Australian real estate report

I could use some insight from someone with real estate knowledge. I recently graduated from college with a degree in electrical engineering and landed a job with a major tech company based in Silicon Valley. I couldn’t be more excited about it.

That was until my close friend was telling me about how hard it would be to find affordable housing. My starting salary is pretty competitive but I also have considerable loans to repay, so I won’t be able to pocket much of my income or use it for expensive housing.

He was saying that real estate values have done nothing but rise for years and encouraged me to do some research. He said Bay Area prices were some of the highest in the world, right up there with Sydney, Australia and Hong Kong, China. Is that really a fair comparison?

Congratulations! Earning your bachelor’s degree is no trivial achievement. Inc. recently published a compelling article highlighting how a STEM degree can be valuable to virtually any industry. Graduates who focused their collegiate studies on science, technology, engineering, and/or mathematics (STEM) are prized among the world’s most competitive employers. That being said, you also entered the workforce at the height of global competitiveness. Sharon Florentine at CIO reported as much two years ago when she cautioned graduates to prepare for a cutthroat job market. Managing to land on your feet despite that reality is certainly something to celebrate.

All that being said, your friend’s comparison isn’t far from the truth. Living affordably in the San Francisco Bay Area is likely to be extremely difficult if not impossible. To be clear, however, specific comparisons are hard to validate given the variability in published results. For instance, Alison Millington at Business Insider publicized a list of the top ten most expensive cities in the world, which included multiple American cities, all of which were in California. Try contrasting that with the shortlist composed by James Chrisman at Thrillist. He doesn’t cite a single American city in his top ten and explains that the declining value of the US dollar is primarily to blame. You will notice, however, that both Sydney, Australia and Hong Kong, China were referenced by both writers.

Whether or not the cost of living in San Francisco is directly comparable to the cost of living in Sydney, Australia is almost irrelevant. What matters is that they are both unreasonably expensive cities for the grand majority of their residents. The consequences of that shared reality are similar if not identical for anyone of little means. In places like Sydney, Australia, that meant larger shares of people have had to consider home loans from Bankwest to compensate for the skyrocketing real estate prices. Only more recently have things in that market begun to turn around. You also have to remember that those real estate values were increasing for well over a decade. In other words, it wasn’t something you could easily wait out.

Expect to find a similar story in San Francisco’s Bay Area. Mike Moffitt at SFGate already did you the favor of disclosing exactly how much you should earn to live comfortably in San Francisco. As it turns out, he refers to a study that reveals San Francisco is, indeed, the most expensive American city–even more so than New York and Washington, DC. Fortunately, Peter Jacobs at Business Insider declared that STEM majors earn the most money after graduation. Your competitive starting salary combined with greater earning potential gives you a distinct advantage. Combine that with patience, parsimony, and prudent saving. Time will fly by faster than you think and before you know it, you’ll be in a much better position.

db9d8 pdf e1521149981235 Australian real estate report

Article source: https://universe.byu.edu/2018/07/12/australian-real-estate-report/

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Trouble Ahead For The US Housing Market

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Article source: https://seekingalpha.com/article/4186703-trouble-ahead-u-s-housing-market

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Fewer families affording, buying homes

The number of U.S. families with children owning homes fell by 3.6 million over the last decade, as rising housing prices pushed many out of the market.

The San Francisco metro area, including the East Bay, saw 31,000 fewer home-owning families between 2006 and 2016, a decline of 10 percent, according to a recent survey by Rent Cafe. The number of families renting homes in San Francisco and Oakland grew by 57,000, or 33 percent.

When given a choice between high rent or a higher mortgage, families are choosing to rent. “They basically can’t afford the costs,” said Florentina Sarac, a researcher for Rent Cafe. Many families also lost homes during the wave of foreclosures in the 2008 recession, and have been unable to purchase another house, she said.

Families face a tough economic reality: Bay Area rents rose 39 percent between 2006 and 2016, home prices rose 80 percent. “The choice is pretty clear,” Sarac said.

The survey did not study the San Jose metro area, where median sale prices for homes have been rising steadily for six years and now top $1 million in Santa Clara and San Mateo counties.

High housing prices have had an impact on local schools. Santa Clara County Superintendent of Schools Mary Ann Dewan said districts throughout the county are seeing lower enrollment as young families leave for more affordable cities.

Schools have noticed a rise in multiple families sharing a rented single family home, she said. Other families are living in cars and RVs, adding to the stress on young children.

“The unknown can weigh as a heavy burden on a young person’s mental ability,” Dewan said. The pressure can lead to behavior and learning problems, as students enter school tired and hungry.

The Ravenswood City School District in East Palo Alto has seen a growing number of its students displaced or living in temporary housing. About 40 percent of the students in the small district are considered homeless by federal standards.

The transient housing for many students has led the district to offer more services to families — food pantries, a free laundromat and ad hoc fundraising campaigns.

“A child can’t focus on his or her lesson plan if they’re couch surfing,” said Rolando Bonilla, a spokesman for the district. “We’ve seen the disruption.”

Nationally, the number of families with children renting grew 16 percent, while the number of owners fell 14 percent, according to the Rent Cafe analysis of census and real estate data. A lower U.S. birthrate has also contributed to fewer families purchasing homes.

New York, Los Angeles and Chicago also saw significant drops in family home ownership. Charlotte, N.C. saw the greatest jump in family rentals during the decade, with a 73 percent increase.

Developers have responded to the growing demand for family apartments. Construction on apartment buildings with two, three and four bedroom units has increased, according to real estate data firm Yardi Matrix. About 43 percent of the new apartments built in the last decade in the San Francisco metro have been two bedrooms or more.

Developers built 14,477 apartments in San Francisco and 16,659 units in San Jose between 2006 and 2016, according to Yardi Matrix.

Article source: https://www.mercurynews.com/2018/07/11/fewer-families-affording-buying-homes/

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Paragon Real Estate of SF acquired by Compass to form city’s largest brokerage

Compass, a New York real estate brokerage firm, has acquired Paragon Real Estate Group to form San Francisco’s largest residential brokerage firm.

Paragon was founded in 2004 in San Francisco. It has 236 agents in offices in San Francisco, Greenbrae and Danville listed on its website. Compass’ website shows about 275 agents or multi-agent teams in the Bay Area.

“With the addition of Paragon, Compass’ Bay Area team has grown to more than 500 agents representing more than $4.5 billion in sales volume last year. Compass is now the number one real estate company in San Francisco by sales volume and market share,” Compass said in a press release.

This year in San Francisco only, Paragon ranked No. 2 with $875.6 million in transaction volume and Compass ranked No. 4 with $867.3 million. Their combination would easily put them ahead of market leader Pacific Union International, which had $914.7 million in volume, according to the San Francisco Association of Realtors.

In the Bay Area, Paragon ranked seventh and Compass 14th on a list of brokerage firms ranked by gross sales throughout the region in 2017 compiled by the San Francisco Business Times.

Based on volume nationwide, Compass ranked sixth in the U.S. with just over $14 billion in gross sales, just behind San Francisco-based Pacific Union, according to a list complied by Real Trends, an industry data publisher. Paragon ranked 89th on that list with nearly $2.3 billion in gross volume, two spots behind Zephyr Real Estate of San Francisco. Those numbers represent the value of transactions their agents were involved in, not how much the firms or their agents earned on those deals.

Paragon was founded by Bob Dadurka, Anita Head, George McNabb and Sally Stull.

Compass was co-founded by Ori Allon, who sold his previous company, Julpan, to Twitter in 2011. Previously, he worked at Google after selling a patented search algorithm, Orion, to the company. It operates in 17 U.S. markets, according to its website.

Neither company made its top executives available for comment. Terms were not disclosed.

Kathleen Pender is a San Francisco Chronicle columnist. Email: kpender@sfchronicle.com Twitter: @kathpender

Article source: https://www.sfchronicle.com/business/networth/article/Paragon-Real-Estate-of-SF-acquired-by-Compass-to-13061063.php

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Paragon Real Estate of SF acquired by Compass to form city’s …

Compass, a New York real estate brokerage firm, has acquired Paragon Real Estate Group to form San Francisco’s largest residential brokerage firm.

Paragon was founded in 2004 in San Francisco. It has 236 agents in offices in San Francisco, Greenbrae and Danville listed on its website. Compass’ website shows about 275 agents or multi-agent teams in the Bay Area.

“With the addition of Paragon, Compass’ Bay Area team has grown to more than 500 agents representing more than $4.5 billion in sales volume last year. Compass is now the number one real estate company in San Francisco by sales volume and market share,” Compass said in a press release.

This year in San Francisco only, Paragon ranked No. 2 with $875.6 million in transaction volume and Compass ranked No. 4 with $867.3 million. Their combination would easily put them ahead of market leader Pacific Union International, which had $914.7 million in volume, according to the San Francisco Association of Realtors.

In the Bay Area, Paragon ranked seventh and Compass 14th on a list of brokerage firms ranked by gross sales throughout the region in 2017 compiled by the San Francisco Business Times.

Based on volume nationwide, Compass ranked sixth in the U.S. with just over $14 billion in gross sales, just behind San Francisco-based Pacific Union, according to a list complied by Real Trends, an industry data publisher. Paragon ranked 89th on that list with nearly $2.3 billion in gross volume, two spots behind Zephyr Real Estate of San Francisco. Those numbers represent the value of transactions their agents were involved in, not how much the firms or their agents earned on those deals.

Paragon was founded by Bob Dadurka, Anita Head, George McNabb and Sally Stull.

Compass was co-founded by Ori Allon, who sold his previous company, Julpan, to Twitter in 2011. Previously, he worked at Google after selling a patented search algorithm, Orion, to the company. It operates in 17 U.S. markets, according to its website.

Neither company made its top executives available for comment. Terms were not disclosed.

Kathleen Pender is a San Francisco Chronicle columnist. Email: kpender@sfchronicle.com Twitter: @kathpender

Article source: https://www.sfchronicle.com/business/networth/article/Paragon-Real-Estate-of-SF-acquired-by-Compass-to-13061063.php

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