The California Dept. of Real Estate recently issued the following practical advice to prevent consumers from falling victim to a scam:

•Never pay an upfront fee for loan modification services. Such fees are illegal.
•Watch out for promises of guaranteed success. No one can promise that a loan modification will be successful.
•Ask questions, get referrals from people you know and trust, and always remember the following: If it seems too good to be true, it probably is not true.
•Contact a HUD-approved counseling agency that can provide loan modification services for free.
•If you have been a victim of a loan modification scam, report it to the DRE, the FTC and the Attorney General

Although these fall months are not typically known for high real estate activity, this year has proven otherwise, with strong pockets of movement occurring throughout the city, keeping the market active during these shorter days. Families have been rushing to purchase and settle into their new homes to prepare for the holiday season and upcoming year.

Single-Family Homes

As the number of homes for sale fell throughout the city by 27.3 percent compared to November 2010, the number of homes under contract this past month rose by 21.1 percent, while the number of homes sold rose by a substantial 22.3 percent. For properties that were priced below $700,000, the months of supply inventory dropped by 67.8 percent to 1.3 months. For properties priced between $700,000 and $1.2 million, the months of supply inventory fell by 12.1 percent to 2.8 months. Readings between one and four months typically indicate a seller’s market, where sellers have more negotiating power over home buyers.

One part of the city which continues to experience healthy sales activity is the central district that provides ample shelter from San Francisco’s famous fog and is one of the city’s sunnier regions. Since November 2010, the number of homes sold has risen considerably by 60 percent to a total of 40 properties. From the colorful neighborhoods of Haight Asbury and the Castro, to the more contemporary and family-friendly Noe Valley, to the posh and upscale Clarendon Heights, this part of the city offers a diverse array of housing opportunities for just about any home buyer.

Another area of the city which saw heightened sales activity is the southern part of the city that stretches from San Francisco City College to beyond Candlestick Park. Compared to this time last year, the number of homes under contract in this district has risen by a whopping 80 percent, while the number of homes sold has increased by 58.3 percent to a total of 57 properties. Some of the neighborhoods in the area, such as the Excelsior and Mission Terrace, offer a suburban feel, easy access to public transportation, and some of the best prices in the city, which makes them great locations for first-time home buyers.

Condominium Sales

Although the number of condominiums for sale fell throughout the city by 37.2 percent compared to November 2010, the number of condominiums under contract rose by 17.7 percent and the number of condominiums sold increased by 23.1 percent. For condominiums that were priced between $500,000 and $900,000, the months of supply inventory contracted by 61.4 percent to a reading of 2.2 months. For luxury condominiums priced above $900,000, the months of supply inventory decreased, by 49.8 percent to 2.6 months.

One part of the city which experienced a robust increase in condominium sales activity is the central-eastern part of town, whose landscape continues to evolve from its former warehouse and factory occupied streets. Since November of last year, the number of condominiums sold has jumped by 56.4 percent, from 39 units to a total of 61. The central-eastern district includes such neighborhoods as up-and-coming South Beach, home to AT&T Park and some of the most stylish condominiums in the city, as well as SOMA (South of Market) and Yerba Buena, which has seen an infusion of moderately priced condominiums in recent years.

Outlook

The Conference Board reports that consumer confidence surged in November to its highest level since July, a sign that Americans may be more willing to spend. The Conference Board said that its consumer confidence index climbed by 15 points in November to 56 points, the highest it has been since a reading of 59.2 this past summer. Although still well below a reading of 90, which indicates an economy on solid footing, the confidence numbers are encouraging.

According to the State Employment Development Department, the statewide and local job outlook continues to improve as California’s unemployment rate dropped for the second straight month in October to 11.7 percent. Bay Area counties were all below the State average, including San Francisco, which dropped to 8.1 percent from 8.3 percent the prior month.

As the cost of renting in the city continues to rise, and with the average rent currently at $2,572, more and more people should be considering owning a home. There are a variety of rent vs. buy calculators available online and anyone of them can be used to help with a decision as to whether to rent or buy.

As local tech companies like Zynga and Yelp prepare for initial public offerings, more and more of their employees are looking towards owning a home in San Francisco. Reuters reports that recent competitive bidding in some neighborhoods has pushed home prices up more than 15 percent from last year in some areas such as Noe Valley, SOMA and Potrero Hill.

With the improving economy and surge in pending sales, 2012 is likely to see a stronger San Francisco real estate market than what buyers and sellers have been accustomed to since 2008

The month of October not only brought the allure of Indian summer to the city, but it also brought more homes under contract and a healthy number of home sales. The climbing rents in the city, falling interests rates, increasing employment in the high-tech and bio-tech industries in the city and the Bay Area, are all pointing towards a stronger San Francisco housing market.

Single-Family Homes

Although the number of single-family home sales did fall marginally throughout the city by 7 percent compared to October 2010, the number of homes under contract this past month rose by a significant 31.8 percent. For properties that were priced below $700,000, the months of supply inventory dropped by 56.6 percent to a reading of 1.8 months. For properties priced between $700,000 and $1.2 million, the months of supply inventory fell by 41.3 percent to 2 months. These strong readings typically indicate a seller’s market, where sellers have more negotiating influence over buyers.

One part of the city which experienced a heightened jump in sales activity is District 4, located in the mid-western part of town, which many simply refer to as Twin Peaks West. Since October 2010, the number of homes under contract in this district has risen by 68.4 percent, while the number of homes sold has decreased marginally by 3.7 percent to a total of 26 properties. Twin Peaks West boasts the highest natural point in San Francisco, Mt. Davidson, and an array of neighborhoods such as the upscale residences of St. Francis Wood and Balboa Terrace, and the quaint, small town atmosphere of West Portal.

Another area of the city which has seen an increase in sales activity is District 2, in the far western side of town. Commonly referred to as the Sunset District, this area is bordered by Golden Gate Park and the Pacific Ocean. Compared to this time last year, the number of homes under contract has risen by 2.3 percent, remaining high at 44, while the number of homes sold has risen by 20.6 percent to 41 total properties. The neighborhoods in the Sunset District are predominately conservative and family-oriented communities, with good schools, family-owned businesses, and mid-century single-family homes.

Condominium Sales

Even though condominium sales fell slightly citywide by 10.8 percent in October, the number of condominiums under contract rose by 24.3 percent compared to October 2010. For condominiums that were priced between $500,000 and $900,000, the months of supply inventory contracted by 49.1 percent to a reading of 2.8 months. For luxury condominiums priced above $900,000, the months of supply inventory also fell, by 40.6 percent to 3.6 months.

One region of the city which experienced strong condominium sales activity is District 8, also known as Downtown San Francisco, in the northeastern part of town. Since October 2010, the number of condominiums under contract rose by 43.3 percent, while the number of closed sales also increased by 15.8 percent to 44 units. Both a major a tourist attraction and a financial powerhouse, Downtown San Francisco offers some of the very finest luxury high-rise condominiums in the country.

Outlook

Nationally, the consumer confidence index, which had improved slightly in September, declined in October. The index now stands at 39.8 (a reading of 90 indicates a healthy economy), down from 46.4 in September, as the result of growing concerns about business conditions, the labor market and income prospects.

Still, despite economic uncertainty, nearly eight out of 10 Americans believe buying a home makes good financial sense. This is according to a recent annual survey released by the National Association of Realtors®. The 2010 National Housing Pulse Survey measures how affordable housing issues affect consumers.

According to the U.S. Bureau of Labor Statistics, the preliminary unemployment rate in San Francisco-Oakland-Fremont areas for September 2011 declined to 9.2 percent. And, based on the State’s Employment Development Department, the unemployment rate in San Francisco’s metropolitan area is currently at 8.7 percent, the lowest in California.

Bloomberg News reports that tourism and technology firms in the city have bolstered a dining revival, with 200 eating, drinking, and food-related establishments being opened in the past two years.

According to the most recent Case-Shiller Home Price Index, a closely watched measure of the health of the nation’s housing market, Bay Area’s low and middle tier homes took a slight fall in August, while homes in high tier remained flat at over $608,109. The majority of homes in the city qualify as high tier, which is over $601,000, such as properties in the aforementioned Twin Peaks West and Sunset Districts, where most homes sell in the $700,000 to $1.2 million range.

And, a new economic report from ABC7 News predicts a roaring comeback for California’s housing market over the next six years. The same panel of UCLA economists who earlier warned the California housing bubble was going to burst is now predicting homes prices are ready to rebound. The UCLA Anderson Forecast anticipates an 11.5 percent price jump next year. The forecast calls for another 10 percent increase in 2013 and a median price of nearly $440,000 by 2017 that would represent a 52 ½ percent increase over today’s prices.

With the year coming to end, projected 2011 sales have been about the same as 2010. Coupled with the uptick in pending sales and improvement in the economy, we can all look forward to a robust 2012.
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A bill recently introduced in the Senate proposes that foreigners who spend $500,000 or more on a residential property should be eligible to obtain a visa that will allow them to stay in the country.

Several stipulations would be attached to the offer, however. Foreign investors would need to purchase a primary residence of at least $250,000 but spend at least $500,000 on residential real estate (another property could be a rental) — and through cash purchases only. The property would also need to be purchased for more than its appraised value, and the buyer would need to agree to live in the home for at least 180 days each year, which means any foreign buyer would be required to pay U.S. income taxes on any foreign earnings too.

The visa could be renewed every three years, but it would not serve as a way toward citizenship.

“Many people want to come and live in the United States,” says Sen. Charles Schumer, D-N.Y., who introduced the legislation this week with Sen. Mike Lee, R-Utah. “They will be here spending money and paying taxes, and the most important thing is they’ll sop up the extra supply of homes we have right now compared to demand, and that’s what’s dragging our economy down.”

Some brokers say that a visa incentive to foreign buyers could potentially even triple sales in their markets.

“California, Florida, New York, Colorado, Hawaii, and Texas — those states will see a huge increase in demand,” Sandra Miller, a broker at Engel & Volkers in Santa Monica, told the Los Angeles Times.

Source: “Bill Would Encourage Foreigners to Buy U.S. Homes,” Los Angeles Times (Oct. 20, 2011)

Your credit score is an important factor in qualifying for the lowest, most competitive interest rate when purchasing a home. A new analysis by the credit bureau Experian reveals which cities tend to be more creditworthy than others.

In Experian’s second annual State of Credit list, it compiled rankings of the nation’s cities based on the average of residents’ VantageScore, which has credit scores that range from 501 to 990.

Cities With the Highest Average Credit Scores

1.Wausau, Wis.: 789
2.Minneapolis: 787
3.Madison, Wis.: 785
4.Cedar Rapids, Iowa: 781
5.San Francisco: 781
6.Green Bay, Wis.: 780
7.Boston: 779
8.Peoria, Ill.: 778
9.Sioux Falls, S.D.: 778
10.La Crosse, Wis.: 777
Cities With the Lowest Average Credit Scores

1.Harlingen, Texas: 686
2.Jackson, Miss.: 701
3.Corpus Christi, Texas: 702
4.Monroe, La.: 706
5.Shreveport, La.: 706
6.Augusta, Ga.: 709
7.Bakersfield, Calif.: 709
8.Las Vegas, Nev.: 709
9.Tyler, Texas: 710
10.El Paso, Texas: 710
Overall, the national average for credit scores was 749, according to the study. The cities with the lowest credit scores tended to also have high foreclosure rates and high unemployment. On the other hand, cities with the highest average credit scores — which were mostly in the Midwest — tended to have a better employment picture.

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

CoreLogic announced its new credit score service, CoreScore, which will give lenders greater insight into a borrower’s outstanding debts and help to understand their credit worthiness. The new CoreScore credit report, which will be available to lenders and consumers, will include credit-risk information, as compliant with the Fair Credit Reporting Act.

It will not replace current credit reports but aims to fill in some gaps in current credit score reports.

The report will help “lenders mitigate risk by uncovering debt obligations, and increase new lending opportunities by identifying previously hidden credit behavior that could improve a consumer’s credit profile,” CoreLogic said in a press release announcing CoreScore.

According to CoreLogic, the reports will include such information as:

•Properties owned (with and without debt obligations)
•Mortgage obligations with companies that may not report to traditional credit reporting agencies
•Property legal filings, such as notices of default
•Property tax amounts and payment status
•Estimated market values on all U.S. properties owned
•Rental applications and evictions
•Inquiries and charge-offs from pay-day and online lenders
•Consumer-specific bankruptcies, liens, judgments and child support obligations
Such information will be pulled from CoreLogic’s databases on real estate, rental information and public records.

Daily Real Estate News | Tuesday, October 04, 2011

Tile is a very popular form of flooring in today’s market. You’ll find it everywhere from entryways and baths to kitchen backsplashes. Homeowners, both those staying put and those selling, are looking for ways to make small changes to improve the appeal of their homes. Let’s take a look at the pros and cons of going tile.

Pros:

Durability: Tile installed correctly can last for decades. Apart from accidental chips and cracks, it really stands up to normal wear and tear.

Beauty: Versatile designs and colors make for a beautiful choice for any home. From luxury to budget, there are a wide range of sizes and surfaces from which to choose!

Affordability: While marble and travertine can be budget-busters, ceramic and porcelain tile can many times be less expensive than laminate or even carpet.

Do-it-Yourself: Today’s homeowners need projects that they can tackle themselves. Installing tile is easy to do yourself. Read online and view YouTube videos for tips and tricks.

Easy to Clean: Simple mopping removes most dirt and grime, which wipes away easily. Tile is also virtually stain resistant.

Heating: Tile works well with radiant heat flooring. Install mats yourself for toasty toes during winter months.

Go Green: Natural stone and non-toxic grout are stellar green flooring choices, especially when compared to carpets. It has fewer fumes and toxic coatings.

Cons:

Repairs: Tiles can break. They don’t absorb the same impact as carpets or wood. Repairing one tile can be difficult, so be sure to keep extras on hand.

Labor Intensive: Tile is a do-it-yourself project, but not one for the faint of heart. It takes heavy duty mixing and lifting.

Cost: It depends entirely on the type of tile you choose, but higher-end tiles can be pricey.

Slippery: Tile is slippery when wet. This makes it a less than ideal choice for entryways. You can avoid this downfall by upgrading to a more textured tile, such as travertine or slate.

Echo Echo Echo: Carpet absorbs sound. Tiles don’t. Take this into consideration in high volume areas.

Maintenance: Grout can be hard to maintain. It can crumble or discolor. Be sure to use the proper sealant on grout to keep it in good repair.

Tile is an ideal choice when updating your house. It has its pros and cons, but it can increase appeal and saleability.

by Carla Hill

Fall is a welcome reprieve from the oppressive heat of Summer. It also offers homeowners all across the country a chance to ready their homes for cold weather, hard rains, and all that cold seasons have to offer.

As the seasons change, once again it’s time to perform some home maintenance. Here are 10 yearly tasks that will help keep your household in working order when the temperatures drop.

1. Clean Gutters: Do so frequently. Clogged gutters can result in standing water and roof damage. Plus, if you clean them frequently, you’re less likely to have to deal with decomposing leaves.

2. Mow and trim: It seems counter intuitive, but Fall is a wonderful time to both fertilize and reseed your lawn. A maintained lawn improves a home’s value and saleability. Use this time to trim shrubs and grass one last time so that your yard stands out, even in a dormant season.

3. Prune trees: With Winter comes ice. With ice comes broken limbs. Take advantage of nice weather and cut back or remove precarious limbs. It only takes one heavy snow or ice to weigh down a limb and damage property.

4. Powerwash: Driveways, sidewalks, decks, and patios can get quite grimy during the summer months. Invest in a powerwasher and you’ll be surprised how clean you can get them!

5. Outdoor Living: Some furniture is made to be stored during rainy or snowy seasons. Clear a place in your garage or shed for the items. Consider covering them with a tarp and storing cushion in vacuum seal bags.

6. Heating Systems: Check furnaces and change filters. Not only will it boost efficiency, but it will also save you money in the process.

7. Check for Leaks: Recaulk around windows and doors to help prevent heat from escaping.

8. Fireplace: You don’t want a chimney fire. Be sure to have your chimney swept or cleaned each year.

10. Piping: Check pipes for insulation to prevent freezing and bursting.

Every season holds different responsibilities for a homeowner. Be sure to stay on top of tasks each season to maintain your home’s value!

by Carla Hill

Home buyers are ga-ga over gadgets.

A survey by the Consumer Electronics Association (CEA) says home security systems, home theater-wired systems, home automation management systems and energy management systems are hot selling points.

“There is a strong relationship between home technologies and the real estate market. While the market needs to recover before home technologies play a more important role in home sales, the industry can help prepare real estate agents to be comfortable in discussing these types of systems with their clients,” said CEA’s Rhonda Daniel.

CEA said the vast majority of real estate agents have encountered homes with installed technologies.

In the past 24 months, nine in 10 real estate agents have been involved in buying, selling or showing a plugged-in home equipped with technology ranging from more established systems such as monitored security (93 percent) and home theater or home theater-wired systems (89 percent) to newer technologies like home automation and management systems (54 percent) and energy management systems (51 percent).

More than half of real estate agents said they are excited by these homes and believe their clients’ enthusiasm for technology mirrors their own. Nearly two-thirds of real estate agents said their clients are excited to see technologies in homes.

That’s no surprise.

The soft economy is bringing more and more entertainment home as a cost-saving factor. That means current home owners looking to sell should consider upgrading their home with at least one home technology system.

The recent survey of 1,793 real estate agents, members of the National Association of Realtors, sought to understand real estate agents’ experiences with homes outfitted with installed technologies as well as their perception of the technology.

“The ideal goal for the consumer electronics industry is to have knowledgeable real estate agents who are excited and open to promoting technology as a selling feature of homes,” Daniel said.

Half of surveyed agents expressed interest in learning more about installed home technologies, according to the CEA.

“Manufacturers and electronic systems contractors (ESCs) should be laying the ground work now to take advantage of the eventual upswing in the real estate market. Educating real estate agents on the benefits, value and functionalities of installed technologies now will demonstrate that the consumer electronics industry can be a trusted partner to equip them with the knowledge they are lacking,” Daniel said.
by Broderick Perkins