Here we are in September and the C.A.R. has just released the numbers for July. As you can see from the numbers below that, all in all, San Francisco real estate is alive and doing well compared to the rest of the state. As we found from attending the Coldwell Banker Previews Retreat in Monterey last month, many other areas of California are feeling the pressures of a slowing market. Not so in San Francisco. If anything, the absence of inventory is driving prices up.

- Janis Stone

Calif. median home price – July 07: $586,030 (Source: C.A.R.) (note: compared to $594,260 last month)

Calif. highest median home price by C.A.R. region July 07: Santa Barbara So. Coast $1,100,000 (Source: C.A.R.) (note: compared to $1,375,000 last month)

Calif. lowest median home price by C.A.R. region July 07: High Desert $296,220 (Source: C.A.R.) (note: compared to $306,310 last month)

Calif. First-time Buyer Affordability Index – Second Quarter 07: 24 percent (Source: C.A.R.) (note: compared to 07:25 last quarter)

Mortgage rates – week ending 9/6:

• 30-yr. fixed: 6.46%; Fees/points: 0.5% (note: compared to 6.73% and 0.4% points last report)
• 15-yr. fixed: 6.15%; Fees/points: 0.5% (note: compared to 6.39% and 0.4% points last report)
• 1-yr. adjustable: 5.74%; Fees/points: 0.6% (note: compared to 5.71% and 0.5% points last report)

- California Association of Realtors & Freddie Mac

SFResidence is part of the TRI Coldwell Banker office at 1699 Van Ness in San Francisco which is one of the premier offices in the City and has the market share numbers to prove it. 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.

This week things appeared as if they had cooled off a bit, however, last week’s numbers did reflect the week hiatus we had for the California Previews Retreat (thus combining 2 weeks). So though the pickings still appear to be slim, agents announced about 8-10 new listings coming on the market in a few days.

Here are the numbers for this week: 9/12/07:

• 7 new listings (average price $2,669,000 – low $699,000, high $5,800,000)
• 4 ratified sales (pending) (average price $1,293,500 – low $780,000, high $1,649,000)
• 5 closed sales (sold) (average price $2,280,800 – low $890,000, high $5,800,000)

- Janis Stone

Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports.

Regardless of the great economy we are having in most areas of California, there is always gloom and doom.

…last week, as the Stock market suffered a breakdown, analysts got a takedown, and many investors felt they were busted as Stocks sold off hard on Friday. Why? The result of a super lousy Jobs Report number on Friday morning. US job growth in August was actually negative for the first time in four years, with a loss of 4,000 jobs. And the shocker was that analysts had expected somewhere close to 110,000 new jobs to be created!

But while Stocks suffered on the news, Bonds benefited, meaning that home loan rates on conforming loans improved by .125% to .25%. Additionally, the dismal Report also means the Fed is almost guaranteed to make a cut to the Fed Funds Rate at their upcoming meeting on September 18th, to help stimulate a sagging economy. And in fact, their cut now may be a .50% cut, rather than the .25% that has been speculated…

Read the entire report here.

- Foster Weeks

Read what Rick Turley, President of Coldwell Banker, San Francisco/Peninsula says in his latest weekly report:

More than 250 homes were held open during the Labor Day holiday weekend and though many buyers were taking a home-hunting break to enjoy the fine weather, there was plenty of serious activity in most areas. Listing inventory and sales activity were both reported as being overwhelmingly steady in most areas. Offices are buzzing in anticipation of a busy September. There is pent-up demand for the new listings coming to the market this week.
Read the entire report here.

As agents, buyers and sellers alike settle into the school year after refreshing vacations, let’s set the record straight as we move into Fall by rewriting the headlines from a new perspective. “99.2% of Mortgages are Not in Foreclosure.” “Economy is Extremely Strong, with Many Business Sectors Reporting Huge Profits.” “The Global Economy is Exploding!” “People Are Buying Houses.” Sadly, our media continues to focus on the negative and to create misconceptions in the minds of consumers about the housing market.

- Rick Turley

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

Yahoo Travel says this about the Ghirardelli Square Chocolate Festival:

Neighborhood: Fisherman’s Warf900 North Point Street
San Francisco, CA 94109-1192

+1 415 775 5500

info@ghirardellisq.com
http://www.ghirardellisq.com/

- Janis Stone

Previous things to do:

Parts 1 – 20, Part 21 – Yerba Buena Ice Skating & Bowling Center, Part 22 – 49-mile Scenic Drive, Part 23 – Segway San Francisco Electric Tour, Part 24 – Vesuvio, Part 25 – Haight-Ashbury Street Fair, Part 26 – Wyland Galleries, Part 27 – Metreon, Part 28 – Angel Island, Part 29 – San Francisco Fire Engine Tours & Adventures, Part 30 – Aquarium of the Bay, Part 31 – Haas-Lilienthal House, Part 32 – San Francisco Zoo, Part 33 – Stow Lake Boat & Bike Rentals

SFResidence is part of the TRI Coldwell Banker office at 1699 Van Ness in San Francisco which is one of the premier offices in the City and has the market share numbers to prove it. 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.

Well, it’s starting. As we predicted in our last report, the market is beginning to pick up. Our summer weather is here and the fog is pretty much gone, like it is every year at this time. The holday is over, kids are back to school, people are back to work; everyone’s finished with vacation, for the most part. On the whole we should see things pop until the end of November when we will get another traditional slow down through the first of the year.

In addition to the recorded new listing below, agents reported many new listings coming up in the next few days so inventory is starting to pick up. It’s time to make hay while the sun shines!

Here are the numbers for this week: 9/5/07:

• 13 new listings (average price $982,923 – low $469,000, high $1,995,000)
• 6 ratified sales (pending) (average price $1,463,667 – low $745,000, high $2,500,000)
• 15 closed sales (sold) (average price $1,116,367 – low $517,000, high $3,000,000)

Keep in mind these number reflect 2 weeks worth of activity since there was no meeting last week. The next report should more accurately reflect our activity.

- Janis Stone

The current monthly report may be seen at SFResidence.com.

The number of Single Family Homes sold for August dropped again from July in San Francisco Real Estate. The average listing price was over 13% lower than the previous month but over 7.8% higher than a year ago. The number that counts is the The average selling price was almost 107% of the average listing price. The average days on the market decreased slightly to 35.

The number of Condominiums sold in August decreased again from July in the San Francisco Real Estate Market, however, the average selling price was over 102% of the average listing price. The average listing and selling price were both higher than last month, and much higher than a year ago. The average days on the market increased slightly to 44.

The number of homes sold in the Overall Sales category for August in San Francisco Real Estate dropped again from July and was lower than a year ago. Even so, the average selling price was over 104% of the average listing price. But compared to a year ago, the average sales price was higher. The average days on the market decreased slightly to 41.

If you are thinking about selling, Fall is the perfect time to put your home on the market!

* Remember, closed sales in any month reflect deals ratified in the previous month with a typical 30 day close.

See the August 2007 statistics here.

- Janis Stone

Recently in TheFrontSteps blog there was a question posed by a reader:

In Andy Sirkin’s famous online article on condo conversion in SF, the graph seems to suggest that vacant 2 unit TICs are fetching the same price as condos (Condominium Conversion in San Francisco), implying there is not much upside in condo conversion price-wise. However, I have also heard from some Realtors that condo conversion of duplexes can increase the building value by 10%. What’s your thoughts on this?

Our reply:

Not being a Realtor, I am speaking from a purely investment point of view. Because the laws are changing all the time. SF Supervisors are trying to close the loopholes to keep people from converting 2 & 3 unit apartment buildings into condos to avoid rent control. But the market finds a way. And TICs have now become that way.

Essentially people are buying “shares” of building and, depending on the TIC agreements, specific space can be designated as “owned” by one party or another. It is a more open arrangement than a condominium and works well for people who want to buy something, not rent, especially those who are buying for the first time. Also, there is not the same expense in setting up an HOA and all the bureaucracy and reporting requirements that are associated with condominiums.

But back to the original question. Yes, TICs seem to be selling for almost the same price as condos, though there are some deals to be had in different areas. I think that is mostly due to the fact that people are overcoming their fear based on a better knowledge of the product.
The challenge to date has been financing. Fractional loans have a higher interest rate (in general) than traditional loans. But lenders are quickly working to fill this need so new loan products are being introduced all the time. Once again, free market enterprise comes to the rescue.

- Mick Orton
SFResidence.com