Compared to last time, this report shows that overall, California’s real estate market is slowing even though the mortgage rates are lower. Here are the numbers.

- Mick Orton

Calif. median home price – July 06: $567,360 (Source: C.A.R.)
(note: compared to $575,800 last month)

Calif. highest median home price by C.A.R. region July 06:Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
(note: compared to $1,300,000 last month)

Calif. lowest median home price by C.A.R. region July 06:High Desert $333,330 (Source: C.A.R.)
(note: compared to $334,790 last month)

Mortgage rates – week ending 8/24:

• 30-yr. fixed: 6.48%; Fees/points: 0.4%
  (note: compared to 6.63% last report but points are higher)
• 15-yr. fixed: 6.18%; Fees/points: 0.4%
  (note: compared to 6.27% last report but points are higher)
• 1-yr. adjustable: 5.60%; Fees/points: 0.7%
  (note: compared to 5.69% last report but points are same)

- California Association of Realtors & Freddie Mac

Outer Richmond as described on the SFResidence neighborhoods page:

The Outer Richmond houses world-class recreation as a matter of course, where you’re never more than a minute from a hike at Land’s End, a walk with the dog at Ocean or Baker Beach, or simply watching the surfers ride the waves of the Pacific.

The San Francisco Chronicle says:

“Before 1900, most of the San Franciscans in the Richmond District were the deceased inhabitants of the municipal and Chinese cemeteries. It’s taken over a hundred years for the Outer Richmond to blossom from a giant vacant lot into prime (albeit foggy) real estate. At the turn of the 20th century, it was little but sand dunes and potato fields and was dubbed “The Outer Lands” and “The Great Sand Waste” until streetcars opened it up to the public. Early in its history, those eager to sell homes and property in other parts of the Richmond tried to rechristen it “Park Presidio,” but the original moniker stuck fast, though the origins of “Richmond” are uncertain. The most common explanation is that an early settler saw in its stark, gently hilly landscape echoes of his old home in Richmond, New South Wales, Australia.

“While the Inner Richmond is a restaurant haven and one of the city’s more difficult parking areas, the Outer Richmond retains a neighborhood feel along its main shopping streets. The many waves of immigrants who have settled have put their stamp on it; whole blocks along Geary Boulevard hum with Russian and Cantonese speakers, and you can find Mexican, Russian, French and Italian restaurants with ease, not to mention a plethora of establishments serving food from every corner of Asia.

“Like the Outer Richmond itself, Geary calms down considerably after 25th Avenue as it meanders off into the fog and ultimately ends at the Pacific Ocean.”

- San Francisco Chronicle

Other highlights on this page include:

• Best time to go
• Sights & culture
• Food and drink (including reviews!)
• Shopping
• Nightlife

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous Neighborhoods:

Castro – Cow Hollow – Diamond Heights – Golden Gate Park – Lake Street – Laurel Heights – The Marina – Nob Hill – Noe Valley – Outer Richmond – Pacific Heights – Russian Hill – Sacramento Street – St. Francis Wood – Sea Cliff – Telegraph Hill

Real property interests have a lot at stake in every municipal election in San Francisco. A large part of the city’s budget is derived from real property taxes collected from real property owners. And, although Proposition 13 controls both the assessed value of real property and the real property tax rate, bond measures passed by the voters can increase the city’s indebtedness and the real property tax rate beyond the levels otherwise prescribed by Proposition 13. In addition, there are usually measures on the ballot that, if passed by the voters, can affect how real property owners can use their real property in the city.

The Association every year spends considerable financial and human resources attempting to maintain a political environment in the city that is friendly to the ownership of real property. In that regard, it conducts elaborate public information campaigns to keep REALTORS® and real property owners informed concerning matters of importance to them. This November, voters will fill five vacancies on the Board of Supervisors and decide the fate of 11 ballot measures. A lot is at stake in the election.

To assist REALTORS® in understanding the races a little bit better, the Association has prepared the following election primer. In doing so, it recognizes that not every member will embrace the Association’s on the candidates or the issues. Our task, as always, is to adopt positions on issues based on their effect on real estate interests and the city as a whole. It is hoped that you find the following information helpful.

Supervisorial Candidates (This year, vacancies will occur in all of the even-numbered supervisorial districts. What follows is a list of the candidates in each district, with the names of the candidates being or likely to be supported by the San Francisco Association shown in bold.)

(*Note: Districts below are NOT MLS districts, but refer to voting districts!)

District Two (Pacific Heights)

• Incumbent: Michela Alioto-Pier
  Michela Alioto-Pier was appointed to the Board of Supervisors by Mayor Gavin Newsom. Later she was elected to the Board in her own right.
  Michela is a staunch supporter of a fair and balanced approach to the formulation of housing policy in the city. She believes that homeownership leads to more stable neighborhoods and has supported attempts to increase ownership opportunities so that middle class renters are not forced to leave the city in order to find affordable ownership housing elsewhere.
• Challenger:Vilma Guinto Peoro

District Four (The Sunset)

• Incumbent: none. District Four Supervisor Fiona Ma is running for State Assembly.
• Challengers:Douglas Chan
  Doug Chan has been endorsed by Mayor Gavin Newsom, Supervisor Fiona Ma and Supervisor Sean Elsbernd. He is a former police commissioner who is running for office to make the city’s neighborhoods safer, improve the city’s economy, broaden access to health services and demand the best from our schools.
  If you are interested in assisting Doug, go to his web site.
• Ron Dudum
• David Ferguson
• Edmund Jew
• Jaynry Mak
• Houston Zheng

District Six (The Tenderloin, South Beach)

• Incumbent: Chris Daly
• Challengers:Rob Black
  Rob Black has been endorsed by the San Francisco Association of REALTORS®. Rob formerly was Supervisor Alioto-Pier’s legislative aide and, in that capacity, he worked closely and cooperatively with the Association on a host of legislative issues affecting the interests of real property owners in the city. If Rob is able to replace Chris Daly on the Board of Supervisors, the board is certain to take a more balanced and fair-minded approach to the formulation of housing policy.
  If you are interested in assisting Rob, go to his web site.
• George Dias
• Matt Drake
• Viliam Dugovic
• Manuel Jimenez, Jr.
• Davy Jones
• Robert L. Jordan, Jr.

District Eight (Noe Valley)

• Incumbent: Bevan Dufty
  Bevan Dufty’s motto in his 2002 campaign was “It’s All about the Neighborhood.” During his four years as a supervisor, that motto has guided his work on scores of neighborhood concerns, including homelessness, clean streets, neighborhood and park beautification, traffic calming, pedestrian and bicycle safety, youth programs and better schools, small business vitality and funding increases for HIV/AIDS and substance abuse prevention and treatment. Bevan has worked closely with Mayor Gavin Newsom, city department heads and staff to help make San Francisco, its neighborhoods and its economy better and stronger.
  If you are interested in assisting Bevan, go to his web site.
• Challengers: Alix Rosenthal Starchild

District Ten (The Bayview)

• Incumbent: Sophie Maxwell
• Challengers: Sala Chandler
• Rodney Hampton, Jr.
• Marie Harrison
• Espanola Jackson
• Dwayne Jusino
• Charlie Walker

Ballot Measures (Many of the measures on this November’s ballot seek funds for various purposes. This year’s budget for the City and County of San Francisco is the largest in the city’s history—$5.7 billion. In voting on measures with fiscal impacts, ask yourself before casting your vote whether the citizens of San Francisco are getting fair value for the billions the city collects in taxes. Following is a list of the local measures that will appear on the November 2006 ballot and in cases where the measure is either real estate-related or has fiscal impact, a brief description of the measure is provided, along with the position recommendation of the Association, if applicable.

Bond Measures (Requires, in the case of the school bond, a 55 percent vote for passage.)

• Proposition A. School Facilities Bond—Raises $450 million for facilities improvements for the San Francisco School District. (Cost: $33 per $100,000 of assessed value each year.)

Charter Amendments (Requires a two-thirds vote for passage)

• Proposition B. Parental Leave Policies
• Proposition C. Setting Salaries of Certain Elected Officials—Requires the base salaries of the mayor, city attorney, district attorney, public defender, assessor-recorder, treasurer and sheriff to be adjusted every five years based on the average of salaries of comparable officials in other Bay Area counties (Submitted by Aaron Peskin)

Ordinances (Requires a simple majority vote for passage)

• Proposition D. Privacy Protection
• Proposition E. Parking Tax Surcharge—Increase the parking tax rate in the city by 40 percent to make the rate second highest in the nation. (Submitted by Supervisor Chris Daly) Association Recommendation: Vote NO
• Proposition F. Paid Sick Days—Requires San Francisco employers with less than 11 employees to provide five sick days a year per worker and businesses with more than 10 employees to provide nine days a year per worker (Submitter by Superv
  isor Chris Daly)Association Recommendation: Vote NO
• Proposition G. Small Business Protection Act—Requires a conditional use authorization for the establishment of a formula retail use in neighborhood commercial districts. Also provides that, “Nothing herein shall preclude the Board of Supervisors from adopting more restrictive provisions for conditional use authorization of formula retail use or prohibiting formula retail use in any neighborhood commercial use.” Association Recommendation: Vote NO
• Proposition H. Relocation Benefits for No-Fault Evictions—Requires landlords who evict tenants for capital improvement projects or by invoking the power of State law known as the Ellis Act (allows landlords to evict tenants if they want to get out of the rental business) to pay tenants $4,500 in relocation costs, which is a $3,500 increase. (Submitted by Supervisor Ross Mirkarimi). Association Recommendation: Vote NO

Declaration of Policies (Requires a simple majority vote for passage)

• Proposition I. Monthly Board Appearances by the Mayor. Association Recommendation: Vote NO
• Proposition J. Impeachment of Bush/Cheney
• Proposition K. Housing for Seniors and People with Disabilities—The city would explore ways to meet the need for affordable housing for seniors with limited means and the disabled. (Submitted by Supervisor Chris Daly)

- San Francisco Association of REALTORS®

Sea Cliff as described on the SFResidence neighborhoods page:

“Sea Cliff is dominated by Spanish architecture homes perched on the cliffs east of Golden Gate Bridge. Certainly one of the most desirable and picturesque residential areas in the U.S. Success exudes itself from any of houses, stars and theatrical types such as Robin Williams, Sharon Stone, and Carol Hayes of Hayes Productions all have homes here. The Presidio Trust sits to its east with remains of the Land’s End Park and the famous Sutro Baths of 1896 to the west. The California Palace of the Legion of Honor museum built in 1924 ( inspired by the Palais de la Legion in Paris), home of Rodin’s “The Thinker”, and the public golf course of Lincoln Park all share the Sea Cliff address!”

Wikipedia says:

“Sea Cliff (sometimes spelled Seacliff) is a very affluent neighborhood located in northwestern San Francisco, California. It is adjacent to the Pacific Ocean and Baker Beach, southwest of the Presidio of San Francisco and east of Lincoln Park. The Sea Cliff neighborhood is renowned for the large size of its homes (which can resemble large suburban estates) as well as for the impressive views from many of the homes of the Pacific Ocean, the Golden Gate Bridge and the Marin Headlands.

“A small public beach named China Beach is located in the neighborhood.

“Some of the neighborhood’s more famous current and past residents have included actor Robin Williams, actress Sharon Stone, theatrical producer Carole Shorenstein Hays, and musician Chris Isaak.”

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous Neighborhoods:

Castro – Cow Hollow – Diamond Heights – Golden Gate Park – Lake Street – Laurel Heights – The Marina – Nob Hill – Noe Valley – Outer Richmond – Pacific Heights – Russian Hill – Sacramento Street – St. Francis Wood – Sea Cliff – Telegraph Hill

Our editorial from August 25 was printed as an editorial in response to a post on RealBlogging, a new real estate blog which is gaining popularity. Though our comments were taken out of context and some changes were made, it essentially said what was published previously on our site.

- Mick Orton

Diane Kennedy is a Rich Dad advisor for Robert Kiyosaki (www.RichDad.com) and has her own website www.TaxLoopholes.com. She holds the Maui Mastermind seminars on real estate investing every year and is also the co-author of the new book, Maui Millionaires. We thought you might find her recent e-mail interesting:

- Mick Orton
===================================
“I’ve talked to a lot of people about real estate investments around the country these past few months. Some markets are seeing a real slow down and others are seeing steady growth. This past week, I saw an episode of ‘Flip This House’ (a reality show that documents the fix and flip method to riches by taking broken down houses and turning them into mansions that sell almost instantaneously) of a young couple in Sacramento, who against the advice of all the real estate experts they asked, bought a house to fix and flip. They figured a budget of $30,000 and something like 3 months to finish it. A month over the timeline and $15,000 over budget, they finished – to a dead market. In fact, they said in one square mile there were 77 homes for sale. They waited months and months and finally got an offer they eagerly accepted that would cause a break even on the house.

“I suppose that brings up the question, ‘Whose advice do you trust?’ In this case, I just bet they’d attended a real estate seminar or read a book that told them to never listen to the people who say it can’t be done, or shouldn’t be done. Yet, in reality, caution from someone who is an expert is a really good thing to know. It’s not a matter of just shopping opinions until you find the opinion of someone who agrees with you. It’s finding someone who has proven success in the field you want and then following what they say.

“I’ll never forget what Kelly, one of the Maui Millionaires highlighted in my new book, Maui Millionaires (co-authored with my friend and real estate mentor, David Finkel) had to say when asked how she went from $77,000 in credit card debt to over $1,000,000 in net worth in just a little less than two years. How did she do it? She explained that she just found people she trusted and did what they told her to do. You don’t have to reinvent the wheel. You don’t have to research millions of strategies to find the one right one that will work. Just see what’s worked for other people and do the same! (By the way, there were lots of short cuts to wealth that Kelly discovered along the way. That’s what made the book so much fun to write. It’s the secrets of the successful that were proven again and again at Maui Mastermind, the exclusive wealth retreat that is sold out months and months in advance.)

“Good advisors make you money, save you headaches and make life just generally easier. If you’re interested in learning more from some of my personal advisors, please go to www.dkapproved.com. And, if you’re really ready to step up and take some action, contact any of the featured advisors with a specific question and learn how you can get them on your team.”

“If you’re in real estate today, you need to be smarter and quicker than the next guy. And, never ever pay more tax than you legally are responsible for.”

- Diane Kennedy

Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:

“The most significant factor affecting the market today is the media. You can’t read a newspaper, e-mail news service, watch T.V. or listen on the radio without hearing a story that the housing market is bust. All these reports tend to lump vast regional areas or the entire country together. The media has been waiting for the bubble to burst for the last four years. Journalism is supposed to be objective reporting, although currently there is a certain amount of glee in the reporters’ accounts. The only show I have watched that has given a least a balanced picture is the Nick Cavuto show. At least he had analysts, not interviewees tied to the industry, who presented both sides of the picture.

“None of us want to live in denial. Yes the market has changed, but it is not bust. Yes, in some areas prices have retreated. Is that a negative? No. Appreciation has been spectacular over the last 3 years. In fact, in most marketplaces the cumulative appreciation has been plus 50%. If it backs down 10 or 15% these are still incredible returns as real estate is a leveraged investment. Real estate has never been perceived as a short term investment, but most financial advisors will tell you real estate is a premier long term investment.

“Now back to last week’s view of the market. It is a kaleidoscope. It seems no two markets are the same. Even where we have two offices near each other the experience is different. With that said, there are a couple of trends. First agents are reporting a new wave of buyers looking for homes. These are buyers that are new to the market place. This is new demand that will be exercising itself. Secondly, more offices are reporting that inventories are decreasing. We may have reached the nadir of increasing inventories. Supplies will decline as more sellers who do not have a true need to sell, as we see more reductions that create sales and as the number of new listings hitting the market diminish inventory. As supplies come in balance with demand the market will find its equilibrium.

“Again the SF/Peninsula had the highest percentage of multiple offers, although Berkeley, Oakland/Piedmont and So Marin had strong multiple percentages too. Open house activity was all over the map—from very active to exceedingly slow. First time opens certainly had the strongest showings. A first time open home in Albany experienced 53 groups and a chic condo listing in the Gourmet Ghetto of Berkeley had 40 groups visit.

“The drivers of sales are still strategic pricing and exceptional merchandising—staging, obtaining pre-sale reports and taking care of any deferred maintenance. Those houses that came on the market overpriced are now selling when reduced to the appropriate price levels. We have even seen a few attract multiple offers. Buyers are certainly price savvy. Keen negotiation is now the key to successful transactions.

“This week’s numbers are as follows: 6 offices reported increasing inventories, 12 steady and 13 decreasing—sales activity showed 6 offices with increasing activity, 17 steady and 8 decreasing.”

- Avram Goldman

* For an e-mail alert when this report is updated, send a note to info@SFResidence.com with “weekly market report” in the subject line.

Cow Hollow as described on the SFResidence neighborhoods page:

“In the 1800′s vegetable gardens and dairy farms in Cow Hollow feed the citizens of the then perceived remote city near by, San Francisco. Close by was the underwater soon to be land filled district that housed the 1915 Panama Pacific Exposition. A magnificent structure, the Palace of Fine Arts, designed by Bernard Maybeck stands today. Filled with many Mediterranean-style flats and apartments, the once sleepy commercial street Chestnut St. is now the busy commercial thoroughfare on which many small restaurants, old deli’s, upscale retail stores such as Pottery Barn preside. The Marina greens give way to kite flying, volleyball games, endless dog walkers, a nest where many of the privileged can dock their sailboats at the St. Francis Yacht Club and breathtaking views of the Golden Gate Bridge and Marin County.”

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Previous neighborhoods:

Castro – Cow Hollow – Diamond Heights – Golden Gate Park – Lake Street – Laurel Heights – The Marina – Nob Hill – Noe Valley – Outer Richmond – Pacific Heights – Russian Hill – Sacramento Street – St. Francis Wood – Sea Cliff – Telegraph Hill

Pacific Heights as described on the San Francisco Chronicle neighborhoods page:

“This privileged, elegant neighborhood embodies Hollywood’s vision of San Francisco, and its blocks of Victorian mansions and its Cinemascope views of the Bay and the Golden Gate Bridge make the area a perennial favorite with visitors to the city. San Francisco locals tend to be a bit more cynical about the exclusive air of Pacific Heights, but that doesn’t mean you won’t catch residents of other neighborhoods making a special trip for the eclectic, upscale shopping opportunities that Fillmore Street offers.

“The neighborhood is loosely bordered by Van Ness and Presidio avenues and Pine and Vallejo streets and was first colonized by the nouveau riche of the late 1800s when the construction of a new cable-car line made the area accessible. The extravagant dwellings that characterize the district today stand as testimony to the desire of those early residents to impress their Nob Hill neighbors.

“That legacy of luxury has persisted, and the neighborhood remains generally quiet and residential, with the majority of its activity clustered around Fillmore Street. For the most part, the activity of choice is shopping, with an emphasis on costly women’s clothing and high-stakes luxury items. The strip is also peppered with nice gift boutiques, bath-and-body shops and consignment stores. But if you don’t feel like spending money, it can be fun to settle in at a sidewalk café and watch everyone else parade by. The area draws a variety of American and international tourists and is always well populated by impossibly groomed and outfitted locals who seem capable of strolling through a windstorm without having a hair get out of place.”

- San Francisco Chronicle

Other highlights on this page include:

• Best time to go
• Sights & culture
• Shopping
• Restaurants (including reviews!)
• Nightlife

For more information on other neighborhoods and street maps visit our website.

- Mick Orton

Other neighborhoods:

Castro – Cow Hollow – Diamond Heights – Golden Gate Park – Lake Street – Laurel Heights – The Marina – Nob Hill – Noe Valley – Outer Richmond – Pacific Heights – Russian Hill – Sacramento Street – St. Francis Wood – Sea Cliff – Telegraph Hill

As I write this, we are in Chicago. Coldwell Banker is holding its convention called the Elite Retreat where top agents from all over the country meet to discuss industry trends, new technology and use the time to network with each other. Every year we meet reliable agents in other areas to whom we can refer people we meet who need an agent outside the San Francisco area.

We also use this time to learn about how the markets are doing in areas other than ours. Everyone we talked to in markets from New York, to Florida, to Georgia to Arizona, are all saying the same thing. Real estate is good! In fact, “more normal market” is what we are heaing, without exception!

For some reason, the media wants to talk about “bubbles bursting” and “housing crashes” and “bad news” and so on. We feel this is a perception they are creating, even though real estate markets are just returning to “normal”.

As you will read in the article below, NewsMax and MoneyNews are still reporting declining home sales all over the country. However, in our office (TRI Coldwell Banker, Van Ness, San Francisco) we saw 16-20 ratified deals just last week. This would indicate that the market is still very strong (despite the bad press).

In fact, buyers may have the edge right now. As they sit back and wait, houses remain on the market longer giving them a chance to make offers under the asking price; almost unheard of in San Francisco. But we most recently we have seen properties being withdrawn at one price and then relisted at a lower price. In retail, this is seen as good news because bargains abound. Who doesn’t want to buy that plasma television at a lower price? So why is it not good news in real estate? Seems like the same principal would apply here too.

Once again Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area weighs in weekly on the state of the market for our area, and his report may be seen here.

Anyway, the news is what it is. So here is Thursday’s NewsMax article.

- Mick Orton