SAN FRANCISCO (CBS/AP) – A research firm said home prices in the San Francisco Bay Area began to cool off last month after a torrid run.

California posted its strongest homes sales for any August in seven years as price increases cooled, a research firm said Friday, a relief to buyers who have been competing over slim pickings.

There were 42,546 new and existing houses and condominiums sold, up 3.1 percent from 41,280 sales a year earlier and the highest August tally since 51,054 homes sold in 2006, according to DataQuick.

The median sales price was $361,000, down 0.6 percent from 363,000 in July but still up 28.5 percent from $281,000 in August 2012. It was the 18th straight month of annual price gains.

Sales were especially strong for mid- to high-priced homes. Sales above $500,000 jumped 28.2 percent in the nine-county Bay Area and soared 48.7 percent in Southern California.

Louis Marcoux, 35, lost three bids before buying a four-bedroom house last month for $830,000 in Pleasanton. It is better house than the previous ones he sought—and less expensive.

“It got sort of crazy in May, June,” said Marcoux, an executive at a medical device maker. “We were ready but weren’t pressed for time … The wait was worth it.”

The median sales price in the Bay area was $540,000, down 3.9 percent from $542,000 in July but still up a whopping 31.7 percent from $410,000 in August 2012. There were 8,616 homes sold in the Bay area, down 0.6 percent from a year earlier.

DataQuick reported Thursday that Southern California’s median sales price was $385,000 last month, matching a 64-month high and marking the 13th straight month of annual double-digit gains. Sales increased 2.8 percent to 23,057 homes.

“We’re starting to see an overdue correction that’s going to lead to much more moderate price increases,” said Michael Lea, lecturer at San Diego State University’s Corky McMillin Center for Real Estate.

The sales increase partly reflects a national trend of fewer homeowners owing more than their homes are worth, allowing them to sell without taking a loss, analysts said. CoreLogic Inc., a real-estate data firm, reported this week that 15.4 percent of its mortgaged homes in California were “underwater” at the end of June, down from 21.3 percent three months earlier.

Foreclosed homes, which drove sales after the 2008 financial market meltdown, made up a much smaller part of the sales mix. According to DataQuick, homes foreclosed upon during the previous year accounted for 7.8 percent of existing home sales in August, down from 20 percent a year earlier and 58.8 percent in February 2009.

Lea said he is watching for housing inventories to grow, which will help keep a lid on price increases.

The California Association of Realtors reported a 2.9-month supply of single-family homes for sale in July, down from 3.5 months a year earlier. A normal supply is considered five to seven months.

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Article source: http://sanfrancisco.cbslocal.com/2013/09/13/bay-area-home-prices-cooling-off/

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

A total of 5,404 houses and condominiums were sold, down 1.8 percent from January and more than 6 percent from February of 2012, DataQuick said.

The median sales price for a home in the nine-county area was $405,000. That was down 2.4 percent from January but still nearly 25 percent higher than a year ago.

Although prices remain well below the peak of several years ago, they have soared by double digits each month for the past nine months when compared with the same months a year earlier. The gains have topped 20 percent in the past four months in year-over-year comparisons, DataQuick said.

“Isn’t this Economics 101? Supply and demand?” DataQuick President John Walsh asked in a statement. “If demand outstrips supply in a free market, the price goes up.”

“Now, with a recovering economy, prices still closer to the bottom than to the top, with ultra-low mortgage interest rates and tight supply, the stage is set for price gains. This spring is going to be interesting,” Walsh said.

There were continuing indications that California’s housing market is recovering from its five-year slump.

“Foreclosure activity is well below peak levels reached in the last few years. Financing with multiple mortgages is low, and down payment sizes are stable,” DataQuick said in a statement.

Sales in February shifted from low-cost, distressed homes to mid-market and higher properties, with the number of homes selling for $500,000 or more jumping by 27.7 percent, DataQuick reported.

Foreclosures and short sales, those in which the price was less than the amount owed on the property, both were down over January and there were a lot fewer of them compared with February a year ago.

Investors, as compared with first-time homebuyers, accounted for a sizeable chunk of the sales. Absentee buyers, who mostly are investors, bought 28.2 percent of all Bay area homes.

That was an all-time high based on DataQuick figures going back to 2000, the company said.

In Southern California, homes sales continued strong, with 15,945 sold – the most for a February in the past six years.

The median sales price in Los Angeles and five other counties was $320,000, DataQuick reported Wednesday.

Article source: http://www.vcstar.com/news/2013/mar/14/sf-bay-area-february-home-sales-dip/

A total of 5,404 houses and condominiums were sold, down 1.8 percent from January and more than 6 percent from February of 2012, DataQuick said.

The median sales price for a home in the nine-county area was $405,000. That was down 2.4 percent from January but still nearly 25 percent higher than a year ago.

Although prices remain well below the peak of several years ago, they have soared by double digits each month for the past nine months when compared with the same months a year earlier. The gains have topped 20 percent in the past four months in year-over-year comparisons, DataQuick said.

“Isn’t this Economics 101? Supply and demand?” DataQuick President John Walsh asked in a statement. “If demand outstrips supply in a free market, the price goes up.”

“Now, with a recovering economy, prices still closer to the bottom than to the top, with ultra-low mortgage interest rates and tight supply, the stage is set for price gains. This spring is going to be interesting,” Walsh said.

There were continuing indications that California’s housing market is recovering from its five-year slump.

“Foreclosure activity is well below peak levels reached in the last few years. Financing with multiple mortgages is low, and down payment sizes are stable,” DataQuick said in a statement.

Sales in February shifted from low-cost, distressed homes to mid-market and higher properties, with the number of homes selling for $500,000 or more jumping by 27.7 percent, DataQuick reported.

Foreclosures and short sales, those in which the price was less than the amount owed on the property, both were down over January and there were a lot fewer of them compared with February a year ago.

Investors, as compared with first-time homebuyers, accounted for a sizeable chunk of the sales. Absentee buyers, who mostly are investors, bought 28.2 percent of all Bay area homes.

That was an all-time high based on DataQuick figures going back to 2000, the company said.

In Southern California, homes sales continued strong, with 15,945 sold – the most for a February in the past six years.

The median sales price in Los Angeles and five other counties was $320,000, DataQuick reported Wednesday.

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Article source: http://www.sacbee.com/2013/03/14/5262908/sf-bay-area-february-home-sales.html

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The Silicon Valley is now leading the nation in its long-awaited housing recovery, according to veteran Bay Area realtors.

Suzanne Yost, President of the Silicon Valley Association of Realtors summarizes, “We’re at that leading edge.”

Many cities, in fact, are showing double-digit gains in year over year sales prices. In San Jose, the median cost of a single family home is now $582,000, up 22 percent over November of last year. And in Palo Alto, which boasts some of the region’s best performing schools, high demand has pushed the median sales price of a home to $1,684,000.

What surprises buyers, sellers, and even seasoned realtors in parts of the Bay Area, is the number of homes receiving multiple offers that are non-contingent and all-cash.

Certainly, the initial public stock offerings of such Silicon Valley luminaries as LinkedIn, Facebook and Groupon have helped spur the region’s resurgence in housing. But there’s another increasingly significant group of buyers who are fueling the frenzy. Numerous agents reference the impact of Chinese investors, both foreign nationals and immigrants. “Just in the last year, we’ve seen a doubling of buyers coming directly from China and they’re pretty much all-cash buyers, usually here for just one week,” says Ken DeLeon, broker and founder of Palo Alto’s DeLeon Realty.

Nationally, Canada remains the largest group of foreign investors in U.S. real estate. But there is ample anecdotal evidence to suggest that the Silicon Valley is bucking the national trend. “Amazingly, within Palo Alto, with its great schools,” DeLeon postulates, “70 percent of the buyers are now Chinese, either American born Chinese, or coming directly from China. It’s staggering!”

The Silicon Valley Association of Realtors (SILVAR) recently formed a Global Business Council to help its members respond to the growing interest from foreigners, most notably from Asian investors. A delegation of 10 Chinese government officials recently met with the association to learn about real estate ownership, development and taxes in the golden state. “It was evident from the meeting that our world is more global than ever, and so is the business of real estate,” council chairwoman Jennifer Tasto said.

Meanwhile, high demand combined with low inventory have spawned a robust market in the Silicon Valley. Agents Anina Van Alstine and Sharon Witte recently sent out 32 disclosure packages for a home they co-listed within walking distance of Stanford University. Even during the Thanksgiving holiday when the business of buying and selling homes usually slows, the highly desirable location drew a remarkable 15 offers. Priced at $1,695,000, the final sales price was $2,230,000 – 32 percent above the original asking price. Van Alstine added, “More than 30 percent of the offers were all-cash and the one that got accepted closed in seven days from acceptance.”

Other, similar stories abound. Tasto recalls receiving 38 offers on a Palo Alto green acres rancher. Listed for sale at $1,195,000, half of the offers, she says, came in above $1.5 million. It sold for $1,650,000.

Michael Repka, who brings his legal and tax expertise to the DeLeon Asian Operations team remarks, “It’s absolutely remarkable. It’s the most frenzied, excited market that I’ve come across in the last 10 years.” But Van Alstine and Witte are careful not to focus too squarely on the Asian investor. They write, “As agents who represents many high end properties we can tell you that there are people from all over the world moving to the Bay Area as well as local residents, who have plenty of resources to engage in the bidding wars that are so prevalent now. The amazing prosperity generated by businesses centered in Silicon Valley has generated unprecedented amounts of cash and buyers from all backgrounds are willing to invest what it takes to live where they choose.”

All of the realtors and agents with whom I spoke while researching this story emphasized the importance of education and high quality schools for buyers. Julie Tsai Law, who had just returned from client meetings in Hong Kong, Taiwan, and China, said the major reason her buyers develop such a strong attraction to Palo Alto is “for the school districts here. From elementary to high school to even the universities.”

Their keen interest and personal holdings are such that Law says, “They wire the money overnight, and they close the deal within five days.” Van Alstine echoed a similar view. “We could tell from remarks made at our open houses, that people making offers imagined a K-Stanford education for their children.”

The Fair Housing Act prevents us from keeping tabs on race and ethnicity in real estate transactions. As a result, precise data is unavailable from the California Association of Realtors and likewise, SILVAR, on the percentage of recent home sales tied to Chinese investors, either foreign-born or resident Chinese. Other developments, however, confirm the rising tide of interest from The People’s Republic. DeLeon recently launched an Asian Operations unit with more than a quarter of a million dollar marketing budget targeted toward mandarin speaking investors. “There’s such an interest in purchasing houses by the Asian community, we wanted to structure something that was most convenient for them and also to help us market our homes” explained Repka, chief counsel for DeLeon Realty.

Other Bay Area real estate firms are in the process of setting up offices in China, as well. RE/MAX reports that 25 percent of the visitors to their year-old global website, www.global.remax.com, come from China.

Following her recent meetings with the delegation from China, SILVAR president Suzanne Yost elaborated, “I think they feel it might be time to get their money out of China.” That’s a sentiment echoed by Repka who explained that citizens are not allowed to own the land they purchase in China; they buy their homes on long-term leases, and many investors fear that the Chinese housing market may have peaked. Additionally, the People’s Republic of China restricts the purchase of second homes so there is only so much real estate an investor can buy. All the more reason, realtors summarize, that homes from San Jose to San Francisco and parts in between are getting swamped with offers of all-cash and a quick close, oftentimes from foreign investors.

Realtors agree that it’s a great time to be a seller, but it can be a really tough market for buyers.

Article source: http://www.nbcbayarea.com/news/local/Chinese-Capitalists-Help-Fuel-Housing-Rebound--184185391.html

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LOS ANGELES, Nov. 9, 2012 /PRNewswire-iReach/ — Sports fans in San Francisco couldn’t be happier, as their baseball team just won their second World Series in a three year time span. But Giants’ fans aren’t the only people who should be happy in the Bay Area. According to recent statistics, property owners in San Francisco also have something to smile about! Eight times each year, the Federal Reserve publishes the “Summary of Commentary on Current Economic Conditions”, better known as the “Beige Book”, which gives an economic snapshot of all 12 Federal Reserve districts — including San Francisco. The “Beige Book” came out in mid-October, and it indicates that the residential real estate market in the metropolitan San Francisco area is recovering much quicker than in other cities across the country. For example, the median sales price for a home in the Bay Area continues to rise, and in September, it hit its highest level in more than four years. In September 2012, the median price in the nine-county area climbed to $429,000. That’s a 17.5% increase from September 2011, when the median was $365,000.

Job growth and low interest rates are also bringing more buyers into the area. The unemployment rate around San Francisco has fallen to 7.4% — down from a high of 10.1% in January 2010. With more buyers eager to purchase a home now so they can take advantage of the all-time low interest rates that are available, there is a shortage of homes for sale in the Bay Area. While that’s bad news for buyers, it’s good news for sellers. After all, with fewer homes available on the market, sellers can raise their listing prices. And speaking of fewer homes on the market, San Francisco also is leading the way in foreclosure reduction. Last week, it was announced that foreclosure filings in the San Francisco area fell 36% when compared to the same time period last year. A big part of that comes from investors who are purchasing foreclosure properties and fixing them up to rent, instead of reselling them once the needed repairs have been made. But residential properties in San Francisco aren’t the only hot commodities in town. Commercial real estate is also seeing a boom in the Bay Area. Kilroy Realty Corporation is building two new skyscrapers in town, and their CEO says they already have interested clients wanting to lease space in the buildings. The first, a 400,000 square foot, 27-story project, will break ground in the first quarter of next year, and construction of the second building should get underway in late 2013. In an interview with San Francisco Business Times, the company’s CEO, John Kilroy said, “I can tell you I do not believe in the trees growing to the sky. But I have never seen so much visible demand from such a diverse group of people as I have seen in San Francisco and the Bay Area right now.” With so many interested clients, but limited commercial space, the demand outweighs the inventory at this time, so economists speculate that Kilroy won’t be the only company building commercial properties in San Francisco in the months and years to come. What does all this mean? If you’re looking for a home in San Francisco, expect to pay more. If you own a business that is looking to move to the Bay Area, or relocate within it, also expect to pay a pretty penny. And finally, if you’re a seller — of either a residential or commercial piece of real estate — you may be able to cash in on the high demand in the area and make more money than you initially hoped or planned when selling your property.
http://www.RealtyPin.com

Media Contact: Daniel Torelli RealtyPin.com, 514-836-1432, daniel@realtypin.com

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Article source: http://www.prnewswire.com/news-releases/san-franciscos-real-estate-market-making-experts-jump-for-joy-178153711.html

Job growth and low interest rates are also bringing more buyers into the area. The unemployment rate around San Francisco has fallen to 7.4% — down from a high of 10.1% in January 2010. With more buyers eager to purchase a home now so they can take advantage of the all-time low interest rates that are available, there is a shortage of homes for sale in the Bay Area. While that’s bad news for buyers, it’s good news for sellers. After all, with fewer homes available on the market, sellers can raise their listing prices. And speaking of fewer homes on the market, San Francisco also is leading the way in foreclosure reduction. Last week, it was announced that foreclosure filings in the San Francisco area fell 36% when compared to the same time period last year. A big part of that comes from investors who are purchasing foreclosure properties and fixing them up to rent, instead of reselling them once the needed repairs have been made. But residential properties in San Francisco aren’t the only hot commodities in town. Commercial real estate is also seeing a boom in the Bay Area. Kilroy Realty Corporation is building two new skyscrapers in town, and their CEO says they already have interested clients wanting to lease space in the buildings. The first, a 400,000 square foot, 27-story project, will break ground in the first quarter of next year, and construction of the second building should get underway in late 2013. In an interview with San Francisco Business Times, the company’s CEO, John Kilroy said, “I can tell you I do not believe in the trees growing to the sky. But I have never seen so much visible demand from such a diverse group of people as I have seen in San Francisco and the Bay Area right now.” With so many interested clients, but limited commercial space, the demand outweighs the inventory at this time, so economists speculate that Kilroy won’t be the only company building commercial properties in San Francisco in the months and years to come. What does all this mean? If you’re looking for a home in San Francisco, expect to pay more. If you own a business that is looking to move to the Bay Area, or relocate within it, also expect to pay a pretty penny. And finally, if you’re a seller — of either a residential or commercial piece of real estate — you may be able to cash in on the high demand in the area and make more money than you initially hoped or planned when selling your property. http://www.RealtyPin.com

Media Contact: Daniel Torelli RealtyPin.com, 514-836-1432, daniel@realtypin.com

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

SOURCE RealtyPin

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Article source: http://www.sacbee.com/2012/11/09/4974033/san-franciscos-real-estate-market.html