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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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Wildfire Help– Roadmap to Recovery

Most of us know someone who has experienced a loss in these horrible fires. Please distribute this post to those you know and on your social media. I hope the information contained here will help communities to rebuild in the long term and provide comfort in the short term.

If you have experienced a loss in the recent and ongoing fires, please click here for the Roadmap to Recovery Guide from UP.  It is short and sweet and will help you do better when you are dealing with your insurance company.  This guide provides essential tips I am on the board of UP, an organization that helps disaster victims rebuild their lives by helping people get the money they are entitled to from their insurance company.  This guide provides essential tips and strategies to those who have experienced a loss.  Insurance companies are NOT on your side as a consumer and you have to know the right things to say and do to get the coverage you have paid for – especially when there are massive unforeseen losses.

Click here for steps on what to do in an evacuation.  More insurance claim tips here.

I am on the board of United Policyholders (UP), a consumer advocacy non-profit founded 25 years ago in response to the Oakland Hills Firestorm. Our organization that helps disaster victims rebuild their lives by helping people get the money they are entitled to from their insurance company.  For more about UP, read on.

UP is a struggling, underfunded and very valuable organization.  Click here if you can donate to help with our important work.  Just providing enough money for our volunteers to get to shelters to speak to those in need of help can change lives.  Please help.

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Pending: Beachside Living – Outer Parkside

2182 48th Avenue,
San Francisco California

>Offered at $898,000

Co-Listed with Todd Wiley of Compass, CalBRE#01410925
415-317-5888

 

Click here to Request a Showing
Click here to Download Disclosures
Click here to see the Matterport VIRTUAL TOUR

Showing schedule:

Private showings by appointment
Offer date TBD - check with Todd 415-317-5888 or Jennifer 415-269-4663

Features:

  • Superb Ocean Beach location perfect for the outdoor enthusiast
  • Tunnel entry home with new exterior and interior paint
  • Upper level delivered vacant: 2 beds/1 bath; 
  • Lower level: 1 bed apartment rented for $1,436.40
    delivered subject to tenants’ rights
  • Lovely period details including red oak floors, arched doorways,
    and corner fireplace
  • Designer colors and lighting throughout 
  • Recently updated kitchen with granite counters, and new range,
    fridge & hood
  • Recently updated bathroom with new tile and vanity
  • Maytag washer and dryer in the garage
  • Skylights provide excellent lighting throughout the property
  • Rear garden with freshened landscaping
  • Easy access to the freeway south and or the train downtown 
  • Walk or ride your bike to an abundance of excellent eating and
    drinking establishments nearby
  • Year built: 1943
  • Bldg. Sq. footage: 1,681 per graphic artist
  • Lot Sq. footage: 2,060 per tax records
  • 1 car garage parking

Can you hear that? It’s the sound of the Pacific Ocean and waves crashing on the sand. Can you smell it? Air that smells fresh and filtered clean by the ocean’s breeze. Enter 2182 48th Avenue, a lovely beach house with big rooms, recent updates, and a location, that for the San Francisco outdoor enthusiast, is second to none. And there is even an ocean view.

Now onto the details. The upstairs: two bedrooms and an updated kitchen and bathroom. Downstairs: an in-law apartment that currently enjoys a very nice rent of $1436.40. There are many fantastic new establishments on Taraval; including, Streamline Cafe, Andytown, The Riptide, and soon, a new mixology bar called Whitecaps. Easy commutes with convenient freeway access south and train transportation on the L Taraval downtown.

With SF’s finest public and private schools nearby; kick your sandals off, you’re home!

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Pending: 3062 Market Street

3062 Market Street,
San Francisco California

3062 Market entire building offered at $1,598,000 – In contract
3062 Market (upper unit) offered at $1,049,000 – In contract
3062A Market (lower unit) offered at $549,000 – In contract
Offers reviewed as received.  Call Jennifer for details at 415-269-4663

Click here to Request a Showing
Click here to Download Disclosures

Showing schedule:

Private showings by appointment
  • Classic Italianate cottage style
  • 2 Legal Units
  • Great Corona Heights location
  • Refreshed kitchens with new appliances
  • Private laundry in upper unit
  • Upper unit has restored Douglas fir floors/Lower has new Pergo
  • Upper flat has 2 beds/1bath
  • Lower flat is a large Studio
  • New paint throughout
  • Gorgeous walk-out garden with multiple private seating areas
  • Direct entry to garden from each unit
  • One car leased parking off site $250/month for upper unit or entire building
  • Year built:1890
  • WalkScore: 90/BikeScore: 88/TransitScore: 71

Romantic. Historic. Peaceful. Lovely. These are some words that 3062 Market evokes when you walk through the cast iron gate and up the steps behind the ivy hedge to the front doors of the sweetest garden flats in Corona Heights.

The upper flat features two bedrooms and one generous bath with shower over tub and an open great room style floorpan that spills onto a dining deck with direct garden access. Upon entry to the upper flat you are struck with the view of the amazing garden through the double glass doors at the rear of the flat. The original Douglas fir wide plank floors, restored to their original beauty, show you the way to the rear of the home where you will find a large kitchen with quartz countertops and new appliances, a cleverly tucked away laundry, and a high-ceilinged living/dining room – all overlooking the stunning garden.

The lower flat is a striking studio featuring an open plan. The eat-in kitchen has a gleaming historic range and new refrigerator, quartz counters & tile floors. The living room is open to both the kitchen and sleeping areas. The large sleeping area is at the rear of the unit, partially protected by a room divider/bookcase, and features a walk-in closet and convenient bath with stall shower. At the rear of the studio, there is a french door providing access and views to the garden. The living and sleeping areas feature newly installed high-end Pergo floors.

As an extension of the home, the Corona Heights location offers the absolute epitome of San Francisco living. You can walk to wild places, see unique things, enjoy culture and the best weather in the City. It’s almost too much to list, but you are walking distance to Corona Heights Park, The Randall Museum, The Castro Theater and The Castro (itself), Cole Valley, Buena Vista Park, Kite Hill, tree lined Duboce Triangle and, just a little further, the very popular Dolores Park, with the restaurants of the Mission District just beyond.

Leased parking nearby month to month at $250/month.  Transfer dependent on landlord approval.

 

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San Francisco Real Estate Market Update – September 2017

Single Family Homes:
August’s median sales price continued its predictable seasonal backing off from its Spring peak, dropping 6.4% to $1,380,000 from May’s $1,475,000. However, in the same time frame last year prices dipped 7.4%. Prices are still up 10.4% above August, 2016.

Since August, 2012, the median sold price in San Francisco is up 81%.

Inventory continues to be at its lowest level, 1.6 months, since last December. This is the ongoing result of fewer homes coming on the market while sales stay fairly constant. The number of new listings on the market year-to-date is down 7% from 2016 while the number of sales is up 3.3%.

The incredibly tight supply coupled with strong demand kept the level of overbids high as well, down a bit from July but still at 114%, and 79% of single family homes sold above the list price, up from 75.9% last August.

Condo/Loft/TIC’s:
Median sold prices are up 10.8%, to $1,175,000, compared to August 2016. And, while not as great a rise as with single family homes, the median sold price is up 62.5% compared to August 2012’s $723,000.

In August, 63.4% sold above list price and the median bid was 3.2% above list price.

The number of Condo/Loft/TIC listings are also down year-to-date compared to 2016, by 10.7%. And, like single family homes, sales are up, by 2.6%. Current inventory stands at a 2 months supply.

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San Francisco Real Estate Market Update – August 2017

July’s median sales price for single family in San Francisco followed its seasonal backing off of its May peak, dropping to $1,431,000 from May’s $1,500,838.

Single family home inventory continues to be at its lowest level, 1.6 months, since last December, and its lowest July level in a decade. This continues to be caused by fewer homes coming on the market, while sales stay fairly constant. The number of new listings on the market in 2017 is down 10% from 2016 while the number of sales is up 1.4%.

The incredibly tight supply coupled with strong demand pushed overbids up as well, to 117%, the highest since September, 2015.

Condo listings are also down year-to-date compared to 2016, by 12.7%. And, like homes, sales are up, by 4.3%, leading to a 2 months supply. And, like single family homes, condos were bid up above list price to a median overbid of 107%.

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The Keller Williams playbook for surviving real estate disruption

I can’t wait to enrich my client experience with the new tools they are building!


SAN FRANCISCO – With $1.75 million in two years, Uber “completely changed the rules of strangers, internet, vehicle safety and meeting people,” noted Josh Team, Keller Williams’ chief information officer, on stage at Inman Connect San Francisco.

This year, $3.5 billion will be invested in real estate technology. “The idea that disruption is amidst us is very real, and we need to understand how to close the consumer gap,” he explained – the gap between what consumers want and what the industry provides.

If that gap isn’t closed, it’s a good bet that someone (sooner or later) is going to find a way to fill it. And that won’t be good for the traditional real estate industry.

Team announced that Keller Williams is taking steps to protect the agent and the brokerage, setting aside $1 billion for technology development in the near future and encouraging others in the industry – franchise-based and independent brokers alike – to follow their lead by working to elevate real estate agents.

Founder Gary Keller and CEO John Davis “realized that the next 12 to 18 months will be the most important months in real estate,” Team told Inman. “That was a soul-defining moment where they said, ‘We can’t let money be a deterrent.’ So they’ve committed a fund so that if and when we need to accelerate and make aggressive moves, money isn’t a factor.”

Disruption is real?

The home sale pie isn’t getting bigger, but there are more companies today that want to take a bigger slice of that pie.

Team mentioned Redfin’s IPO (initial public offering) and noted how the company’s stock rose. “Redfin’s valuation has shown that the market thinks they have a chance,” he explained.

In other words, investors think there’s an opportunity to close that gap in real estate – and they’re willing to put money down to back a potential winner.

“The only way our industry stays protected is if the other big franchises and brokers enter the platform wars,” Team told Inman. “If they don’t get involved, then all these non-traditional players will – and that’s not good for the industry.”

The disruptors’ playbook

“Our playbook is pretty simple,” Team said. “We wake up and ask: How do we provide more value around the agent?”

He said that Keller Williams dug into the metrics around traffic with Zillow and whether consumers were using agents more frequently (or less) – they found that independent of what happens with the planet’s biggest real estate portal, consumers are still using agents in their transactions.

“Consumers want a professional to take them through this complicated, scary, risky transaction,” he explained.

3 steps to success

Brokerages and franchisors won’t get anywhere if they don’t prioritize empowering the individual agent, Team opined. That’s the first step.

“The best technologies don’t commoditize agent offerings; they capture that experience and make it more real,” Team said.

And technology can’t compete with the agent as a local expert. “This is something that technology has a really hard time doing,” Team said. “Be the local expert, and you can defend yourself. And brokers like us should be investing back into the agent to make it easier for them to be that expert.”

After empowering agents, the industry needs to focus on elevating consumer experience, he said.

“The big ‘aha’ we had at the end of 2015 was, ‘We are impossible to partner with,'” Team explained. “If you wanted to log into our environment, it was a six-to-twelve-month project.

“What you just told the market was, if you’re a startup with a great idea, don’t come to Keller Williams because you don’t have the funds to cover the expenditure to onboard that project,” he added. After launching the Keller Cloud, now those startups can use three lines of code to link into the database and other Keller Williams products.

And get prepared to start working collectively with people who you might consider competitors. “Stop thinking that NAR [National Association of Realtors] and the MLS will protect you,” Team said. “They won’t. We need to help ourselves collectively.”

“If we don’t come together to create value and experiences through technology for the agents, then whatever happens is going to happen to us and not with us,” Team told Inman. “Redfin’s stock valuation should be a slap in the face.”

How KW plans to defend its territory

The franchisor is launching a “labs” product on August 15 that will help it move from ideas to field testing technology in less than two weeks, and it is also supportive of Project Upstream.

But it also thinks that investment into the agent is investment into the future of real estate, and so it’s going to put money where it’s mouth is in that respect.

“We no longer want to have budget conversations around our future,” Team said, and so the company has created a $1 billion technology fund to help it move on technology needs – everything from customer development to strategic acquisitions.

“We don’t understand the operational cost for every single component yet,” he added in a conversation with Inman. “We want to be prepared, and at the same time, there are some operational costs – when you’re building the first spaceship, you don’t know how much it’s going to cost and how long it’ll take. Some of the things we want to do have never been done before in the industry.”

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