Russian Hill as described on the SFResidence neighborhood guide:

Russian Hill Homes with an eclectic assortment of 19th century Italianate facades, apartments, condos and single-family residences to structures designed by famous architects such as Willis Polk share this arena. Also, Vallejo Street Crest District w/ its National Register of Historic Places site to the infamous “crookedest street in the world” Lombard Street are all used as settings of countless books and films. Several lovely parks, plenty of good restaurants, and shopping on Polk and Hyde streets make this a highly sought after urban and centrally located area to live or rent.

The San Francisco Chronicle says:

“Russian Hill, a residential neighborhood with pockets of restaurants and shops, feels a bit more visitor-friendly than its more formal neighbor, Nob Hill. The views are also just as dazzling.
“The neighborhood got its name when gold rushers found seven Cyrillic-inscribed gravestones at the top of the hill. Consensus on the identity of the Russian men buried there — they were reputed to be anything from sailors to fur trappers — was never reached, the gravestones disappeared in the late 1800s and the Russian influence has long since dissipated.”

Read the rest of the article here.

Other highlights on this page include:

• Sights & Culture
• Shopping
• Restaurants
• Nightlife

- San Francisco Chronicle

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

- Mick Orton

Previous Neighborhoods

The San Francisco Chronicle reported last Sunday that the latest thing in City rentals is corporate housing. This might also be a way around the rent control issue for San Francisco landlords and create way to get positive cash flow by renting to corporations. It provides an alternative to vacation rentals which are seasonal.

According to the article, there are management firms that specialize in this type of rental who work with corporations and home owners to secure temporary housing for workers who are brought in for varying reasons. Their commission is high, about 30%, but might be a great alternative to long term rentals.

Landlords might want to check into this rental option.

- Mick Orton

Market Watch reports:

The Federal Open Market Committee will hold rates steady at its policy meeting on Wednesday, taking a “wait-and-see approach” amid hints that the economy is downshifting and inflation pressures abating, economists say.

“This seems like a good time to stay on hold because there really is a lot of uncertainty now,” said Robert Dederick, a former Commerce Department economist and the president of RGD Economics.

“We’ve reached that stage in the cycle where things could go a number of ways. The wisest thing would seem to stay there and look around,” Dederick said.

The FOMC stopped hiking interest rates in August after 17 consecutive rate hikes raised its key target Fed funds interest rate from 1% up to 5.25%.

Read the entire article here.

A recent article in Market Watch, a newsletter published by Dow Jones, it was reported that the NAR (National Association of Realtors) is saying that home prices will probably fall temporarily as the market corrects, but predicts that prices will bounce higher again in a few months. This is contrary to what Forbes and Templeton forecast for the real estate market, both sources predicting a gloom and doom scenario.

In San Francisco, we are seeing a lot of activity in the fall market and prices continue to hold steady, particularly in the higher end homes. However, it is taking longer to sell properties and has shifted to a buyers market. As listings sit on the shelf longer, it makes it easier for them to negotiate. There are still multiple offer situations, but today that is the exception rather than the rule.

- Mick Orton

The San Francisco Association of Realtors overreacted somewhat when they reported previously that the City was considering a moratorium on garage additions to existing buildings. Here’s what was reported today.

“Reports that the Planning Commission was planning to impose a moratorium on the issuance of all permits to add a new garage to an existing residential structure, reported in last week’s REALTOR® Advantage Online, proved to be somewhat exaggerated. Here’s the story:

During the public comment portion of a recent Planning Commission meeting, questions were raised regarding the standards the department uses in reviewing permit applications for the construction of new garages in existing structures, both in structures identified as potential historic resources and structures not so identified. Concern was expressed that permit applications for new garages were typically being approved over-the-counter by the planning staff when a more thoroughgoing review was appropriate.

“As a result of these concerns, two Draft Zoning Administrator Bulletins have been prepared. If and when these bulletins are issued, they will formalize the review process for new garages in existing structures—historic and otherwise. In the coming weeks, the draft bulletins will be the subject of discussion at future meetings of the Planning Commission.

“For the present, there is an unofficial policy in effect which will allow permit applications for garages in building 50 years old or less to be approved over-the-counter. Garages in older buildings will require a more thorough review.”

- San Francisco Association of Realtors

According to Mortgage Specialist, Foster Weeks, the Fed may raise rates again on fears of inflation. Ideally the target rate of inflation is between 1-2%, however, a week ago last Friday they reported inflation was at 2.8%; higher than the Fed wants. This could indicate that we are in for more interest rate hikes. Even so, rates are still relatively low, historically speaking.

Read the entire article here.

- Mick Orton

Over the next several weeks, we’ll be investigating a powerful seller’s resource, and highlighting one of our resources, a national leader in helping owners and investors maximize the profits from their real estate. A Private Annuity Trust is a type of special sale that allows you to pay capital gains taxes over many years rather than immediately at the time of sale.

If you own highly appreciated real estate, we know that you may be reluctant to sell because of the large tax bill you think you’ll face. This hesitancy may be especially true if you own investment real estate, because you may have to pay both capital gain taxes and depreciation recapture taxes associated with the sale. We know that the thought of selling real estate, and paying 20%, or even 30% of the sale price in taxes to the government has stopped many real estate investors from selling their properties.

We think there may be a solution you’d like to investigate: The Private Annuity Trust.

Benefits include:

• Lifetime deferral of current capital gains taxes
• A lifetime income from the trust, starting when you decide you need it to
• Flexibility in how the trust is invested
• Asset protection from lawsuits and creditors
• The ability to borrow from the trust
• The assets pass to your beneficiaries, estate and gift tax free

Private Annuity Trusts may provide potentially enormous financial benefits for tax-conscious real estate and other high­ly appreciated asset owners who are, or would like to be, considering selling. By transferring the property assets into a Private Annuity Trust prior to the sale, the owner can defer all taxation, and create a lifetime income stream.

For more information, or for a FREE, 10 page Tax Savings Analysis on your property, contact Gary Katz at QFN – 800-224-1053 – or email Gary@QAplan.com.

- Betsy Hartwell – Quantum Advisors

*This is the first in a series of articles – to be continued…

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

“The housing market is still in holiday siesta mode. Listing inventory increased as sellers begin to put their homes on the market for the fall. The buyers are out there as evidenced by their attendance at open homes. First time open houses attract the majority of buyers looking for the “right home” (meaning priced well and in perfect shape). A new Berkeley listing under $700.000 was visited by 42 groups of buyers.

“The media still continues to hammer the housing market—trying to look for every negative shred of evidence that the housing market has tanked. In spite of their efforts—many smart buyers know this is an excellent time to buy—more choice, a break in interest rates as they continue to come done and a environment conducive to negotiations. Still 30 % of our offices received multiple offers—20% at the 30% plus level. Down a bit from previous weeks, but still indicating good homes go quickly. With that said, there are still a majority of sellers who have not adjusted to the new reality—homes are not going up with double digit appreciation. Homes in today’s market are either flat from last year or slightly lower (10% or less). Sellers need to remember that prices went up 50% plus from 2003-2005. A small reduction from the highs of last year still leaves outstanding returns, as real estate is a leveraged investment. The gains are substantial and well beyond any other asset class.

“We are seeing an increase among buyers wanting to renegotiate offers during the escrow period, especially after inspections. This is why it is important for sellers to have pre-sale reports so that buyers can make offers based on the condition of the home. This can prevent unnecessary fall out. Sellers should also take care of any deferred maintenance which also helps prevent reasons for renegotiation.

“Believe it or not aggressively priced properties are attracting buyers in droves. A Parkside listing in San Francisco received 42 offers—sounds like 2005. What it means is that buyers are ready to leap when they see an outstanding value. Some buyers have a challenging time of it understanding that properties can receive multiple offers—they believe everything they read in the media about the bubble bursting. This is not the case in markets that have smaller inventories—-like the buyer who lost in a multiple offer presentation in Burlingame found out the hard way.. He couldn’t understand why his offer was outbid. The reason is that the SF/Bay Area is a highly attractive place to live and certain areas, no matter what is happening in the general market, their desirability increases value of properties in spite of the transitional market.

“Here are the numbers for the week: 12 offices saw increasing inventories, 13 steady and 6 decreasing—-4 offices reported increasing sales activity, 19 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.

Nob Hill as described on the SFResidence neighborhood guide:

Nob Hill was the spot on which all the Big Four railroad magnates ( Charles Crocker, Mark Hopkins, Leland Stanford and Collis Huntington) lost their palatial mansions to the infamous fire of 1906. What you will find now on Nob Hill are luxury hotels such as Fairmont, Mark Hopkins, Stanford Court and the Huntington. A few elegant mansions, expensive highrises with crisply dressed doormen, a few homes or buildings by Julia Morgan ( William R. Hearst hired this young lady, first woman to ever graduate from the famous Ecole de Beaux Arts in Paris who orchestrated the building of Hearst Castle in San Semeon). Sharing this world famous square is the Masonic Auditorium, Grace Cathedral, and the Huntington Park which provides a playground for the nannies of the wealthy to the annual Junior League Open Market. The historic cable car barn pulling all the cable cars by massive drums with standing-room -only loads of tourists and locals up and down the hills from Union Square to Aquatic Park. No hill in San Francisco can boast of more history than Nob Hill!.

The San Francisco Chronicle says:

“Nob Hill is one of San Francisco’s signature neighborhoods, renowned for its city landmarks and the famous hotels that border Huntington Park. For those who explore further, it also reveals unexpected facets. In addition to its swanky character, the area is influenced by the diverse personalities of the downtown neighborhoods that surround it, making it an intriguing place to visit.

“The area’s reputation of privilege dates back to Gold Rush times, when cable car lines made the hilltop accessible and the railroad barons and bonanza kings built their mansions there, far above the rowdiness of the bawdy waterfront. Luxury hotels now stand in the place of those original palaces, and when you hike to the top of the hill, historic buildings such as the Fairmont Hotel and the Flood Mansion are undeniably impressive, as are the lush cascades of bougainvillea and the genteel apartment buildings with their wedding-cake facades.”

Read the rest of the article here.

Other highlights on this page include:

• Sights & Culture
• Shopping
• Restaurants
• Nightlife

- San Francisco Chronicle

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

- Mick Orton

Previous Neighborhoods

Sacramento Street as described on the SFResidence neighborhood guide:

“Seeking refinement? Wind your way west on Sacramento Street, from Broderick to Spruce. This quiet residential neighborhood, on the cusp between Pacific Heights and Presidio Heights, is a home decorator’s wonderland. Start small, with Deruta pitchers, cashmere throws and perfumed Florentine soaps, then work your way into the Sacramento Street Antiques District for Turkish rugs, 18th-century English armoires, and 19th-century French pastry tables. From American Shaker to African beadwork, it’s all here. Even the hardware stores are tastefully stocked with giant willow baskets and chenille rugs. When you tire of shopping for your home, you can indulge yourself with a pair of red Prada bowling shoes, Vivienne Westwood glasses, or Jimmy Choo slides. And if you feel a little overwhelmed after dropping $1,000 on a fur-trimmed Yohji Yamamoto bag, you can unwind over at the Biofeedback Institute Stress Management Center.”

- StyleMaven

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

- Mick Orton