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Bay Area home price growth levels off

Fri, 09 Aug 2013 04:42:10 +0000

Buying ain’t easy. First prices soar, then they slow down, but rising interest rates make up the difference.

Blanca Torres
Reporter- San Francisco Business Times

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The rapid rise of home prices may be slowing, but too bad interest rates are now creeping up.

In the Bay Area, home prices are still growing, but not as fast, according to Trulia, the San Francisco-based online real estate marketplace.

The firm found that while home prices jumped 17.2 percent in the month of July compared with July 2012, price growth slowed down during the last six months. From January to March, prices rose by 6.5 percent and from April to June, they went up 3 percent.

“The biggest price slowdowns have come to some of the hottest local markets,” said Jed Kolko, Trulia’s chief economist. “California and Nevada remain the Wild West for asking home prices, with some of the sharpest drops during the bust, strongest rebounds over the past year, and now biggest slowdowns in the past quarter.”

Nationwide, asking home prices dropped slightly— 0.3 percent — in July compared with the previous month. It’s the first time since November 2012 that prices didn’t go up.

They are still up 11 percent for the month of July compared with the same month last year.

One major factor deflating home prices is rising interest rates during the past six months.

In the past couple of years, historically low interest rates boosted sales and skyrocketing price growth, but higher rates are now dampening the mood.

“Asking home prices are now starting to lose steam as mortgage rates rise, inventory expands and investor demand declines,” said Trulia in a recent market report.

A year ago, a buyer could afford to pay a higher asking price because interest rates were low. Now, buyers may end up paying the same per month, but more of their payment will go toward interest versus the principal value on the loan.

So even if prices level off or go down in the months to come, buying a home in the Bay Area will still be just as costly if not more.

Blanca Torres covers East Bay real estate for the San Francisco Business Times.

Article source: http://www.bizjournals.com/sanfrancisco/blog/real-estate/2013/08/bay-area-home-price-growth-leveling-off.html

Yes, price cuts do still happen on the San Francisco market

Tue, 25 Jun 2013 20:06:37 +0000

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With all the news of a hot market, over-bidding, and homes being bought before they even hit the MLS, we thought a small dose of humble pie might be in order for San Francisco real estate. For instance, despite being 4 beds, 4 baths with a deck, backyard and lower level rec room, the Octavia Street home above hasn’t sold in over 25 days; not only that, it’s had to drop its price $300K in hopes of finding a buyer.

What will it ultimately sell for?

Condos

Condos have been in demand as well, but that doesn’t mean every single one flies off the market at over-asking price. This Bryant St. unit, a loft-like 1 bed, 2 bath with deeded parking, listed in early June for $649K and is now down to $599K.

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What price do you think it might actually get, readers?

Co-ops

Co-ops too, despite the (limited) allure of exclusivity and general rarity they enjoy, have suffered recent price-cuts. This classic example on Gough St., a 4 bed, 3,5 bath in Pacific Heights, has dropped from $2,850,000 to $2,695,000.

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How much will it finally fetch?

We’re hardly pointing out a major reversal in the market. As this infographic courtesy of Paragon Real Estate Group shows, May sales were heavily weighted toward at-or-above-asking prices.

May sales in SF sold largely at or above asking. Courtesy Paragon R.E., SF

Still, 10% of homes sold at less than asking (though not by much), proof of some (waning) buyer power still in existence.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest, and writes for SFGate and CurbedSF. Follow Anna on Twitter: @AnnaMarieErwert

Article source: http://blog.sfgate.com/ontheblock/2013/06/25/yes-price-cuts-do-still-happen-on-the-san-francisco-market/

SF Median Home Price Tops $1 Million

Mon, 17 Jun 2013 13:36:45 +0000

IMAGES: Famous Homes in San Francisco

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Bank-Owned $35 Million SF Penthouse Sells

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Article source: http://www.nbcbayarea.com/news/local/SF-Median-Home-Price-Tops-1-Million-211448041.html

San Francisco Bay Area Properties Put Up for Sale as California Looks to Pay …

Sun, 16 Jun 2013 01:31:33 +0000

June 12, 2013

By Alex Girda, Associate Editor

The Department of General Services is planning the sale of a large section of surplus land in its administration, and marketing has commenced for the property. According to a press statement, the DGS has already listed the property and opened talks with interested buyers until October 3. The 81 acres of land that are being offered up for sale by the state of California once belonged to the former Agnews Developmental Center.

According to DGS Director, Fred Klass, California Gov. Jerry Brown is looking to sell the land located in Silicon Valley’s Golden Triangle area in order to pay off some of the “wall of debt” that the state currently owes. “This sale will allow us to meet that goal while providing a tremendous development opportunity for the San Jose community,” said Klass.

Also making headlines is a very different kind of real estate property as Kimpton Hotels has put up for grabs one of its San Francisco Bay Area venues. The Serrano Hotel is now available for an asking price of around $65 million, or a per-room rate of around $275,000. The 236-key hotel recently underwent a $7 million renovation process for not only its façade but also the windows.

The 16-story hotel also offers a dining option in the form of Jasper’s Corner Tap Kitchen, as well as 2,500 square feet of meeting space at the venue. Considering the rising profile of the Bay Area’s hospitality market, the Serrano Hotel is set to see investors flock to the property.

Article source: http://www.cpexecutive.com/property-types/hospitality/san-francisco-bay-area-properties-put-up-for-sale-as-california-looks-to-pay-off-wall-of-debt/

San Francisco Bay Area Properties Put Up for Sale as California Looks to Pay … – Multi

Thu, 13 Jun 2013 19:18:53 +0000

Jun. 12, 2013

By Alex Girda, Associate Editor

Article source: http://www.multihousingnews.com/news/national/san-francisco-bay-area-properties-put-up-for-sale-as-california-looks-to-pay-off-wall-of-debt/1004083683.html

Bay Area housing recovery spreads from Silicon Valley to East Bay

Thu, 09 May 2013 08:48:24 +0000

Click photo to enlarge

The Bay Area’s overheated housing market is restoring thousands of homes to their pre-crash peak values in a ZIP-code-by-ZIP-code recovery that is rapidly spreading from Silicon Valley to the East Bay.

Thirty-four of 185 ZIP codes in five counties have regained or surpassed their bubble-era peak home value or are less than 1 percent from it, according to this newspaper’s analysis of February median values for all homes from online real estate site Zillow.

Another 49 ZIPs are within 15 percent of their previous highs, including 18 in the East Bay. A year ago, only part of leafy Palo Alto had regained the value it lost after Bay Area home values crested in 2006-07.

“Seven or eight years ago, there was really a bubble,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. “Now it’s just good real estate where values are returning to near past peaks.”

Every part of the Bay Area has seen gains in the past year, with Silicon Valley leading the way. But parts of Contra Costa and Alameda counties, where subprime lending was heavy, are still far below their peaks.

The recovery has pulled many homeowners out from underwater — when houses are worth less than the mortgage — and convinced others it may finally be time to sell and move to bigger homes. They’re diving into a fast-moving market in which homes can sell in a day for more than the asking price.

Mike and Lois Lee

sold their Danville home for $780,000 in two days this month, after their real estate agent, Mark Kennedy of Empire Realty, told them their house was again worth more than they paid for it. They made $10,000 on the sale, the result of the past year’s rise in home values.

“I had no idea the market had corrected that much,” Mike Lee said.

Kennedy said the couple tried to sell in 2011 but there were no takers, and it might have resulted in a short sale. “I would say that in a year they went from losing money to making money,” he said.

In one Sunnyvale ZIP code that surpassed its bubble-era peak in December, Greg and Daisy Biggers decided in January it was time to make a move. Their family — four children — was outgrowing the home and the market timing looked right. In fact, it couldn’t have been better.

The Biggers family sold their home in less than a week, with all offers above asking price. Then they bought a home in Orinda, paying above the asking price. The whole process, from the decision to move to the purchase of the Orinda home, took eight weeks. Both homes are in escrow, and agents declined to reveal the sales prices before closing.

“When we started looking at the market, we picked up on this

Daisy Biggers, left, her husband, Greg, and son, Jeffrey, 11, pack some of their belongings that were stored in the garage of the house they recently sold in Sunnyvale on Tuesday, April 23, 2013. They sold their house in less than a week, and bought one in Orinda. The whole process, from the decision to sell, took only eight weeks. Housing values have staged a big comeback and are rapidly accelerating around the Bay Area, with the biggest recovery so far in the Peninsula and Silicon Valley. (Patrick Tehan/Bay Area News Group)
(
Patrick Tehan
)up-trend in prices,” Biggers said. “We quickly decided that if we’re going do it, now is the time. We had much higher demand than we had hoped for, which is great. And things are moving really, really quickly.”

Some pricier parts of Berkeley, Pleasanton, Oakland and Orinda are 10 percent or less below their earlier peaks. Not far behind are San Ramon, Moraga, Alameda, Danville and Fremont.

“Property in Dublin is selling at prices you would more commonly associate with some parts of the Peninsula,” said Lanny Baker, president and chief executive of ZipRealty. Baker said prices should hold even as more homes come on the market.

The market is so hot that sales in a week are not unusual. According to the real estate company Redfin, 24 percent of Alameda County listings in March were pending in a week; the numbers were 32 percent in Contra Costa County, 19 percent in San Mateo County and 26 percent in Santa Clara County.

Ally Yang bought a home in Mountain View in a day after losing another home to a higher offer. Her agent, Mark Wong of Alain Pinel Realty, “sent me the listing. I said let’s go check it out. I walked in, it’s a single family, I know the value, I think it’s a good deal.”

She made an offer of $705,000 that afternoon, and it was accepted. “I think in this kind of market you just have to know what you want and go after it,” she said.

Up the Peninsula in a Burlingame ZIP code that surpassed its bubble-era peak in August, Dianna Herrmann decided it was time to downsize and put her historic, 6,000-square-foot home on the market for $3.98 million.

“I watch the real estate market a lot,” Herrmann said. In February, she called her real estate broker. “I said things are overheated, inventory is low, prices are moving up and rates are low. Is this a good time to sell?”

The answer was yes.

Fifteen days later, the house was sold in an all-cash deal for over the asking price.

“The market is faster than ever,” said Burlingame broker Jennifer Tasto. “When a place sells, there’s one person who gets it and two other people replacing that buyer.”

The recovery is in full bloom in San Francisco. The Mission Bay neighborhood, where new luxury condominiums are about all that’s for sale, edged past its prior peak in January, and other parts of the city are nearing their previous highs.

“San Francisco has recovered incredibly,” said Leslie Bauer, an agent who specializes in the South Beach, Yerba Buena and Mission Bay districts. “I would say we’re recovered beyond when the market fell.”

But the data also reflects the stark contrast between the tech-heavy South Bay and Peninsula, where many areas are surpassing their pre-crash peak values, and the far reaches of the East Bay, where home values in some places are 50 percent or more below peaks that were inflated by subprime lending.

Antioch, Pittsburg, Richmond and a ZIP code in East Oakland have a long climb ahead of them. There, values still hover near their bottoms.

Fifteen ZIP codes in Contra Costa County and three in Alameda County are more than 50 percent below their peak median home value, according to Zillow’s data. In one Antioch ZIP, the median value of a home was $177,700, only 18 percent up from an October 2009 bottom of $149,800 and 62 percent below its peak of $473,400 in January 2006.

“We have a ways to go before we recover,” said Luis Salas, a real estate agent in Antioch. “We’re far from the city and there was so much construction the prices went down a lot in Antioch — in some cases more than 50 percent from the peak. But it’s recovering.”

As prices rise in Antioch, some short sales are drawing offers over asking price and becoming regular equity sales, according to Joy Di Ricco, an Antioch real estate agent who has specialized in short sales since the market crash.

She said one client’s home was $100,000 below the amount of the mortgage six months ago.

“I told them hold off,” Di Ricco said. “Sure enough, I think in another 30 days we may have an equity sale.”

Contact Pete Carey at 408-920-5419 Follow him at Twitter.com/petecarey.

Article source: http://www.mercurynews.com/business/ci_23107869/bay-area-housing-recovery-spreads-from-silicon-valley

The incredible soaring Bay Area home prices

Thu, 28 Mar 2013 01:02:22 +0000

Tuesday’s SP/Case-Shiller report underscored the rapid run-up in Bay Area home prices, showing that the San Francisco metro area — Alameda, Contra Costa, Marin, San Francisco and San Mateo counties — saw home prices surge 17.5% in January compared to a year ago. That outpaced the national run-up of 8.1 % and was second only to Phoenix.

For a detailed analysis of the numbers and what they mean for the Bay Area, click here.

Bidding wars and multiple offers are the new norm here.

Here’s a look at a San Jose house listed for $1,075,000 that sold for $1,120,000. Redfin agent Ashley Rabello said she had four offers within the first day of listing. The winning offer had no contingencies, a large percentage down, and was significantly higher than the asking price.

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Heavy action at all price points is new — and another harbinger of recovery.

“During the boom and bust, the lower-priced houses had the biggest percentage price increases and then the biggest percentage collapse,” said David Blitzer, chair of the index committee for SP/Dow Jones. That’s because the most-outrageous lending practices — subprime loans, liar loans, no money down — were more concentrated in the low end.

Case-Shiller tracks homes at three price tiers — low (under $383,942), middle ($383,9422 to $681,776) and high (over $681,776). “Until the boom, the three moved together; during the downturn, they spread apart,” Blitzer said. “Now they’re moving in sync again; it’s a sign the market is coming back to normal, behaving a lot less bizarrely than it did before.”

Carolyn Said is a San Francisco Chronicle staff writer. For insights and news on the real estate market, follow her on Twitter: @csaid

Article source: http://blog.sfgate.com/ontheblock/2013/03/27/the-incredible-soaring-bay-area-home-prices/

Real Estate "Flash Sales" Prove Market Is Hot

Sat, 23 Mar 2013 11:57:45 +0000

If you’re looking for a home in the Bay Area, you will probably need two things on your side: luck, and a lot of cash.

Those who aren’t willing to compete with up to dozens of other offers on a home are now trying to buy it – hours after it’s listed on the market.

The new trend has been dubbed by realty experts as “flash sales” – any sale that happens within 24 hours.

For example, a home in East Palo Alto on Gates Street was put on the market on March 19. It got nine offers the same day and sold for above asking price within 24 hours.

Glenn Kelman, CEO of online real estate brokerage Redfin which is set up in 19 U.S. markets, said that trend is growing in the Bay Area and calls it “Ground Zero” for an incredibly hot housing market, one that experienced an incredible boom at the start of 2013 in January.

“In the Bay Area in the past six months, we’ve seen 1,000 homes get under contract in less than 24 hours. It used to be a fast sale was three days – now, it’s three hours,” Kelman said.

Ken DeLeon, a realtor, said his latest listing is a 1200 square foot home in Palo Alto that he just put on the market Thursday. “The amazing part is just within 24 hours, we already had a client with a Chinese all-cash buyer offer us more than 300,000 above and we said, ‘No thank you, please wait,’” DeLeon said.

He and other realtors said they’re still catering to those wealthy foreign buyers, mostly from China and Russia; however, with historic-low mortgage interest rates and an inventory that’s also hitting record lows, they said the competitive cash offers are no longer limited to the high-end homes.

“That’s the main trend. It’s spreading out to other neighborhoods that once weren’t so hot,” added Kelman.

The Silicon Valley Association of Realtors compiled data from MLS listings for the South Bay. According to its numbers, for single family homes between February 2012 and February 2013, inventory was slashed by 52 percent in Santa Clara Country and 44 percent in San Mateo County.

Both experienced more than 30 percent in increase of median sale price. Redfin’s numbers show just how competitive it’s gotten in the last couple of months.

A San Francisco home in the Sunset District had 29 offers, a townhouse in Oakland got 15, and one on Dauphine Avenue in Fremont was hit with a stunning 65 offers. That house eventually sold for at least $100,000 more than the half-a-million asking price.

“There are sometimes traffic jams outside open houses,” said Kelman. “Folks get worried they can’t wait for the offer deadline on Sundays, so they make a preemptive strike to try and buy it on the spot.”

He said Redfin and other companies offer “mobile alerts” that let customers know almost immediately after there’s a new listing on the market. He believes that has also contributed to the high competition and quick sales.

Both he and DeLeon agreed on one more thing: the only relief, if it comes, will be when people decide to start selling, and when you’re talking about the Bay Area, there is no way to predict when that will happen, or if prices will go up or down.

“I hate it when people ask me about Bay Area real estate because it defies all the laws of physics,” Kelman lamented. “When you look at Chicago real estate, Atlanta real estate, you know what goes up must come down. It’s going to act like a normal economic market, but in the Bay Area, it seems there’s all sorts of money from the tech economy. There’s all sorts of people who want to move here for the sun. I can’t way when it will ever let up.”

Article source: http://www.nbcbayarea.com/news/local/Real-Estate-Flash-Sales-Prove-Market-Is-Hot--199652731.html

Up-to-date luxury in 1904 Ashbury Heights home

Wed, 06 Mar 2013 01:54:44 +0000

(03-05) 10:32 PST San Francisco — Twice a week, The Chronicle features a home on the Bay Area market that caught our eye for its architecture, history or character. More photos at www.sfgate.com/columns/walkthrough.

Address: 5 Downey St., San Francisco

Asking price: $2.1 million

Description: Just before its hundredth birthday, this three-bedroom, 3.5-bathroom Ashbury Heights home underwent an extensive renovation in 2003 and now has an open floor plan on its main level. A gas fireplace and hardwood floors decorate the living room, while bay windows add character to the formal dining room. Cherry-stained cabinetry, a breakfast area and cooking island are included in the chef’s kitchen, which leads to rear decks and the home’s garden. Upstairs, the master suite offers a skylight and walk-in closet. The suite also overlooks the garden. The master bathroom has dual granite vanities and a shower and tub constructed from glass, tile and granite.

Don’t miss: Family room/office on the lower level, as well as an additional bedroom that can be used as an au pair suite.

Built: 1904

Size: 3,196 square feet.

For more information: Gary Johnson, Paragon Real Estate Group, (415) 738-7068; gjohnson@paragonre.com

The Walk-Through is produced by Sentinel Media Services specifically for The San Francisco Chronicle. Send submissions to realestate@sfchronicle.com.

Article source: http://www.sfgate.com/realestate/walkthrough/article/Up-to-date-luxury-in-1904-Ashbury-Heights-home-4330484.php

Sound Off: What to consider in a seller’s market

Sat, 02 Mar 2013 07:27:15 +0000

Q: How does the lack of inventory affect potential sellers?

A: This is a concern that often leads sellers to sit on the sidelines rather than call their Realtor and put that “For Sale” sign in front of their house.

There is a logjam of sorts in our market right now. The number of homes for sale remains far less than needed to adequately meet current buyer demand. Until sellers gather the courage they need to move forward this is likely to be the case for the foreseeable future.

NOW is a great time to sell, because:

1. It has become evident in the past 10 years or so that the real estate market is as volatile as the stock market. Its temperature is related to a number of factors (health of the stock market, employment figures, etc.). As it becomes more challenging to predict future market strength, making decisions about when to sell (or to buy) becomes more about what the real estate market is doing now.

The San Francisco Bay Area is currently experiencing the hottest sellers’ market in quite some time. Homes that are well-presented and properly priced are selling in a few days with multiple offers and sales prices often going 10 to 40 percent above the asking price.

Buyers are coming to the table with strong/clean offer terms (short contingency periods), frequently with all cash (imagine a Brinks armored car pulling up in front of the listing agent’s office).

2. The current cost of borrowing money (low interest rates hovering around 4 percent) is further fueling the market, making home ownership that much more affordable for many.

Interest rates are inevitably going to rise in the near future. We have huge national debt to address. When interest rates rise, the fervor for home purchasing will be immediately affected.

3. In a multiple-offer market, sellers can often name their terms. If they need more time to find their replacement home (beyond the customary 30-day escrow), buyers will often accommodate by allowing them to remain in the sold property for a period of time after close of escrow.

4. If by chance you do not find your new home before you must move, there are good interim housing options, including short-term rentals, available. It is certainly true in my experience, that when a seller takes a leap of faith, with focus and intention, putting their homes on the market, even though they are uncertain about where they will land, the next “right” home for them appears just at the right time.

If you are considering selling your home, seize the day. Move forward with courage and conviction. Prepare it well and price it appropriately and you will be on your way to a successful move.

Karen Starr, the Grubb Co. (510) 414-6000 starr@grubbco.com

Article source: http://www.sfgate.com/realestate/article/Sound-Off-What-to-consider-in-a-seller-s-market-4321772.php