San Francisco Real Estate - Residential

Signs of stabilization

Although this article applies to new building, the economics work the same way for resale. The media is beginning to understand that this is a cycle and not a significant one.

Here is what the December 27th report from CNN Money News entitled New Home Sales: Back from the Dead? says, "Homebuilding, one of the most battered sectors of the U.S. economy in recent months, showed surprising strength in November, according to a government report Wednesday.

"New homes sold at an annual pace of 1.05 million, up from the revised annual rate of 1.01 million in October. Economists surveyed by Briefing.com had forecast that home sales would rebound to a 1.02 million pace.

"The median average home price came in at $251,700 in November, up from the $248,500 level in October. The median price, that is, the point at which half the homes sell for more and half sell for less, had shown declines earlier in the fall because of a glut of homes available for sale on the market." Read more...

However, there is an interesting link to Hot Spots and Cold Spots which predicts that California (including the San Francisco Bay Area) will be COLD in 2007. We'd love to show them how wrong they are!

- Avram Goldman and Mick Orton

posted by SFResidence.com @ 8:26 AM 0 comments

Fast Facts from CAR and Freddie Mac - November 2006

Calif. median home price - November 06: $555,290 (Source: C.A.R.)
(note: compared to $548,680 last month)

Calif. highest median home price by C.A.R. region November 06:Santa Barbara So. Coast $1,083,000 (Source: C.A.R.)
(note: compared to $1,115,000 last month)

Calif. lowest median home price by C.A.R. region November 06:High Desert $332,340 (Source: C.A.R.)
(note: compared to $328,650 last month)

Calif. First-time Buyer Affordability Index - Third Quarter 06:24 percent (Source: C.A.R.)

Mortgage rates - week ending 12/21:

• 30-yr. fixed: 6.13%; Fees/points: 0.4%
  (note: compared to 6.18% and 0.5% points last report )
• 15-yr. fixed: 5.89%; Fees/points: 0.4%
  (note: compared to 5.91% and 0.5% points last report )
• 1-yr. adjustable: 5.44%; Fees/points: 0.6%
  (note: compared to 5.49% and 0.6% points last report )

- California Association of Realtors & Freddie Mac

posted by SFResidence.com @ 7:08 PM 0 comments

Things to do in San Francisco - Part 4 - Cable Cars

posted by SFResidence.com @ 11:24 AM 0 comments

Freddie Mac: 30-year mortgage averages 6.18% vs 6.13%

Dow Jones MarketWatch reported today that mortgage rates edged up over the week following the news of rising consumer spending. This surge in spending is causing fears of higher inflation. Does anyone else see paranoia here?

We want strong numbers to show that our economy is humming, yet because it is doing well, there are fears that this will cause rampant inflation. I, for one, am skeptical. The market is based on a lot of factors, and like the weather, it is difficult to predict. So, in my opinion, the Fed's tight grip on the interest rates can only be one factor in controlling inflation and can not be a panacea to all ills.

Recently I went to a website on economics and found an article on inflation. Here is their definition:

"Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability."

Think about that. Everyone wants to make more money and earn more for the products they produce, yet we don't want prices to increase because it causes inflation. Why not? Those $1,500,000 houses and condos that are selling in the City used to be worth $500,000-$700,000. Even though a million dollars isn't what it used to be (as Donald Trump says), it's still an awful lot of money. So it seems that in a lot cases, inflation may be our friend.

To me, money has always seemed an elusive concept anyway. Most of the money now is just electronic data sitting in a database of some bank somewhere and actually doesn't account for anything until I buy something real. I could pull my money out of the bank and have money under the mattress, but paper money is only worth what people believe it is worth... and goes down in value every day... because of inflation.

So it seems to me that there are things much more important than money, and that is the thought as we head into the new year. Enjoy life, and don't worry so much. Stop listening to the negative news and create your own positive reality. Interest rates up or down; stock market up or down; real estate market up or down it really doesn't matter. Health and happiness are the keys to enjoying life!

Happy New Year!

- Mick Orton

posted by SFResidence.com @ 9:50 AM 0 comments

San Francisco Real Estate Market Update for 12/11 - 12/17/06

Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:

"Hope all had a festive holiday celebration. It’s that time of year to be with family and friends.

"Time to reflect on a year filled with change. Although sales were not as strong as the last several years the market held its own. We moved from a frenzied sellers’ market to one with more sanity. A market that cannot be defined with a broad brush as each market has its own pulse. Sellers had to adjust to a new reality of negotiation and compromise and buyers learned that sellers are not giving away their homes. A year where skilled and experienced realtors are more appreciated for their real estate acumen.

"We are ending the year on a positive note. Over the last three months the decline in volume of sales dollars on a per month basis has declined. Year to date through September the market was off about 22%. In the last quarter of the year it has declined to under 15% from the same period last year. Inventories continue to decline. They are lower than both 2002 and 2001at year’s end..

"The numbers of multiple offers have declined. However, San Francisco and the Peninsula (Palo Alto, Menlo Park, Burlingame and San Mateo) still generate a good number of multiple offers. This is primarily due to having the lowest supplies of inventories. Those sellers who adjust their prices to the new reality are selling their homes, at times with more than one offer. Buyers are savvier than ever to pricing and value. If you are going to find the willing buyer you will need to use the right bait---meaning pricing and presentation.

"It looks like 2007 is shaping up to be similar to 2006. We are not going to see the go-go days of 2004 and 2005. With that said, prices will not drop off the face of the earth. The expected continued rise in listing inventories has not occurred as predicted by the nascent media reporters and some economists. Interest rates should remain relatively stable provided oil prices don’t rise through the stratosphere. The economy is bumping along with unemployment remaining fairly stable.

"The numbers for the week of December 11-17th are as follows: 2 offices reported increasing inventories, 6 steady and 19 decreasing---4 offices showed increasing sales, 10 steady and 13 decreasing.

"This will be the last report of the year. Due to the holidays, I will be taking a two week break and resuming next year. Wishing all of you a Happy New Year and a year ahead filled with good health, fun and much success."

- Avram Goldman

* For an e-mail alert when this report is updated, send a note to info@SFResidence.com with "weekly market report" in the subject line.

posted by SFResidence.com @ 10:02 AM 0 comments

Focus on San Francisco Neighborhoods - Potrero Hill

Potrero Hill as described on the SFResidence neighborhood guide:

"On Potrero Hill, you can relax in brilliant sunshine while watching fog engulf the rest of the city. Bounded roughly by 16th, Third and Cesar Chavez streets and Potrero Avenue, the neighborhood is relatively isolated by freeways and large tracts of industrial landscape, giving Potrero Hill its own pace and a feeling of distance from San Francisco."

SFGate says, "Relax in brilliant sunshine while watching fog engulf the rest of the city, in the former 'hood of OJ Simpson and Seals Stadium." Read more here.

Other features include:

• Sights and Culture
• Food & Drink
• Shopping
• Nightlife

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous Neighborhoods:

Chinatown - Bernal Heights - Castro - Cow Hollow - Diamond Heights - Fisherman's Warf - Golden Gate Park - Haight - Lake Street - Laurel Heights - The Marina - Nob Hill - Noe Valley - North Beach - Outer Richmond - Pacific Heights - Russian Hill - Sacramento Street - St. Francis Wood - Sea Cliff - Telegraph Hill - Western Addition

posted by SFResidence.com @ 12:46 PM 0 comments

More information on Owner Move-In Evictions

posted by SFResidence.com @ 1:56 PM 0 comments

Cutting down brush in "open space"

A reader asks:

If a property's backyard leads into a park, who's responsibility is it to clear the brush next to the fence (on the side of the park)? -- Am I able to hire someone to cut down some of the brush?

Our reply:

The City, County or State parks department is responsible for the maintenance of the park. They usually do not allow anyone who is not hired by the park to do any "landscaping". So if you have a problem with the brush on the other side of your fence, contact the appropriate parks department and ask them to clear it away.

- Janis Stone

posted by SFResidence.com @ 5:48 AM 0 comments

Earthquakes and landslides make people nervous in San Francisco

A reader asks:

Is the Marina safe to live in? I have heard a number of stories about the "liquefaction" in this area -- and wanted to know if this is a safe area of the city.

Our reply:

Parts of the Marina are built on Land fill which is subject to liquefaction in case of an earthquake. During the 1989 earthquake many properties in the Marina suffered significant damage and some buildings even collapsed as a result of the earthquake.

I have heard engineers tell clients that one of most important factors that will determine the extent of damage from an earthquake is the ground that a building is built upon. So if your property is built on rock it is less likely to sustain as much damage as a property built on sand, bay mud or landfill. But after the earthquake many buildings in the Marina were retrofitted with shear walls, foundation bolting and increased supports so that they are stonger and more able to withstand the shaking of an earthquake. New buildings were built with piers anchored on bedrock. This will hopefully reduce the risk of serious damage during an earthquake. However, we will not know how well the retrofitting works until we have another earthquake.

There is also risk of landslides for properties built on hills, so there are very few areas that are "risk free". I would advise anyone considering purchasing property in the Marina to talk to an engineer and have the property inspected by an engineer to determine the structural integrity of the home and what the professional's opinion is about the area. It is also important to ask yourself how much risk you are willing to take on your home or investment property. People differ greatly in their willingness to gamble on the future. The best bet may be to have great insurance!

- Janis Stone

Also see our previous article:

San Francisco Real Estate and Landfill

posted by SFResidence.com @ 2:33 AM 0 comments

Winter's officially here

Yesterday was the shortest day of the year. That really has little to do with San Francisco real estate, unless you're trying to look at property at 4:00 in the afternoon when it's starting to get dark.

December 21, 2006 at 7:22 PM, EST was the winter solstice where the sun reached its southern most point in the sky. And with the rainy weather we have had lately, it makes the days seem all that much shorter.

Along with the shorter days comes a slowing real estate market. It happens everytime at this time of year, yet skeptics still are talking about the "housing bust". However, our experience is that although marketing times are now much longer, prices are holding relatively steady and multiple offers are beginning to become more common. Could this indicate a strong 2007? Only time will tell.

Have a Happy Holiday season.

- Mick Orton

posted by SFResidence.com @ 7:52 AM 0 comments

Things to do in San Francisco - Part 3 - Japanese Tea Garden

posted by SFResidence.com @ 7:49 AM 0 comments

Focus on San Francisco Neighborhoods - North Beach

North Beach as described on the SFResidence neighborhood guide:

"This is where San Francisco's history all began. From Fisherman's Wharf up and over the hills to the borders of the Tenderloin and west to the Civic Center complex, home to the newly restored City Hall with its 14 carat golden dome, one of the finest examples of Beaux Arts buildings in the the country. City Hall is neighbored by the grand buildings of Louise B. Davies Hall, the Opera House, Bill Graham Civic Auditorium plus more. On any given Sunday you can hear in the tenderloin gospel music at Glide Memorial Church to the magnificent sounds of Grace Cathedrals organ while ending your day w/ jazz at one of the many North Beach haunts."

SFGate says, "North Beach is that rare thing -- a neighborhood that manages to be a perennial hit with tourists, and also to remain beloved by San Franciscans. It's best known as San Francisco's Little Italy, with its high density of check-clothed ristorantes, caffes and Old World delicatessens. It's also a popular pilgrimage for fans of the Beat movement seeking the old haunts of Kerouac and Ginsberg. However, North Beach is no relic, and it has much to offer beyond pasta and poetry." Read more here.

Other features include:

• Sights and Culture
• Shopping
• Restaurants
• Nightlife

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous Neighborhoods:

Chinatown - Bernal Heights - Castro - Cow Hollow - Diamond Heights - Fisherman's Warf - Golden Gate Park - Haight - Lake Street - Laurel Heights - The Marina - Nob Hill - Noe Valley - Outer Richmond - Pacific Heights - Russian Hill - Sacramento Street - St. Francis Wood - Sea Cliff - Telegraph Hill - Western Addition

posted by SFResidence.com @ 7:56 AM 0 comments

The ultimate resource for condominium conversions and condo law

The following has been reprinted from the Davis-Stirling.com Newsletter, a publication of ADAMS & KESSLER LLP. New election law with regard to owning pets in a condominium.
===================================
QUESTION:

Our CC&Rs prohibit pets. We are fearful that the new election law may affect our restriction.

ANSWER:

Your fears are well founded. By requiring all associations to adopt election rules, the legislature inadvertently voided all pet prohibitions in California.

Any governing documents amended after January 1, 2001 must allow pets. Civ.Code '1360.5(e) Election rules are part of an association's Rules & Regulations. Civ.Code '1357.120(a)(7) Rules & Regulations are defined as governing documents. Civ.Code '1360.5(d) Therefore adoption of election rules immediately voids pet prohibitions and allows owners to have birds, cats, dogs, and aquatic animals kept in aquariums. Civ.Code '1360.5(a)&(b)

Your board cannot preserve your pet restriction by refusing to adopt election rules since all associations "shall" adopt election rules. Civ.Code '1363.03(a) Therefore, the legislature has intentionally or unintentionally voided your pet restrictions.

RECOMMENDATION:

Associations with pet prohibitions should immediately amend their CC&Rs to limit the number, size and breeds of pets allowed. If they do not, owners can bring Pit Bulls, Dobermans, Rottweilers, etc. onto the property and there is nothing boards can do to stop it.
Moreover, if owners adopt pets before new restrictions are enacted, the pets are automatically grandfathered and associations cannot force their removal. Civ.Code '1360.5(c) Therefore, boards should move quickly to amend their governing documents.

If you need help drafting and recording pet restrictions, contact Natalie Reynolds.

- Adrian J. Adams, Esq.

posted by SFResidence.com @ 7:11 AM 2 comments

San Francisco Real Estate Market Update for 12/4 - 12/10/06

Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:

"Happy Holidays. The market is pacing typical holiday markets. Sales are slower. Listing inventories keep shrinking which is a positive sign. Our inventory levels are under both 2002 and 2001. If open houses are any reflection on the holidays it looks like we will have very good retail sales. Open house activity has slowed down in most markets. However, parts of San Francisco are still seeing brisk activity.

"The number of multiple offers has decreased overall. Even some of the multiple offers are going for under list price. Some sellers are receiving offers well under list price. Always interesting to note the exceptions. In the Portero Hill area of San Francisco we had 12 offers on a $1,095,000. It went well over. This reflects both the scarcity of inventory in certain areas and a home that is well prepared and priced to sell.

"It has become more difficult to negotiate acceptable terms for both buyers and sellers. It is taking several counter offers. This is reflective of a balanced market. A market where both buyers and sellers have compromise.

"Here are the numbers for the week of Dec. 4th-10th: 2 offers reported increasing inventories, 11 steady and 17 decreasing-----sales showed 5 offices with increasing sales activity, 12 steady and 13 decreasing."

- Avram Goldman

* For an e-mail alert when this report is updated, send a note to info@SFResidence.com with "weekly market report" in the subject line.

posted by SFResidence.com @ 10:35 AM 0 comments

Mortgage Weekly Update - Last Week in Review - December 18, 2006

Foster Weeks does a weekly mortgage update.

- Mick Orton
===================================
"...News of blockbuster Retail Sales numbers showed that the consumer and the economy in general continue to hum along. And any of us out doing holiday shopping recently can attest - the long lines and crowded parking lots show the consumer is out spending in full force. In fact, shoppers might be singing, "I used to say I and me...now it's PlayStation, now it's Wii".

"But typically, strong economic activity like Retail Sales is accompanied by higher inflation. Yet last week's tame and improving read on inflation via the Consumer Price Index report put a "Goldilocks" spin on the economy - not too hot, not too cool...but getting closer to "just right." Even though there was quite a bit of volatility during the week, home loan rates ended the week exactly where they started.

"So it appears that Ben Bernanke found what he's been looking for - a healthy economy, along with a better behaved rate of inflation. But Ben isn't out of the woods yet - because these reports are volatile, there could always be a rat lurking about in one of the upcoming economic releases..." Read the current report here.

- Foster Weeks

posted by SFResidence.com @ 8:01 AM 0 comments

Earthquakes post script

To quickly comment on yesterday's article on earthquakes, I meant to point out that Federal, State and local building requirements have really made homes much safer. Note that when you hear about building collapsing, it is often older structures that have not been retrofitted.

- Mick Orton

posted by SFResidence.com @ 7:49 AM 0 comments

A word about earthquakes in San Francisco

This is a subject that is long overdue. While we hate to talk about it because it focuses on the negative aspect of living near a fault line, if we ignore it doesn't mean it won't happen again someday.

While we were in Hawaii on the Big Island (our place is in the Waikoloa Beach Resort area), we were hit with a 5.0 earthquake. I should have written this piece then. The quake made a loud crack and then shook for 10-15 seconds while I was in the bedroom putting on my swim suit. It was over before I had a chance to think. Of course, all the neighbors in the complex were out on their lanais, wild eyed, because they were from areas that never have these tremors. For us, it was another day at the office.

The San Francisco Bay Area has become synonymous with earthquakes. We have our share of little ones, but our reputation comes mostly from the great quake of 1906 which destroyed most of the City and the Loma Prieta of 1989 that did major damage to houses in the Marina, collapsed a section of the Bay Bridge and caused the upper deck of the Cypress Viaduct in Oakland to fall.

Yesterday one of my friends from Iowa sent me earthquake survival tips by e-mail which prompted me to finally post this long overdue article. The e-mail was a snippet from Snopes relating Doug Copp's article on the "triangle of life". However, their review was not very complimentary. Regardless, I have posted the link here. Instead, they suggest following the rules found at the Red Cross website. The more information, the better.

- Mick Orton

posted by SFResidence.com @ 7:56 AM 0 comments

Pending Home Sales Reflect Stabilizing Market

The National Association of Realtors reported on December 4, 2006, "Despite a two-month decline, the latest pending home sales data tracked by NAR indicate a steady pace of home sales in the coming months, according to a recent report. In October, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, stood at 107.2, down 1.7 percent from the previous month and down 13.2 percent from October 2005. A PHSI of 100 or more generally indicates a high level of home sales activity."

It goes on to say that it appears the housing market is stabilizing nationwide. In San Francisco it is as if buyers woke up after Thanksgiving. Although our office has no more meetings this year, we have seen the market begin to pick up with more and more ratified offers. The opinion is that low interest rates and low unemployment numbers are contributing to this healthy comeback.

- Mick Orton

posted by SFResidence.com @ 7:52 AM 0 comments

You get what you give

As we get closer to Christmas it is important to remember that it is also a time for giving. At SFResidence, we get so wrapped up in buying and selling real estate that sometimes we overlook the simple things.

Every year at this time, TRI Coldwell Banker sponsors a "Toys for Tots" drive in our office. This year I thought I would do something a little different in conjunction with this program. My idea was simple. I own a rental property and thought it would would be a good idea to "borrow" two kids from one of my tenants and have them help me pick out toys for the "tots". In return I would let them each pick one toy for helping me. After all, who knows what kids want better than other kids? Sounds like a great idea, right? The vision I had of what was going to happen and what really took place were not the same, however.

My tenant is a single mother who works hard every month to pay her rent, and so I am sure the kids do not get a lot of attention. Before I go on, Bill Cosby used to say that if you only have one child, you're not really a parent. Now I know what he means. My daugher is now grown, but I don't remember having too much trouble keeping an eye on her when she was young. I thought having already been a dad once would prepare me for this experience... WRONG!

Just the ride to the toy store should have given me an idea of what I was in for. Now I know why my dad used to use the phrases, "Knock it off or I'll stop this car" or "Okay, we're going back home" on my sister and me on our road trips. The kids were so excited, they were WILD! During the drive, in order to keep them from hitting each other, I tried to distract them by singing Christmas songs. But the only one they could come up with was "Jingle Bells" with the funny lyrics that all schools kids know. And they sang it over and over... and over and over... and over...

At Toys 'R' Us, it was like herding cats. As soon as the car doors opened, it was like the opening of the gates at a horse race. I was afraid the kids would get hit by a car in the parking lot, and I had visions of having to tell the mother how her son and daughter were injured by an unsuspecting motorist. And once we were safely inside, it didn't get any easier. Keeping these two together in a TOY STORE, was anything but easy.

Anyway, what usually takes 20-30 minutes turned into a 1.5 hour event. It was fun watching them choose toys for the other kids, at least when I wasn't worried about losing them in that big warehouse! After that we had lunch and then headed over to the fire department where we dropped off our packages. There was an anxious moment. The firemen let the kids climb up in the big hook and ladder truck. All of a sudden a call came in. It was tough getting the kids out of the truck as the sirens started going off... I'm sure the firemen were just as relieved to be going to a fire as I was to have the distraction to herd the kids back into our car so we could head back to their house.

After years of the relatively benign act of donating to "Toys for Tots" and other charities, it was a great first hand experience, and I look forward to doing something like it again next year!

Happy Holidays!

- Mick Orton

posted by SFResidence.com @ 7:36 AM 0 comments

Focus on San Francisco Neighborhoods - Western Addition

The Western Addition as described on the SFResidence neighborhood guide:

"The Western Addition gave birth to the music neighborhood of the city since the 1800's. Great jazz musicians/vocalist such as Charlie Parker to Billie Holiday played in the jazz and blues clubs along Fillmore Street. Yes, the same Fillmore Street that dominated the psychedelic music scene of the 1960's with acts at the Fillmore Auditorium orchestrated by the great Bill Graham himself to John Lee Hooker's Boom Boom Room."

SFGate says, "If Perhaps the most ethnically and economically diverse neighborhood in San Francisco, the Western Addition feels more like several neighborhoods. And, in a sense, it is -- from the stunning views at Alamo Square to the historic Fillmore to ever-changing Divisadero St., you can experience several distinct vibes in the space of a few blocks." Read more here.

Other features include:

• Sights and Culture
• Shopping
• Restaurants
• Nightlife

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous Neighborhoods:

Chinatown - Bernal Heights - Castro - Cow Hollow - Diamond Heights - Fisherman's Warf - Golden Gate Park - Haight - Lake Street - Laurel Heights - The Marina - Nob Hill - Noe Valley - Outer Richmond - Pacific Heights - Russian Hill - Sacramento Street - St. Francis Wood - Sea Cliff - Telegraph Hill

posted by SFResidence.com @ 8:05 AM 0 comments

TRI Coldwell Banker San Francisco real estate statistics - this week

Our office at TRI Coldwell Banker at 1699 Van Ness in San Francisco is one of the premier offices in the City. We have some of the top agents selling real estate in the San Francisco Bay Area. As a result, our office posts some impressive numbers.

This was the last meeting of the year and things seem to be picking up, unusual for this time of year as the holidays loom large. Here are the numbers for this week:

12/13/06
2 new listings (average listing price $1,064,500)
18 ratified sales (pending) (average ratified price $1,255,888)
11 closed sales (sold) (average closed price $1,390,455)

- Mick Orton

posted by SFResidence.com @ 5:02 PM 0 comments

Steady Fed still sees inflation risks... but rates remain unchanged - Good news for home loans

The Fed met Tuesday and decided to hold rate increases again. Though they are itching to raise rates, inflation is just over the 2% mark they are aiming for but not enough to cause that big of a concern. Therefore, they held overnight rates to 5.25% for the fourth straight meeting. What does this mean to us? For one, those second mortgages and lines of credit on our homes will probably not go up.

MarketWatch reports, "...In its last meeting of the year, the Federal Open Market Committee maintained its wait-and-see approach. 'This statement suggests a wait-and-see approach on the part of the Fed as the downturn in housing plays out,' said economists at Lehman Brothers in a research note. Fed Chairman Ben Bernanke and his colleagues continued their practice of making subtle changes to past policy statements. The subtle changes to the statement from October are dovish in that they increase the central bank's concern about the economic outlook.
But the key statement was unchanged. "Some inflation risks remain," the committee said. Read the full statement. ..." Read the rest of the article.

- Mick Orton

posted by SFResidence.com @ 7:33 AM 0 comments

Things to do in San Francisco - Part 2 - Alcatraz

posted by SFResidence.com @ 7:41 AM 0 comments

Mortgage Weekly Update - Last Week in Review - December 11, 2006

Foster Weeks does a weekly mortgage update.

- Mick Orton
===================================
"...Overall this is a very good picture, although the rate of unemployment crept up slightly to 4.5%, and Hourly Earnings were lower than expected, showing that the average worker in the US earns $16.94 per hour. Now remember that Bond pricing and home loan rates tend to worsen on positive economic news like a strong jobs number - so had it not been for the two factors of slightly worse than expected Unemployment Rates and Hourly Earnings, the damage to home loan rates could have been much worse. But Bonds did fall on Friday afternoon, meaning home loan rates could be slightly higher heading into next week.

"...following the excitement in the market last week - the coming week brings even more, as the economic calendar is loaded with high impact releases being headlined by Tuesday's Fed Meeting, after which they will release their Monetary Decision and Policy Statement.

"The Fed has said it remains concerned about the core rate of inflation which is "uncomfortably high" at 2.4% year-over-year and "out of their comfort zone", which is in a range of 1 to 2%. The Fed is likely to once again remain in a "paused" mode at this meeting, but if the Fed continues to express concerns about inflation in the words of the Policy Statement, Bonds may move lower and cause home loan rates to rise following the statement on Tuesday.

"Bonds and home loan rates are hurt by inflation...or even the hints of inflation...since it erodes the buying power of the fixed dollar amount of return that a Bond provides. And speaking of inflation...the Consumer Price Index (CPI) will be released on Friday and this report has been a market mover of late, as inflation takes center stage. If the scent of inflation remains in the air in this release, home loan rates may edge higher at the end of the week. But if inflation appears to ease a bit, home loan rates may improve..." Read this week's report...

- Foster Weeks

posted by SFResidence.com @ 7:05 AM 0 comments

San Francisco Real Estate Market Update for 11/27 - 12/3/06

Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:

"Contrary to newspaper opinion homes are selling. I want to let all of you know my home in Rockridge closed last week. I have a great appreciation and empathy for sellers. I have two realities---one as a realtor and one as a seller. The realtor, like a doctor or other professional works with many patients or clients and selling a home is an everyday on-going experience. For a seller it is an experience that on average occurs every 7 years. In my case, it was 20 years. It was the home we raised our family in. And of course as a seller your home is special---and it is.

"Thought I would share a few observations about my experience. First I would not sell a home without a realtor. Sounds like I am biased. Even as a realtor I wouldn’t list my own home. The experience is filled with too much emotion.

"I was fortunate my home had an offer even before the brokers’ tour or the first open house. I owe this to my realtors letting me know what I needed to do to prepare my home. We had all the inspections up front. Even the termite work was completed before going on the market. They arranged for all the work to be done with gardeners, painters, floor refinishers,stagers etc. We spent close to $40,000. It was worth every penny. The house shone like a jewel. Our home was listed for $1,749,000. At that price level, buyers expect a home to be a jewel.

"Of course as a seller I thought my home should be listed higher. The good news is I listened to my realtors. I took my own advice. Pricing is tricky in today’s market. You need to be competitive. You need to create excitement in the minds of buyers. They know the market and they know value. If they don’t see the value—they just move on.

"This is only the beginning of the story. Next is the offer and negotiation to open escrow. Not necessarily an easy task. In our case, like in most offers, buyers want to see how low you will go. We were no exception. The offer was well under asking. From what I was told the buyer had consulted with a friend who said you should use this tactic. Well it almost lost them the home. Fortunately, my realtor let more reasoned minds prevail. She suggested I counter back a little (a very little) under full asking price. Let’s see if the buyer is truly serious about buying your home. We did as she asked. It worked the buyer accepted our counter. They were serious about buying. If I went with my initial response---why counter at all. We wouldn’t have known if they truly wanted to buy our home. The lesson---always counter---it never hurts you.

"Of course, after we opened escrow another offer came in $70,000 over the first. Where were they two days before? It happened to us when we sold our home 20 years ago. My feeling is still a bird in the hand is worth two in the bush. Obviously they were trying to give us motivation to bump the first offer. After a few days, they weren’t willing to wait. So they weren’t as committed as our first buyer.

"After numerous inspections---and I mean numerous----I was getting the feeling the buyer would be offering us a proposal. Our home was built in 1926, with a 1926 foundation. The buyer, and rightly so was concerned, as he was paying all cash. We were informed of all the expense it would be to bring up to current standards. Are you getting the story? If he thinks I am going to replace the foundation----you know how this thought ends.

"Twenty five days later and on the day the final contingency was to be removed the buyer comes back with an addendum and yes they are asking for a credit back. To be honest it was in the ball park. To counter or to accept that is the question. If we accepted our home is sold. If we counter who knows. I wanted to counter---my wife didn’t. Have you heard this one? Now comes the real negotiations. After a warm discussion with my wife, the decision was made. Yes, you know who won. Our home was sold. After we let our realtors know what we decided. They told us with the extra few dollars we may have received we bought the buyers goodwill, particularly as they were reasonable in their request.

"Our home is now closed. The buyers are delighted and so are we. If it wasn’t for our realtors and my wife we may still have been on the market. I am thankful for both of them. It is a different market than a year ago. I feel we received a fair price for our home. What it showed me is the old expression if an attorney represents themselves they have a fool for a client. In this market a seller more than ever needs an experienced knowledgeable realtor to insure they maximize their equity, but most importantly they close their escrow.

"Now for the market. Inventories continue to decline in most areas. In San Francisco and on the Peninsula November ended a little better than last November. This is primarily due to a dearth of single family homes in a number of neighborhoods. A few other marketplaces that were active last month were San Rafael, Berkeley, Petaluma and Half Moon Bay. The East Bay overall continues to lag the rest of the Bay Area.

"Open house activity is mixed even within in marketplaces. Negotiations continue throughout the escrow period. In some cases homes need several offers before one finally closes escrow. It takes great patience and finesse to insure a successful escrow.

"Most multiple offers are occurring in SF and in San Mateo counties. A home in Eureka Valley in San Francisco listed at $625,000 received 6 offers and went well over full asking price. In San Rafael a home listed at $859,000 garnered 15 offers.

"The overall tempo of the market is holiday steady. Only 6 offices reported decreasing sales activity, although 15 offices reported decreasing inventories. Surprisingly 6 offices showed increasing sales activity.

"It appears the market is close to reaching a state of equilibrium----a market in balance."

- Avram Goldman

* For an e-mail alert when this report is updated, send a note to info@SFResidence.com with "weekly market report" in the subject line.

posted by SFResidence.com @ 8:16 AM 0 comments

San Francisco - got golf?

If you are new to golf like I am, then playing the same course over and over again doesn't seem like such a bad idea. After all, how else am I going to get a chance to retrieve all those balls I lost the time before? Though they won't let me bring in scuba gear...

I know as I get better at the game, I will enjoy the new challenges that different courses will bring. Right now my problem is finding people who want (or have time) to go with me. Friends and I have played several of the courses on the Big Island when we stay at Kolea in Hawaii. And I am looking forward to playing the courses that surround our property at the Mauna Lani.

But what about San Francisco? Here's a great website I found with all the courses in the Bay Area called SFGolfer and gives an idea of how expensive they are. There are 6 in the City, 5 public and 1 private. Here are the public courses not in any particular order:

1. Presidio - 18 holes
2. Lincoln Park - 18 holes
3. Golden Gate - 18 holes
4. Harding Park - 27 holes
5. Gleneagles International - 9 holes

Fore!

- Mick Orton

posted by SFResidence.com @ 7:35 AM 0 comments

Things to do in San Francisco - Part 1 - Golden Age Bridge

Starting today, we will begin highlighting various points of interest in San Francisco. As you know, there are lots of things to do in the City by the Bay, and we want to share some of them. We hope you enjoy the series.

posted by SFResidence.com @ 7:47 AM 0 comments

Exciting new product for buying homes! Pledged Asset Loan Program

These people have pulled off some miracles for several of our clients in getting difficult loans, even at the last minute. Stacey Fleece tells us about this interesting new program from Princeton Capital.

- Mick Orton
===================================

The pledged asset loan program allows customers to finance up to 100% of a home purchase without liquidating investment assets. The customer keeps the investment strategy in place and defers capital gains taxes. Some of the benefits and features of this program are:

• There is no additional cost for this program and no interest rate add-on
• A parent or sponsor may pledge assets on behalf of a borrower in lieu of a down payment or a gift letter
• Available on second homes, investment properties and for cash-out refinances
• Customer can maintain long-term investment strategy and benefit from interest, dividends and investment appreciation
• This is no Private Mortgage Insurance (PMI) required as would be typical with a loan-to-value over 80%
• Defer capital gains tax by keeping investment assets in place
• Borrowers may keep pledged assets with their brokerage firm of choice, as long as the firm agrees to certain pledge account requirements. The borrower may pledge multiple accounts
• Eligible assets include stocks, bonds, mutual funds, CDs and others. Retirement accounts are not eligible.
• Trading is allowed in the pledged account with permission

Contact me for more information!

Stacey C. Fleece, CFA
Senior Loan Consultant
Princeton Capital
415.229.1228 (office)
415.596.6069 (mobile)
staceyfleece@princetoncap.com

posted by SFResidence.com @ 8:02 AM 0 comments

TRI Coldwell Banker San Francisco real estate statistics - this week

Our office at TRI Coldwell Banker at 1699 Van Ness in San Francisco is one of the premier offices in the City. We have some of the top agents selling real estate in the San Francisco Bay Area. As a result, our office posts some impressive numbers.

As you can see from the numbers below the holidays are here! Sales are traditionally slow from Thanksgiving through the New Year.

12/6/06
3 new listings (average listing price $788,677)
5 ratified sales (pending) (average ratified price $1,326,000 )
10 closed sales (sold) (average closed price $1,255,000 - 2 confidential)

- Mick Orton

posted by SFResidence.com @ 4:54 PM 0 comments

Note to San Francisco Landlords - 60-Day Notices for No-Fault Evictions Return

It's back! As always, California seems to be more interested in doing things to kill rental business in the state. Lawmakers have seen fit to bring back the 60 day notices for landlords to terminate a rental agreement.

- Mick Orton

AB 1169 reinstated the prior provisions of Civil Code Section 1946.1 requiring a 60-day notice to terminate a tenancy without a tenant fault good cause with one change: the section now allows a 30-day notice if "any tenant or resident has resided in the dwelling for less than one year", while the previous section allowed a 30-day notice only if "the tenant has resided in the dwelling for less than one year". The law, which is effective January 1, 2007, will be in effect for three years and sunsets on December 31, 2009, unless extended by the Legislature by that date.

Sent courtesy of San Francisco Association of Realtors

posted by SFResidence.com @ 8:07 AM 0 comments

Mortgage Weekly Update - Last Week in Review - Rates slightly better or unchanged

Foster Weeks does a weekly mortgage update. His first statement couldn't be more on point!

- Mick Orton
===================================
"AN ECONOMIST IS AN EXPERT WHO WILL KNOW TOMORROW WHY THE THINGS HE PREDICTED YESTERDAY DIDN'T HAPPEN TODAY." Laurence J Peter And sure enough, the economist's predictions were off the mark again last week, as several key economic reports came in weaker than anticipated. Weak economic reports tend to benefit Bond pricing and therefore home loan rates, so rates were slightly improved to unchanged overall over the course of the week...

"...So the debate on what the Fed should do next continues...some experts say that the Fed should consider a rate cut to support a rapidly cooling economy, while others say more hikes are needed in order to slay the inflation "dragon". The Feds primary concern is inflation - and protecting not only us, but our future generations, from runaway prices of goods and services - so until inflation moves closer to their desired target, a rate cut is not likely to be in the cards in the very near future..." Read on...

- Foster Weeks

posted by SFResidence.com @ 7:29 AM 0 comments

Seasonal Scams - BEWARE!

In our latest newsletter we reported two new scams that seem to be taking advantage of the good will created by the holiday season.

1) Authorities are warning consumers of a possible scam involving gift cards. Scammers have found a way to steal the money from the popular holiday gifts. News Channel WSAZ reports...

2) Vishing is the latest cyber-scam. Because we got wise to the phishing e-mails from banks and lending institutions geared toward stealing our identities and personal information, scam artists are no longer waiting for unsuspecting persons to respond to them. Using new Voice over IP technology (which hides their true location) they are now calling unsuspecting citizens and posing as agents of these institutions. PC Advisor has the story...

- Mick Orton

posted by SFResidence.com @ 8:17 AM 0 comments

San Francisco Real Estate Market Update for 11/20 - 11/26/06

Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:

"Some things never change. Thanksgiving week is and has been traditionally a slower week and for good reason---it is a time to give thanks for all of our wonderful abundance. Both new listings and sales were lackluster.

"Open house activity was mixed. Most found fewer buyers out and about. However, a few areas particularly on parts of the Peninsula, had good numbers through their opens.. The most active areas for sales the past week were Berkeley, Palo Alto, parts of San Francisco, Menlo Park, Monterey Peninsula, Novato and Oakland. Most of these areas had the highest number of multiple offers---having between 40-100% of their open escrows involved in multiple offers. Doesn’t sound like a buyer’s market. All these areas, with few exceptions, have very limited inventories. Menlo Park and Palo Alto have 2 months or less of single family homes available. San Francisco is a little over 2 months. The buyer demand is still alive and well. Buyers sense of urgency is dependent on inventory levels. The record this week was in Santa Rosa. A home listed at $ 385,000 had 15 offers, but sold just a little over asking.

"Homes that are priced at market levels and staged properly are selling most quickly. Others take longer accompanied by seller frustration and a number of price reductions. Transactions are still taking longer to negotiate in most markets and escrow periods are dotted with further negotiations after reports are received. It is still a market that demands patience.

"The public is becoming more and more irritated with the media, particularly the SF Chronicle, which continues to bludgeon the real estate market with doom and gloom. Consumers no longer believe it. I have attached a Letter to the Editor (second one entitled 'Enough is Enough') from a doctor in Tiburon.

"Activity has seemed to have picked up after the holiday weekend, but we will discuss this next week.

"The numbers for the week of Nov. 20th-26th are as follows: 5 offices reported increasing listing inventories, 8 steady and 10 decreasing---3 offices showed increasing sales activity, 11 steady and 18 decreasing."

- Avram Goldman

* For an e-mail alert when this report is updated, send a note to info@SFResidence.com with "weekly market report" in the subject line.

posted by SFResidence.com @ 7:42 AM 2 comments

Fast Facts from CAR and Freddie Mac - October 2006

Calif. median home price - October 06: $548,680 (Source: C.A.R.)
(note: compared to $553,050 last month)

Calif. highest median home price by C.A.R. region October 06:Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
(note: compared to $1,025,000 last month)

Calif. lowest median home price by C.A.R. region September 06:High Desert $328,650 (Source: C.A.R.)
(note: compared to $329,040 last month)

Calif. First-time Buyer Affordability Index - Second Quarter 06:24 percent (Source: C.A.R.)

Mortgage rates - week ending 11/22:

• 30-yr. fixed: 6.18%; Fees/points: 0.5%
  (note: compared to 6.4% and 0.4% points last report )
• 15-yr. fixed: 5.91%; Fees/points: 0.5%
  (note: compared to 6.1% and 0.4% points last report )
• 1-yr. adjustable: 5.49%; Fees/points: 0.6%
  (note: compared to 5.6% and 0.7% points last report )

- California Association of Realtors & Freddie Mac

posted by SFResidence.com @ 9:26 AM 0 comments

Focus on San Francisco Neighborhoods - Haight

The Haight as described on the SFResidence neighborhood guide:

"Haight-Ashbury is filled with Victorians and is the home of the most famous corner in hippiedom, Haight & Ashbury. Legendary musical groups such as the Grateful Dead at 112 Lyon Street and singer Janis Joplin's pad on Buena Vista Park have helped make this."

SFGate says, "If there's any area of San Francisco that evokes images of the long-gone '60s hippie culture, the Haight is it. Fragments of that flower-power, incense-burning, acid-dropping, tie-dye-wearing, peace-and-love-vibing era can be purchased at smoke shops and Eastern-influenced outlets bearing names like Dreams of Kathmandu, Pipe Dreams and The Love of Ganesha. But save for a few hippie relics, the Haight today is a whole new scene. Exclusive boutiques, high-end vintage-clothing shops, second-hand stores, Internet cafés and hip restaurants have all settled in, making the Haight one of San Francisco's commercial centers." Read more here.

Other features include:

• Best time to go
• Sights and Culture
• Shopping
• Restaurants
• Nightlife

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous Neighborhoods:

Chinatown - Bernal Heights - Castro - Cow Hollow - Diamond Heights - Fisherman's Warf - Golden Gate Park - Lake Street - Laurel Heights - The Marina - Nob Hill - Noe Valley - Outer Richmond - Pacific Heights - Russian Hill - Sacramento Street - St. Francis Wood - Sea Cliff - Telegraph Hill

posted by SFResidence.com @ 8:12 AM 0 comments