• Justin Sullivan/Getty Images file photo
• Real estate in San Francisco and around the Bay Area is poised for an upswing, much like the trend before the recession hit.

In the half-decade before California was clobbered by its worst recession since the Great Depression, taxable property values — those of land, homes, apartments and commercial buildings — exploded.

Between 2003 and 2009, values increased by a whopping two-thirds, from $2.7 trillion to $4.5 trillion, much from new construction, and local governments enjoyed a nearly $20 billion increase in annual revenue from the boom.

We all know what happened next: The real estate market went into a tailspin. Local governments that had banked, literally, on ever-increasing revenues felt the pinch. It contributed heavily to two cities’ bankruptcies.

Actually, taxable values didn’t go into the tank.

They just stopped growing and shrank a little, falling to $4.3 trillion in 2011. And as the state’s economy began to improve, so did property values, rising slightly in 2012.

This year, they are poised to register a sharp gain, based on reports from local assessors that are being compiled by the state Board of Equalization.

Gov. Jerry Brown’s 2013-14 budget assumes a 2.8 percent increase, but it’s more likely to be in the 4 to 5 percent range.

Los Angeles County, which has a quarter of the state’s taxable property, is up 4.66 percent, and in some of the counties experiencing economic booms, such as those in the Bay Area, the gains are higher. They’re up 6 percent in San Mateo County, for example, and 5.17 percent in Alameda County.

Each percentage point of property value increase generates about a $500 million in additional revenue statewide, so overall, the increase could be well over $2 billion for local coffers and, indirectly, for the state treasury.

Under the state constitution, schools are guaranteed certain amounts of revenue, with the first increment coming from property taxes and the state providing the remainder. Thus any unanticipated increase in local property values and taxes decreases what the state must pay schools.

It’s not another property bubble, at least not yet, but with the housing construction industry beginning to pick up again, California could see strong growth in property taxes in the years ahead. The state is also seeing a surge in sales and income taxes, $2 billion over estimates already this year.

These revenue jumps, however, create another challenge for state and local politicians, who have overspent previous windfalls, leading to huge budget deficits and, as mentioned earlier, the bankruptcies of two cities.

Those who want more spending, whether it’s for government services or public employees’ salaries, will be pressing politicians hard.

Brown has said he wants to resist that pressure and redirect any windfalls into debt reduction and reserves.

But as the money piles up, the pressure will grow.

Dan Walters covers state politics for the Sacramento Bee.

Article source: http://www.sfexaminer.com/sanfrancisco/california-property-values-poised-to-soar/Content?oid=2535210

Foreclosures were a common sight in many towns, such as San Pablo (pictured), just two years ago. Now with fewer foreclosures and home values surging, many people who got a temporary property-tax reduction will see a bump up this year. (Chronicle staff photo)

It’s a letter from Larry Stone or Ron Thomsen or Gus Kramer or another Bay Area county assessor.

You open it up and your eyes pop. Steam starts coming out of your ears like a little cartoon character.

Your property taxes are going up by a hefty amount for the 2013-14 tax year.

What happened? What about California’s Proposition 13, which guarantees a 2% annual cap on property tax increases?

Think back to 2009, when a similar missive arrived. Remember what a relief it was that your property taxes were slashed by about a third? Your house had plunged in value due to the real estate downturn. Under Proposition 8* — a companion to Prop 13, also passed in 1976 — assessors are supposed to cut your property taxes  temporarily when your home’s market value goes below your previous assessed value. That went on extensively throughout the state over the brutal downturn; it’s one reason cities, counties and California itself had to tighten their belts so much.

But the key word is “temporarily.” That same Prop 8 requires assessors to bring the values back up when the market recovers. It can go up by a big chunk. There is still a ceiling.  The maximum you can be assessed is what’s called your “factored base value.” That’s you original base value (what you paid for the house) plus 2% a year increases (or even less; if the California consumer price index is lower than 2%, that gets used instead).

Thousands of people will be getting these notices in coming weeks.  For instance, in Alameda County, 9,800 properties are being fully restored to their “factored base value” after having had a temporary tax cut. Another 69,000 are being partially restored in sync with the changing market. In San Francisco, 4,900 properties are being fully restored, and another 9,900 are being partially restored.

All the assessors have extensive explanations about Props 8 and 13 on their websites. The one on the Sonoma County Assessor’s website has a helpful graphic showing the interactions between Prop 13 values and Prop 8 market values.

Assessors are hopeful that homeowners will see the bright side.

“We are getting out of the market-value reductions and increasing our values,” said Ron Thomsen, Alameda County assessor. “It’s good for homeowners as they see increases in the equity of their homes.”

But many folks may not be jazzed about this.

Still, for the counties, cities, special districts and schools that depend on property-tax revenue, it’s definitely good news that the assessments are going up after several brutal years of steep declines. For a detailed look at what’s happening for Bay Area county assessments, click here. For more information about the impact on homeowners, click here.

Remember, you have the right to appeal your property-tax assessment — and you definitely do not need to pay anyone else to help you with this. Information on filing an appeal is available on each county assessor’s website.

*Not the Prop 8 about same-sex marriage that just went to the U.S. Supreme Court. California thriftily recycles proposition numbers; it wouldn’t be that catchy of a slogan to say: “Vote for Proposition 46,787?!

Carolyn Said is a San Francisco Chronicle staff writer. For news and insights on Bay Area real estate, follower her on Twitter: @csaid

Article source: http://blog.sfgate.com/ontheblock/2013/07/05/brace-yourself-your-property-tax-bill-is-on-its-way/

Foreclosures were a common sight in many towns, such as San Pablo (pictured), just two years ago. Now with fewer foreclosures and home values surging, many people who got a temporary property-tax reduction will see a bump up this year. (Chronicle staff photo)

It’s a letter from Larry Stone or Ron Thomsen or Gus Kramer or another Bay Area county assessor.

You open it up and your eyes pop. Steam starts coming out of your ears like a little cartoon character.

Your property taxes are going up by a hefty amount for the 2013-14 tax year.

What happened? What about California’s Proposition 13, which guarantees a 2% annual cap on property tax increases?

Think back to 2009, when a similar missive arrived. Remember what a relief it was that your property taxes were slashed by about a third? Your house had plunged in value due to the real estate downturn. Under Proposition 8* — a companion to Prop 13, also passed in 1976 — assessors are supposed to cut your property taxes  temporarily when your home’s market value goes below your previous assessed value. That went on extensively throughout the state over the brutal downturn; it’s one reason cities, counties and California itself had to tighten their belts so much.

But the key word is “temporarily.” That same Prop 8 requires assessors to bring the values back up when the market recovers. It can go up by a big chunk. There is still a ceiling.  The maximum you can be assessed is what’s called your “factored base value.” That’s you original base value (what you paid for the house) plus 2% a year increases (or even less; if the California consumer price index is lower than 2%, that gets used instead).

Thousands of people will be getting these notices in coming weeks.  For instance, in Alameda County, 9,800 properties are being fully restored to their “factored base value” after having had a temporary tax cut. Another 69,000 are being partially restored in sync with the changing market. In San Francisco, 4,900 properties are being fully restored, and another 9,900 are being partially restored.

All the assessors have extensive explanations about Props 8 and 13 on their websites. The one on the Sonoma County Assessor’s website has a helpful graphic showing the interactions between Prop 13 values and Prop 8 market values.

Assessors are hopeful that homeowners will see the bright side.

“We are getting out of the market-value reductions and increasing our values,” said Ron Thomsen, Alameda County assessor. “It’s good for homeowners as they see increases in the equity of their homes.”

But many folks may not be jazzed about this.

Still, for the counties, cities, special districts and schools that depend on property-tax revenue, it’s definitely good news that the assessments are going up after several brutal years of steep declines. For a detailed look at what’s happening for Bay Area county assessments, click here. For more information about the impact on homeowners, click here.

Remember, you have the right to appeal your property-tax assessment — and you definitely do not need to pay anyone else to help you with this. Information on filing an appeal is available on each county assessor’s website.

*Not the Prop 8 about same-sex marriage that just went to the U.S. Supreme Court. California thriftily recycles proposition numbers; it wouldn’t be that catchy of a slogan to say: “Vote for Proposition 46,787?!

Carolyn Said is a San Francisco Chronicle staff writer. For news and insights on Bay Area real estate, follower her on Twitter: @csaid

Article source: http://blog.sfgate.com/ontheblock/2013/07/05/brace-yourself-your-property-tax-bill-is-on-its-way/

According to the company, sales of existing, single-family detached homes in the Bay Area fell to their lowest level in five years. Only 9,985 homes changed hands in the first quarter, down 25 percent from 13,391 homes sold in the fourth quarter of 2012 (a difference of 3,406 homes sold) and 16 percent below the 11,906 homes sold during last year’s first quarter. Contra Costa County reported the greatest number of homes sold with 2,182, followed by Alameda County (1,977 homes sold) and Santa Clara County (1,972 homes sold).

Despite the downturn in home sales, demand from homebuyers remained robust, and that led to higher home prices. The Bay Area as a whole reported a median sales price of $667,021 in the first quarter, up 10 percent from the previous quarter’s median price of $604,863 and 25 percent higher than the median sales price of $520,834 reported at the conclusion of last year’s first quarter.

All nine Bay Area counties reported double-digit, year-over-year increases in their median sales price for the second consecutive quarter. San Mateo County led the way with a 43 percent annualized increase, followed by Alameda County (+33%), Contra Costa County (+31%), and Santa Clara and Solano counties, which reported 30 percent year-over-year increases. San Mateo County recorded the region’s highest median sales price at $1,075,097, followed by the City and County of San Francisco at $1,052,626 and Marin County at $878,945. Solano County recorded the Bay Area’s lowest median sales price at $243,006.

Behind the decline in sales and increase in prices is the continued lack of inventory. As of the final day of the first quarter (March 31, 2013), only 4,098 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 3,370 homes on the market at the end of the fourth quarter of 2012 but nonetheless down 55 percent from 10,282 homes available for purchase on the final day of the first quarter of 2012.

Once listed, homes sold at a brisk pace. For the Bay Area as a whole, homes were on the market an average of 54 days before receiving a final purchase offer, down from 55 days in the fourth quarter of 2012 and 74 days in the first quarter of last year. Homes in Alameda County sold in an average of 29 days, while Napa County recorded the highest average with 94 days on the market.

Looking ahead, what’s the bottom line for Bay Area homebuyers and sellers?

Buyers need to bring their “A” game to the negotiating table, and that increasingly means being able to offer more than the listing price and waive appraisal and other contingencies that may add to the ultimate price. An experienced REALTOR® with extensive local market knowledge and negotiation skills is a must in a market where all-cash offers continue to be a factor.

“Given the likelihood that inventory will continue to be an issue in the months to come, homeowners with mortgages that are “above water” (or nearly so) may find now is a good time to list their home,” says Keith Robinson, COO. “While prices are rising, it is important that sellers price their home competitively. Again, working with an experienced REALTOR® who can help price the property for sale and vet the offers that follow is critical.”

For more information, visit www.bhghome.com.

Article source: http://rismedia.com/2013-05-06/inventory-shortage-means-fewer-home-sales-higher-prices-in-bay-area/

Sales of existing, single-family detached homes in the Bay Area fell to their lowest level in five years. Only 9,985 homes changed hands in the first quarter, down 25 percent from 13,391 homes sold in the fourth quarter of 2012 (a difference of 3,406 homes sold) and 16 percent below the 11,906 homes sold during last year’s first quarter. Contra Costa County reported the greatest number of homes sold with 2,182, followed by Alameda County (1,977 homes sold) and Santa Clara County (1,972 homes sold).

Despite the downturn in home sales, demand from homebuyers remained robust, and that led to higher home prices. The Bay Area as a whole reported a median sales price of $667,021 in the first quarter, up 10 percent from the previous quarter’s median price of $604,863 and 25 percent higher than the median sales price of $520,834 reported at the conclusion of last year’s first quarter.

All nine Bay Area counties reported double-digit, year-over-year increases in their median sales price for the second consecutive quarter. San Mateo County led the way with a 43 percent annualized increase, followed by Alameda County (+33%), Contra Costa County (+31%), and Santa Clara and Solano counties, which reported 30 percent year-over-year increases. San Mateo County recorded the region’s highest median sales price at $1,075,097, followed by the City and County of San Francisco at $1,052,626 and Marin County at $878,945. Solano County recorded the Bay Area’s lowest median sales price at $243,006.

Behind the decline in sales and increase in prices is the continued lack of inventory. As of the final day of the first quarter (March 31, 2013), only 4,098 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 3,370 homes on the market at the end of the fourth quarter of 2012 but nonetheless down 55 percent from 10,282 homes available for purchase on the final day of the first quarter of 2012.

Once listed, homes sold at a brisk pace. For the Bay Area as a whole, homes were on the market an average of 54 days before receiving a final purchase offer, down from 55 days in the fourth quarter of 2012 and 74 days in the first quarter of last year. Homes in Alameda County sold in an average of 29 days, while Napa County recorded the highest average with 94 days on the market.

Looking ahead, what’s the bottom line for Bay Area homebuyers and sellers?

Buyers need to bring their “A” game to the negotiating table, and that increasingly means being able to offer more than the listing price and waive appraisal and other contingencies that may add to the ultimate price. An experienced REALTOR^® with extensive local market knowledge and negotiation skills is a must in a market where all-cash offers continue to be a factor.

“Given the likelihood that inventory will continue to be an issue in the months to come, homeowners with mortgages that are “above water” (or nearly so) may find now is a good time to list their home,” said Keith Robinson, COO.  “While prices are rising, it is important that sellers price their home competitively. Again, working with an experienced REALTOR® who can help price the property for sale and vet the offers that follow is critical.”

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

*  Days on market is the number of days a property was listed on the market until it went under

 contract at its final listing price. This may not reflect previous listings.

**The median home price for the entire Bay Area is the mean of median home prices of each of the nine Bay Area counties.  Each county’s median home price is the mean of median home prices of each of the cities within that county.

Data are sourced from multiple listing services and are deemed reliable but not guaranteed.

All percentages rounded to nearest whole number. Bay Area refers to sales within Alameda County, Contra Costa County, Marin County, Napa County, San Francisco County, San Mateo County, Santa Clara County, Solano County and Sonoma County.

## About Better Homes and Gardens Mason-McDuffie Real Estate

Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 19th largest real estate services firm in the nation (REALTrends 500), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 6,500 transactions in 2012, generating $2.8 billion in sales volume. Better Homes and Gardens Mason-McDuffie Real Estate includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill, and Bahay Co. in Concord. Better Homes and Gardens Mason-McDuffie Real Estate is locally owned and has more than 1,100 real estate professionals with 30 offices in eight counties in the Bay Area and the Tahoe/Truckee region. For more information, go to www.bhghome.com

Article source: http://www.sfgate.com/business/press-releases/article/Inventory-Shortage-Means-Fewer-Home-Sales-4486549.php

Sales of existing, single-family detached homes in the Bay Area fell to their lowest level in five years. Only 9,985 homes changed hands in the first quarter, down 25 percent from 13,391 homes sold in the fourth quarter of 2012 (a difference of 3,406 homes sold) and 16 percent below the 11,906 homes sold during last year’s first quarter. Contra Costa County reported the greatest number of homes sold with 2,182, followed by Alameda County (1,977 homes sold) and Santa Clara County (1,972 homes sold).

Despite the downturn in home sales, demand from homebuyers remained robust, and that led to higher home prices. The Bay Area as a whole reported a median sales price of $667,021 in the first quarter, up 10 percent from the previous quarter’s median price of $604,863 and 25 percent higher than the median sales price of $520,834 reported at the conclusion of last year’s first quarter.

All nine Bay Area counties reported double-digit, year-over-year increases in their median sales price for the second consecutive quarter. San Mateo County led the way with a 43 percent annualized increase, followed by Alameda County (+33%), Contra Costa County (+31%), and Santa Clara and Solano counties, which reported 30 percent year-over-year increases. San Mateo County recorded the region’s highest median sales price at $1,075,097, followed by the City and County of San Francisco at $1,052,626 and Marin County at $878,945. Solano County recorded the Bay Area’s lowest median sales price at $243,006.

Behind the decline in sales and increase in prices is the continued lack of inventory. As of the final day of the first quarter (March 31, 2013), only 4,098 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 3,370 homes on the market at the end of the fourth quarter of 2012 but nonetheless down 55 percent from 10,282 homes available for purchase on the final day of the first quarter of 2012.

Once listed, homes sold at a brisk pace. For the Bay Area as a whole, homes were on the market an average of 54 days before receiving a final purchase offer, down from 55 days in the fourth quarter of 2012 and 74 days in the first quarter of last year. Homes in Alameda County sold in an average of 29 days, while Napa County recorded the highest average with 94 days on the market.

Looking ahead, what’s the bottom line for Bay Area homebuyers and sellers?

Buyers need to bring their “A” game to the negotiating table, and that increasingly means being able to offer more than the listing price and waive appraisal and other contingencies that may add to the ultimate price. An experienced REALTOR^® with extensive local market knowledge and negotiation skills is a must in a market where all-cash offers continue to be a factor.

“Given the likelihood that inventory will continue to be an issue in the months to come, homeowners with mortgages that are “above water” (or nearly so) may find now is a good time to list their home,” said Keith Robinson, COO.  “While prices are rising, it is important that sellers price their home competitively. Again, working with an experienced REALTOR® who can help price the property for sale and vet the offers that follow is critical.”

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

*  Days on market is the number of days a property was listed on the market until it went under

 contract at its final listing price. This may not reflect previous listings.

**The median home price for the entire Bay Area is the mean of median home prices of each of the nine Bay Area counties.  Each county’s median home price is the mean of median home prices of each of the cities within that county.

Data are sourced from multiple listing services and are deemed reliable but not guaranteed.

All percentages rounded to nearest whole number. Bay Area refers to sales within Alameda County, Contra Costa County, Marin County, Napa County, San Francisco County, San Mateo County, Santa Clara County, Solano County and Sonoma County.

## About Better Homes and Gardens Mason-McDuffie Real Estate

Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 19th largest real estate services firm in the nation (REALTrends 500), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 6,500 transactions in 2012, generating $2.8 billion in sales volume. Better Homes and Gardens Mason-McDuffie Real Estate includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill, and Bahay Co. in Concord. Better Homes and Gardens Mason-McDuffie Real Estate is locally owned and has more than 1,100 real estate professionals with 30 offices in eight counties in the Bay Area and the Tahoe/Truckee region. For more information, go to www.bhghome.com

Article source: http://www.sfgate.com/business/press-releases/article/Inventory-Shortage-Means-Fewer-Home-Sales-4486549.php

So few homes are listed for sale that agents are resurrecting old ways of drumming up business – going door to door, leaving cards and flyers and writing personal letters, asking owners if they’re interested in selling. Social networking and e-mail blasts are being used to increase inventory as well.

“People are going old-school, farming their territory,” said Lynda DiVito, an agent with Redfin in the East Bay, using real estate agent slang for canvassing neighborhoods.

While tight inventory is a national trend, it’s especially pronounced in the Bay Area.

Alameda County, for instance, had 949 homes for sale in February, down 64 percent from the 2,617 on the market at the same time last year, according to data from Realtor.com, the listings website of the National Association of Realtors. Contra Costa County had 899, down 58 percent from 2,152 in February 2012.

“Those are striking reductions in inventory,” said Errol Samuelson, president of Realtor.com.

While inventory numbers did tick up slightly from January to February, that was a normal seasonal change, not an indication of the logjam loosening.

“After seasonal adjustments, inventory is still falling; the underlying trend is still downward,” said Jed Kolko, chief economist with real estate site Trulia.com.

However, he thinks the rate of decline is slowing.

“Inventory tends to fall the most sharply after prices bottom, as no one wants to sell at the bottom, they just want to buy,” he said. Trulia shows that Bay Area prices bottomed more than a year ago.

Price a factor

Sellers remain reluctant and elusive for several reasons. Those who are still underwater – owing more than their house is worth – have the obvious impediment of not wanting to do a short sale.

But many others “feel underwater based on the price they paid,” Samuelson said. That is, someone who paid $700,000 for a home in 2007 won’t feel good about selling it for $625,000 right now, even though the sale would cover their remaining mortgage.

Some potential sellers, seeing prices surge, are hoping to hold out for more. Others who might want to move up to a bigger house fear that the market frenzy means they won’t be able to find or afford anything else.

Now that it’s spring, the busiest real estate season, more homes should start hitting the market. But many agents have been taking matters into their own hands, making pitches directly to potential sellers about why it’s time to get off the fence.

Although there are numerous online sites to track homes for sale, “the way the market is set up now is forcing us to go back to the beginning where (agents) walk up to a door and knock and say, ‘Hi, how are you, my name is … ‘ ” said Adelaida Mejia, a Realtor with Vanguard Property in San Francisco.

Personal touch

She recently worked with a client seeking a home in San Francisco’s Clarendon Heights neighborhood, above Cole Valley. After losing out with bids, she walked the neighborhood with him and identified houses he particularly liked. Mejia looked up the homeowners and wrote personal letters to each, explaining that her client loved the area and was seeking a house there.

“Three weeks later, one person called me back and said ‘We loved your letter, we’d love to talk even though we’re not on the market, come on over,’ ” she said.

Rich and Renee Gimigliano, the homeowners, said they received two or three agent solicitations a week after unsuccessfully trying to sell the house last year, but ignored them because they were form letters.

“Adelaida’s note was different; more personalized,” Rich Gimigliano said. “We were planning to put the house on the market again, but the note just pre-empted that.”

Her client ended up visiting the house, making an all-cash offer and buying it. “It was a really stress-free experience for both” the buyer and seller, she said.

Beating the bushes for sellers is an about-face from just 18 months ago, when the challenge was to find people who wanted to buy.

A corresponding trend is that homes are selling very quickly.

‘Unbelievable’

“The median days on market in Contra Costa is 13 days – that’s unbelievable,” Samuelson said. A year ago it was 33 days.

Redfin has identified another trend it calls “flash sales” – homes that sell within 24 hours of being listed, usually because a buyer swoops in with an offer too good to refuse. Often, those are buyers who have lost other bidding wars and are determined to land a property.

In the past six months, almost 1,000 Bay Area properties went under contract within one day, Redfin said.

“I just had that experience at a house in the Oakland hills,” DiVito said. “I held the brokers’ tour just before putting it on the market. A buyer and agent walked in and offered us our list price in cash on the spot.”

Underscoring how much the market has changed, she said her sellers had tried to sell the house a year ago “and could not move this property, even though they lowered the price three times.”

Same-day offer

The sellers, who were buying a new home and needed to sell quickly, were happy to take the same-day offer since a cash deal meant it couldn’t be derailed by problems with financing or appraisals.

“Flash-sale terms tend to be really good because (buyers) really want to lock down that property quickly,” DiVito said. “They’re more willing to meet the sellers’ needs to scoop it up before anyone else gets it.”

What happens next with inventory is a big question hanging over the real estate recovery.

“My best guess is that you’ll see an orderly return of inventory to the market,” Samuelson said. “I don’t expect that you’ll see the floodgates open and torrents of properties hit the market. But for each percentage point increase in price, there will be some people who for life reasons have wanted to sell for the past five years – their kids moved out, they got divorced – and now feel that the time is right and they have enough equity.”

Tight inventory, fast sales

The number of homes for sale in the six largest Bay Area counties has dropped dramatically compared with a year ago, according to data from the Multiple Listing Service. Correspondingly, the time the homes stay on the market has also dropped.

Source: Realtor.com

Carolyn Said is a San Francisco Chronicle staff writer. E-mail: csaid@sfchronicle.com Twitter: @csaid

Article source: http://www.sfgate.com/realestate/article/Homes-sell-faster-than-ever-in-Bay-Area-4375058.php

Asking prices for homes for sale around the Bay Area rose substantially in December compared with the same time last year, according to San Francisco real estate website Trulia, ranging from a 16.3 percent spike in tech-fueled Santa Clara County to a 7.6 percent increase in Napa County. The nine-county Bay Area saw an average increase of 13 percent. By comparison, asking prices nationwide rose 5.1 percent in December compared with December 2011, Trulia said.

“Both job growth and tighter inventory gave (sale) prices a lift,” said Jed Kolko, Trulia’s chief economist. “Price increases accelerated throughout 2012, getting bigger as the year went on.”

Analyzing asking prices of homes currently for sale provides a leading indicator of what sales numbers are likely to look like in a few months’ time, Trulia said.

Data on sales throughout much of 2012 have shown the housing market recovering from the extended downturn that started in 2007.

Nationwide, Trulia said, “2012 marked a huge turnaround year for most local housing markets” with prices increasing in 82 of the 100 largest metro areas in December. In December 2011, only 12 markets had price increases.

Las Vegas, Seattle and Phoenix were Trulia’s “top turnaround” markets, followed by Oakland metro (Alameda and Contra Costa counties) and San Jose metro (Santa Clara and San Benito counties).

California cities such as Sacramento and Fresno that were devastated by the housing crisis also saw strong gains in 2012, Trulia said.

“Nine of the top 10 turnaround markets in 2012 were in the West,” Kolko said. “The only one east of the Rockies was Atlanta.”

Asking rents also rose, with Alameda County seeing the biggest spike (13.2 percent) and already pricey San Francisco the least (2.9 percent), Trulia said. The average increase for eight Bay Area counties (Napa did not have enough data) was 7.8 percent. Nationwide, rents grew 5.2 percent.

“We’re seeing rent increases across the region,” Kolko said. “In San Francisco they were smaller because rents are already so much higher there than elsewhere and it has had strong rent increases before this. The slower increase doesn’t make the city affordable.”

While rising home prices illustrate a housing market beginning to recover – and to stimulate economic recovery – they of course are not good news for those house hunting.

“They come with the perennial challenge of affordability in the Bay Area,” Kolko said.

Carolyn Said is a San Francisco Chronicle staff writer. E-mail: csaid@sfchronicle.com

Article source: http://www.sfgate.com/realestate/article/Bay-Area-rents-home-prices-up-sharply-4163037.php

The median price for a home in the Bay Area rose to $429,000 in September, the highest in more than four years, according to DataQuick. Let’s take a look at the median prices in San Francisco, Alameda and San Mateo counties, and what those prices can buy:

The Alameda county median is $379,000, up 8.9 percent from September 2011. Here’s a house listed at that price, at 3441 Oak Knoll Blvd in Oakland:

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In San Francisco, the median is $745,000, up 21 percent from September 2011. This California Craftsman in Westwood Park (near City College) is pending sale, and was listed just above the median at $749,000. (Of course, that doesn’t mean it sold for that — the price paid won’t be public until the sale closes.)

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The San Mateo county median is $620,000, up 12.5 percent from September 2011. Here’s a house in Pacifica that’s listed for that price:

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Carrie Kirby is a freelance writer who recently returned to the Bay Area after living for six years in Chicago. Carrie is more heavily invested in real estate than she ever expected to be, since she and her husband are now long-distance landlords of their Chicago home, and have also purchased a house in Alameda. She posts about interesting properties and real estate trends in San Francisco and Silicon Valley every Tuesday. Carrie also shares money-saving tips on her blog, Frugalistic Mom.

Article source: http://blog.sfgate.com/ontheblock/2012/10/30/what-the-new-higher-bay-area-medians-can-buy/