SF Real Estate Blog

The first time homebuyer’s tax credit is looking very likely to be extended for another year, and also include current homeowners. The homebuyer tax credit article from Yahoo says first time homebuyers would still get an $8,000 tax credit, and buyers who have owned their current home for at least 5 years would get a $6,500 credit.  From the article:

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

Source Socketsite: http://www.socketsite.com

The chart above is from the excellent blog socketsite.com, which has a great post on the San Francisco Case Schiller Index.  From the chart, it would certainly appear that we’re at or near the bottom in terms of price declines.  Assuming there are no more hidden surprises in the national economy, my sense is that we are reaching a bottom.  The question is whether the current uptick shows that we have not only reached a bottom, but are once again starting to see some slow and steady appreciation.  It may very well drop down again and stay at the bottom for several months.

On the other hand, it may mimic the stock market and have a reasonably moderate bounce back, as people generally overreact both ways: when prices are going down people are afraid of paying too much then losing money, when prices are going up people are afraid of waiting too long then paying too much. Unlike the stock market, though, there are still a lot of complex issues in the real estate market that need resolving, from foreclosures to the FHA.

Here’s a quick snapshot for all those interested in condos at the Infinity in San Francisco.  We’re not allowed to publicly post sales prices, unfortunately, so email me at michael -at- resonantproperties.com and I’ll email them to you (I will only send one email, I won’t add you to any list).

Without further ado:

Source: New York Times

The New York Times just recently wrote a great article about the 7 New Rules For First Time Home Buyers.  It’s well worth reading in it’s entirety, but if you’re short on time here are a few gems:

The Basics: Put 20% down, get a fixed rate mortgage, and if you want to be conservative don’t spend more than 35% of your pretax income towards your mortgage.

Dennis Stearns, the financial planner quoted in the article, estimates that owners who do some of the work themselves but contract out bigger projects will spend 3.6% of the homes price on upkeep and repairs every year. For older homes, this amount jumps to 4.5% per year.  Probably not an issue for San Francisco Condo owners, but if you’re buying a Victorian keep this in mind.

Another financial planner, Michael Kalscheur, recommends you either buy an entry level home or stretch to get your favorite home, but don’t settle for anything in the middle. The reasoning is that if you buy an entry level home, you’ll save a lot more so you can get the home you want sooner.  If you stretch and buy the home you want, you’ll stay in it longer and won’t lose money on the transactions costs of selling (6% of the home’s cost or more).

Click here to read the full article.

San Francisco Real Estate Market Activity Statistics

The above chart, from Altos Research, shows the “Market Action Index” for the four price tiers of San Francisco condos.  The market action index doesn’t measure a single specific stat, such as sales price or volume.  Instead, it is a combination of those stats and more, developed by Altos Research, to give a rough sense of what the market is doing.

From looking at this chart, it would appear that the bottom was closer to April and May, and that we are now doing substantially better.  As with all statistics, though, it’s important to keep in mind this is just one piece of data.  From what I’ve been seeing, there are still many short sales out there with the potential for a fair amount more to come.

Our local association of Realtors has been working hard to create high quality videos to help buyers and sellers better understand the real estate market and process.  Click the icon below to take a look at some of the latest San Francisco real estate videos they’ve created… because knowing is half the battle.

(Learn more about buying, selling and financing
real property. Click on the link to view video
features on contemporary real estate subjects.)

From a recent email sent by Arterra, a new development in Mission Bay:

Hurry in, $8,000 Federal Tax Credit expiring soon!

If you missed out on California’s $10,000 tax credit, don’t miss the $8,000 federal first-time buyer tax credit too! Time is winding down and the program ends in just four short months. This means buyers need to be CLOSED on their homes by November 30th, 2009 in order to receive the tax break.

With prices starting from the $500,000s, Arterra offers outstanding value, and many homes offer city and water views. Officially the first LEED-Silver certified high rise in the City, Arterra features many unique green and sustainable attributes and is a great example of how sustainability does not have to come at the expense of amenities and value.

Arterra LEED-Silver attributes include:

• Increased use of recycled materials
• Innovative uses for end of lifecycle resources
• Increased diversion of waste to landfills
• Sod-covered “living” rooftops to help reduce heating and cooling costs
• Renewable materials in the building’s public spaces
• Energy Star appliances in every home
• Building exterior covered in Trespa, a material made from end of lifecycle recycled materials

The latest San Francisco Real Estatate Market Report is now available, click the image to download the full 10 page report.  As it states, the median condominium price in San Francisco right now is $649,000, and the 1217 condos have been on the market for an average of 118 days.

SF Blu interior

I’ve had a couple requests for the latest pricing at Blu, and as I was just there with a client this Thursday, I thought now would be a great time to provide it!  I was amazed to see how quickly their lower priced listings have been moving… in the span of a few short weeks they seem to have sold almost all of their listings under $700,000 except for 12E!  Without further ado:

Blu May 2009 Pricing:

Residence 7A……….Starting from $879,000
2 bed/ 2 bath………..HOA Dues $664.29

Residence 11B……….Starting from $800,318
2 bed/ 2 bath…………HOA Dues $651.21

Residence 10C……….Starting from $774,000
2 bed/ 2 bath…………HOA Dues $651.42

Residence 8D………..Starting from $839,400
2 bed/ 2 bath + den….HOA Dues $685.15

Residence 12E………..Starting from $686,700
2 bed/ 2 bath………….HOA Dues $623.49

Residence 6F………….Starting from $799,050
2 bed/ 2 bath………….HOA Dues $676.44 

Penthouses……………Starting from $2.9 million
3 beds/ 2.5 baths…….HOA Dues from the mid $800’s

$1,125,000 | 1 Bedrooms | 2 Bathrooms | 1 Car Parking | 1,050 Square Feet

My Featured Listing: 690 Market St. #1605…
This 1BR/1.5 BA at the Ritz Carlton offers the best value of any unit available in the building. The marble entry foyer transitions to a dark hardwood floor throughout the living room, dining area and kitchen. The bright living area offers nearly wall to wall windows with city and bay views. The kitchen is fully upgraded with all viking appliances and includes a separate wine fridge, along with granite counters, upgraded fixtures, and dark wood cabinetry. A separate island provides space for a breakfast area. All furnishings can be included at additional cost, making this a great turn-key property or corporate rental.??Amenities include valet-attended garage parking, business and conference facilities, private fitness center and a Residents’ Lounge. In addition, your 24-hour, full service Concierge can help arrange in-residence dining, reserving the services of a private chef, twice-daily housekeeping, dry cleaning, child care or virtually anything you might need.

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