A total of 9,339 new and resale houses and condos changed hands in the nine-county Bay Area in July – up 13.3 percent from July 2012, said DataQuick, a San Diego real estate research firm. The median paid was $562,000, a 33.5 percent increase from the same time last year.

Pent-up buyer demand, an improving regional economy and low interest rates have propelled home prices upward for many months. But a dearth of homes for sale meant the number being sold fell on a year-over-year basis every month since January. That trajectory reversed course in July.

“It was a really strong month,” said Andrew LePage, a DataQuick analyst.

Rising inventory shows the real estate market regaining equilibrium.

“Sellers want to jump on the train by putting their properties on the market, which levels supply and demand,” said Tanja Beck, an agent with Zephyr Real Estate in San Francisco.

Fewer bids

More inventory, as well as rising interest rates, should soon rein in the sharp price increases. Although bidding wars still occur, many agents say multiple offers now are measured in smaller numbers – perhaps three bids instead of a dozen.

While San Francisco is the nation’s most competitive market, with 80.5 percent of successful home buyers facing other bids, multiple offers in the city dropped nearly 10 percent from June to July, according to a report from real estate firm Redfin.

Nationwide, fewer bidding wars “points toward the strong sellers’ market beginning to shift toward more balance, giving frustrated home buyers a bit of relief,” Redfin said.

Distress sales are down sharply, another sign of a return to normal. Foreclosure resales were under 5 percent of the total – their lowest level since August 2007, before the credit crunch hit. In February 2009, foreclosure resales were 52 percent of the market, DataQuick said. Their historic monthly average in the Bay Area is about 10 percent of sales.

Short sales – properties sold for less than is owed on the mortgage – were 10 percent of July resales, down from 23.7 percent a year earlier.

Fewer distress sales also mean that people who sell their homes are likely to turn around and buy another property, creating a positive upward spiral.

“There was a time when more than half the sales were the lender pocketing money (in a foreclosure resale) so they just ended there,” LePage said. “Now a greater and greater percentage are traditional sellers, who will move up and buy from someone who themselves will move up.”

Upward mobility

Jessica and Josh Rowe exemplify that move-up buyer. The couple, along with their toddler and two French bulldogs, wants to move from San Francisco to the South Bay to live closer to their jobs. They listed their condo in Haight-Ashbury, a three-bedroom remodeled Victorian, at $949,000. It’s likely to go for well above asking price.

“To go from being sellers to being buyers, your confidence gets crazy-hacked,” said Jessica Rowe. “As a seller, you’re on top of the world, you make all this money – but as a buyer you can’t afford to get (something comparable) to what you just sold.”

The Haight condo itself illustrates the market turnaround. When the Rowes bought it three years ago – near the market’s bottom – the previous owners were on the brink of foreclosure. After unsuccessfully listing it at $799,000 for a month, they slashed the price to $755,000, which is what the Rowes paid.

The Bay Area’s median price is now 15.5 percent off the $665,000 peak it reached in summer 2007, LePage said. During the downturn, its nadir was $290,000 in March 2009.

The median represents the middle value of homes sold, meaning half sold for more and half for less. DataQuick said about three-quarters of the median’s increase stems from rising home values, the remainder from a shift in market mix.

More high-end homes and fewer inexpensive ones sold in July. Just over half (51 percent) of sales had mortgages above the old jumbo limit of $417,000, compared with 38.6 percent a year earlier and the low point of 17.1 percent in January 2009.

Federal Housing Administration loans, mostly used by first-time buyers, were 10.6 percent of purchase mortgages in July, down from 16 percent a year earlier. First-time home buyers consistently report getting squeezed out by investors and others paying all cash.

All-cash sales continued to be a strong force, accounting for 24 percent of July purchases, DataQuick said. In February, they peaked at 32.3 percent of sales.

Absentee buyers, who are mainly investors, snapped up 20.9 percent of Bay Area homes in July. Their market share also peaked in February, at 28.7 percent.

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

Article source: http://www.sfgate.com/business/article/Bay-Area-home-prices-sales-climb-in-July-4736589.php

Nationwide, more than 40 percent of homeowners with a mortgage are in a negative or near-negative equity position (less than 20 percent equity in the home), according to Zillow. Housing may be local, but this particular credit issue is national.

(Read more: NY’s Luxury Penthouse Shortage Pinches Prices)

Short supply pushed prices higher for Manhattan condominiums, but not for co-ops. Condominiums, which have a median price of $1.25 million, about twice that of co-ops, are being helped by foreign, all-cash buyers. International buyers tend to shy away from tough Manhattan co-op boards.

(Read More: Mortgage Rates Pressure Home Builders)

“Scarcity is an important issue, and when apartments are properly priced they are selling quickly. While there is great demand and small supply, buyers are reluctant to pay a price that is not justifiable,” said Hall. F. Willkie, president of Brown Harris Stevens Residential Sales in a release. “Job growth remains strong in the city as does interest from both domestic and international buyers; this bodes well for a healthy market.”

Sales began to pick up dramatically this year, as fears of the fiscal cliff abated and optimism returned to real estate. While limited inventory would appear to make this a seller’s market, agents say savvy buyers are the norm in Manhattan, and that has kept price increases in check. While home prices in the rest of the nation were up just over 12 percent in May from a year ago, according to a new report from CoreLogic, Manhattan prices in general are not rising that fast.

Prices for co-ops, which account for 75 percent of the Manhattan market, were flat in the second quarter of this year, while the median price for a condo was up 14 percent from a year ago, according to the Douglas Elliman report. Larger co-ops saw bigger price gains, but for condos the gains were in studio apartments. Sellers are getting 98 percent of asking price, according to another report from Halstead Property.

(Read More: Pending Home Sales Soar to 6-Year High)

Article source: http://www.cnbc.com/id/100860538

“This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand.”

(Read More: Rising Mortgage Rates Cause ‘Rush to ARMs’)

The average rate on the 30-year fixed conforming mortgage is up about 100 basis points from the beginning of May to around 4.5 percent. The rate spiked the most in the past week, before these May contracts were signed.

Article source: http://www.cnbc.com/id/100847085

When it comes to attracting Chinese tech companies to the Bay Area, San Francisco is giving Silicon Valley a run for its money.

“So far, we have seen about eight Chinese tech companies choose to set up a presence in San Francisco or are here already, with more in the pipeline,” said Zhang Xintong, a program manager for economic development with China SF, the go-to support organization created by the San Francisco mayor’s office dedicated to encouraging Chinese companies to take root in San Francisco.

“When talking about high-tech jobs, San Jose, with its more affordable cost of living, might be still considered as the Silicon Valley capital,” Zhang said. “But in recent years, San Francisco has been gaining on them.”

China’s Deputy Consul General Song Ru’an said: “The relative low cost of office space has always been an important factor for Chinese companies choosing Silicon Valley over San Francisco.”

This year, real estate in the Bay Area has seen price increases from an overall recovery in leasing and purchasing.

“My apartment in Silicon Valley’s Burlingame will cost me an increase of $300 a month this year,” said Liu Qiang, a Chinese IT engineer. “An equivalent apartment in San Francisco’s SoMa District has gone up only $150 a month.”

“Neither location has great deals,” Liu added. “But in SoMa, more things are within walking distance. I stumble upon lots of hidden treasures and funky urban charm exploring San Francisco on foot.”

As the hub of Google, Twitter and Zynga, SoMa (shorthand for South of Market) is a patchwork of warehouses, parks, shopping malls, upscale superarkets, loft apartments, and tenacious start-ups that survived the tech market meltdown.

Though San Francisco’s technology sector is much smaller than Silicon Valley’s, its tech employment market has come roaring back since the region’s economic recovery that began in late 2009.

Silicon Valley’s innovation engine may be driving a recovery that leads the nation, but, according to the 2012 Silicon Valley Index, the persistent public sector fiscal crisis and other factors continue to drag on widespread economic gains.

“San Francisco is catching up and may overtake San Jose,” Janice Shriver, a labor-market consultant at the Employment Development Department, told the Wall Street Journal in 2012. “San Jose had been in the lead for information jobs and software publishing and all that kind of activity for so long.”

“San Francisco Mayor Ed Lee has been pushing for business friendly policies to lure and keep new tech companies, including Chinese companies,” Zhang Xintong said.

“And these companies, in turn, are a magnet to increasing numbers of young tech workers who enjoy the San Francisco lifestyle.”

UCWeb, a leading China-based developer of mobile Internet browsers with 400 million active users, set up its first US office in Silicon Valley’s Sunnyvale last year.

But Rick Chen, a director with UCWeb’s team in Sunnyvale, told China Daily he is already shopping for new office space in San Francisco. Why? He’s doing for the pool of young tech talent.

“The cost of office space is much higher in San Francisco,” Chen said. “But it’s an urban, thriving, dynamic city with a younger population, and young tech talent wants to live and play in the city.”

chenjia@chinadailyusa.com

Article source: http://usa.chinadaily.com.cn/epaper/2013-05/01/content_16465517.htm

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.

Share this gallery: 1 of 7 

Share this gallery: 1 of 7 

Share this gallery: 1 of 7 

Share this gallery: 1 of 7 

Share this gallery: 1 of 7 

Share this gallery: 1 of 7 

Share this gallery: 1 of 7 

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/

(Read More: Housing Recovery Leaves Some Behind)

“I don’t buy it,” said Mark Hanson, a California-based housing analyst. “Yes, the investor will give them a chance to bid on it, but in this market Wall Street will put the houses on the MLS in hopes of a bidding war.”

Home prices are already moving higher across the nation, largely due to a severe lack of for-sale supply. Miller is unconcerned about the swift price increases and points to a mortgage credit thaw as a counter-balance.

(Read More: Home Buyers Are Back, but Where Are the Houses?)

The big banks say it is not so much a thaw on their side as improving consumer balance sheets.

“Credit standards haven’t changed in terms of solid fundamentals around income and documentation,” said Kevin Watters, CEO of mortgage banking at JPMorgan Chase. “What has changed a little bit: Consumers’ balance sheets have improved, so their debt is down.”

Article source: http://www.cnbc.com/id/100558148

North Beach San Francisco

Right now cash is king. Homes are consistently going for over list price with multiple offer scenarios being commonplace.

San Francisco, CA (PRWEB) January 31, 2013

The San Francisco market is seeing a great seller’s market. Multiple offer situations, cash in hand, and homes going to market earlier to meet buyer demand.

Business Insider reports, “Going into 2013, home prices are expected to rise 6 percent driven by steady demand, lower bank-owned (REO) sales, and lower inventory of unsold homes. This is according to CoreLogic’s latest report. The CoreLogic Home Price Index (HPI) increased 6.3 percent in 2012, the largest increase and highest level since 2006. And year-over-year home price increases were more widespread. This increase in home prices across a broader geographic spread is expected to continue in 2013.”

“Right now cash is king. Homes are consistently going for over list price with multiple offer scenarios being commonplace. Cash buyers who don’t have to deal with the financing world are winning.” Says Dahle. “A 6% increase for the year is a very promising number and we’re looking forward to a great 2013.”

Only the most informed real estate professionals can guide you through the ups and downs of the San Francisco Bay Area real estate market, and Kirk Dahle has been doing just that for buyers and sellers for several years. A relentless advocate for his clients, Kirk is constantly networking with real estate professionals to find the best listings and to bring a property to market. Contact Kirk directly at sfkirk(at)gmail(dot)com or call 415.203.8638.

PDF


Print

Article source: http://www.prweb.com/releases/2013/1/prweb10386770.htm

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

San Francisco, CA (PRWEB) January 31, 2013

The San Francisco market is seeing a great seller’s market. Multiple offer situations, cash in hand, and homes going to market earlier to meet buyer demand.

Business Insider reports, “Going into 2013, home prices are expected to rise 6 percent driven by steady demand, lower bank-owned (REO) sales, and lower inventory of unsold homes. This is according to CoreLogic’s latest report. The CoreLogic Home Price Index (HPI) increased 6.3 percent in 2012, the largest increase and highest level since 2006. And year-over-year home price increases were more widespread. This increase in home prices across a broader geographic spread is expected to continue in 2013.”

“Right now cash is king. Homes are consistently going for over list price with multiple offer scenarios being commonplace. Cash buyers who don’t have to deal with the financing world are winning.” Says Dahle. “A 6% increase for the year is a very promising number and we’re looking forward to a great 2013.”

Only the most informed real estate professionals can guide you through the ups and downs of the San Francisco Bay Area real estate market, and Kirk Dahle has been doing just that for buyers and sellers for several years. A relentless advocate for his clients, Kirk is constantly networking with real estate professionals to find the best listings and to bring a property to market. Contact Kirk directly at sfkirk(at)gmail(dot)com or call 415.203.8638.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/1/prweb10386770.htm

Article source: http://www.sfgate.com/business/prweb/article/San-Francisco-Real-Estate-Market-Shows-Home-Price-4241718.php