Newcomers to the area are often shocked to find that $1 million might not get them all the amenities in a home that they desire.

April, the kick-off month of peak spring homebuying, found the median price for single-family homes in San Francisco reaching the $1 million mark, an increase of nearly 32 percent over the April 2012 median price. Click here to read SFAR’s press release about prices hitting the $1 million mark.

Add to escalating prices, high demand, tight inventory and stiff competition from investors who can pay all cash and homebuyers may too take a moment’s pause (with pinky finger firmly resting at the corner of one’s mouth).

Single-Family Home Sales

Compared to April of last year, the inventory of single-family homes for sale in the City fell by 19.6 percent, to a total of 541 properties. The number of homes under contract rose by 11.5 percent, while the number of homes sold dropped by 4.1 percent, to a total of 212 properties.

For homes that were priced below $700,000, the months supply of inventory dropped by 42.6 percent to 1.1 months. For higher-priced homes between $700,000 and $1.2 million, the months supply of inventory also fell, by 20.6 percent to 1.1 months.

Properties being sold within just a few weeks of listing indicates a strong sellers market. Sellers are, in most cases, getting multiple offers due to limited inventory.

One region of the City experiencing a boost of mojo is the Central East section known as District 9 which includes the neighborhoods of Portero Hill, Dog Patch, Inner Mission and Mission Bay. Since 2011, the inventory of homes in this district has shrunk more than 42 percent with just 48 properties for sale in April 2013. At the same time, median prices in the area hit a 2-year high in April 2013.

The Inner Mission neighborhood has become a popular area for young tech professionals, due to its proximity to downtown, availability of mass transit, shuttles to Silicon Valley and an abundance of popular restaurants. The median price for a home here is $1,001,000, up 33 percent from the same time last year.

Condominium Sales

Along with single-family homes, the inventory of condominiums for sale in the city fell by 17.1 percent, to a total of 740 condominiums. The number of condominiums under contract rose by 20.6 percent, while the number of condominiums sold decreased by 0.3 percent, to a total of 295 units.

For condominiums that were priced between $500,000 and $900,000, the months supply of inventory tightened by 46.2 percent to 0.8 months. For luxury condominiums priced above $900,000, the months supply of inventory also dropped by 64.2 percent to 0.9 months.

One area in the City, perhaps not often thought of for condos is District 1, which includes the neighborhoods of Richmond and Sea Cliff, which sits just south of the beautiful Presidio. Condos in the area have been a hot commodity with inventory there decreasing by nearly 60 percent over the last two years. The median price for a condo in the district reached $810,500 in April 2013.

Outlook

The Conference Board Consumer Confidence Index®, which had declined in March, increased in April. Lynn Franco, Director of Economic Indicators at The Conference Board said: “Consumer Confidence improved in April, as consumers’ expectations about the short-term economic outlook and their income prospects improved. However, consumers’ confidence has been challenged several times over the past few months by such events as the fiscal cliff, the payroll tax hike and the sequester. Thus, while expectations appear to have bounced back, it is too soon to tell if confidence is actually on the mend.”

The California Association of REALTORS® (C.A.R.) reported California home sales and prices experiencing strong increases in April, with the median price surpassing the $400,000-mark for the first time in five years. In addition, homes across the state sold more quickly in April 2013, with the median number of days dropping to 27.9 from 48 days in April 2012.

CNN Money recently reported that, “during the housing bust, sales were often derailed by low-ball appraisals that fell far shy of a home’s selling price. But now, as home prices climb and housing inventories shrink, appraisers are valuing homes at or above their selling prices.”

According to SF Gate, “San Francisco rental rates rose 15.8 percent in the first quarter of 2013 compared with the same time last year, to an average of $2,663 for all size units. Studio apartments averaged $2,075, up 16.5 percent in a year. The steepest rise came in one-bedroom, one-bathroom apartments, which are now $2,611 – up 19.9 percent in the past year and up 30 percent from two years ago.”

Beautiful new construction in very popular Hayes Valley district is now selling!

This beautiful complex was designed by San Francisco’s own David Baker + Partners, Architects. We love DBP for its signature design character,and all 63 residences — including the 5 townhouses fronting Ivy Street — reflect the firm’s distinctive,
high-quality approach.They also reflect a real commitment to sustainability,as 300 Ivy is LEED-registered with a goal of Platinum certification — something we’re all in SF very proud of.

300 Ivy features:
• Lush,landscaped garden at the courtyard level
• Landscaped roof garden featuring an outdoor grill,seating & dining areas,a sun deck for entertaining & relaxing
• Racks for up to 68 bicycles
• Private storage for select residences
• Onsite car sharing

Finishes & Units Features are chosen for their quality, comfort,
and yes, style:
• Spacious layout with great volume
• Wide-plank,sustainably sourced oak floors in the kitchen, dining,and living areas
• Forced-air system with air conditioning in every residence
• Caesarstone counters in the kitchen and bath
• Kitchen is equipped with: Studio Becker cabinetry,Kohler Purist pull-down faucets,Franke under-mounted stainless steel sink,stainless steel Bosch appliances, including a dishwasher,wall oven & gas cooktop,integrated Liebherr refrigerator
• Bath is fitted with: Hans Grohe & Kohler fixtures,deep & comfortable tub by Kohler,Studio Becker vanity or Duravit wall-mounted sink

This complex has 5 Townhomes. What sets these townhouses apart?
• Individual entry from Ivy Street
• Private roof deck and private courtyard-level patio
• Full-floor master suite
• Spacious layout with 10′ ceilings on the first floor
• Wide-plank,sustainably sourced oak floors on the first floor & on all stairs and landings
• Forced-air system with air conditioning in every residence (so rare in SF)
• Caesarstone counters in the kitchen and bath
• Kitchen is equipped with: Studio Becker cabinetry,Kohler Purist pull-down faucets,Franke under-mounted stainless steel sink,Thermador dishwasher,Thermador free-standing gas range and professional hood,Thermador integrated refrigerator
•Bath is fitted with: Hans Grohe and Kohler fixtures,Studio Becker vanity in master bath,Duravit wall-mounted sink in second-floor bath
What I can say? Wow!

I’m very excited to announce that the first sales release of residences is scheduled for May 28, 2013
Please contact me for more info on how to register and get ready to purchase these beautiful new homes. Time is running out!

We have several new constructions for sale in San Francisco- “Marlow” is one of them. This complex is located at the juncture of three of the City’s most desirable and stylish neighborhoods- Nob Hill,Russian Hill and Pacific Heights.You feel it right away. The energy that comes from living at the confluence of three of the City’s most vibrant and sophisticated neighborhoods. From picturesque parks with stunning vistas to critically acclaimed entertainment, Pacific Heights, Nob Hill and Russian Hill provide an unparalleled modern city living experience:
- Pacific Heights: One of the most luxurious addresses in America, Pacific Heights is known for incredible architecture and breathtaking views.

- Nob Hill: Home to Grace Cathedral and numerous parks, Nob Hill is a sophisticated and classic slice of San Francisco.

- Russian Hill: From the world-famous Lombard Street to hip bars and incredible restaurants, Russian Hill is city living at its best.

These 98 modern residences will be ready for occupancy early 2014.
‘Marlow” offers a collection of modern 1 and 2 bedroom homes and 3 bedroom townhomes.
“Marlow” exceeds expectations with modern conveniences like air conditioning, an attended lobby and secured parking for each home. Most residences offer spacious balconies from which to take in the views and energy of the City.

Please contact me for more info.

If home is where the heart is, then kitchens are clearly one of the vital organs that convert a house into a home. So it is no surprise that kitchen renovations are among the most popular remodeling projects tackled each year.

Not only does updating your kitchen breathe new life into your home, it adds value to it should you decide to sell. According to Remodeling Online’s Cost vs. Value Report, even a moderate kitchen remodeling project will return an average of 80% of its cost when it comes time to sell the home.

Any home improvement projects can be complicated, but major kitchen remodeling can turn your life upside down, not to mention all the fast-food pounds you’ll put on waiting for that kitchen to welcome you back in. To avoid the indigestion and home improvement hassles, it makes sense to break down the projects into “modules” that can be completed independently of one another. Not only does this make the project more manageable, these smaller changes can have a big visual impact and cut down on the need for more major makeovers.

Here are some ideas to help you separate the wheat flour from the kosher salt and cook up the kitchen of your dreams:

Replace the Kitchen Countertop

Kitchen countertops create bold statements and become the feature point of the entire room. Changing the kitchen countertops is simple way to make a big change that can be completed in a short time frame with little impact on family life. Kitchen countertop materials can vary as much in price as they do in style. Laminates are a cheaper option, but if you are willing to invest more, natural stone is an elegant option.
Granite is the most popular choice for kitchen countertops; it can handle a hot pan, is very durable, and just looks great. If you want the dimensional stability that natural stone has to offer but want a bit of a break on the wallet, then engineered stone is the way to go. Engineered is made from quartz, it comes in a large variety of colors, and it is a nonporous surface that resists stains and scratches and is easy to maintain.

Ceramic tile is also a great choice for your kitchen countertops, and it doesn’t have to end there: You can continue your tile up to the backsplash for a whole new look. Tile is inexpensive, can be installed by a homeowner and is easy to maintain. To avoid the hassles of cleaning grout, choose darker colors, seal the grout right after you are done, and use grout with an antimicrobial additive that resists mold growth.

Laminate countertops are the most cost-effective and available in standard sizes at your local home center. Countertops can also be made of butcher block, stainless steel, and even concrete.

For the best results when having countertops made for you, the fabricator should make a template of your existing walls. Homes are never square, and having a template is the best way to make sure the new top fits your old walls.

Keep the Kitchen Cabinets

Kitchen cabinet replacement is one of the most expensive parts of a kitchen renovation project. But in many cases, you can create an entirely new look to the kitchen by giving those cabinets the love they deserve.
If your cabinets are in good shape but you just are not thrilled with their finish, you have many options to change their appearance. You can strip off the original finish and stain them any way you like. Stain colors are not limited to the brown family; they can be just about any color of the rainbow. Be sure that when you put a topcoat on them you select one that does not yellow; this is especially a problem in the kitchen.

Painting your kitchen cabinets is another great option. Crackling is a beautiful effect for cabinets, especially if you use a bright color that will pop under a more neutral tone like off-white.

For the more adventurous, vintage wallpaper is a hot ticket. Patterns are available in Asian prints, floral, stripes, botanicals, you name it. Elements can be cut out of the vintage wall covering and decoupaged to the kitchen cabinet door face. You can create your own pattern and style by mixing and matching different details from the wall coverings and sealing it with a top coat.

If the idea of having a pattern on the exterior of your cabinets is a bit frightening, then how about replacing your cabinet doors with glass doors and using the vintage wall paper as a liner to brighten up the interior? If the crafty thing is not your style, you can purchase new cabinet doors, which are an instant facelift for your kitchen.

Finally, don’t forget about replacing the kitchen cabinet hardware. Small changes like new door handles and drawer pulls can make a huge difference in the overall look of the kitchen. Most home centers stock a huge variety of handle designs and styles, and many more are available by special order.

Replace Kitchen Appliances

The “dated” look of kitchens can often be traced to the appliances. Just like cars, appliances reflect the style of the day, and changing or repainting can make a kitchen appear 20 years younger, especially if you repaint the walls to match the new colors.

When replacing, choose an EnergyStar-rated appliance. This designation means the appliance exceeds the Department of Energy guidelines for efficiency by at least 10%. Not only will you save money on your energy bills, you may be eligible for rebates from your local energy supplier as well.

Replace Kitchen Faucet

New faucets also make a nice feature in an otherwise dreary space. Kitchen faucet replacements are fairly simple plumbing projects, with all of the parts available at your local hardware store.

Replace the Kitchen Floors

New flooring alone can really change the look of a kitchen and can be installed with little impact on family life. There’s a wide variety of durable vinyl and laminate products to choose from. Engineered hardwood flooring is also a great choice for the kitchen. It responds well to all conditions, including moisture, and wears beautifully.

Update the Lighting

Lighting is just as important in the kitchen as it is in any other room of the house. You have more options than just recessed cans. Track lighting is a great choice for the kitchen, and it doesn’t have to look bulky and awkward anymore. The tracks can be a thin cable with beautiful beaded shades hanging above your island, or a bendable metal track with lamps that spotlight artwork or bathe the room with light.

Fixtures can be added underneath your upper cabinets to put the light where you need it most in your prep area.

Update Window Coverings

Simple changes like window coverings can have a dramatic effect, as Flickr user Kitchen windows beg for beautiful swags, which don’t always require sewing. Swags are drapes’ lesser-known cousin. They are versatile top treatments for your window and can be accomplished in a variety of ways. Swags occur where fabric balloons down over the upper middle portion of the window. The fabric does not even need to have a pocket; you can just drape it decoratively over the rod, if you like.

Try using napkins or vintage dish towels with a bold pattern or a subtle strip tied onto a rod to create a new spin on the tradition swag. You can also drape the napkins over the rod to create an overlap of triangle as your swag. If you have a modern kitchen and just love something different, you can install a ball chain track instead of a rod and hang them at varied lengths to create a metal beaded swag. Ball chain doesn’t have to be just silver. Get creative! Go to http://www.ballchain.com to see just how many colors and finishes they are available in.

No matter what your budget, kitchen remodeling can be cheap and fun! With a little creativity, you can add sizzle and spice, and cook up the kitchen of your dreams!

By Tom Kraeutler | The Money Pit

Recently the legal department of the California Association of Realtors® (CAR) released a memorandum dealing with the portion of landlord-tenant law that relates to the subject of pets and animals. It provides useful information for both landlords and tenants, as well as for real estate agents who get involved with leasing and/or managing property.
In reviewing such laws it is important to keep in mind that most of the rules need to come with a footnote or to be stated as “in general.” This is because there are all sorts of exceptions if the animal is a service animal (such as a seeing-eye dog) or an animal (sometimes called a companion or comfort animal) that is used to ameliorate a disability. By law, animals that fit into those categories are not considered pets, and different standards apply.

First, then, let us review the rules as they apply in general, remembering that there will be exceptions for service animals and animals used to mitigate a disability.

It is perfectly legal for landlords to prohibit pets. Moreover, it is legal for a landlord to discriminate among pets. A landlord could have a “no-dogs” policy, but might allow other kinds of pets. Conversely, a “cats-only” policy would also be legal. Landlords may even specify that certain breeds are prohibited whereas others may be allowed.

In California – thanks to a law passed just last year– a landlord cannot require that a dog or cat, or any other type of animal, be declawed or devocalized as a condition of rental. A landlord could, though, require that any pets be spayed or neutered. Who knew such things?

Often landlords are willing to take on pets provided that the tenant will pay a deposit that is higher than normal. This is perfectly legal; but it is subject to California’s security deposit law which only allows for a maximum security deposit of two months for unfurnished rentals and three months for furnished rentals. Calling it a “pet deposit” does not put it into a special category which avoids that limit.

As a matter of fact, the CAR memo suggests, “it makes more sense to simply charge a higher security deposit rather than creating a separate pet deposit fee.” Among other things, doing that “prevents unnecessary arguments or confusion if money in the pet deposit is needed for cleaning or damages not caused by pets.” Another pet-related recommendation is that, “it is a good idea to add some specific provisions to the lease itself or in an addendum to the lease which directly regulate animal activity.” “The benefit of adding such detailed provisions is that it makes it clear what rules the tenant must follow when keeping a pet on the property. Also it makes it easier for the landlord to address and possibly evict a tenant for not following the specified rules.”

As we have noted, the rules are different when it comes to service or companion animals. In those cases, even if there is a no-pets policy, if a disabled tenant “requests to keep a service animal or other animal and it is a reasonable accommodation of the tenant’s disability, the owner would have to allow the tenant to keep the animal.”

This can be dicey. As a general rule, landlords may not inquire about a tenant’s disability. But the CAR memo points out the following:

However, if a tenant asks for an animal and need for the animal is not obvious, then the landlord may further inquire. For example, a tenant who suffers from an anxiety disorder, which may not be apparent, may require a cat as a comfort animal. When a tenant asks for an accommodation, the tenant and landlord must engage in what is called a “good faith interactive process” to determine how best to accommodate the tenant’s disability. If the need for the animal is not obvious the landlord could ask for verification regarding the nexus between keeping the animal and the tenant’s disability. A tenant can satisfy this by providing written verification. Typically this written verification is from a medical practitioner, although it is not required that it be from a medical doctor and other forms of proof may be acceptable depending on the circumstances.

As noted, this can be dicey.

While California and Federal law are generally the same regarding service and comfort animals, California law goes further in that the same “reasonable accommodations” must also be made for a person who is licensed to train a service animal.

California landlords have no special liability with respect to the behavior of pets allowed on the premises, unless the landlord has knowledge of a pet’s dangerous propensities and the landlord has done nothing about it. It is the owner of the pet who has strict liability. Nonetheless, landlords who allow pets should review their insurance with respect to coverage for injury or damages caused by a tenant’s pet. They also should be sure what, if any, exemptions are made for certain breeds. Finally, it’s not a bad idea for a landlord to require that the tenant maintain a ‘renter’s insurance’ policy that will provide the tenant with coverage if his or her animal causes harm to someone.

by Bob Hunt

The first month of 2013 brought the same type of market behavior that San Francisco has been experiencing for some time now.

With the already low inventory of homes for sale being consumed at such a rapid rate, bidding wars have broken out throughout parts of the city and overall buyer demand remains high.

As home prices continuing to rise, confidence among potential home sellers is sure to bolster inventory and the housing market in the coming months.

Single-Family Home Sales

Compared to January of last year, the inventory of single-family homes for sale in the city dropped by 40.3 percent, to a total of 380 properties. The number of homes under contract also fell by 9.6 percent, while the number of homes sold increased by 16.9 percent, to a total of 152 properties sold.

For homes that were priced below $700,000, the months of supply inventory shortened by as much as 53.3 percent to a reading of 1.2 months. For higher-priced homes between $700,000 and $1.2 million, the months of supply inventory also fell, by 58.7 percent to 1.1 months.

(These exceedingly short time frames are indicative of a seller’s market, where sellers have more leveraging power over buyers who are all vying against a limited amount of properties.)

One area of the city which experienced robust sales activity is in the Sunset District, over in the central-western part of town. Since January 2012, the number of homes sold jumped by 92.9 percent, to a total of 27 properties. Once commonly referred to as the, “Outside Lands,” for its former backdrop of endless sand dunes and scarcity of roads, the Sunset District is now home to a predominantly residential community, with a number of well-regarded schools and family-owned businesses. Combined with its close proximity to Golden Gate Park and Ocean Beach, families who are seeking a quick exit from the hustle and bustle of downtown will find solace in the Sunset District. The median price for a home here is $760,000, which is up by 10.9 percent from last year.

Another region of the city which experienced healthy sales activity is in the neighborhoods of Bernal Heights and Potrero Hill. Compared to this time last year, the number of homes under contract rose by 23.1 percent, while the total number of homes sold also significantly increased, by 120 percent, to 29 properties sold. Bernal Heights and Potrero Hill, which both offer more laid-back, cozy and neighborhood-friendly communities are ideal for buyers who want to be close to the city but also yearn for amenities such as a small garden or yard. Charming bungalows and cottages add to the appeal of this affordable, yet mixed array of real estate. The median price for a home here is climbing fast, now at $874,000, up by 52.5 percent from last year.

Condominium Sales

Similar to single-family homes, the inventory of condominiums for sale in the city dropped by 40.3 percent, to a total of 498 condominiums. The number of condominiums under contract rose by 12.6 percent, while the number of condominiums sold also fell by 6.2 percent, to a total of 151 units sold.

For condominiums that were priced between $500,000 and $900,000, the months of supply inventory tapered by 53.9 percent to a reading of 1.2 months. For luxury condominiums priced above $900,000, the months of supply inventory also dropped by 64.9 percent to 1.5 months.

Of all of the San Francisco residential districts, the only area that experienced positive condominium sales activity is in the South Beach and SoMa (South of Market) neighborhoods in the central-eastern portion of the city. Since January 2012, the number of condominiums under contract rose by 11.5 percent, while the number of condominiums sold also improved by 59 percent, to a total of 62 units sold, which accounts for almost half of all condominiums sold in the city last month. Popular among young professionals, South Beach is one of the hippest neighborhoods in the city, with its glitzy high- and mid-rise condominiums and fun outdoor activities, while SoMa continues to maintain its cool reputation as the city’s cultural hub for art and nightlife. The median price for a condominium here is $848,200, which is up by a whopping 51.7 percent from 2012.

Outlook

The consumer confidence index, which had declined in December, fell further in January. The index now stands at 58.6, down from a reading of 66.7 in December. Lynn Franco, Director of Economic Indicators at the Conference Board, says that, “Consumer Confidence posted another sharp decline in January, erasing all of the gains made through 2012. Consumers are more pessimistic about the economic outlook and, in particular, their financial situation. The increase in the payroll tax has undoubtedly dampened consumers’ spirits and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock.”

Earlier this month, CNNMoney reported, “The bursting of the housing bubble plunged the economy into a recession from which it has yet to fully recover. But economists say this could finally be the year that housing lifts us out of the doldrums. Just over half of economists surveyed by CNNMoney identified a housing recovery as the primary driver of economic growth this year. The rest were split fairly evenly between consumer spending, increased domestic energy production and stimulus from the Federal Reserve as major growth drivers. Home sales rebounded to the strongest level in five years in 2012, as home building bounced back to levels not seen since early in the recession. Near record low mortgage rates, rising home prices and a drop in foreclosures have combined to bring buyers back to the market.”

And in another sign of an improving housing market, both California home sales and prices posted gains in December, with the median price posting strong double-digit gains for six straight months, as announced by the California Association of REALTORS®. “Sales in December were up 0.8 percent from a revised 518,460 in November and up 0.9 percent from a revised 517,730 in December 2011. The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the December pace throughout the year.”

Mayor Ed Lee last month issued the following statement on San Francisco’s unemployment rate dropping below seven percent in September, based on preliminary unemployment numbers released by the State Employment Development Department (EDD):

“When I first came into office in January 2011, San Francisco’s unemployment rate was 9.6 percent; today it was announced that for the month of December 2012, it was 6.5 percent, the lowest unemployment rate since 2008. It’s a new year and we are experiencing a consistent improvement in our economy, yet we will not rest for the 30,900 San Franciscans who are still unemployed. I will continue to work with every business sector in the City to make sure we continue to support policies that grow jobs and put San Franciscans back to work.”

According to the EDD, San Francisco County registered the third lowest unemployment rate (6.5 percent) among California’s 58 counties as of December 2012. Jobs located in San Francisco County increased by 4.3 percent on a year-over basis as of the second quarter of 2012, according to the Bureau of Labor Statistics. That ranked the county 15th in performance out of the 329 largest counties in the nation and represented a year-over job expansion of about 26,000 jobs.

Now that the calendar has turned over to 2013, the San Francisco real estate market is ready to heat up. With the burgeoning population of the Bay Area and the driving force of tech startups, San Francisco is the place to be. As a result, housing prices are skyrocketing, and supply is ever-dwindling. The Mission, the Castro, and Dogpatch are and will continue to be the hottest neighborhoods in San Francisco this year.

The Mission District

The Mission is a constantly changing area that has seen an influx of young urbanites in the past decade. Still a haven for Latino culture in San Francisco, the housing market has been off-the-charts hot over the past few years. 2013 appears to be the same for the Mission, as listings are down 29 percent, while prices rose 80 percent over the past year. Many residents swear by the variety of trendy eateries and always expanding number of unique bars to visit.
Alex Hastings, a Mission resident and East Coast transplant, couldn’t imagine living elsewhere. “It really is the place to be; there’s no other more unique mishmash of people, sights, and sounds. It’s really a fantastic living environment,” said Hastings.
A quick view of the MLS shows a mere five properties available in the neighborhood, with a median price of around $750,000 for a two-bed, two-bath condo.

The Castro

Just to the west of the Mission is the Castro. The heart of the gay rights movement is now one of the hardest buys in the city of San Francisco. The real estate market is incredibly shallow right now, with only four properties within the neighborhood proper. There are a dearth of condos for sale and mostly single-family residences currently available. Prices range from $995,000 for a three-bed, two-bath condo to nearly $2 million for a three-bed, four-bath single-family home.
Those who already reside in the Castro aren’t likely leaving soon. Kevin Chan moved to an apartment in the Castro in December, and despite the cramped living, he said, “I don’t see myself leaving the Castro ever. There’s always something interesting going on, and my commute is a breeze.”

Dogpatch

Despite its beginnings as a working-class neighborhood, the half-residential, half-industrial neighborhood on the east side of San Francisco has changed dramatically over the past 20 years. Dogpatch is fast becoming a neighborhood on the rise. The tech sector is quickly moving to the area and a necessity for modern housing along with it. Just south of AT&T Park, the future expansion of the baseball neighborhood will make its way to Dogpatch shortly. Numbers of new markets and restaurants are opening daily, and as a result, the real estate market in the area is nearly nonexistent. The MLS shows no listings currently for Dogpatch, and a look at recent sales reveals several condos smaller than 1,000 square feet selling for a minimum of $700,000. Though pricey to break into, property values are bound to continue increasing into the foreseeable future.

By Jared Feldman | Yahoo! Contributor Network

Much like the rest of 2012, December produced improved buyer demand, steadily rising home prices (the median now at $850,000, up by 39.3 percent) and pockets of robust activity throughout the city.

With such a strong buyer demand, the current inventory was gobbled up quickly, with the average days on market at 41.

As sharply rising rents and low interest rates continue to drive the market, it makes financial sense for buyers to purchase now rather than rent, to lock in at these low 30-year rates and wait for appreciation. And, with job creation remaining at the forefront for the city’s leaders, we can all maintain a positive and fruitful outlook as we embark into the next twelve months.

Single-Family Home Sales

Since December of last year, the inventory of single-family homes for sale in the city fell by 40.8 percent, to a total of 379 properties. The number of homes under contract increased by 13.4 percent, while the number of homes sold dropped by 13.9 percent, to a total of 199 properties sold.

For homes that were priced below $700,000, the months of supply inventory dropped as much as 74 percent to a reading of 0.7 months. For higher-priced homes between $700,000 and $1.2 million, the months of supply inventory also fell, by 40.2 percent to 1.3 months.

(These exceedingly short time frames are indicative of a sellers’ market, where sellers have more leveraging power over buyers who are all vying against a limited amount of properties.)

One area of the city which sustained positive sales activity is in the Central District, located in the geographic center of San Francisco. Compared to December 2012, the number of homes under contract here rose by 46.2 percent, while the total number of homes sold surged ahead by 42.9 percent, to 30 properties sold. The Central District includes such desirable neighborhoods as the historic Haight Ashbury, which until this day, still retains its bohemian quality from the 1960s, to the more clean-cut and family-oriented Noe Valley, whose typically sunnier weather and rows of merchant shops highlight the wholesomeness of its predominately young family community, and Twin Peaks, which offers some of the city’s most remarkable views, thanks largely to its steep streets and high vantage points. The median price for a home here is $1,517,500, which is up by 12.4 percent from last year.

Condominium Sales

In the same market behavior as single-family homes, the inventory of condominiums for sale in the city fell by 41.4 percent, to a total of 487 condominiums. The number of condominiums under contract rose by 29.9 percent, while the number of condominiums sold increased by 20.6 percent, to a total of 240 units sold.

For condominiums that were priced between $500,000 and $900,000, the months of supply inventory greatly tapered by 74 percent to a reading of 0.7 month. For luxury condominiums priced above $900,000, the months of supply inventory also dropped by 44.6 percent to 1.6 months.
One region which saw a tremendous increase in condominium sales activity is the South Beach and SoMa (South of Market) neighborhoods in the central-eastern portion of the city. Compared to this time last year, the number of condominiums under contract here rose exponentially by 143.3 percent, while the number of condominiums sold also increased by 25.4 percent, to a total of 79 units sold. Home to AT&T Park and Caltrain, the continuously expanding South Beach area offers some of the city’s most sought-after and stylish condominiums, while SoMa is the center of the city’s art community, with SFMOMA, the Yerba Buena Center for the Arts, the Academy of Art College, and throngs of small galleries all around. The median price for a condominium here is $677,000, which is up by 17.6 percent from 2012.

Outlook

The consumer confidence index, which had declined slightly in November, posted another decrease in December. The index now stands at 65.1, down from a reading of 71.5 in November. Lynn Franco, Director of Economic Indicators at the Conference Board, says that, “Consumers’ expectations retreated sharply in December resulting in a decline in the overall Index. The sudden turnaround in expectations was most likely caused by uncertainty surrounding the oncoming fiscal cliff. A similar decline in expectations was experienced in August of 2011 during the debt ceiling discussions. While consumers are quite negative about the short-term outlook, they are more upbeat than last month about current business and labor market conditions.”

Business Insider reports, “Going into 2013, home prices are expected to rise 6 percent driven by steady demand, lower bank-owned (REO) sales, and lower inventory of unsold homes. This is according to CoreLogic’s latest report. The CoreLogic Home Price Index (HPI) increased 6.3 percent in 2012, the largest increase and highest level since 2006. And year-over-year home price increases were more widespread. This increase in home prices across a broader geographic spread is expected to continue in 2013.”

In another sign of an improving housing market, California home buyers are more optimistic about the housing market now than they were three years ago, according to the California Association of REALTORS®’ recent “2012 Survey of California Home Buyers.” The survey found that more home buyers this year believe that home prices will rise, with 25 percent saying prices will rise in one year; 41 percent saying they will rise in five years; and nearly three-fourths of buyers (73 percent) believing home prices will rise in 10 years. This compares to only eight percent, 35 percent, and 60 percent, respectively, in 2009, when the question was first asked.

From the SF Chronicle, “Congressional efforts to reduce the U.S. deficit revived tax breaks for mortgage insurance and extended interest deductions for homeowners that will cost the government $600 billion over five years. Congress raced to pass the ‘fiscal cliff’ bill before Jan. 1 to avoid sweeping spending cuts and tax increases that jeopardized the economic recovery. Legislators also left in place a 2007 tax break for homeowners whose debt is forgiven by lenders and preserved exemptions for profits on home sales, while maintaining mortgage-interest deductions. The moves could help a housing market that last year started to reverse a five-year slump that pushed the U.S. economy into the longest recession since the 1930s.”

For many people who have been sitting on the fence waiting and wondering if the housing market is rebounding, the signs are showing an improved chance to get into real estate while prices and loan rates are still low.
However, many of the homes on the market need some work and some need a lot of care. How do you know what to look for in a fixer-upper? If you’re a first-time home buyer, purchasing a fixer-upper can be a good option because the price will be lower. But fixer-upper homes come with flaws and some can be huge.

Why a fixer-upper? In some areas, the housing market is very low on inventory, especially new and/or homes in top shape. Foreclosures and short sales, though, can offer better prices if you can deal with the home’s maintenance needs.

Many first-time home buyers don’t take into consideration the extra expenses needed to maintain a home. They carefully calculate the mortgage, downpayment, homeowners’ association dues, property taxes, and other hard costs but they neglect to factor in the everyday repairs and maintenance for the property. Things like a new water heater, stove, microwave, central heating/air conditioning systems, washer/dryer and dishwasher repairs and even plumbing and roof repairs. These items might be new or relatively new when you move in but, in the not-too-distant future, they’ll need repairing or replacing. When they do, the added costs can put a strain on homeowners’ monthly budget.
With this in mind, buying a fixer-upper for your first home can be a great way to get into the real estate market at a good price. However, it’s essential that you completely understand the home’s necessary repairs before you buy. Things to consider include how much you’ll save by buying a fixer-upper versus what you’ll need to spend to make it livable, how old the home is, who will do the repairs, and how much patience you have for this project.

Real estate is also always about location for obvious reasons. You can have a fabulous home in a horrible location and then later nobody wants it. Or you can have an okay or fixer-upper home in an ideal location, and suddenly it’s worth millions – easier to fix up a home than it is to change the entire surrounding location. So, when shopping for a fixer-upper, be very careful to survey the neighborhood and make sure it’s in a location that is worth spending your time and money to fix it up.

You need to carefully study the cost and savings by buying a fixer-upper. People buy these types of home to save money but if you end up under-estimating the home’s cost to renovate it, you’ll be either short on cash or very upset. Get a home inspection to ensure you understand the basic repairs and maintenance needs. If there are problems with the home, make sure you consult with experts to give you an idea about how much the repairs will likely cost. Also, be sure to consider the age of the home. If a home is very old, it can certainly have some charm t but it also can have a lot of nightmare issues that aren’t always easy to spot. This can be things like plumbing or electric wiring issues, lack of insulation, structural or foundation problems… the list goes on. You don’t have to steer clear of an older home but do your homework before you buy.

Part of doing your homework is finding an expert team to help with the repairs. If you’re a handyman, that’s fine, but there will likely be times when you’ll need to turn to other experts for help and advice. Start gathering these resource contacts now before you buy so that you can have them available to look at the fixer-upper homes you’re considering buying.
Finally, be short on expecting super fast progress and long on patience. Remodeling and even just making minor repairs can take longer than you think. Don’t get impatient. Remember you chose a fixer-upper to save money. Taking the time to properly care for it will ensure that you have a comfortable home.

by Phoebe Chongchua

About a quarter of first-time home buyers use gifts from relatives to fund a down payment for a home purchase, according to data from the National Association of REALTORS®. But lenders are carefully scrutinizing such gifts.

“Basically, the banks want to make sure that you’re not getting a second loan,” Ray Mignone of Ray Mignone & Associates, a financial planning firm, told The New York Times. “If all of a sudden $50,000 pops into your account, they want to make sure it’s not a loan against the property that they’re going to put a mortgage on.”

In a recent article, The New York Times provided some of the following tips in making make these lenders’ checks and balances go smoother for home buyers:
• Have the money come in a check or wire transfer so that it’s traceable. Lenders often become cautious over cash gifts.
• Have the giver provide the lender with a gift letter, which verifies the money is a gift, the specific amount being given, the relationship to the borrower, and that repayment is not required.
• Deposit any gift money into the borrower’s account a few months before applying for a mortgage so the lenders have fewer questions about it, Mignone says.
• Consider federal gift-tax regulations: Individual gifts of more than $13,000 must be reported to the IRS and are subject to tax.
• Be aware that certain types of mortgages may limit how much of a down payment you can receive as a gift. For example, with conventional loans, lenders may require at least 5 percent in the borrower’s own money that is not a gift. However, Federal Housing Administration loans — which are popular among first-time home buyers — do not have any limits on gifts and borrowers can use gifts to cover the entire down payment.

Source: “To Givers of Down Payments,” The New York Times