Eureka Valley Victorian Two Unit

272-274 Hartford Offered at: $1,599,000

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This fabulous two plus bedroom, two bath Victorian on a great block of Hartford Street includes a legal two bedroom, one bath income unit, plus unwarranted bonus studio with private entrance downstairs. This unique home’s original details entail a Bay window, crown moldings and ten-foot ceilings. The beautifully remodeled eat-in kitchen has granite counters and stainless steel appliances. The flexible floor plan allows for a third bedroom or a dining room in the front double parlor. Large master suite at the rear of the home features a bonus den/office. The secluded rear garden with patio has been landscaped for your enjoyment. One car garage plus optional one car tandem parking in the driveway completes this home.

Gorgeous Cow Hollow Condominium

3038 Steiner
Asking Price: $1,699,000

Welcome home to this gorgeous two-level condominium in a two unit building located just around the corner from Union Street shopping. The home has been completely renovated blending stylish finishes with original sophisticated architecture. The living room, dining room and kitchen have been opened to offer a free flowing floor plan while maintaining original coved ceilings. Built-in bookcases and a wood-burning fireplace complete the spacious, light-filled living room. The oversized formal dining room leads to a beautifully remodeled gourmet kitchen featuring granite counters, stainless Jenn-Air appliances and wine cooler. This three bedroom, two and a half bath home features upper and lower level master suites. The lower level suite opens through French doors to a large deck and private, deeded yard. Sun room, high ceilings, hardwood floors, laundry and one car parking finish this home perfectly.

Spacious Pacific Heights Condominium

1855 Sacramento #1

This spacious one bedroom unit in desirable Pacific Heights is nicely remodeled and great for entertaining. Located in a well-maintained Edwardian building, its many original details include bay windows, hardwood floors, coved ceilings, stained glass window, and crown and picture moldings. Beautifully remodeled kitchen features granite counters and gas stove; while the bathroom has been updated with new tile and a pedestal sink. You and your guests will enjoy the formal dining room off the kitchen, and a living area with closet for audio equipment and a flat screen TV bracket (plasma TV not staying). Rear stairs lead directly to common club room, garden, and barbeque area. California closets in the bedroom plus a good sized storage locker. The building is detached on three sides giving the unit the feeling of a flat. Close to Whole Foods, Polk Street shops and restaurants, California Street cable car and Lafayette Park. This unit is move-in ready for those who are looking for a piece of San Francisco charm.

Market Update

Please note -this is for the week prior to the Memorial Day holiday – I missed the week before that, and we’ll be back on track first of next week. Notice how the outlying areas which have been hit the hardest – have the most activity lately – a good sign for the overall “healing” which needs to take place in the industry.

Weekly Market Watch

Week of May 12-18

DataQuick News, the real estate information resource that much of the industry and media look to for housing data, released its April report (http://www.dqnews.com/News/California/Bay-Area/RRBay080520.aspx) last week and in it, we saw several signs of momentum, including:

“Bay Area home sales edged up from a seven month run of record lows last month, indicating that mortgage availability is improving and that an increasing number of fence sitters have decided they like today’s lower prices.”
“A total of 6,310 new and resale houses and condos sold in the nine-county Bay Area in April. That was up 28.8% from 4,898 in March and down 15.3% from 7,447 for April 2007.”
The month-to-month jump was the strongest for any March/April in DataQuick’s statistics, which go back to 1988 and it the April figures show the first monthly sales gain in six months.

“This could be the first sign that (the market has) bottomed out,” DataQuick analyst Andrew LePage said. “One month doesn’t make a trend, but there’s some momentum.”

The biggest factor driving up sales, according to DataQuick, was a flurry of bargain hunting in parts of the Bay Area most affected by foreclosures. The only two counties that saw year-over-year increases in resale home sales were Contra Costa and Solano Counties, the two also hardest hit by REOs. Last month, foreclosure properties represented 44.7% and 54.2% of all sales in those areas, respectively.

Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going under contract. It seems in most markets, housing prices in the Bay Area have adjusted to a point where they are fair and it seems buyers are responding. As a result, people who couldn’t afford a home a few years ago are coming back into the market. Here is what we saw in each of the individual, local markets:

East Bay – The East Bay is a market filled with its own mini microclimates. As we saw with DataQuick’s stats, portions of Contra Costa County have endured a large number of REOs marking more than 40% of all sales in the region. Though not considered an REO market, neighboring Lamorinda is reporting it is “HOT.” Orinda Manager Val Cook-Watkins reports. “Lots of new listings, lots of closed sales and a ton pending.” Alameda County, which hasn’t been hit quite as hard by the REO influx, continues to make good strides. The Berkeley office reports that the $550,000 to $750,000 range is getting “lots of action, visits and offers.” The Castro Valley office reports that its Agents are “urging buyers to get out there and move now because things are happening so fast.” In fact, some houses in Castro Valley are seeing multiple offers within a week of listing. In some cases, lower priced REOs are seeing multiple offers that sell over asking. The Livermore office reports that open houses and showings were active and that pending sales in Livermore, Pleasanton and Dublin are rising weekly in small increments.
North Bay – The more affordable regions of the North Bay, including much of Sonoma County, seem to be on fire. In fact, the Santa Rosa office reported 18 multiple offers last week. Manager Rick Laws notes, “We are continuing on a multiple offer mode. Great turnout for the Open House Weekend. One listing had 50+ people through.” Neighboring Sebastopol reports that it is seeing multiple offers in the low and high end but it is slower in the middle range ($500,000 to $999,000). One REO property had 27 offers.
Peninsula – The Peninsula market continues to see an influx of buyers who are in “wait and see” mode. Though sales have slowed in many areas throughout this market, we are seeing a great deal of buyer interest at open houses which leads me to believe that many savvy buyers are just looking for the perfect combination of value and move-in ready condition. The Half Moon Bay office reports “This was an incredible weekend for open houses with more properties than ever for buyers to view. There are serious buyers out there and several offers were made but negotiations continue to be challenging.” The Woodside office concurs noting, “Open houses are good. Buyers are just waiting for the right price.” The Menlo Park El Camino office reports that one listing had 10 offers.
San Francisco – The City, which was one of only two markets in the Bay Area that saw an increase in sales volume (6.5% to be exact) from April 2007 to April 2008, continues to flourish. The Lakeside office, which enjoyed six multiple offers last week, notes that multiple offers continue to occur on “nicely presented homes.” The Lombard office noted that “most deals this week had one or two offers.” We are seeing steady inventory in all prices throughout the City and strong open house traffic which continues to be a good symbol of pent-up demand for quality listings that show well and are priced competitively.

For most markets within the Bay Area, if the house is priced right, it will sell. Even with the increased momentum and interest from buyers, sellers must continue to price their homes competitively to get their homes sold in this market. Regardless of interest, buyers are looking for value in today’s market and sellers need to position themselves accordingly.

Next week I will release my June Reality Check challenge. In it, I focus heavily on some of the trends we are seeing in today’s market and I will provide you with a tool that you may use to communicate these trends to your clients.

Until then, I wish you a productive and successful week. Keep your energy up and continue to educate your clients on the trends in today’s market. The momentum we are seeing today may be the beginning of a market turnaround and your fence- sitting buyers need to be informed so they may act now, before it is too late.

Rick

Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage

Bay Area Update

Week of
April 21-27

Earlier this week, Richard Smith, Chief Executive Officer for Realogy, released a video statement regarding the state of the national housing market. In it, he noted, “Like all downturns, this too shall pass. It’s not a matter of if, but when.”

Shortly thereafter I read several market updates including two notable reports from Freddie Mac and NAR. Both are predicting that the market will stabilize in latter months of 2008, with housing recovery and sustained growth expected in 2009.

So what does that mean for our clients now? Opportunity is knocking. Though none of us holds a crystal ball, if both of these respected sources are correct in their predictions, now may be what we look back upon a year from now and say was the official bottom of our market. Buyers need to be aware of this fact and need to take advantage of today’s attractive interest rates, and increased jumbo loan limits. In a broader regional sense, specifically in the average-and-under price points, Buyers have more choices, lower prices, and motivated Sellers to negotiate with. Conversely, most local Buyers in our over $1M high demand areas of the Peninsula and San Francisco are having trouble finding enough new listings to meet demand. This notable dichotomy suggests that if the statewide and national indicators point to “hitting bottom” soon, then certainly it won’t mean an increase of inventory coming to market at lower prices in these desirable $1M+ communities.

Some East Bay offices report a flurry of activity and note that though some deals are falling out, they are replaced by fresh offers that same day. Our Oakland office recently listed an expired from another broker which received three offers following our first open house. The listing went for well over the asking price. Santa Rosa is noting that floor calls are way up and that the low to middle market continues to be where the action is.

On the Peninsula we are finding that, though inventory of quality listings remains a challenge, we are seeing a surge of buyers coming into the marketplace. To further illustrate the dichotomy mentioned earlier, Burlingame notes an example where Buyers have taken a wait-and-see approach to a new listing, then all of a sudden -six offers. Our Menlo Park office notes that buyers are moving forward cautiously in buying and may not be willing to get into multiple offer situations. That said, however, one Palo Alto listing offered at $1,985,000 recently received eight offers and went well over asking. Our Palo Alto office is also noting an all time low in inventory with about 80% of offers going into multiples. It all comes down to neighborhood, pricing, and the important economic formula of supply and demand.

San Francisco remains a bit of an anomaly with pockets that are strong and those that remain challenged due to lack of quality inventory. Our Van Ness and Lombard offices report that the luxury market remains strong. The entry level and mid-level markets seem to be getting the hardest hit by the lack of quality inventory, though open house activity seems to remain steady which shows there is buyer interest.

In closing, I’d like to remind you that in this market, real estate consumers need your professional counsel. The long term prospects for real estate are very bright and we need to remind our clients of this fact.

Have a great week!
Rick

Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage

Market Update

Weekly Market Watch
Week of April 14

Here’s the headline: The number of sales reported in San Francisco and Peninsula MLS’s continues to drop. Here’s the rest of the story: The new pending sales each month are dropping in an almost parallel fashion relating to the number of new listings coming to market. Please be sure your Buyers and Sellers understand this. For the most part in nearly every SF and Peninsula community, Median Sales Price is continuing to grow, albeit a slower rate. With new sales tracking new inventory rates, prices remaining stable to increasing, and interest rates extremely attractive – Buyers who hesitate will likely find fewer choices at higher prices.

Based on what we’re seeing in our local offices, April is shaping up to be one of our busiest months in at least a year. After a relatively slow first quarter, here is what we’re seeing in the market today:

- Busy Open Houses: In fact our Berkeley office reported 80 visitors to one Berkeley listing and 70 visitors to one Kensington listing. Berkeley manager noted, “All hosting Agents reported that the buyers were focused, enthused and most of them were just starting out in the home buying process.” San Francisco Market Street reports that several open houses had more than 100 people through over the weekend. Throughout the Peninsula open houses were reported as being robust and well-attended.

- Increase in Pending Sales: The Tri-Valley reports that pending sales are up 35%. SF Lombard reported increased activity in pendings. Woodside, Palo Alto and Menlo Park offices also had a bigger week of new sales.

- Inventory is Stabilizing or Decreasing: Out of 27 responding offices, 13 offices reported steady inventory while four reported decreasing inventory levels, leaving just 10 markets, largely in the North Bay, East Bay and in parts of San Francisco, with an increase in inventory. This trend, can be construed as a double edge sword. Though stabilizing or decreased inventory continues to build pent-up demand, one major issue in our market is the lack of good, solid listings that buyers will act on. Let’s hope that as the weeks play out, we see a better influx of good listings.

- Increase in Multiple Offers: The trend of multiple offers is continuing to prove demand outweighs supply for prime properties in sought-after neighborhoods. Some of the most prominent areas enjoying the benefits of multiple offers are: San Francisco, reporting 15 multiple offers last week; Menlo Park with six multiple offers, one of which received 10 offers; Palo Alto with four multiple offers; and several parts of our more affordable, outlying areas like Santa Rosa, with eight offers.

One challenge several of our markets are facing right now is an increase in cancelled contracts. This is largely due to financing challenges, buyer’s uncertainty, and in the case of REOs and Short Sales, difficulty in negotiating and length of time the process takes. While there can be value in REOs and bank-owned properties, buyers do need to be made aware of the pitfalls and challenges they will be facing when negotiating prior to making offers. Whether a property is bank-owned or not, be sure to have your Princeton loan officer update your Buyer’s loan approval, and get a realistic expectation of the proper loan contingency removal period. Our Princeton loan officers have also been great at helping Listing Agents evaluate offers coming in on our listings.

Have a great week,

Rick

Rick Turley
President, San Francisco/Peninsula

Spacious Alamo Square Condominium

1031 Fell

You will feel right at home when you enter this spacious Edwardian flat. This gorgeous home has over 1900 square feet of living space, 2 car parking and beautiful Edwardian charm. Graceful from start to finish, the home opens to a grand double parlor with gorgeous architectural columns separating the living room and dining room. Continuing down the elegant hallway, you will discover three oversized bedrooms (one master suite), two bathrooms, an office, and kitchen all with generous sunlight. The home features high coved ceilings, beautiful period details, hardwood floors and light from 3 sides. From the rear bedrooms there are views of Buena Vista Park and Twin Peaks. The home is complete with in unit laundry, ample storage and a shared garden with automatic sprinkler system. 2 car parking is currently leased at no cost to the buyer for the first six months. Seller has approved plans for the addition of a deeded 2 car side-by-side parking garage in the building (please see CC&R’s for additional information). One block to Alamo Square, this home is perfectly located on the borders of: Alamo Square, Buena Vista Park, Hayes Valley, Duboce Park, Haight Ashbury and NOPA. Shopping, dining, nightlife, parks, open spaces and transportation are all at your fingertips!

Offered at $899,000 1031Fell.com

Market Update

Coldwell Banker Weekly Market Watch
April 7-13

I read with interest this week an article entitled “Real Estate Agents Say Worst Has Past.”

The article reinforced much of what I’ve been saying over the last few weeks: while the first quarter data says “no end in sight,” we are beginning to see major strides within the real estate market in harder-hit areas across the country.

In fact, in the areas that were hardest hit over the last two years (i.e. parts of the East Bay and in Sonoma County), we are seeing a lot more activity, largely in part due to the increase in REOs. In fact, Castro Valley this week is reporting that offers are becoming increasingly competitive and multiple offers are once again on the rise. Nearby Walnut Creek reports that REO listings in Pittsburg and Antioch are getting multiple offers and our North Bay neighbor Petaluma reports that multiple offers are becoming the norm with the office reporting six multiple offers this week alone. As you’ve heard me say in recent sales meetings, I am anxious to see the outlying markets have success, as they need to see increased sales activity before our local “fence-sitters” will gain more confidence.

All but two offices report increasing or steady activity, with nine offices noting a healthy increase. In fact, Silicon Valley reported this week the highest amount of sales of condos and townhouses since June 2007. And even more impressive is that they saw the most single family home sales since the first week of August 2005.

In our more affluent markets like San Mateo County, San Francisco and Marin, we are definitely seeing a strong shift in activity. Listings in prime Westside in Burlingame and San Mateo are still in demand and are selling quickly in the $1.7 million plus category. Our Van Ness office reports a fluency in the $2 million plus range. Possibly the biggest challenge for these markets continues to be a lack of inventory. San Mateo County and San Francisco are still in dire need of good, well-showing properties that will attract more buyers. The buyers are out there – they are just waiting for that perfect home.

In this market, our best negotiating power is to stay competitive. We need to be able to articulate to our buyers why, if they’ve found the house they want, they probably shouldn’t wait. Remember that script I shared with you in the April edition of Reality Check? Now would be a good time to go back and revisit it as a way of educating yourself on how to address concerns with buyers. There are many buyers out there right now who are ready to act but are weary – believing the media hype that prices will go down. We need to explain to these buyers the potential impact of waiting, including the probability of increased interest rates, increased competition and the ultimate sacrifice, losing a house that they love.

My message to sellers is the same: remain competitive. Many buyers are looking for the perfect combination of value and livability. If the home doesn’t show well from the beginning, a large portion of buyers will move on to the next one that does. I’ll close with a quote from the above-mentioned article:

“…Among those drawn by the lower prices and mortgage rates are Kristen Werner, a 30-year old attorney for an insurance company, and her 32-year-old husband James, who said they are now looking seriously for their first home after a lull of several years. A pre-approved mortgage and the fact that they don’t have a home to sell should smooth the process, and the volume of unsold homes where they are looking — on Long Island, in the New York suburbs — means they are more likely to find a house they want. But, in a caution for sellers, the Werners are coming in with expectations of a bargain.

“We need something that’s in move-in condition — I’m not Martha Stewart and my husband’s not Bob Vila,” Kristen Werner said.”

Have a great week!

Rick

Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage

Real Estate is Local

Coldwell Banker Weekly Market Watch

Week of March 31, 2008

A recent Forbes Magazine article ranked the Top Ten Best Cities for Home Sellers. San Jose and San Francisco were at the top of the list. The article points out that San Jose and San Francisco came out on top because they fit the profile of a sellers’ market–low inventory rates that were still shrinking, good job creation, a large scale cutback in new home construction and a boost in the credit market from new Fannie and Freddie loan limits. This fits neatly with what we’ve been saying for weeks now and reinforces the fact that real estate is local, and national headlines about the real estate market simply don’t apply to every market. It also helps to explain why the majority of our open houses remain so busy.

Some areas of our market, particularly on the Peninsula, Berkeley and in San Francisco, continue to suffer from a shortage of desirable, saleable properties, so when they do come on the market, they generate a lot of interest from potential buyers. In Palo Alto, the luxury market continues to thrive and preemptive offers are not uncommon at all. In San Francisco, the markets change from neighborhood to neighborhood – Noe and Eureka Valleys are highly sought after, and the market is very active in the $1.5 million-plus range. A listing in Noe Valley had more than 100 groups attend its open. There are also more REO properties coming on the market in San Francisco which, because of their perceived value, generate much interest from potential buyers.

In other areas, greater inventory levels, REOs and short sales in the market, are bringing out potential buyers because the affordable prices are practically irresistible. Three deals from the Castro Valley office have received between three and ten multiple offers apiece. These properties, located in the San Leandro, San Lorenzo and Hayward corridor, were priced between $299,000 and $360,000 which, in that area, has become a “magic” price range for generating lots of activity and quick sales. Livermore saw its best week of new sales in two years. In Concord, one home listed at $415,000 had nine offers and other properties in the area listed between $300,000 and $600,000 had as many as 12 offers. These multiple offers happening now aren’t driving up the prices back to unsustainable levels like they did a few years ago. But they do certainly indicate that the interest is out there for those desirable, well-priced homes – and that people are getting the financing necessary to get the deals done.

Some areas still have buyers maintaining a “wait and see” attitude – they’re out looking, but still think they might be able to get an even better deal – but they’re becoming more the exception than the rule. As we start seeing more articles like the one in Forbes magazine, and we continue educating our customers about the local nature of the real estate markets we serve, we’ll see a return to normalcy in the markets hasten.

Have a great week!

Rick

Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage

Broadway Towers Corner Unit

1998 Broadway #605

This contemporary remodeled two bedroom, two and a half bath residence is located in the highly coveted Broadway Towers. Featuring gleaming hardwood floors throughout and floor to ceiling windows in every room, this luxurious residence has been completely remodeled. Originally designed as a three bedroom residence, the living area has been expanded to a bright and open great room that is perfect for entertaining. With close to 1400 square feet (tax record) of living space, this home is incredibly, uniquely quiet and provides the perfect urban refuge. Located on the coveted northeast corner, this home receives pouring sunlight and offers unique views of Russian Hill and Cow Hollow and a partial view of the GG Bridge. The remodeled galley kitchen flows perfectly into the living and dining areas for enhanced views and elegant entertainment. The kitchen is complete with granite counters, stainless steel appliances and a convection oven. The wrap-around patio may be accessed from the living area and both bedrooms. Deeded premium parking and storage complete this wonderful home. The perfect Pacific Heights Location, this home is near great shopping and dining on Union, Fillmore and Polk Streets.

Broadway Towers is a full-service building with doorman service and on-site management. HOA dues of $920 per month include cable, heat, water, earthquake insurance, building insurance and fully funded reserves. The expansive common roof deck provides panoramic views and is great for viewing local events.

Offered at $1,249,000 1998Broadway.com