Posts Tagged ‘real estate’

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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New Inventory: Relief For Home Buyers?

At last, the promised new inventory has arrived. While we generally see a spike in listings during one of our two selling seasons — spring and fall — the past several years have been dismal in terms of turning out new listings. Not so this year.

The question is: Will that translate into any relief for buyers?

 

I recently attended a symposium on the state of housing in San Francisco. If you have a couple of hours to kill, you can find the entire panel discussion audio here. While I found the discussion fascinating (it is my job after all) there are a couple of stats that particularly caught my attention:

  • Since 2010, we’ve added 10,000 residents to San Francisco every year, increasing our population by 50,000
  • During that same time frame, 80,000 new jobs have been created and only 10,000 new housing units have been added, well over 70% of which are rentals
  • According to Ted Egan, San Francisco’s Chief Economist, each year 70,000 people move into San Francisco (which means 60,000 move out)
  • Wholesale new construction costs are currently running $950-$1000/square-foot in San Francisco, which drops by only $50-$100/square-foot in Oakland; sale prices in the East Bay continue to garner significantly less than San Francisco

I have certainly spoken to more than one agent recently who had offer dates come and go, or only had one party come to the table. My personal take continues to be this: Fall is a really good window to buy, and I’m advising my sellers hold off until spring to list their property for sale (situation and replacement property depending). That said, I am actively looking to work with more buyers this fall — If you know someone interested in buying please pass my name along. I’ll be happy to speak with them even if they’re not sure yet.

 

Are you receiving 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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3rd Annual San Francisco Building Boom

 

Friday, September 18th I had the pleasure of attending the 3rd Annual San Francisco Building Boom presented by the San Francisco Association of REALTORSⓇ, a panel discussion of the new residential building projects transforming our city. Please listen to the discussion here and enjoy!

20150918 - SFBB_Flyer

 

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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A Broker Tour for the Record Books

 

With 309 new listings on the San Francisco Association of REALTORS® Broker Tour yesterday, there was no shortage of properties to see. In fact, including repeat properties, the Tour consisted of a total 477 properties — That’s more new and total listings than there’s been on any given Tour in years! Of the homes I previewed for clients and market research, here are three of my favorites:

1. 4173 Cesar Chavez Street, Noe Valley

From the MLS: Located on a rare cul-de-sac, this 4 bedroom, 3 full bath, 2 half bath house is the definition of modern luxury living and refined design. With 3 bedrooms on the top level and an Aupair suite on the entry level, its cohesive layout exhibits custom millwork throughout. The residence features a custom kitchen, library, dining area, and great room that opens to a stunning outdoor seating area and fireplace. The home is completed with a Speakeasy wet bar, media room, 2 car side-by-side garage, an elevator, 3 fireplaces (2 indoor, 1 outdoor), 3 decks (front deck, master suite deck, roof deck), and picturesque views of Downtown. The attention to detail validates that no expense was spared in the design and construction of this modern masterpiece. List Price: $4,850,000

Does your dream home include high-end finishes? If so, this one’s for you!

2. 458 Ashbury Street, Haight Ashbury

From the MLS: Reimagined Victorian completely rebuilt retaining period influences infused w/contemporary style, a blend of tradition & chic modernity. Graciously scaled rooms-large living room, family room w/dramatic accent wall, combined dining room & kitchen. Coved ceilings, molding, rosettes w/exquisite modern lighting & distinctive wall coverings enliven the spaces. Kitchen w/11-ft marble island, custom cabinetry, premium appliances, wet bar. Sizable deck w/built-in seating. Grand staircase w/custom iron-work. 2nd level: master suite w/sitting area, walk-in closet w/washer/dryer. Luxurious master bath w/dual sink vanity, soaking tub, walk-in shower, Calacatta Oro. 2 additional bedrooms, full bath. Top level: 2 bedrooms w/own bathrooms. Lower level: Exercise/media room, bathroom, sauna, 2 bonus rooms, storage, 3-car garage. List Price: $3,500,000

A shout out to BIRCH + TAYLOR for the gorgeous staging! According to CurbedSF, this home is one of the most intact Victorians on the market — and I’d have to agree. Stunning!

3. 3876 Clay Street, Presidio Heights

From the MLS: Stunning, top floor, two level ‘house-like’ condominium in a two-unit building, Built in 1909, thoroughly remodeled by current owner, under the guidance of interior designer Martha Angus. 4 bedrooms, 2 baths + 1 half bath with grand master suite. Living room and formal dining room with fireplaces. Spacious, sun-lit gourmet kitchen with eat-in banquet. Powder room, and separate laundry room. Two car (tandem) deeded parking, with tradesman entrance with interior access. Spectacular outdoor terrace (deeded to unit for owner’s exclusive use). Selected by 7×7 Magazine as the featured home residence in their annual ‘Design Issue’. List Price: $4,798,000

No need to stage this place — all the furniture, fixtures and artwork belong to the owner whom I met while touring the property. CurbedSF recently ran a story on the home which you can read here.

 

RealtyTrac says October 8th is the best day for home buyers in the San Francisco-Oakland-Fremont metro area, when buyers have paid an average of 25 percent less than a home’s value on that particular day over the past 15 years. Certainly with the flood of new inventory in San Francisco, we may see bidding wars ease up and perhaps the beginning of price stabilization. What are you waiting for? Get out there and write some offers!

 

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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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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