.org]
Housing Elements Community Calender [SFPlanning.org]
Park Branch Library 1833 Page [Google Maps]