Living415: Property tax due tomorrow! And, a potential strategy for saving some bucks.

First, Just a friendly reminder that tomorrow is the last day to pay the first installment of your 2017-2018 property taxes without a 10% penalty.  

To pay your San Francisco property tax, click here.

Second, I want to take just a moment to distill the thoughts I’ve been having about the current Republican Tax Reform effort:  OH MY.  

The tax reform plan may not really become effective due to some “glitches,” but it is probably prudent to observe some of the punitive portions of the proposed legislation directed at states with relatively high property values and therefore relatively high property taxes, which are:

  • Eliminating some or all of the mortgage interest deduction,
  • Limiting the deductibility of property tax payments; AND
  • Shortening depreciation on investment properties.  

These things might affect many of my clients as, well, the opposite of a tax cut.  While I’m happy to pay taxes in the larger sense, I don’t much like it that it that my clients are going to foot the bill for massive tax cuts to only the biggest corporations.

Of immediate and actionable interest:  according to FORBES, and many other sources, both the House and Senate versions agree to limit property tax deduction to $10,000 per year.  In the past, property taxes on a personal residence could be deducted without limit.  If your property taxes are more than $10,000 a year on all of your personal residences, it might makes sense to pay all of them for the 2017-2018 tax year tomorrow (or, at any rate, before the end of 2017) if you can.   If you’re taxes are figured using the AMT rather than itemized deductions, this change might make no difference to you at all.  I am not a tax expert, just a Realtor reading the newspaper trying to make sense of it all, so please do check with your tax advisor. 

Many thanks to Living415sters Anne and Jesse for pointing out this workaround to me today.  I couldn’t do any of this without ALL OF YOU!  Thank you for your referrals, ideas and support. read more →

UP Board of Directors Reminder

The fires now occurring in Southern California– as well as those in Wine Country a few weeks ago–serve as a warning to all of us to prepare for emergencies. One place to begin is at http://www.uphelp.org/roadmap-preparedness Policyholders, a national nonprofit consumer advocacy organization based in San Francisco, provides an array of very practical tools based on 26 years of helping disaster survivors level the playing field with their insurance companies. If nothing else– download their free home inventory app and document your contents now BEFORE you face a disaster. Most of the insurance companies in Sonoma, Napa and Mendocino are requiring survivors to prepare an inventory of their lost contents– an almost impossible pressure on people who are already stressed. The link to the free app is on their home page.

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New Fannie/Freddie Conforming Loan limits for 2018!

We just received word that the new loan limits in 2018 for the government agencies (Fannie and Freddie) have been increased! The conforming loan limit of $424,100 has increased to $453,100, and the agency The limit for high-balance conforming loans have gone from $636,150 to $678,650.
 
Loans that are below these limits generally have better terms, so this is a change that can help people in a lot of different situations.
 
Are you currently paying PMI (Private Mortgage Insurance)?
Do you want to take some cash out of your home to do some work or financing a special need?
Would you like to refinance out of a 2nd loan to a single loan?
 
The benefits are open to homeowners of condominiums, Townhouses and Single Family residences, from 1-4 units. Loans on 2 to 4 units have higher limits.
 
This article was provided by friend and trusted resource Eric Nelson. You can reach me at eric@svcfunding.com, or 408-268-2442. Please contact him if you want more information.

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SOLD: 830 Bay Street


Sold for $1,230,000
Buyer Represented

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SOLD: 1395 Lyon Street #1


Sold for $650,000
Buyer Represented

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SOLD: 716 Cabrillo Street


Sold for $966,000
Buyer Represented

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San Francisco Real Estate Market Update: November 2017

The Swiss bank UBS published its Global Real Estate Bubble Index recently, stating that San Francisco is the most overvalued real estate market in the US. Their analysis focused on the rise of home prices in San Francisco compared to the rise in median incomes. Their report stated that home prices have risen 65% since 2012 while the average income has risen only 10%.

While they are, essentially, correct about the rise in the housing prices (taking both single family and condo prices into account), they are off on the income rise. Per the US Department of Commerce, median household income rose 42% from 2012-2016. While there is no income data out yet for 2017, we can safely assume that it has risen in 2017, given the incredibly tight job market. Therefor, income appreciation has lagged at least 40% behind housing cost appreciation, resulting in a significant drop in housing affordability.

Single Family Homes:
October’s median sales price jumped sharply to an all-time high of $1,588,000, up 13.4% above October, 2016.

The number of new listings on the market year-to-date is down 5% from 2016 while the number of sales is up 2.9%. This has caused inventory to drop 29% compared to last October and is at its lowest level, 1.9 months, since February.

The incredibly tight supply coupled with strong demand kept the level of overbids high as well, up to 115.6%, higher than last October’s 108%.

83% of single family homes sold above the list price, and the median sales price was 113% of the list price.

Condo/Loft/TIC’s:
Median sold prices are dead even with last October’s at $1,140,000. They are up 5.8% on a 3-month rolling average compared to last year.

Following a very big month in the number of condo/TIC sales, 303, inventory is down 16% from September and 26% compared to last October. Like single family homes, the number of Condo/Loft/TIC listings are down year-to-date compared to 2016, by 6.6%, while sales are up 2.7%.

The flurry of sales brought sold prices up above list prices, to 104%, the highest level since May, 2016. This compares to this September’s 101%. And, 67% sold above list price, up from 55% in September.

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SOLD: 4307-4309 20th Street


Sold for $2,800,000
Buyer Represented

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SOLD: 342 Point Lobos


Sold for $1,400,000
Buyer Represented

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SOLD: 943 Church Street #B

Sold for $3,051,000

Buyer Represented
Property Type: Condo

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