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July
San Francisco Real Estate Market Update for
June 2005

The San Francisco Real Estate Market for June was as good as expected! The number of homes sold increased for the third month in a row for all three categories we track. And average listing prices were mixed from previous month, yet selling prices were over 108% of listing prices in all categories. Multiple offer situations are still common even as prices continue to move upward. Compare the numbers from this time last year! This is an incredible opportunity for SELLERS.

Avram Goldman, President and COO of Coldwell Banker, SF Bay Area reported for the last week of June, "The hot days of the Spring have changed to temperate. We are seeing fewer multiples in most markets. There are still hot days in some markets with limited inventory and the most affordable prices. The upper end of markets are showing an easing back---taking longer to market as their inventories increase. Open houses are still well attended. With some buyers who backed off entering the market again. Inventories are increasing, but not at a rapid pace... We are beginning to see buyers cracking a smile as we see more homes going with only one offer. Sellers need to be more sensitive to their pricing as buyers are more focused on the price/value ratio. With interest rates still at historic lows and listing inventory being a bit more plentiful, the summer months should be more active than in past years when buyer activity tends to drop off until the Fall. We are inching closer to a balanced market. This is a healthy trend."

The number of Single Family Homes sold for June was up slightly from May. The average listing price dipped slightly from the previous month, however, the sales price was over 108% of the listing price. Compare this month's statistics to the same time last year, and you will see how much San Francisco homes (on average) have appreciated just in one year!

The number of Condominiums sold in June jumped dramatically from May - almost 100 more were sold. The average listing price also increased from last month, and the average selling price was over 108% of the listing price! Compare this month's statistics to the same time last year, and you will see how much San Francisco condominiums (on average) have appreciated just in one year!

Overall Sales for June also showed a healthy increase over May - over 150 more were sold. The average listing price was much higher than the previous month, and the average selling price was over 108% of the listing price. Compare this month's statistics to the same time last year, and you will see how much San Francisco properties overall (on average) have appreciated just in one year!

Our trusted mortgage consultant, Jay Bransfield of All California Mortgage said of Interest Rates in his July 1, 2005 update:

Housing Bubble? - Nothaft, Chief Economist of Freddie Mac stated existing Home Sales were reported last week basically in line with expectations at 7.13M units. - "Housing is experiencing the lowest levels of inventory available in 30 years, which definitely indicates that demand for housing is still plenty strong."

On June 30, 2005 the Federal Open Market Committee (FMOC) raised the Fed Funds rate .25% to 3.23%. The Prime rate now sits at 6.25%. The move was very much in line with expectations. General consensus continues to be that the FED will continue to hike rates in .25% increments at future Fed meetings until we are in range of 3.75% to 4% on the Fed Funds rate which translates to 6.75% to 7% Prime Rate. Keep in mind, that 30 year mortgages are roughly where they where for the last year or so and the move in Prime will have more of an impact on home equity lines of credit (HELOCs) and credit card rates. Rates on 30-year mortgages have fallen to their lowest level in 15 months, providing more fuel for the booming housing sector, according to a weekly survey from financing giant Freddie Mac. Long-term rates 'drift' lower even as Fed hikes benchmark rates.

30-year mortgages drop to 15-month low.

Do you want to keep up to date on the weekly Mortgage Market Conditions? Find out here.

Lastly - BY THE NUMBERS -

NO HOUSING BUBBLE - Existing Home Sales were reported last week basically in line with expectations at 7.13M units. - Housing is experiencing the lowest levels of inventory available in 30 years, which definitely indicates that demand for housing is still plenty strong. (source: Nothaft, Chief Economist of Freddie Mac)

NO INFLATION LAST MONTH - Inflationary pressures lessened in May 2005 as the overall level of prices dropped 0.1% from a month earlier. It was the 1st time the month-to-month change in prices had declined since July 2004 (source: Department of Labor).

A ROOF OVER YOUR HEAD - 31% of American households spend at least 30% of their gross income for either a monthly mortgage payment or a monthly rental payment. 14% spend at least 50% of their income for their monthly housing expenditures (source: The Joint Center for Housing Studies of Harvard University).

ESTATE TAX - Through the first 8 months of fiscal year 2005, the USA has collected only 3 cents in federal estate taxes for every $1.00 that it has collected in individual income taxes (source: Treasury Department).

"I've used Janis Stone as my Trusted Advisor when I've bought and sold real estate in San Francisco and I'm honored to be a part of her Trusted Advisor Team" - Jay Bransfield

Don't miss out on your opportunity to buy or sell! San Francisco Real Estate continues to be a great investment!

June 2005 **

May 2005 **

June 2004 **

* Includes Single Family Homes, Condo/Coop/TIC and Loft, 2-4 Units, and 5+ Units.
** Figures subject to change as Multiple Listing Service is updated.

Realtor.com is the official site of the National Association of Realtors® (NAR) and is a search engine for real estate nationwide. Realtor.com has all of San Francisco's listed homes and condominiums.