Our office at TRI Coldwell Banker at 1699 Van Ness in San Francisco is one of the premier offices in the City. We have some of the top agents selling real estate in the San Francisco Bay Area. As a result, our office posts some impressive numbers.

Look at the numbers below and you can see that the number of ratified sales continues to outnumber the new listings. If this trend keeps up, inventories shrink. As this happens, we should begin to see more and more people competing for new homes by participating in multiple offer situations; this is what we are beginning to see. Once again market conditions show that low supply and high demand drives prices up. Watch and see what happens as the year rolls on.

Here are the numbers for this week:

11/08/06

• 2 new listings (average price $758,500)
• 11 ratified sales (pending) (average ratified price $1,423,125 – 1 confidential)
• 9 closed sales (sold) (average closed price $1,031,556)

- Mick Orton

David Lereah, chief economist for National Association of Realtors, was very optimistic for 2007 in his recent article, “As Sellers Get More Flexible, Buyers Get a Break”. In it he says what we were saying all last year… that there was no “bubble bursting” in San Francisco real estate, though there was a market correction. Sales were down, but there were not significant price reductions.

To quote:

…Let’s be clear, though. The sky never did actually fall in 2006— or, to use that phrase that the media love, there were no “bubbles” bursting. But air did come out of some inflated balloons. According to our National Association of REALTORS® latest estimates for last year, existing home sales were down 8.2 percent from a year earlier. Similarly, new home sales were down 17.4 percent and housing starts were down 12.5 percent. Our nation’s housing sector suffered a contraction, inhibiting overall GDP growth.

But 2007 is a new year and with it brings a cautious confidence and hopefulness. Home sales appear to have bottomed out, having reached a cyclical low in September of last year. And in recent months, home sales are inching up, not down. Existing-home sales experienced two consecutive monthly, albeit modest, gains from September to November. Inventories have stabilized, with the nation’s months’ supply hovering around 7.3 months since July of last year…

Read the entire article here.

- Mick Orton

Recently, Avram Goldman stepped down as President to take a position with GMAC. Read what Rick Turley, new President of Coldwell Banker, San Francisco/Peninsula said in his latest weekly report:

Freezing temperatures and a three-day weekend didn’t keep savvy buyers away from our 436 open houses held last week. In fact, 16 of our offices report increased open house activity with comments ranging from “open house attendance is growing,” to “the best weekend in months,” and even “attendance continues to rock at open houses…record crowds.” If these are all buyers who buy, then “cautiously optimistic” is the buzz-phrase of the week.

According to DataQuick studies released this week, average sold prices for December ’06 were up by 3.5% over the previous year. This, in combination with tightened inventory levels in most areas, means that now really is the time to buy before prices increase further. The savvy buyers are recognizing this and are out there looking.

We normally see a flock of new listings this time of year as many sellers have held their properties off the market during the holidays. As of the first three weeks of 2007, however, we are not seeing the increase in inventories. This may play well for sellers as fewer properties available means prices should hold up well. Still, listing inventory remains fairly healthy with 11 offices reporting increasing levels, 10 reporting steady levels and 7 reported as decreasing.

Many potential buyers may still be waiting for lower prices (and warmer weather) but sales activity is increasing in 6 offices and steady in 17 offices while reported as decreasing in only 5 offices. Multiple offers are seeing a jump as well with at least 20 being reported – one of them a serious fixer that received 6 offers.

- Rick Turley

* 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.

Foster Weeks does a weekly mortgage update.

- Mick Orton
===================================
“Last week’s economic news should have been enough to make bonds and home loan rates …move… but they didn’t… a flurry of stronger than expected economic reports hit the wires, indicating a resilient economy. Strong economic news usually spells good things for US businesses – which tends to push money out of Bonds and into the Stock market. We also know that strong economic data can point to higher inflation, which is the arch enemy of bonds. So when money flows out of the Bond market, the value of Bonds fall – and since home loan rates are tied to Bonds, this in turn causes home loan rates to rise.

“Here’s a rundown of the headlines…the inflation measuring Consumer and Producer Price Indexes (CPI and PPI) both were hotter than expected, showing some lingering inflation in the economy; Housing Starts and Building Permits were both reported as better than anticipated; Initial Jobless Claims were lower than expected, indicating a strong labor market; the Philadelphia Fed Manufacturing Index was higher than estimated; and to top off the week, the Consumer Sentiment Index came in very strong – a three year high! But a closer look at the inflation numbers showed that prices are only increasing at a slightly higher pace than desired by the Fed, which keeps inflation as a concern, but not a reason to panic.

“Whew! With all this strong economic news, it’s surprising that Bond prices and home loan rates just stood there.” Read the current report here.

- Foster Weeks

The Sunset as described on the SFResidence neighborhood guide:

“The Outer, Central & Inner Sunset operates like a city within a city with its tidy streets, excellent schools, and family owned businesses. The fogginess of this district hasn’t discouraged the 40,000 students, young professionals, and middle-class families from nesting and/or embracing this quiet and mellow suburb.”

SFGate says, “Despite gentrification and fog, it retains the laid-back feeling of a small town — one that just happens to have a funky edge, an intriguing ethnic mix and great restaurants.” Read more here.

Other features include:

• Best time to go
• Sights and Culture
• Food & Drink
• Shopping
• Nightlife

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

- Mick Orton

Previous Neighborhoods

From the Davis-Stirling newsletter put out by ADAMS & KESSLER LLP regarding towing rules for condominiums:

QUESTION: Do fire lanes require signage?

ANSWER: Fire lanes must be properly marked. If the fire lane is not on public streets, i.e., it is association controlled, the board can tow vehicles without further notice and without specifically authorizing each tow (provided the association has complied with all statutory requirements).

QUESTION: Can residents tow cars that are parked in their assigned spaces?

ANSWER: The statute appears to preclude residents from towing cars without first giving 96-hours notice since owners don’t have contractual relationships with towing companies and have not posted signs at the entrances. However, residents could contact the association and the association may tow the car (provided the association has complied with the new statute).

QUESTION: Can an association demand a copy of an owner’s drivers license?

ANSWER: If the association’s streets are private, it can require proof that drivers are licensed to drive. Associations can also suspend driving privileges on its streets for driving infractions (if provided for in the Rules & Regulations).

QUESTION: Some of us own scooters. Previous boards let us park our scooters in a portion of the garage that doesn’t interfere with foot traffic. The new board wants to charge for scooter parking. Is that legal?

ANSWER: Boards often charge rent to owners who want a storage room or a parking space for their exclusive use. However, open (unassigned) parking for bicycles and scooters in designated areas is usually provided without charge. A user fee for non-exclusive parking would probably fall under Civ.Code §1366.1. Such fees may not exceed the amount necessary to defray the costs for which they are levied, i.e., they may not be treated as revenue streams for the association.

QUESTION: We don’t have signs at our entrances. What if vehicles are not staying the full 96 hours hours but return at a later time?

ANSWER: By moving their cars around, violators can avoid being towed but that does not exempt them from fines. The violation notice on the windshield that the vehicle will be towed if not moved can also serve as a notice of fine. The board still needs to hold a hearing before levying the fine.

- Adrian J. Adams, Esq

* To subscribe to our weekly newsletter go to the bottom of our homepage, fill in your e-mail address and press the “enter” button.

This came from the Sunday, January 7th SFGate column by Robert Bruss. To quote:

Q: I sold my principal residence in January 2006 with a capital gain of about $400,000. The same day, I bought another house using the profit as a down payment. I was single until April 2006. Mine was the only name on the title to the house that was sold. But my partner (now wife) and I had been splitting the mortgage payments for more than 24 months. It was our primary residence for more than two years before the sale. Can we file jointly and receive $500,000 capital gains tax deduction?

Tim C. – San Jose

A: You can file a joint tax return because you are now married. But that won’t help you increase your Internal Revenue Code 121 principal-residence-sale tax exemption above $250,000. The fact you bought another house is irrelevant.

You are entitled to a $250,000 home-sale tax exemption under IRC 121 because you owned and occupied your principal residence more than 24 months during the last 60 months before its sale.

However, your partner who also occupied the primary residence cannot qualify for a $250,000 exemption, although she paid half of the mortgage payments, because she was not married to you at the time and her name was not on the title.

- SFGate

Realtor Magazine released its 2006 report in December showing which remodeling projects have the best return for the investment. There is a lot of great FREE information in PDF format for different cities showing the best results for that area.

To quote: Of the top 10 projects nationally measured by cost recouped at resale, seven — including the top three — are replacement projects. An upscale fiber cement siding replacement returned 88 percent of the investment. Midrange vinyl siding replacement was second at 87.2 percent, and midrange wood window replacement edged out minor kitchen remodeling for third at 85.2 percent. Only roofing replacement finished outside the top 10 projects, at 73.9 percent for a midrange job, and 72.9 percent for an upscale one.

Energy efficiency in the face of high fuel prices could be a logical reason why replacement projects are high-value performers. But Charlie Gindele, president of Dial One Window Replacement Specialists, in Santa Ana, Calif., calls that a rationalization. “The thing that motivates people, by and large, is the aesthetics,” he says.

To read the full report, click here.

- Mick Orton

We previously addressed the issue of “re-listing” properties to give them a fresh chance at the market. In our September 23, 2006 article we discussed the Realtors’ point of view and is worth reading. Though it does specifically address the act of pulling a property and putting it back on at a lower price to avoid the “reduced” stigma the arguement is very much the same.

The January 7th SFGate article deals with the Days on Market aspect of this same topic and has the provocative title “New life for old listings — savvy or shady?”.

To quote, “…In those ancient days of 1997, when few homes remained on the market for more than a couple of weeks, a listing with a DOM of, say, 21, suggested that the bidding wars might have passed this one by and maybe the seller would be willing to accept an offer just over the asking price…” and goes on to talk about the practice of “re-listing” as being misleading.

Decide for yourself. As far as Realtors go, we feel this practice serves the sellers’ best interests for which they have a fiduciary responsibilty.

- Mick Orton

Our office at TRI Coldwell Banker at 1699 Van Ness in San Francisco is one of the premier offices in the City. We have some of the top agents selling real estate in the San Francisco Bay Area. As a result, our office posts some impressive numbers.

The past week was lackluster with very little sales activity. Here are the numbers:

1/17/07

7 new listings (average listing price $1,383,284)
2 ratified sales (pending) (average ratified price $954,500)
3 closed sales (sold) (average sales price $2,120,000)

- Mick Orton