(PRWEB) July 25, 2013

Sean Sullivan San Francisco Real Estate New Construction and Senior Sales Leader with Climb Real Estate Group in San Francisco who was recently featured in a KRON4 news report, comments on the California Association of Realtors® (CAR) June Home Sales and Price Report(1) which shows a decline in units sold, as prices continue to trend upward statewide. Sullivan notes the California Association of Realtors® (CAR) June Home Sales and Price Report which shows a decline in units sold, while prices continue to trend upward statewide. The CAR report states that as prices continued to increase statewide in June with double-digit gains over June 2012, the number of units sold was down 3.8 percent from May, and down 3.7 percent from June 2012. The statewide median price of an existing, single-family detached home rose 2.7 percent from May’s revised median price of $417,350 to $428,510 in June. June’s price was up from 33.5 percent over June 2012. “The June decline in home sales was attributed partially to the hike in interest rates in recent months.  The average 30-year fixed rate had been stabilizing at around 3.5 percent since the beginning of the year, until it jumped more than 50 basis points in June to reach above the 4 percent mark for the first time in more than a year and a half,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “This rate increase portends a somewhat higher rate environment going forward as the Fed mulls over the start of its tapering off program in response to positive signs from the economy.”  Available now at ICON, these 1 and 2 bedroom homes feature contemporary, tasteful finishes located adjacent to shopping, transit, services, food and drink. Amazing views toward the top of the 6 story building. Represented for sale by Paragon Real Estate Group’s Suzanne Gregg and Jason Gorski.

Sullivan says it is important to realize that the San Francisco Bay Area bucked the statewide trend in that housing prices in June decreased very slightly by 1.1 percent over May, but still showed an increase of 23.3 percent over June 2012. The median sold price in June was $712,030, while in May it was $719,610 and in June 2012 it was $577,640. San Mateo County showed a 5.4 percent increase over May prices, and San Francisco County showed a 9.7 percent decrease. The month-to-month median price change from April to May 2013 was 5 percent. Alameda County shows a 2 percent decline in prices in June over May, but 29.7 percent increase from June 2012. Linea condominiums are perhaps the most architecturally stunning residential development along Upper Market. Linea offers myriad views and floor plans to suit buyers who crave privacy or who want to be front-and-center in this dynamic location.  Glass curtain wall construction allows for floor-to-ceiling windows in most homes.  With the historic Art Deco San Francisco Mint and a new Whole Foods as neighbors, Linea graces an already remarkable location.  Transit and the neighborhoods of Hayes Valley, Upper Market and Mid-Market are at your fingertips. Developer  represented by Polaris Pacific.

The San Francisco Bay Area was the only region in the state which showed a month-to-month decline in median housing prices. This fact can be seen as a positive sign because it should ease concerns of a housing bubble in the Bay Area. The median time on the market for the Bay Area in June shows a slight increase over May, at 34.1 and 31.4 days respectively. Sean Sullivan specializes in San Francisco Real Estate new construction and more information about other new properties can be found on his website. The Century, a chevron shaped condominium building will open for sales late this summer.  The five story structure has 1 and 2 bedroom floor plans at the crossroads of Duboce Triangle and Upper Market. The Penthouses feature commanding views and large private terraces. The neighborhood is an urban dwellers dream with parks, transit, bars, restaurants and stylish retail just downstairs. Developer represented for sale by Vanguard Properties’ Jean-Paul Samaha and Ed Deleski.

About Sean Sullivan San Francisco Real Estate Agent

Sean Sullivan serves as Climb Real Estate Group’s Senior Sales Leader. With more than fifteen years in the real estate industry, Sullivan has sold over $600 million in residential real estate and built a reputation for customer-focused sales leadership in San Francisco.  Sullivan has extensive experience in a variety of real estate transactions, both on the buyer’s and on the seller’s sides, and collaborates with attorneys, brokers, and the real estate community at large. His relationships with sellers, buyers and developers allows him to leverage market knowledge and experience in negotiating and surmounting challenges.  As a Top Producer in 2010, 2011, and 2012, his reputation is built on putting clients first by being responsive, consultative, collaborative, ethical and honest. 

 

“Community is important to me,” said Sullivan. He is a member of San Francisco Association of Realtors, California Association of Realtors and National Association of Realtors and active in SPUR (San Francisco Planning and Urban Research Association), SF SAFE, The National Trust for Historic Preservation, Jewish Vocational Services, SF Bicycle Coalition and Panhandle Park Stewards. 

Television, radio, print and electronic media often reach out for Sullivan’s take on the local and national real estate market. He has appeared on television numerous times, been featured on the front page of The San Francisco Chronicle and featured on The Today Show, Fox News Business, The Daily Mail UK and LA Times. In 2012 I received the great honor of The Armed Forces Civilian Service Medal.

Originally a Connecticut Yankee, he has lived in San Francisco for 16 years.  His interests include family, urban planning, yoga, surfing, and gardening.  He has also been fortunate to travel to over 30 countries. He currently resides in the Upper Haight. Sean Sullivan can be contacted at 415-215-0554, Sean(at)climbsf(dot)com. Please visit his website at: http://sfresource.com.

Contact Information

Sean Sullivan, Senior Sales Leader

Climb Real Estate Group

San Francisco, CA 415-215-0554

Sean(at)climbsf(dot)com

http://sfresource.com

(1) http://www.car.org/newsstand/newsreleases/2013releases/june2013sales

PDF


Print

Article source: http://www.prweb.com/releases/2013/7/prweb10954088.htm

Hanson is particularly concerned about cancellations among the home builders.

(Read More: Home Builder Sales at Risk Due to Rising Mortgage Rates)

Buyers of new construction often sign contracts for homes that will not be delivered for three to nine months, and therefore the buyers do not lock in mortgage rates at the time of purchase. A buyer who signed a deal the first week in May without a mortgage is now facing a far higher potential monthly payment, perhaps an unaffordable one.

The hangover effect could be much like the drop in home sales after the expiration of the home buyer tax credit. Prices dropped as well. This, as millions more borrowers were finally coming out from underwater on their loans, thanks to increased home equity. The number of borrowers owing more on their mortgages than their homes are currently worth fell by 47 percent in the first three months of this year from a year ago, according to Lender Processing Services. Some 7.2 million mortgages are still underwater, but that’s down from a high of 17 million in 2011.

Increased home equity has helped to push mortgage delinquencies down. They dropped 15 percent in May from Jan. 1, the biggest drop in 11 years, according to LPS. If home price gains stall or if prices turn lower, that trend will reverse. Rising home equity has allowed more borrowers to sell homes they don’t want or can’t afford.

(Read More: Map: Tracking the US Real Estate Recovery)

While home sales may surge in the short term on fears of rising rates and falling affordability, the longer term may be a different story. One telling sign from the Fannie Mae survey, 56 percent of respondents expect rents to rise. That’s up 8 percentage points in one month to a survey high.

—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC.

Questions? Comments? RealtyCheck@cnbc.com.

Article source: http://www.cnbc.com/id/100870112

Hanson is particularly concerned about cancellations among the home builders.

(Read More: Home Builder Sales at Risk Due to Rising Mortgage Rates)

Buyers of new construction often sign contracts for homes that will not be delivered for three to nine months, and therefore the buyers do not lock in mortgage rates at the time of purchase. A buyer who signed a deal the first week in May without a mortgage is now facing a far higher potential monthly payment, perhaps an unaffordable one.

The hangover effect could be much like the drop in home sales after the expiration of the home buyer tax credit. Prices dropped as well. This, as millions more borrowers were finally coming out from underwater on their loans, thanks to increased home equity. The number of borrowers owing more on their mortgages than their homes are currently worth fell by 47 percent in the first three months of this year from a year ago, according to Lender Processing Services. Some 7.2 million mortgages are still underwater, but that’s down from a high of 17 million in 2011.

Increased home equity has helped to push mortgage delinquencies down. They dropped 15 percent in May from Jan. 1, the biggest drop in 11 years, according to LPS. If home price gains stall or if prices turn lower, that trend will reverse. Rising home equity has allowed more borrowers to sell homes they don’t want or can’t afford.

(Read More: Map: Tracking the US Real Estate Recovery)

While home sales may surge in the short term on fears of rising rates and falling affordability, the longer term may be a different story. One telling sign from the Fannie Mae survey, 56 percent of respondents expect rents to rise. That’s up 8 percentage points in one month to a survey high.

—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC.

Questions? Comments? RealtyCheck@cnbc.com.

Article source: http://www.cnbc.com/id/100870112

Concerns about rising mortgage rates, which spiked in to the mid-4 percent range in just the past week, have dampened expectations for home price gains this summer. Analysts also worry that prices are rising too fast, far faster than income growth, and will soon price too many potential buyers out of the housing market.

“Today’s Case-Shiller numbers may reflect where the housing market has been in some of the frothier metros, but they are not indicative of where it’s headed,” said Zillow’s chief economist, Stan Humphries. “The housing market worm has turned over the past few weeks—inventory levels are beginning to show signs of easing, and mortgage interest rates are creeping up. Going forward, both of these factors will help mitigate extreme price spikes caused by very strong housing demand and very low housing supply.”

This latest report only tracks prices on a three-month moving average through the end of April, well before mortgage rates began their climb. Still, Blitzer contends that rising rates will not slow price gains.

Article source: http://www.cnbc.com/id/100839986

We had a very good response. It was only in the market two weeks.

San Francisco, CA (PRWEB) June 20, 2013

Sean Sullivan, Senior Sales Leader with Climb Real Estate Group in San Francisco was recently featured in a KRON4 news report featuring reporter Maureen Kelly about the second Rincon Tower which was put on hold five years ago after the housing recession of 2008. The second building, known as Rincon II has resumed construction. Rincon I finally sold out last fall. According to the KRON4 news report from late April(1), Rincon II was initially going to be condominiums for individual sale, but since resuming construction, the developers have changed their minds and have decided to make the units available for lease instead of for sale. Rincon is represented for sale by Polaris Pacific. Available now at ICON, these 1 and 2 bedroom homes feature contemporary, tasteful finishes located adjacent to shopping, transit, services, food and drink. Amazing views toward the top of the 6 story building. Represented for sale by Paragon Real Estate Group’s Suzanne Gregg and Jason Gorski.

Sullivan comments in the KRON4 news report that he would not be surprised if the developers change their minds again if there is a chance for them to get a better rate of return by selling instead of leasing. As it stands now it is not known what the market conditions will be in a year and beyond and if it will be more favorable to the developers to lease or sell. Sean Sullivan specializes in San Francisco real estate new construction and more information about other new properties can be found on his website. Century Condominiums, a chevron shaped building will open for sales late this summer.  They are 1 and 2 bedroom floor plans at the crossroads of Duboce Triangle and Upper Market. The View Penthouses feature commanding views and large private terraces. Represented for sale by Vanguard Properties’ Jean-Paul Samaha and Ed Deleski.

Another event to make international news featuring Sean Sullivan is the $82,000 parking space which recently sold in a condominium garage in San Francisco’s trendy South Beach neighborhood, near the Giants’ ballpark. This news was reported in the online news outlets Huffington Post, Britain’s Daily Mail, San Francisco Chronicle, the CBS Evening News, the Los Angeles Times and the Washington Post, among others. Sullivan commented in the Washington Post(2) “We had a very good response. It was only in the market two weeks.” Sullivan added that at the height of the property boom he sold a parking spot in the same building for $95,000. In the UK’s Daily Mail(3) Sullivan said the space was in a good part of the garage, and said the company struggled at first to put a price on it. The Linea condominiums are perhaps the most architecturally stunning residential development along Upper Market, Linea offers myriad views and floor plans to suit buyers who crave privacy or who want to be front-and-center in this dynamic location.  Glass curtain wall construction allows for floor-to-ceiling glass in most homes.  With the historic Art Deco San Francisco Mint and a new Whole Foods as neighbors, Linea graces an already remarkable location. Represented by for sale by Polaris Pacific.

About Sean Sullivan San Francisco Real Estate Agent

Sean Sullivan serves as Climb Real Estate Group’s Senior Sales Leader, where he oversees the brokerage’s agents and resale business. With more than fifteen years in the real estate industry, Sullivan has sold over $600 million in real estate and built a reputation for his sales leadership in the Bay Area — from San Francisco, San Mateo, and San Jose.

Sullivan has extensive experience in a variety of real estate transactions, both on the buying and on the selling sides, and expertly collaborates with attorneys, brokers, and the real estate community at large.  He has strong relationships with developers and buyers alike, who trust his honesty, market knowledge and vast experience in negotiating, renovating and problem solving.

As Senior Sales Leader, he is very involved in the real estate community as a member of SFAR, CAR, and NAR.  He is also active in SPUR San  Francisco Planning Urban Research Association, California Preservation Foundation, The National Trust for Historic Preservation, Jewish Vocational Services, SF Bicycle Coalition and Panhandle Park Stewards. Today, he continues to provide advice to his broker peers and volunteers his time teaching and participating in seminars.

Originally a Connecticut Yankee, he has lived in San Francisco for 15 years.  His interests include family, urban planning, fitness.  He has also been fortunate to travel to over 30 countries. He currently resides in the North Panhandle.

Contact Information

Sean Sullivan, Senior Sales Leader

Climb Real Estate Group

San Francisco, CA

415-215-0554

Sean(at)climbsf(dot)com

http://sfresource.com

(1) http://news.kron4.com/video/second-rincon-tower-starts-to-rise-above-san-francisco/

(2) http://articles.washingtonpost.com/2013-06-13/national/39940496_1_san-francisco-giants-real-estate-prices-parking-space

(3) http://www.dailymail.co.uk/news/article-2341399/Tiny-parking-spot-sells-82-000-San-Franciscos-South-Beach-weeks-offered-sale.html#ixzz2WVtBr0Vi

PDF


Print

Article source: http://www.prweb.com/releases/2013/6/prweb10852842.htm

“What are they so excited about?” asked Hunter. “That they have pricing power.”

Housing completions fell 0.9 percent to an annualized rate of 690,000, well below demand. Underlying demand consists of new households forming (about 1.1 million, according to Census data,) replacement demand (about 250,000 homes) and second home demand (about 50,000,) according to IHS Global Insight.

“The wide gap between housing completions and underlying demand suggests that inventories are likely to get leaner over the next 12 months,” IHS analysts said in a report to investors. “For the record, it takes about seven months on average for a single-family permit to turn into a completed home.”

The supply pinch can be seen quite dramatically in California, where there was barely a two-month supply of homes for sale in May. That, and a change in the mix of home sales from distressed to nondistressed, pushed the median sale price up 32 percent from a year ago. Some might call that a “bubble,” but the real state agents do not.

(Read More: Rising Rates Scare Borrowers Into Action)

“While home prices are increasing at levels above those observed in 2006-2007, the fundamentals of the housing market are much more solid than what we experienced a few years ago,” said Leslie Appleton-Young, chief economist for the California Association of Realtors. “More home buyers are putting down larger down payments, and many of them are opting for more stable loan products.”

That may be, but the jump in the median California home price jump is predominantly due to a change in the mix of homes selling, that is, more nondistressed sales and fewer foreclosure and short sales. The median price is where half the homes sell for more and half sell for less. In May, distressed properties accounted for 31 percent of total sales in California, down from 52 percent of sales a year ago, according to Propertyradar, a data and analytics company. Meanwhile, nondistressed sales were 69 percent of total sales, up from 48 percent a year ago.

Article source: http://www.cnbc.com/id/100821976

While prices continue to improve, there are still headwinds, specifically a relatively weak employment picture and a tight mortgage market. Existing home sales are also recovering far faster than new home sales, and much of the gains in new home construction is in multi-family apartments, as single family housing starts lag.

(Read More: Record High New Home Prices to Grow)

“Housing is making a positive impact on the economy, if one goes through the GDP numbers, residential construction is adding to economic growth,” said Blitzer. “But when you look at this, buying and selling existing homes, is recognized, we all feel good, the prices are going up, it doesn’t add anything to GDP.”

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100769361

(Read More: Apartment Building Bubbles as Single-Family Homes Struggles)

Zelman noted an intentional slowing by home builders, who are strapped by labor and supply shortages and who are looking to gain pricing power as the market recovers, as a key driver of apartment demand.

Rising rents are pushing some tenants to move, but not as many as expected. 11.5 percent of departing residents in April left due to rent increases, according to the report, up from 10.9 percent in 2012 but way down from 17 percent in 2011. In addition, more than half of those moving out remained in the apartment rental market. Thirty percent bought a home, and ten percent rented a single family home; the remaining moved in with family or friends.

The concern for investors in the apartment sector, especially in multi-family REITs (real estate investment trusts), is that there is too much new supply coming on line, just as demand is about to turn. The government numbers for housing starts in April added confusion to that argument, but some say the monthly numbers, especially for new construction, which have a wide margin of error, are just “noise.”

(Read More: Rising Rates Rattle Mortgage Market)

“Multi-family starts plunged 38.9 percent to 23,000 units, but the more important average of March and April was still a solid 321,000 units,” noted Michael Montgomery, an economist at IHS Global Insight.

Article source: http://www.cnbc.com/id/100746253

(Read More: US Pending Home Sales Tick Upward in March)

“In terms of our mix, less is going to Arizona and California today,” said Justin Chang a principal at Colony. “Our mix is increasing on east coast, Georgia, Florida, we’re active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio.”

Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.

“On home building, there’s a lot of chatter about that. We are in some conversations with builders,” explained Chang, who admits the economics have not been compelling yet. “Over time you’ll see more and more of these transactions, and we may do one as well.”

Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called “Mom and Pop” landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.

“If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant,” said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. “We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes.”

(Read More: Next Boom? ‘Spec’ Homes Are Back)

There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.

Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.

“If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it’s going to take longer for that to recover,” said Bloemker. “We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors.”

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC
—CNBC’s Stephanie Dhue contributed to this story

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100700113

January 2013 Trulia Price Monitor Summary

% change in
asking prices

# of 100 largest
metros with asking-
price increases

% change in asking
prices, excluding
foreclosures

Month-over-month,
seasonally adjusted

0.9%

Not reported

1.2%

Quarter-over-quarter,
seasonally adjusted

2.2%

79

2.9%

Year-over-year

5.9%

86

6.5%

Booming Housing Markets Have Both Price Gains and Healthy Fundamentals

Healthy housing markets are defined by strong job growth, low vacancy rates, and low foreclosure inventory. In “booming” markets such as San Francisco and Seattle, rising asking prices are supported by strong job growth and are unthreatened by future foreclosures. However, investor-fueled price increases in “rebounding” markets like Phoenix and Las Vegas are at risk from slow job growth, high vacancies, or future foreclosures. At the other end of the spectrum, healthy markets without dramatic price gains, such as Houston, will continue to hum along after avoiding the worst of the housing bubble and bust. Meanwhile, markets like Chicago continue to struggle without strong market fundamentals or big price gains.

BOOMING

Big price increases and healthier
market
fundamentals.

• San
  Francisco
• Seattle
• Denver
• San
  Jose
• Salt
  Lake City

HUMMING

Stronger market fundamentals
without dramatic price
gains.

• Houston
• Boston
• Raleigh
• Dallas

REBOUNDING

Big price increases, but weaker
market fundamentals.

• Phoenix
• Las
  Vegas
• Riverside-San
  Bernardino
• Detroit

STRUGGLING

Neither strong market
fundamentals nor big price
gains.

• Newark
• Chicago
• Albuquerque

New Construction Eases Rent Gains Nationally

With more newly-constructed multi-unit buildings coming to completion, rent gains fell behind asking price increases at the national level for the first time since the price recovery began last spring. In January, rents rose 4.1 percent Y-o-Y nationally, slowing down from 4.7 percent in July 2012. Regionally, rent gains cooled the most in San Francisco, where rents rose only 2.4 percent versus 11.5 percent in July 2012. According to the Census, construction activity in San Francisco has been well above normal for the last year, and it’s nearly all in multi-unit buildings.

Where Rent Gains Slowed Down Most

#

U.S. Metro

% Change in
Rents, Y-o-Y,
Jan 2013

% Change in
Rents, Y-o-Y,
July 2012

Percentage
Point
Difference

1

San
Francisco, CA

2.4%

11.5%

-9.1%

2

Portland,
OR-WA

4.7%

9.2%

-4.4%

3

Seattle,
WA

6.4%

10.8%

-4.4%

4

Denver,
CO

7.4%

10.3%

-2.9%

5

San
Diego, CA

2.0%

4.4%

-2.4%

PRE-APPROVED QUOTES

• “In many local markets today, dramatic price gains can mask serious
  red flags,” says Jed Kolko, Trulia’s Chief Economist. “Strong job
  growth, low vacancy rate, and low foreclosure inventory–not huge price
  gains–are signs of a healthy housing market. Without strong underlying
  market fundamentals, price rebounds might be here today, but gone
  tomorrow.”
• “Rent gains are slowing down because of more supply, not less demand,”
  explains Jed Kolko, Trulia’s Chief Economist. “Many of the multi-unit
  buildings that have been under construction over the past two years
  are now coming onto the market. Renters in San Francisco, Seattle, and
  Denver are starting to get a touch of relief, even though rising
  prices might put homeownership out of their reach.”

MULTIMEDIA

• To read the full report, see here.
• To download the full list of price and rent changes for the largest
  metro areas, see here.
• To download a graph of price changes from January 2011 to January
  2013, see here.
• To download a scatter plot graph contrasting price trends with the
  market’s health for the 100 largest metros, see here.

METHODOLOGY

To view the full methodology and 2013 release schedule, see here. The next release of the Trulia Price Monitor and the Trulia Rent Monitor will be Tuesday, March 5, at 10 AM ET.

ABOUT TRULIA, INC.

Trulia (NYSE: TRLA) gives home buyers, sellers, owners, and renters the inside scoop on properties, places, and real estate professionals. Trulia has unique info on the areas people want to live that can’t be found anywhere else: users can learn about agents, neighborhoods, schools, crime, commute times, and even ask the local community questions. Real estate professionals use Trulia to connect with millions of transaction-ready buyers and sellers each month via our hyper local advertising services, social recommendations, and top-rated mobile real estate apps. Trulia is headquartered in downtown San Francisco. Trulia is a registered trademark of Trulia, Inc.

Article source: http://www.fortmilltimes.com/2013/02/05/2478046/trulia-classifies-housing-markets.html