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The country’s hottest housing market might finally be cooling off.

Home prices in San Francisco declined last month for the first time in four years, according to real estate brokerage Redfin.

The median home price in the area dropped 1.8% in March from last year to $1.04 million. Last year, prices in the market averaged 15% growth.

“The sticker shock is wearing people down,” said Nela Richardson, Redfin’s chief economist.

Related: Here’s the salary you need to afford a home in these 27 cities

Sales also took a hit, sinking 22% in March — which normally marks the start of the busy home-buying season.

“We might be in a market that will continue to contract,” Richardson said. “When it looks like a market is contracting and getting smaller, especially with home sales being down 22% year over year — that is big number and is worrisome.”

Bidding wars have been common for a while in the Bay Area, with many sellers purposely under pricing their home to create more competition.

But that’s a risky tactic at this point, warned Richardson.

“We are hearing from agents that homes they expected to go for hundreds of thousands above list price are actually selling for not too much above ” she said. In March, homes were selling at 7% above asking price. A year ago, they were going for 9% above.

Related: Manhattan rent prices finally dropped

While it’s still a seller’s market in San Francisco, homes are sitting on the market longer and inventory is up 4% year over year.

“Homes used to be sold in less than a week, but now they are sitting on the market two to three weeks waiting for an offer.”

Wall Street’s recent volatility could be eroding confidence in the housing market.

“The people who can buy in San Francisco are tied to these unicorn companies and a lot of their compensation is stock and equity based so they are sensitive to stock market fluctuations,” said Richardson.

Interest from foreign buyers, particularly from China, has also slowed, she added.

Related: San Francisco is first city to require fully-paid parental leave

The slowdown in San Francisco could signal the real estate climate is shifting.

Nationally, home prices increased 4.7% in March as sales ticked up 1% — the smallest rise in 16 months.

“This could mean that going forward, the strength in the housing market could shift away from the high-end superstar cities to the more affordable places with good economic growth,” said Richardson.

Article source: http://money.cnn.com/2016/04/14/real_estate/san-francisco-home-prices-drop/

On Monday, San Francisco Examiner reporter Joe Fitzgerald Rodriguez was canvassing around town when he spotted a billboard touting an upcoming batch of townhouses.

One particular adjective stood out to him. So he took a picture, posted it on Twitter, and in one fell swoop, gave yet another piece of evidence that the San Francisco housing market has truly nowhere to go but up.

The use of the description “low $1,000,000s” scored a host of feedback on social media and Reddit, each remarking that this was yet again a display of local prices gone mad.

@FitzTheReporter pic.twitter.com/l3U89HEnXQ

— Jeff M. Giordano (@JMG_Films) April 2, 2016

Sometimes I wonder about you San Francisco. https://t.co/8Q3ZfP2SKS

— Sutro Tower (@SutroTVTower) April 3, 2016

Woah! So affordable! https://t.co/rIlZhDgkHW

— Devyn Barrie (@960DevynBarrie) April 3, 2016

The billboard joins a string of stories recently—from a man paying $508 monthly to live in a wooden box, to a $350,000 listing price for a wooden shack—that have become exhibits for increasingly unaffordable homes in San Francisco, where the median home price has moved to around $1.1 million.

To put that into perspective, the California Association of Realtors puts out a Housing Affordability Index every quarter to see how many households can afford the median price for a house in the neighborhood. In San Francisco, only 11% of its own residents can afford to pay for the average home there. For perspective, the percentage for the state of California is around 30%, and for the whole country, it’s 58%.

So, you could say the ad was right: $1,000,000 is low-ish for a home. The billboard publicized Summit 800, a housing development of 182 three-bedroom townhouses at Summit Way. While the residences differ in size and price, the billboard is probably referencing its Residence A1 townhouses, its smallest house at 1,547-square-feet.

The developers of Summit 800, Comstock Homes, said that their billboard has received a lot of attention, and somewhat unfairly. “It’s not uncommon to see ‘ from the low’ in terms of pricing,” Sandra Eaton, director of sales and marketing for Northern California at Comstock Homes, told Fortune. “They [families] are growing out of the condo market, which can be priced as high as $1,500 per square foot, whereas our community is more in the range of $650… It would not be difficult to find similar advertising in our city.”

Eaton cautions, however, that while the influx of tech-based workers and a robust economy has been blamed for driving up prices over the years—San Francisco, for instance, has added 480,000 private-sector jobs and only around 50,000 housing units over the last five years—it’s a problem everywhere in the U.S. “People who see the billboard are frustrated, and it’s understandable. It’s happening not just in San Francisco, it’s everywhere. San Francisco just happens to be the epicenter of the Bay Area, and it reverberates out from here.”

“It’s very normally to start selling [these homes] for as low as say $995,000, and see it sell for as high as $1.5 million [with a bidding war]. I don’t think they [Comstock Homes] are trying to trick people,” said Stuart Gavan, a San Francisco-based agent for real estate site Redfin. “I didn’t see anything wrong with the billboard advertising these homes starting in the low $1,000,000’s when it is their true market value.”

Gavan said that high prices are also growing in tandem with the average household income for San Francisco, which has been pegged at around $83,000, up by nearly 10% over the last three years. But with property prices estimated at nearly nine times that of household income, a proportion that is reportedly the highest in the nation, San Francisco is in danger of becoming a city in which only the most affluent can live.

Until a solution comes up—one is for inventory of homes to go up to meet the demand, and Gavan says that there are signs that this has been the case recently—billboards like the above could become commonplace. “We all would like lower prices on our real estate,” said Eaton. “However, land is more costly, it’s not just one thing, it’s a combination of many factors that contributes to these prices.”

Article source: http://fortune.com/2016/04/09/billboard-summit800-san-francisco-housing/

Here’s a fun game you can play when you’re contemplating the homes and estates of the Bay Area’s super-rich: Check out one of the listings for one of the region’s higher-priced properties. For instance, the $42.8 million beauty at 47 Camino Por Los Arboles in Atherton 94027 — the nation’s most expensive ZIP code.

The agents for the home, which is apparently the most expensive currently listed in the Bay Area, describe it as “an Italian villa … designed with Silicon Valley living in mind — a home for families of all sizes with venues for entertaining and myriad options for recreation and well-being.”

Like many of the most expensive homes in the region, it sits on a nice-sized parcel — an acre and a half. The main residence is 16,468 square feet, with six bedrooms, six full bathrooms, four half-baths, half a dozen fireplaces, a pool, a 3,000-bottle climate-controlled wine cellar, an 11-seat home theater outfitted with Dolby’s state-of-the-art Atmos sound system and an elevator to assure access to all of the above.

Quite a dump.

But pondering the presumed wonders of inhabiting such a residence — I think my current life is big enough to occupy a clothes hamper in the maid’s quarters — isn’t the fun part. No. That comes when you calculate the payments a mortgage on this mansion might require.

Assuming a 20 percent down payment — $8.56 million — and a 3.7 percent interest rate on a 30-year mortgage, your monthly payment would come to something like $200,000. Now ask yourself, “How much did I gross last year?”

See? Wasn’t that fun?

Of course, the actual purchaser of 47 Street Through the Trees probably won’t be borrowing money to buy it unless there’s a big tax advantage in it. Which brings up a few interesting points about the 38 or so properties, sold $12 million and up, reported as having changed hands in the nine-county Bay Area since January 2015:

Meet Your Neighbors, the LLCs: The purchasers of 27 of the 38 properties are listed as LLCs, or limited liability companies, set up on behalf of the wealthy individuals who bought the homes. LLCs afford buyers several advantages: They maintain buyers’ privacy, since it’s very difficult to ferret out exactly who’s behind an LLC. These arrangements can also allow wealthy homebuyers to shield their fortunes from liability claims related to their property. But according to an extensive New York Times investigation published last year, LLCs have been used to shield the identities of money launderers, mobsters and other nefarious types who have invested in high-end Manhattan real estate.

These Places Are Pricey, but …: Yes, it’s mind-blowing that regular oxygen-breathing human beings living right here among us plebeians are pouring tens of millions of dollars into their swank digs. But the residences on this list are not even remotely close to the most expensive residential property in the Bay Area. That honor — is it an honor? — would almost certainly go to the Woodside estate of Oracle founder Larry Ellison. The cost of that property, modeled on a Japanese imperial villa, has been estimated at $200 million.

The Wealthiest Nabes: No news here, really, but still striking that so many of the most expensive homes are so tightly packed. Eleven of the properties on our list are in Atherton, a Peninsula community of about 7,000 where you don’t live (the median home price there, according to Forbes: about $10.6 million). Another 11 of the residences we list are in San Francisco. Nearly all of those are in a tight cluster in Pacific Heights, including three on the 2900 block of Vallejo Street and two more on the 2700 block of Broadway. The geographic outlier in the group is the Round House, a Berkeley Hills home sold for $20.5 million earlier this year by tech entrepreneur Robert Felton. It’s the only property we found in Alameda or Contra Costa county to command an eight-figure price in the last 15 months.

A Word on Our Sources: Our list was built from and cross-checked using a variety of sources, including the San Francisco Chronicle Bay Area home sales database; online real estate sites including MLSListings.com, Zillow, Redfin, Estately.com, SF Blockshopper, and PropertyShark; print and online publications including the San Francisco Business Times, Curbed San Francisco and SocketSite; and public records from San Francisco, San Mateo, Marin and Santa Clara counties.

Article source: http://ww2.kqed.org/news/2016/04/12/kqed-list-most-expensive-bay-area-homes

SAN FRANCISCO, CA–(Marketwired – April 11, 2016) – McGuire Real Estate is pleased to announce that our exceptional community of agents continues to grow. We are proud to welcome these distinguished agents to the McGuire Family: Susan Dakdduk, Valerie Ruma, Tania Toubba, Steve Sekhon, and Barbara Burdick.

Susan Dakdduk is recognized as a REALTOR® who expertly advises her clients in today’s new world of real estate. Originally from the Midwest, Susan has been a San Francisco resident since 1980. Her in-depth knowledge of San Francisco and Bay Area real estate has been invaluable to her clients who appreciate Susan’s personal attention and professional expertise. Prior to real estate, Susan enjoyed a distinguished radio and television news career in New York and San Francisco. As a news anchor and investigative reporter, Susan received the prestigious George Foster Peabody Award.

Valerie Ruma has spent over 25 years here developing professional skills in marketing, management and business development for a variety of companies in the tech world culminating as the Pacific Northwest Regional manager for a well-known company providing data services to top litigation attorneys. She continues to hone her skills and is currently enrolled in a professional development program at Stanford University. Her transition to real estate more than five years ago was a no-brainer. Her past clients will consistently tell you that whether you are buying or selling a home, having Valerie on your team is always a winning combination. She makes real estate transitions go smoothly.

Tania Toubba‘s deep appreciation for San Francisco architecture and passion for interior design, brings unparalleled enthusiasm to her clients, always serving with the highest level of integrity. Whether she is working with sellers to prepare their home or with buyers to visualize and find their future home, Tania’s exquisite style, impeccable eye for detail and exclusive access to top architects and designers make her an invaluable resource and partner in the world of luxury real estate. A savvy negotiator, Tania is highly regarded for her professionalism, relentless work ethic and talent for listening. She thrives on building strong trusted partnerships.

Steve Sekhon is committed to giving clients creative, intelligent and sound counsel, a positive attitude and good humor. His diverse background as an urban planner, builder and investor ensures that he provides buyers and sellers with comprehensive and thoughtful service. Steve graduated from UC Berkeley with a BA in International Development and later received a Master’s Degree in Urban Planning. After a research fellowship in India, he joined a Washington D.C. based international urban planning consulting firm and worked in Morocco, Tunisia, Bosnia, Cambodia and Southern Sudan. He has in-depth knowledge of residential construction, a keen eye for design and a knack for devising innovative solutions.

Licensed in 1990, Barbara Burdick launched her real estate career in lending as an independent mortgage broker in San Francisco. Her career has included sales, residential and commercial leasing, property management and warehouse development. In addition to the Bay Area real estate community, she has worked in the greater Sacramento and Coachella Valley markets. When not in San Francisco Barbara resides in Italy where she where she co-created Words in Journey — Parole in Viaggio, an annual international literary event.

As a local, luxury boutique brokerage, McGuire takes a non-traditional and highly-personalized approach to furthering the success of its sales team. This creative and strategic approach to doing business is what allows McGuire to provide exceptional support that reaches beyond traditional real estate and delivers forward-thinking solutions for its agents and clientele.

ABOUT MCGUIRE REAL ESTATE

As a local, luxury boutique that focuses on the San Francisco Bay Area’s high-end niche markets, McGuire Real Estate is a privately held corporation that was founded in 1919. We are headquartered in San Francisco’s Marina District with offices in Noe Valley and South Beach — as well as Mill Valley, Berkeley, Burlingame, and Wine Country. McGuire is the exclusive international associate of Savills PLC, headquartered in London, and is a broker member of Luxury Portfolio® International, Leading Real Estate Companies of the World®, and The Enterprise Network. Our luxury, global, and industry affiliations allow us to connect our agents and clients to a world-wide marketplace with exclusive opportunities.

Visit mcguire.com for more information or contact McGuire Client Care at 1.800.4RESULT and clientcare@mcguire.com. Follow McGuire Real Estate on Facebook and @mcguire_re on Twitter and Instagram.

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Image Available: http://www.marketwire.com/library/MwGo/2016/4/11/11G092906/Images/SusanDakdduk-f94c89bc95f7923e9b23cace15e57926.jpg
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Article source: http://www.digitaljournal.com/pr/2898647

SAN FRANCISCO, CA–(Marketwired – April 11, 2016) – McGuire Real Estate is pleased to announce that our exceptional community of agents continues to grow. We are proud to welcome these distinguished agents to the McGuire Family: Susan Dakdduk, Valerie Ruma, Tania Toubba, Steve Sekhon, and Barbara Burdick.

Susan Dakdduk is recognized as a REALTOR® who expertly advises her clients in today’s new world of real estate. Originally from the Midwest, Susan has been a San Francisco resident since 1980. Her in-depth knowledge of San Francisco and Bay Area real estate has been invaluable to her clients who appreciate Susan’s personal attention and professional expertise. Prior to real estate, Susan enjoyed a distinguished radio and television news career in New York and San Francisco. As a news anchor and investigative reporter, Susan received the prestigious George Foster Peabody Award.

Valerie Ruma has spent over 25 years here developing professional skills in marketing, management and business development for a variety of companies in the tech world culminating as the Pacific Northwest Regional manager for a well-known company providing data services to top litigation attorneys. She continues to hone her skills and is currently enrolled in a professional development program at Stanford University. Her transition to real estate more than five years ago was a no-brainer. Her past clients will consistently tell you that whether you are buying or selling a home, having Valerie on your team is always a winning combination. She makes real estate transitions go smoothly.

Tania Toubba‘s deep appreciation for San Francisco architecture and passion for interior design, brings unparalleled enthusiasm to her clients, always serving with the highest level of integrity. Whether she is working with sellers to prepare their home or with buyers to visualize and find their future home, Tania’s exquisite style, impeccable eye for detail and exclusive access to top architects and designers make her an invaluable resource and partner in the world of luxury real estate. A savvy negotiator, Tania is highly regarded for her professionalism, relentless work ethic and talent for listening. She thrives on building strong trusted partnerships.

Steve Sekhon is committed to giving clients creative, intelligent and sound counsel, a positive attitude and good humor. His diverse background as an urban planner, builder and investor ensures that he provides buyers and sellers with comprehensive and thoughtful service. Steve graduated from UC Berkeley with a BA in International Development and later received a Master’s Degree in Urban Planning. After a research fellowship in India, he joined a Washington D.C. based international urban planning consulting firm and worked in Morocco, Tunisia, Bosnia, Cambodia and Southern Sudan. He has in-depth knowledge of residential construction, a keen eye for design and a knack for devising innovative solutions.

Licensed in 1990, Barbara Burdick launched her real estate career in lending as an independent mortgage broker in San Francisco. Her career has included sales, residential and commercial leasing, property management and warehouse development. In addition to the Bay Area real estate community, she has worked in the greater Sacramento and Coachella Valley markets. When not in San Francisco Barbara resides in Italy where she where she co-created Words in Journey — Parole in Viaggio, an annual international literary event.

As a local, luxury boutique brokerage, McGuire takes a non-traditional and highly-personalized approach to furthering the success of its sales team. This creative and strategic approach to doing business is what allows McGuire to provide exceptional support that reaches beyond traditional real estate and delivers forward-thinking solutions for its agents and clientele.

ABOUT MCGUIRE REAL ESTATE

As a local, luxury boutique that focuses on the San Francisco Bay Area’s high-end niche markets, McGuire Real Estate is a privately held corporation that was founded in 1919. We are headquartered in San Francisco’s Marina District with offices in Noe Valley and South Beach — as well as Mill Valley, Berkeley, Burlingame, and Wine Country. McGuire is the exclusive international associate of Savills PLC, headquartered in London, and is a broker member of Luxury Portfolio® International, Leading Real Estate Companies of the World®, and The Enterprise Network. Our luxury, global, and industry affiliations allow us to connect our agents and clients to a world-wide marketplace with exclusive opportunities.

Visit mcguire.com for more information or contact McGuire Client Care at 1.800.4RESULT and clientcare@mcguire.com. Follow McGuire Real Estate on Facebook and @mcguire_re on Twitter and Instagram.

Image Available: http://www.marketwire.com/library/MwGo/2016/4/11/11G092906/Images/BarbaraBurdick-828afa1b870a88e88eab28c4321fc481.jpg
Image Available: http://www.marketwire.com/library/MwGo/2016/4/11/11G092906/Images/SusanDakdduk-f94c89bc95f7923e9b23cace15e57926.jpg
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Image Available: http://www.marketwire.com/library/MwGo/2016/4/11/11G092906/Images/TaniaToubba-7e9f5ea4e78a9ece9059ae621e03ae28.jpg
Image Available: http://www.marketwire.com/library/MwGo/2016/4/11/11G092906/Images/SteveSekhon-bc56bc8b52198ebdbf70965414ce8308.jpg

Article source: http://www.marketwired.com/press-release/mcguire-real-estate-proudly-welcomes-five-new-agents-to-its-bay-area-offices-2113858.htm