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.

The market is very active right now though agents report a lot of wheeling and dealing to get to the ratificaiton of a deal. While prices are dropping slightly, buyers are slow to make a decision. It’s like they are waiting for the market to heat back up so they can end up in multiple offer situations like they did two years ago. It is mystifying why buyers are not jumping in NOW and making that offer. Two years ago it was “I’ll wait until the market cools down.” And now that it has, “I’ll wait until the market heats back up.” Go figure. Personally I like the challenge of a tough market. It gives me an opportunity to use my best talent, negotiating, for my clients!

Here are the numbers for the week of 5/27/09:

• 5 new listings (average price $727,400, low $799,000, high $1,650,000)
• 10 ratified sales (pending) (average price $1,091,000, low $498,000, high $1,695,000)
• 14 closed sales (average price $1,158,857, low $590,000, high $2,921,000)

- Janis Stone

NAR Announces Housing Affordability Highest in 18 Years – And Many Offices Report Increased Activity in High End Sales

For months I’ve been sharing that this is one of the best times to purchase a home in decades.  This week the National Association of Realtors underscored that fact –stating that nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).  The HOI showed that 72.5% of all new and existing US homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.

Locally, the story is much more dramatic.  In the San Francisco-Peninsula area, 32% of all new and existing homes sold in the first quarter of 2009 were considered affordable to families earning the area’s median income of $96,800.  That’s up 60% from the previous quarter and up an incredible 146% from a year ago, when the index was a paltry 13%, one of the lowest affordability ratios in the United States.

Follow the link below to get the historical charts and details on North Bay, East Bay, Silicon Valley, and Santa Cruz, as well as many other Metros in the US.

http://www.nahb.org/page.aspx/category/sectionID=135

Below you’ll find a few more news stories of interest from the week:

• http://rismedia.com/2009-05-20/buyer-interest-in-foreclosures-spikes-says-survey/
• http://www.nytimes.com/aponline/2009/05/19/us/politics/AP-US-Economy.html?_r=2&scp=17&sq=housing&st=nyt
• http://rismedia.com/2009-05-18/distressed-properties-and-first-time-home-buyers-the-recipe-for-real-estate-recovery/

Many of you have asked me questions about the potential changes in the $8,000 first time buyer tax credit (http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument).  Essentially the U.S. Department of Housing and Urban development announced on May 12^th that the Federal Housing Administration would permit its lenders to allow home buyers to use the $8,000 first-time homebuyer tax credit as a down payment.  FHA’s approved lenders would be permitted to “monetize” the tax credit through short-term bridge loans. This would allow eligible buyers to access the funds immediately at the closing table.  Here is a CNN Money article which explains some of the details:  http://money.cnn.com/2009/05/18/real_estate/tax_credit_as_downpayment/index.htm?postversion=2009051912

I must caution that the execution of this is quite complicated and it may take some time before it becomes a reality.  By late this week, there were already comments coming out of Washington that this may have been released a bit prematurely, and there is no guarantee that it will be successfully implemented.  HUD would need to authorize lenders, non-profits and certain agencies to provide a bridge loan which would then be reimbursed at the time of tax refund.  These players are not yet identified.  Again, an encouraging and useful tool, but the execution and timing of it have yet to be fully outlined.  Watch for more to come.

Most of the news lately has been about the brisk pace of sales at the entry level, where multiple offers are becoming the norm.  The median price, although increasing slightly in April over March in the Bay Area, had previously been falling due to the heavy activity in foreclosures at the low end.  That said, I thought it important to contrast this with what I’m seeing day to day at the branch office level at the other end of the market. Here is an incomplete list of some of our Coldwell Banker Bay Area closings just this past week:

• $7+ Million – Atherton
• $5+ Million – Portola Valley
• $4.8 Million – San Francisco
• $3.2 Million – Santa Rosa
• $3 Million – Hillsborough
• $2.9 Million – San Francisco
• $2.9 Million – Belvedere
• $2.6 Million – Los Altos
• $2.2 Million – Menlo Park
• $2 Million – Los Altos
• $2 Million – Monterey
• Many more in the $1 to $2 Million range

You won’t likely be reading about this activity in the Chron or the Mercury News – not because I’m not telling reporters about it in recent interviews, but because their focus is elsewhere.  I feel everyone should know that besides these recent closings, nearly every office is reporting ratified offers and new Pending Sales in the higher end the past week or so – which is not what we were seeing a few months ago.  You won’t hear me calling this a trend (yet) – but it sure is nice to see strong activity and confidence in the high end.

And with that update in tow, let’s take a look at this week in real estate:

• East Bay—Berkeley shares that the market is still fast and furious at the lower price points with as many as 15 offers on some properties. Lenders and sellers are choosing all cash buyers, even if their offer is not the highest.  There is some concern that these all cash bargains, usually from investors, are artificially driving down neighborhood value, since the fact that there were ready, willing and able buyers who would have offered more is not taken into account. Buyers are also asking what number to put into their offers for loan/appraisal time.  Good question.  Some Agents are using the number of days given to them by the buyers’ loan officer, others advising to the check the “until funded” box in the contract.  Castro Valley reports The Today show this week featured the Top 5 recovering cities for the country as related to the housing market.  SF Bay Area was featured as number 5.  It seems to correlate with the market trends that we have been experiencing lately. Short sales remain the market wildcard.  In researching a property we recently wrote an offer for, we found that there was a $200,000 spread between the offer prices between two pending deals on the same street, one was REO and the other short sale. Daily operations remain busy.  Oakland reports the market is really active in all price ranges. It has been steady now for all of April and now May.  I think our spring market has arrived.  Most of the multiple offer scenarios are two offers but occasionally one generates a large number and those are usually under-priced homes.  Appraisal issues are now cropping up in escrows and they are taking much longer to close.  Negotiations are more protracted. Short sales are active in every price range.  Even some of the foreclosures coming on the market now seem to be in better Oakland neighborhoods.  Orinda reports open homes are heavily attended and multiple offers are increasing.  Sales in the luxury market are on the rise.
• Monterey County— Slow but steady continues to be the pace here on the Monterey Peninsula, though the market is quick moving just east of us in the under $400,000 REO market.  Many properties over $1.5 million continue to be listed; in fact, there are 283 such properties now listed on Monterey Peninsula, from $1.5 to $35 million; yet only 34 such properties have sold since beginning of year, from $1.5-$7.8 million.  It’s definitely a buyer’s market in the higher price ranges.  We did close $1.6 and $1.9 million properties last week, along with 13 others at $1 million and under.
• North Bay— The Greenbrae office mentions that a flurry of new listings is looking to extend the Spring market well into Summer. Lots of activity in Central Marin in the $1M-1.1M price range. San Rafael tells us that currently there are 174 active homes & 58 condos on the market in San Rafael with 78 homes & 45 condos pending. In Novato there are 148 active homes and 58 condos which is lower than last year at this time. There are 113 homes and 48 condos pending. In Southern Marin the general feeling is that sales are picking up and buyers are getting more serious. Sebastopol states that Buyers are clamoring for low end inventory. 10+ offers are the norm under 300k. Lots of nosey neighbors at open houses have also been reported.
• Peninsula— Things are definitely heating up as the Burlingame office hears more stories of multiple offers & see that the inventory is declining in most areas. Open house attendance is steady.  In the Menlo Park area, a couple of higher end sales again which is encouraging. Higher end (over 3.5mil) is beginning to see some movement but higher end inventory levels give buyers a lot of power. Open houses were not as active, most likely due to the heat. Activity seems to be picking up. One Atherton listing was sold list price of $7,995,000.  A couple of other high end sales last week both in Menlo & Atherton. For the Palo Alto offices the last seven to ten days has been very busy with multiple offers with prices exceeding upwards of 8-10% over list price on homes from $800k to $3M. I don’t believe it’s a trend, bit it is certainly very busy.  We have had high-end sales & closings within ten days in Atherton at $7+M multiple offers @ $2M, multiple offers @ $3M. As many as five to 13 offers per property.
• San Francisco—The Van Ness office tells us the market above 1.5 million continues at a remarkable pace – 8 for this week!  For the Market St. office, lots of offers are being written this week, some have ratified, some are still being negotiated, & some were lost out on in multiple offers. Agents sense that the mood of the buyer out now is very positive & very motivated. A Previews property listed at 3.4 million was sold in the first 7 days on the market.  Our Lombard office reports that solo offers this week dominated by multiple counter-offers, a number of all cash deals, and some quick deals right on the heels of a price reduction. Again, under $700k a hotter market.  As for the Lakeside office, they have stated that the desired impact of the stimulus package seems to be happening. Homes under 600,000 are highly sought after by multiple parties while the higher end properties are still sitting on the market a bit longer & then negotiated down.
• Santa Cruz—The local market continues to plug along; Agents are busy writing offers, trying to get short sales accepted/approved, in general working harder than they ever have.  It seems some of the uncertainty is going away and consumer confidence with real estate is on the rise.  People are realizing that the window of opportunity is closing, with a lack of inventory, very competitive interest rates and great prices.
• Silicon Valley—Our San Jose Almaden office reports that 11 of 13 sales were distressed this week.  Currently Santa Clara Count is experiencing over 50% of its inventory pending.  Of course it is all the lowest end of the marketplace.  Blossom Valley is above 50%, Almaden has climbed to 30% from 12% in just two short months.  One REO last received 25 offers and went 25% above asking price.  San Jose Main reports a great week for sales and activity. Excellent open house traffic in all price ranges. Buyer motivation is heating up. Low to mid priced homes seem to be getting the most activity.  The San Jose Willow Glen office reported we have slowed up a bit and it may be due to graduations and a holiday weekend.  Though floor calls and open houses keep us quite busy.
• South County—We have 187 active San Benito County single family listings.  This week we had 15 closed single family transactions, 10 of which were REOs.  We had 20 new active listings this week for Hollister.  REO listings have picked up a bit this week.  Open house activity is not very good probably due to heat this past weekend.  Short sale activity is still strong.  In Morgan Hill, the market has not changed from last week.  Open houses are well attended, inventory of well priced (entry level) homes is decreasing while demand remains high.  Agents are busy writing purchase contracts, but multiple offers are very common and prices are being bided upward.  Homes that are selling beyond the asking price (due to multiple offers) are, however, facing appraisal issues.

As we head into this long three day weekend I’d like to wish everyone a very happy and safe Memorial Day weekend with family and friends.  It’s cold in the City and we’re trying to find the sun, but hopefully many of you will enjoy BBQs, sunshine, maybe a little swimming and (hopefully) a home sale or two.

- Rick Turley

Here are the new guidelines for FNMA condo loans.

-No more than 15% of the total units in a condo may be 30 days or more past due on their maintenance fee payments

-Hazard insurance is required of ALL units in the condominium- this coverage includes everything located inside the apartment- you must come to the closing table with insurance.  The coverage has to be for at least 20% of the units value.  This is sometimes called a ‘walls-in’ policy, HO-06.

-If a new condominium, at least 70% of them must have been pre-sold

-Existing condo units need to be at least 51% owner occupied

-No single entity may own 10% of the number of units

-Not more than 20% may be used for non-residential purposes

-Fidelity Insurance is now required for condos with 20 or more units.

-HOA insurance.  There is no specific guideline for the insurance, but make sure you have at least $1,000,000 liability insurance for each occurrence (Wells Fargo is requiring $2,000,000).

-HOA reserves.  Again, there is no specific guideline for the reserves, but make sure your HOA has a reserve account with money in the bank account.

Exceptions to these rules can be obtained from the lender, but it is a case-by-case basis.  I would not count on getting the exception.

Eric Wood
Loan Officer
Princeton Capital
1699 Van Ness Avenue
San Francisco, CA 94109
415-229-1228 Tel
415-889-0708 Cell
408-335-1172 eFax
ericwood@princetoncap.com
http://www.princetoncap.com/ericwood

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.

As noted in President Rick Turley’s weekly address, our office did an outstanding job so far this month compared to the rest of the companies representing San Francisco real estate. Look at the numbers below and realize that our marking is recovering. If you are a buyer sitting on the fence, don’t miss your window of opportunity. It won’t be long before we will probably see multiple offer situations once again.

Here are the numbers for the week of 5/20/09:

• 5 new listings (average price $1,398,000, low $525,000, high $2,750,000)
• 18 ratified sales (pending) (average price $2,592,000, low $270,000, high $7,995,000, 2 confidential)
• 17 closed sales (average price $1,232,501, low $352,000, high $4,720,475)
• 2 reduced $599,000 and $9,995,000

- Janis Stone

Recent Housing Stats Are Showing Encouraging Signs for Market

This week I thought I’d share some positive stories that continue to permeate not only our local news but on a national level as well.

The National Association of Realtors® said its Pending Home Sales Index, based on contracts signed in March, rose 3.2% as first-time buyers waded into the market to take advantage of favorable prices and mortgage rates.

A report from the U.S. Commerce Department showed construction spending rose 0.3% in March, the first increase in six months.

The pending home sales report added evidence that sales have reached a bottom. “That’s critical because once sales bottom, it’s only a matter of time before you work off excess inventories. That’s the key to stabilization in the financial system and the economy at large. We’re closer to that than people thought just a few months ago.”

– Michael Darda, chief economist at MKM Partners in Greenwich, Conn., “Sales and Construction Data Lift Hopes for Housing,” by Lucia Mutikani, Reuters, May 4, 2009.

On a national basis, the forces driving real estate right now are increasingly turning positive and encouraging.

• Home sales in major markets around the country have shown dramatic gains in the past month. 
• In Florida, statewide sales jumped by 30% in March over year-earlier levels, and were up 33% over the previous month. Even condo sales were up by 25%.
• In California, statewide sales rose 64% in March compared with March 2008. Unsold inventory is now just five months — that’s down from 12 months the previous March.
• Median house prices may be bottoming out. The California Association of Realtors® reports the median price of homes sold was up by 2.2% for the past month.”

– “Real Estate Outlook: Sales Rising in Some Areas,” by Kenneth R. Harney, Realty Times, May 5, 2009.

Also interesting to note:

• The current price level of homes seems to be drawing more buyers into the market, according to Jim Gillespie, president and CEO of Coldwell Banker Real Estate.  “We are seeing a lot of activity across the nation. Of course we’re in the spring market, but we’ve seen more buyers in the market now than at this same time last year.”
• “Home prices are where they should be. Sellers are accepting the current reality and are pricing more realistically,” said Robert Abbott, co-owner and VP of a northern New Jersey brokerage.  “More people are not only ‘kicking the tires’ but actually buying right now. We are showing significant activity when it comes to sales. The number of days for a house on the market is going down.”

– “More Homes Get Multiple Offers; Downturn May be Nearing End,” by Julie Schmit, USA Today, May 6, 2009.

• Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say. “If a house is in a good neighborhood, is maintained and is a good value, it’ll get multiple offers. One in 10 homes now draw multiple offers, up from one in 30 last fall.”

– Julie Holt, owner of a title services company in Florida, “Is Now the Time for Some Home Buyers to Make a Deal?,” by Mark Koba, CNBC, April 28, 2009.

And with that news in tow, let’s take a look at this week in real estate:

• East Bay—Berkeley reports that buyers are stepping forward to make offers, while others continue to have scary perceptions which keep them from offering.  Job security is the biggest worry.  Sellers are reluctant to reduce prices.  No one knows what Cuomo’s new appraisal regulations will mean to the market.  It ought to be a big convincer to sellers to keep their list prices reasonable.  Banks continue to look for all cash buyers.  Danville reports that inventory in San Ramon and Dublin is under two months.  We need inventory!  Fremont reports this past week seemed to be a bit slower, maybe because of Mother’s Day last weekend.  The open homes are busy with people who are interested in buying, they just need a little encouragement.  Oakland reports interest rates have come down for jumbo loans, so we are picking up listings in the upper end and they are selling.  The market is really picking up and we are up over last year.  The past week we have a very large percentage of multiple offers, mostly two offers on each property, one had nine in a very low price point.  Still seeing appraisal issues that are new based on changing guidelines.  Walnut Creek reports the low end of the price range is selling with multiple offers, driving up prices.  In the mid range, the well priced, nice looking properties are selling with numerous counters back and forth between buyers/sellers.  Upper end is not moving.
• Monterey County—It’s a quick-moving market to the east of us, Salinas south to Greenfield, and also Seaside, in our area, where the prices on the REOs combined with the low interest rates are motivating first-time buyers and, increasingly, local investors.  Market is still sluggish in areas more our marketplace, like Carmel and Pebble Beach, where we are seeing increasing numbers of properties coming on as short sales or likely to be short sales by the time a buyer steps forward with an offer.
  North Bay—Petaluma reports inventory continues to be light and the majority of the Agents have multiple buyers hovering over a limited number of listings. Most of the properties under $300,000 are getting double digit multiple offers.  Santa Rosa reports that its REO specialist says there may be some light at the end of the tunnel as assignments are starting to trickle in.  We still have lots of buyers and few properties to show them.  Sebastopol notes a lack of new inventory continues to be the challenge.  San Rafael reports there is an increase in listing and sales activity in properties that are not distressed (REOs and short sales) in all price points. We listed two properties over a million and have offers in on two properties over $1.5 million in San Rafael and Novato. Greenbrae office says they are seeing multiple offers for well-priced, well-presented homes in Greenbrae, Larkspur, and Corte Madera.  This is in sharp contrast to just a few months ago when fears of the country’s financial crisis seemed overwhelming. Things seem to be easing up now as Buyers with good credit and a job are finding it not so difficult to get a loan –and at record low interest rates!  The Southern Marin offices report the first week of April saw increases across the board in our Southern Marin offices. We saw $8 million worth of new sales and close to $5 million of closed escrows, by far the most we have seen all year. Many reports of multiple offers and even the $2 to $3 million is picking up in So. Marin.
• Peninsula—The Burlingame office reported that Mother’s Day didn’t slow down the open homes that were held open.  There were an average of 20-25 groups through in most reports. Buyers were asking when offers were being presented and we haven’t heard that in awhile.  The Half Moon Bay office reports seeing more listing Agents/sellers increasing the sale side commission to attract more showings. Good attendance at open houses.  The Menlo Park El Camino office reports a great week—sales from $9.8 million to $185,000 and a lot of them!  Everyone seems a bit more positive. The price base is rising; high end sellers are realizing that their prices are just too high for the current marketplace and finally are seeing the light. We had one sale listed at $3.4 mil that had turned down offers of $4 million a few months ago—same story across the board.    Redwood City reports lots of activity on open houses even on Mother’s Day; 40 to 50 groups at a new San Carlos listings. We’re seeing multiple offers on the low end REOs-the $800,000 – $1m range is attracting more interest but first must be perceived as a great value.  Woodside reports we are beginning to see offers being made on our higher end properties; not coming together just yet but we have hop. Two that are currently in play have come down from their high listing price about 35%            
• San Francisco—The Lakeside office reports that the entry level market is hot right now; anything under $600,000.  The Lombard office reports that after a fast start to May, we had a slow week.  Possibly due to Mother’s Day? After a flurry of multiple offers, back this week to multiple counter-offers (up to five and six). Hard negotiations. A fall out and frayed nerves over slow loan processes. Time for listing Agent and sellers to be a little more patient and accommodating.  The Noriega office reports in the affordable price range $400,000-600,000, buyers are definitely off the fence, but good inventory in the price range extremely low and multiple offers are very common.  The Van Ness office reports continued increase in sales activity, and is seeing activity at all price points. This week the office reported 36 ratified offers – Wow!
• Santa Cruz County—Steady as we go.  We are cautiously optimistic about the market activity.  Like other areas with a high REO number, that inventory has been drying up thus creating multiple offers on those properties.  There remains an expectation that more are coming, we have yet to see any new bank owned properties to list.  Buyers are realizing that time is of the essence in terms of purchasing and many are taking advantage of the tax credit for first time buyers.  Along with the lowest interest rates ever, activity is steady in the lower end also.  Financing, appraisals, appraisal reviews, longer loan times in general, are the norm and creating stress on most of the transactions.  Managing the client expectations whether it is a buyer or seller (or the other agent) from beginning to end is crucial.
  Silicon Valley—Our San Jose Almaden office reports all 10 sales this last week were distressed properties; mostly REOs.  Many REO listings are receiving 10-25 offers.  Banks are jamming the list prices down in an effort to stimulate activity.  And it is working.  Those properties are often selling at 20% or more above asking price!  The San Jose Willow Glen office reports we are a lot busier. Buyers seem to be a lot more comfortable in taking the step into home buying.  Open houses are very busy with a lot of traffic as well.  San Jose Main reports listings are slowing and sales increasing.  Most multiple offer sales are occurring in the lower price range.  Excellent weekend traffic reported at open houses both Saturday and Sunday.  Saratoga reports our upper end continues to lag. On a positive note our sales under $1,500,000 were very strong last week. I’m hopeful this is a sign that buyers are comfortable that we’ve hit the bottom of the market.
• South County—The Gilroy office reports open house activity was slow due to Mother’s day weekend and the wonderful weather. Agents are now challenged with the lack of inventory. Most new listings are receiving multiple offers and selling over list price. Bank owned properties are still the majority of the market sales.  The Hollister office reports active listings are down from last week.  Sale pendings are up.  The average DOM is 80.  The average sales price is $300,000 up from last month.  REO inventory is decreasing.  Short sale listings are increasing.  The Morgan Hill office reports that in South County an interesting phenomenon is occurring.  The demand for “entry level” (well priced homes under $300,000) is far exceeding supply.  This past month Agents have experienced multiple offers of these types of properties.  In most cases these listings are selling over asking price with multiple offers.  This is a very encouraging sign that, perhaps, prices are stabilizing.  

In short, it seems buyers are finally starting to get the sense that now is a good time to buy and that if they wait, they may loose out on one of the best times in California history to purchase real estate.  Now, if we could just get more listings. Do we sound like we are never satisfied?  Oh well, what a difference a year makes!  It’s an exciting time so let’s make good use of it.  I am currently wrapping up meetings in Washington DC as an NAR Director, so next week I’ll write on some of the important legislation being proposed to complete the necessary steps for our housing recovery.

- Rick Turley

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. Here’s what Mr. Weeks says about last week’s activity:

“I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW.” Og Mandino. The markets took those words to heart last week, with plenty of timely action ranging from telling economic reports to interesting announcements from the government, related to homebuyers.

On the economic news front, the headlines were mixed. On the disappointing side was a worse than expected Retail Sales Report, which showed that consumers are continuing to tighten their purse strings. Not entirely surprising, but it did mark the eighth decline in the past ten months for Retail Sales. Initial Unemployment Claims were also reported worse than expected – which some said were due to massive Chrysler layoffs – but still was disappointing after there had been some recent signs of improvement in the labor markets.

However, there was positive economic news as well, including improved readings from the manufacturing sector, as the New York Empire State Manufacturing Index improved for the third month straight. Consumer Sentiment was also better than the previous reading and the best since September of last year. So although the consumer isn’t out spending money with abandon just yet, this report shows that most folks are indeed starting to feel better about the economic outlook, likely due in part to the values of their investment accounts improving as Stock values move higher.

Looking at the always-important inflation headlines, wholesale inflation levels moved higher in April, driven by an increase in food prices. On the consumer inflation side, the Consumer Price Index (CPI) report was flat, although the Core CPI – which removes food and energy prices – was a little hotter than expected, largely due to a huge spike in tobacco prices by a smoking 9.3%! Core inflation has been moving slightly higher since February, as you can see in the chart below.

(See report below for the chart)

Remember, inflation is the archenemy of Bonds and home loan rates, so I will be keeping a close eye on this in the coming months.

And as if that all weren’t enough, the government got in on the action, with the Department of Housing and Urban Development’s Federal Housing Administration making a very interesting announcement that ultimately appeared to be slightly premature. They announced a new plan to allow first-time homebuyers to use the Federal tax credit of up to $8,000 for a down payment at closing, rather than making buyers wait to receive the benefit after the fact at tax time. However, no details or logistics of how this will actually work were released, causing them to actually pull some of the industry announcements as they regroup to provide more details. This could be great news for first-time homebuyers, who are slated to account for 53% of home purchases in 2009. When the details of the program are fully released, I will certainly keep you posted as I learn more.

Bonds and home loan rates were able to make some improvements in the early part of the week as weak economic reports caused money to flow from Stocks into Bonds. And while Bonds lost some ground on Friday, home loan rates still ended the week slightly improved from where they began.

NOW IS THE PERFECT TIME TO TAKE SOME ACTION IN GETTING YOUR HOME READY FOR SUMMER. CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR SOME GREAT TIPS AND IDEAS.

Read the entire report here.

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.

The numbers just keep getting stronger. As I have said in previous office reports, San Francisco is one of the fortunate places for buying and selling real estate. Though there has been a downturn in prices, we have not have the same problems as many parts of the country where there is land to build! Look at our numbers and you will see our office had the majority of sales for this month of all the companies in the City!

Here are the numbers for the week of 5/13/09:

• 3 new listings (average price $2,916,000, low $399,000, high $5,500,000)
• 17 ratified sales (pending) (average price $1,156,229, low $388,000, high $2,895,000)
• 14 closed sales (average price $1,198,986, low $130,000, high $3,490,000)
• 1 reduced $859,000

- Janis Stone