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Sales Up In (Almost) Every Price Range!

07 Oct 2015 Posted by NooshiAdmin in Blog

Price-Up-KCM

The National Association of Realtors’ most recent Existing Home Sales Report revealed that home sales were up rather dramatically over last year in five of the six price ranges they measure.

Only those homes priced under $100,000 showed a decline (-7.7%). The decline in this price range points to the lower inventory of distressed properties available for sale and speaks to the strength of the market.

Every other category showed a minimum increase of at least 5.6%, with sales in the $250,000- $500,000 range up 16.9%!

Here is the breakdown:

Sales-Up-KCM

What does that mean to you if you are selling?

Houses are definitely selling. If your house has been on the market for any length of time and has not yet sold, perhaps it is time to sit with your agent and see if it is priced appropriately to compete in today’s market.

Source : KCM.com

#1 Reason to List Your House Today

06 Oct 2015 Posted by NooshiAdmin in Blog

Reason-To-Sell-KCM

If you are debating listing your house for sale this year or even early next year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

According to the National Association of REALTORS’ (NAR) Foot Traffic report, there are more buyers out in the market right now than at any other time in the past three years.

The graph below shows the significant increase in foot traffic experienced this year compared to 2014.

Demand-KCM

The latest Existing Home Sales report shows that there is currently a 5.2-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below August 2014 numbers.

The chart below details the year-over-year inventory shortages experienced so far in 2015:

Supply-KCM

Bottom Line

Meet with a local real estate professional who can show you the supply conditions in your neighborhood and assist you in gaining access to the buyers who are ready, willing and able to buy today!

Source : KCM.com

Don’t Wait To Buy Your Dream Home

03 Oct 2015 Posted by NooshiAdmin in Blog

Dream-Home-KCM

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen over the next 12 months?

According to CoreLogic’s latest Home Price Index, prices are expected to rise by 4.7% by this time next year.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Tablepredicts that the 30-year fixed mortgage rate will appreciate to 4.7% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

Cost-of-Waiting

Source : KCM.com

Is it Time to Downsize your Home?

02 Oct 2015 Posted by NooshiAdmin in Blog

Downsizing-KCM

A recent study by Edelman Berland revealed that of homeowners who are contemplating selling their house in the near future 33% plan to scale down. Let’s look at a few reasons why that would make sense to many Americans.

In a recent blog post, Dave Ramsey, the financial guru, discussed the advantages of selling your current house and downsizing into a smaller home that better serves your current needs. Ramsey explains three potential financial advantages to downsizing:

  1. A smaller home means less space, but it also means less time, stress and money spent on upkeep
  2. Let’s assume you save $500 a month on your mortgage payment. In 30 years, you could have an additional $1–1.6 million in the bank to get you through your golden years.
  3. Use the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed rate mortgage and put at least 10–20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.

Realtor.com also addressed downsizing in a recent article. They suggest you ask yourself some questions before deciding if downsizing is right for you and your family. Here are two of their questions followed by their answers (in italics) and some additional information that could help.

Q: What kind of lifestyle do I want after I downsize?

A: “For some folks, it’s a matter of living a simpler life focused on family. Some might want to cross off travel destinations on their bucket lists. Some might want a low-maintenance community with high-end upgrades and social events. Decide what you want to achieve from your move first, and you’ll be able to better narrow down your housing options.”

Comments: Many homeowners are taking the profit from the sale of their current home and splitting it to put down payments on a smaller home in their current location and a vacation/retirement home where they plan to live when they retire.

This allows them to lock in the home price and mortgage interest rate at today’s values. This makes sense financially as both home prices and interest rates are projected to rise.

Q: Have I built up enough equity in my current home to make a profit?

A: “For most homeowners, the answer is yes. This is if they’ve held on to their properties long enough to have positive equity that will be sizable enough to put a large down payment on their next home.”

Comments: A recent study by Fannie Mae revealed that only 37% of Americans believe they have significant equity (> 20%) in their current home. In actually, 69% have greater than 20% equity. That equity could enable you to build a life you have always dreamt about.

Bottom Line

If you are debating downsizing your home and want to evaluate the options you currently have, meet with a real estate professional in your area who can help guide you through the process.

Source : KCM.com

Months Supply of Inventory, Seasonality, and its Relationship to Pricing

24 Sep 2015 Posted by NooshiAdmin in Blog, Market News

We’ve always known that seasonality plays a big role in real estate, but this Months Supply of Inventory (MSI) chart shows:

1) The lower-priced (under $2m) market has the most competitive supply and demand dynamic.

2) How much more seasonality affects the luxury home end of the market. Homes under $2m ebb and flow by season, but the fluctuations are much more dramatic in the luxury home segment.

image001

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Autumn SF Home Selling Season Begins Against Backdrop of Market Volatility

05 Sep 2015 Posted by NooshiAdmin in Blog, Newsletter

Real estate markets are essentially determined by the balance – or imbalance, as is often the case – between buyer demand and seller supply of homes to purchase. Underlying that dynamic are economic, political and demographic factors – some local, some not – such as population growth, employment, new home construction, high-tech booms, consumer confidence, interest rates, affordability, IPOs, stock market movements, shenanigans in Congress, and SF ballot proposals, to name a few. Even environmental factors, such as droughts and earthquakes, can jump in and affect the market. These factors are all jostling for effect, ebbing and flowing, sometimes appearing out of nowhere to shake things up, or suddenly shrinking and quickly forgotten.

We are neither blithe optimists, for whom boom times will never end, nor inveterate pessimists, who see bubbles and crashes behind every shrub. For what it’s worth, based on our survey of current economic fundamentals, we don’t expect an imminent crash in the U.S. stock market or in Bay Area real estate values. (This short New Yorker article is excellent on recent market volatility: Drop in the Bucket) However, economies and markets naturally experience fluctuations – short-term ups and downs, times of slowing and flattening – and it’s certainly possible that the balance between buyers and sellers might shift, that the frenzy in our market may subside, and that home prices may plateau or even tick down to some degree. On the other hand, due to the scale of our high-tech boom (another area of exuberantly conflicting predictions) and our deeply inadequate supply of housing, demand may continue to exceed supply, and the pressures of recent years may continue until new-home construction makes a more significant contribution to inventory.

New Listings Coming on Market

Seasonality_New-Listings

September is usually the single month with the greatest number of new listings, and those that hit the market in the 4 to 5 weeks after Labor Day feed the vast majority of autumn sales activity until the market goes into hibernation mode in mid-late November. Preliminary indications are that this may be a very big new-listing month, even for a September. If this is true, and especially if it marks the beginning of a trend of more listings coming on market, that could cool the ferociously competitive, low-inventory, “seller’s market” of recent years. If buyers are more hesitant due to recent financial-market volatility, that would also cool the market. But, in our opinion, neither factor is likely to flip us into a crashing or recessionary market.

Percentage of Listings Accepting Offers

Percent_UC_SFD-Condo_by_Quarter

This chart illustrates the surge in buyer demand from the end of the last recession through the 2012 – 2015 recovery. Having the percentage of listings accepting offers over 50% and sometimes well over 60% in a given quarter – extremely high percentages historically – has applied consistent upward pressure on home prices. Demand usually peaks during the spring and autumn selling seasons, i.e. in the 2nd and 4th quarters.

Additional market indicator analyses can be found here: SF Market Overview Analytics

S&P Case-Shiller Home Price Index

Case-Shiller_from_1990

An updated Case-Shiller Index chart for the 5-county San Francisco Metro Area, outlining the real estate market cycles going back to the 1980’s. (The June Index was released on August 25th.) It is noteworthy that over the past several decades, we’ve never seen a crash or significant “correction” in our real estate market that was not in conjunction with a major, sustained, national economic event. This chart also suggests that SF buyers who purchase homes 1) they can afford in the first place, 2) using fixed-rate mortgages, and 3) for longer-term ownership, usually come out all right, and often fabulously well, despite periodic market declines.

“Renting can make sense as a lifestyle choice or because of income constraints. As a means to building wealth, however, there is no practical substitute for homeownership.”
Homeownership & Wealth Creation, 11/30/14, NYT op-ed article

The Case-Shiller chart above reflects sales in the upper third of Bay Area home sales (i.e. “high-price-tier”) – which applies best to SF homes. Even in the high tier, the city has generally outperformed the Bay Area in home price appreciation. The numbers on the graph refer to a January 2000 price of 100; thus, the number 217 signifies a price 117% above then. It is interesting to note, that as of the June Index report, all three Bay Area home-price tiers – low, mid and high – have readings of 117% appreciation since 2000, which may be a sign of an equilibrium being reached in the market. Our full report: Case-Shiller for SF Bay Area

Bay Area Housing Affordability

Housing-Affordability-Index

The California Association of Realtors recently released its Housing Affordability Index (HAI) for the 2nd quarter of 2015. All Bay Area counties saw declines in their affordability index reading – which measures the percentage of households that can afford to buy the median priced single family dwelling (house) – and San Francisco is now only 2 percentage points above its all-time low of 8%, last reached in Q3 2007.

Very low affordability at a time of very low interest rates is certainly a concern, but housing affordability is a complex subject and there are other factors at play in San Francisco. Our full report, which also charts median home prices, rents, interest rates, inflation-adjusted housing costs and household income by county is here: Bay Area Housing Affordability

Where to Buy at What Price Point

8-15-House-Sales_1m-1499k-by-Neighborhood

We’ve recently updated our report on where one is most likely to find a house or condo in one’s price range. The chart above is 1 of 7 delineating San Francisco neighborhoods with homes from under $1 million to over $5 million: San Francisco Neighborhood Affordability

Median Home Prices and Economic Indicators

A glance at recent movements in San Francisco’s median home sales price, as well as at a few longer-term local and national economic indicators.

Monthly fluctuations – often seasonally related – have been common since
2012, but home prices have consistently climbed higher over the longer term.

Median-Prices_Short-Term

National and San Francisco unemployment trends: Very positive.

Unemployment-Rates_US-SF_since-1990

Over 100,000 new SF jobs – many of them very well paid – have been created since 2009. (The housing supply has increased by less than 15,000 units.)

Employment_SF-by-year

Household debt to GDP and mortgage debt service ratios – huge issues
in the 2007-2008 crash – have significantly declined since then.

Household-Debt-to-GDP-Ratio_US-since-1990

Mortgage-Debt-Ratios_US_since-1990

Sustained movements in the S&P 500 Index largely correlate to SF home-
price trends. Short-term financial-market fluctuations typically have no effect.

8-26-15_SP-Stock-Market

Price to Earnings (PE) Ratios of the S&P 500 Index climbed a bit high
in mid-2015, but not egregiously so compared to historical averages.

SP500_PE-Ratio_since-1986

Our goal is not to convince you of a certain position, but to provide you with what we believe to be reliable data, so that you can make your own informed decisions.

These analyses were made in good faith with data from sources deemed reliable, but they may contain errors and are subject to revision. Statistics are generalities and all numbers should be considered approximate. Sales statistics of one month generally reflect offers negotiated 4 – 6 weeks earlier.

© 2015 Paragon Real Estate Group

Where to Buy a Home in San Francisco for the Money You Want to Spend

13 Aug 2015 Posted by NooshiAdmin in Blog, Market News

The charts below are based upon 2015 YTD transactions reported to MLS by July 24, 2015 . We’ve generally broken out the neighborhoods with the most sales within given price points. To a large degree, if you’re buying a house in San Francisco, your price range effectively determines the possible neighborhoods to consider. That does not apply quite as much to condos and TICs: Generally speaking, in neighborhoods with high numbers of condo and TIC sales, there are buying options at a wide range of price points – though, unsurprisingly, the number of bedrooms increase as prices get higher.

Of course, era of construction, views, average size and many other features and amenities can vary widely between neighborhoods.

Where to Buy a HOUSE for under $1 million in San Francisco

The overall median HOUSE price in the city in the 2nd quarter of 2015 was about $1,350,000, so the under million-dollar house is becoming much less common. The vast majority of house sales under $1,000,000 now occur in a large swath of neighborhoods running across the southern border of San Francisco: from Ingleside and Oceanview through Crocker Amazon, Excelsior, Portola and Visitacion Valley to Bayview. These southern border neighborhoods are by far the most affordable house markets in the city. (They don’t contain many condos at this point, though some big developments are planned.) Neighborhoods that not so long ago had numerous sales in this price range – such as Sunset, Parkside, Outer Richmond, Bernal Heights and Miraloma Park – have now generally appreciated over the last 3 years to the point where such sales are increasingly rare.

The horizontal columns reflect the number of sales under $1 million in 2015 YTD for each area, while the median sales prices noted are for all house sales during the period. Median price is that price at which half the sales occurred for more and half for less.

8-15-House-Sales_Up-to-1m-Neighborhood

Where to Buy a CONDO, CO-OP OR TIC for Under $1 million in San Francisco

The overall SF median condo price in the 2nd quarter of 2015 was about $1,125,000. Sales under $1m still occur in almost every area of the city that features these property types, but a studio unit in Russian Hill may cost the same as a 2 bedroom unit in Downtown. Some areas with large volumes of sales, such as South Beach/South of Market or the greater Noe Valley district, offer units for sale at virtually every price point. In such districts, what will vary will be the prestige and amenities of the building, the size and graciousness of the unit, the floor the unit is located on, whether parking is included, and the existence of views and deeded outside space (decks, patios, or, less often, yards).

In the general category of condo, co-op and TIC sales in San Francisco, condos make up about 90% of sales, stock co-op apartments 1 to 2%, with TICs making up the balance. TICs typically sell at a significant discount (10% – 20%) to similar condos, but there are a number of factors that affect the exact price differential.

The horizontal columns reflect the number of sales under $1m in 2015 YTD broken down by sales of 1-bedroom units and sales of 2+ bedrooms.

8-15-Condo-Sales_Up-to-1m-Neighborhood

Spending $1 Million to $1.5 Million

In this price point for houses, one starts moving into a different group of neighborhoods on the west side and in the central-south areas of the city. Within this collection of neighborhoods, one will typically get more house for one’s money in the Sunset, Parkside or Outer Richmond than in Miraloma Park, Bernal Heights or Potrero Hill. In the greater Noe, Eureka and Cole Valleys district, houses in this price range are now difficult to find.

In the charts below, the horizontal columns reflect the number of sales in each area, while the dollar amounts reflect average dollar per square foot values for the homes in this price range in the specified areas.

8-15-House-Sales_1m-1499k-by-Neighborhood

Condo, co-op and TIC sales in this price range are mostly concentrated in those areas where newer (and expensive) condo developments have come on market – and continue to arrive in increasing numbers – over the last 10 years, as well as, of course, in high-end neighborhoods such as Pacific Heights & Russian Hill, and Noe, Cole & Eureka Valleys.

8-15-Condo-Sales_1m-1499k-Neighborhood

Buying a HOUSE for $1.5 million to $2 million

8-15-House-Sales_1500-1999k-by-Neighborhood

Buying a LUXURY HOME in San Francisco

For the sake of this report, houses selling for $2 million and above, and condos, co-ops and TICs selling for $1.5 million and above are designated (somewhat arbitrarily) as luxury home sales. What you get in different neighborhoods for $2 million or $3 million or $5 million can vary widely.

The charts below are broken out by increasingly higher price segments within the overall “luxury” price range.

Luxury CONDO, CO-OP & TIC Sales

8-15-Condo-Sales_1500k-plus-Neighborhood

Luxury HOUSE Sales

8-15-House-Sales_2m-plus-by-Neighborhood

San Francisco Neighborhood Map

San_Francisco_Neighborhood_Map

For prevailing SF median house and condo prices, our interactive map of neighborhood values can be found here: SF Neighborhood Home-Price Map

SAN FRANCISCO REALTOR DISTRICTS

District 1 (Northwest): Sea Cliff, Lake Street, Richmond (Inner, Central, Outer), Jordan Park/Laurel Heights, Lone Mountain

District 2 (West): Sunset & Parkside (Inner, Central, Outer), Golden Gate Heights

District 3 (Southwest): Lake Shore, Lakeside, Merced Manor, Merced Heights, Ingleside, Ingleside Heights, Oceanview

District 4 (Central SW): St. Francis Wood, Forest Hill, West Portal, Forest Knolls, Diamond Heights, Midtown Terrace, Miraloma Park, Sunnyside, Balboa Terrace, Ingleside Terrace, Mt. Davidson Manor, Sherwood Forest, Monterey Heights, Westwood Highlands

District 5 (Central): Noe Valley, Eureka Valley/Dolores Heights (Castro, Liberty Hill), Cole Valley, Glen Park, Corona Heights, Clarendon Heights, Ashbury Heights, Buena Vista Park, Haight Ashbury, Duboce Triangle, Twin Peaks, Mission Dolores, Parnassus Heights

District 6 (Central North): Hayes Valley, North of Panhandle (NOPA), Alamo Square, Western Addition, Anza Vista, Lower Pacific Heights

District 7 (North): Pacific Heights, Presidio Heights, Cow Hollow, Marina

District 8 (Northeast): Russian Hill, Nob Hill, Telegraph Hill, North Beach, Financial District, North Waterfront, Downtown, Van Ness/ Civic Center, Tenderloin

District 9 (East): SoMa, South Beach, Mission Bay, Potrero Hill, Dogpatch (Central Waterfront), Bernal Heights, Inner Mission, Yerba Buena

District 10 (Southeast): Bayview, Bayview Heights, Excelsior, Portola, Visitacion Valley, Silver Terrace, Mission Terrace, Crocker Amazon, Outer Mission

Some Realtor districts contain neighborhoods that are relatively homogeneous in general home values, such as districts 5 and 7, and others contain neighborhoods of wildly different values, such as district 8 which, for example, includes both Russian Hill and the Tenderloin.

All data is from sources deemed reliable, but may contain errors and is subject to revision.

© 2015 Paragon Real Estate Group

1000 Ways to Enjoy San Francisco & the Bay Area This Summer

22 Jun 2015 Posted by NooshiAdmin in Blog, For Fun

Guests are coming, the kids are out of school, or you just want to do something different than usual. Summer has arrived in one of the most beautiful and multi-dimensional places on earth, and here is a wide variety of ideas for making the most of it.

Dinner, brunch, burritos, burgers, bars, music, dance, theater, running, biking, hiking, and things to do with visitors, children and dogs.

Food & Drink

Top 100 Restaurants

Zagat’s Best

Outdoor Dining & Drinking

Best Meal Delivery

Best Breakfast

Best Brunch

Best Burritos

Best Sandwiches

Best Pizza

Best Hamburgers

Best Dim Sum

Best Bars

Beer Drinking

Coffee Drinking

More Coffee

Best Desserts!

Out & About

Things to Do

To Do with Kids

To Do in Oakland

To Do in Marin

In Napa & Sonoma
City Biking

Mountain Biking

City Walks

Best Views

Hiking Trails

Running Clubs

LGBT – To Do

Sunday Streets

City Parks

Dog Parks

Farmers’ Markets

Sports Teams

Sports Calendar

Arts & Culture

Arts & Entertainment

More Arts Events

Nightclubs

Music

Museums

Ballet

Opera

Symphony

Theater

Important note: You will undoubtedly find yourself disagreeing vehemently with one or more of the above “best lists” – best burrito, brunch and coffee are particularly contentious issues in the Bay Area. Our position is clear: We agree wholeheartedly with you and share your dismay. Still, despite these egregious errors in taste, we hope you and yours are able to enjoy a summer delightful in every way.