Haha, so I know you are thinking that this is the most self-serving real estate blog post that could come from a San Francisco Realtor but c’mon….hear me out!

Rather, hear out my buddy (not that we’ve ever met) James B. Stewart, a columnist for SmartMoney Magazine and SmartMoney.com who wrote recently in the Wall St Journal about what we regular citizens…you know Joe and Jane Six-Pack or for us San Franciscans Joe and Jane Latte…can do to help the markets.

“As president Franklin Roosevelt confronted far more dire circumstances than anything we’ve experienced in my lifetime, let alone last week, and yet he never succumbed to panic, desperation, greed or, most famously, fear….

The proximate cause of last week’s crisis in the financial markets, which evidently brought us to the brink of economic catastrophe, was paralysis: the refusal of banks to lend virtually anything…As paralysis seemed to grip our major financial institutions, I felt some of this myself…”

Sound familiar to anyone reading this? No, not you Ms. Fence-Sitter and certainly not you, Mr. Time the Market Perfectly!

But I digress.

“In times of financial crisis, collective action can achieve what would be unacceptably hazardous for any one individual… Put that way, $700 billion strikes me as a not unreasonable price to pay for the stability of the financial system on which our entire economy and collective well-being rest…..

The administration’s proposal hasn’t been accompanied by much high-minded rhetoric aimed at the American people. That is unfortunate. The plan, no matter how expensive or sweeping, will fail if all of us continue to be gripped by fear and risk aversion.

It is time for all of us to summon the courage to invest calmly and rationally and in doing so demonstrate our confidence in the potential of the global economy and our fellow man.

What, in practice, does this mean?

It means continuing to accept and even embrace a prudent degree of risk.

It means to continue following a disciplined approach to asset allocation and investments…

It means to continue rebalancing your portfolio…

It means considering investment alternatives. I found myself looking at real estate listings…

Based on my perusal this weekend, in some parts of the country we have reached the kind of opportunity to buy real estate that only comes along once a decade, if then.”

Read the entire column HERE.

Here is the Real Estate Report this week for Bernal Heights. 

Read the rest of this entry »

Week to week we are reporting what the monthly real estate activity is for the Inner Sunset neighborhood.  This week the results are…

Read the rest of this entry »

Taking me up on my offer to publish pertinent and helpful info of interest to my readers, i.e. San Francisco home buyers and sellers, Frank Sandoval, mortgage broker extraordinaire of Pacific Bay Financial  has sent over his take on the mortgage news and how it affects us here in the City by the Bay.

Frank says,

“Mortgages are in the news again, but this time, the news is good! Especially for people looking to buy or refinance a home, as interest rates have dropped to the lowest levels seen since April.

You’ve probably heard that Fannie Mae and Freddie Mac were taken over or “bailed out” by the Federal Government over the weekend. The announcement came as the government felt that both of these institutions were potentially unable to meet their obligations.

These agencies must pay off maturing Bonds every month, and they do so by selling new Bonds. But during the last twelve months, investor appetite to purchase new mortgage-backed security Bonds has deteriorated.

As such, it has become more difficult for Fannie and Freddie to replenish capital to fund more loans. If both Fannie and Freddie became insolvent, the housing market as well as the mortgage market would come under further pressure.

With the Treasury stepping in to provide a “backstop” for the mortgage giants, investors now have confidence to purchase Mortgage Bonds. And the greater interest has helped lower interest rates today.”

Frank Sandoval is an excellent mortgage broker. My clients have happily worked with him many times over the years. For more info, visit his website.

We’re all a twitter over here in the San Francisco real estate world due to the ongoing credit mess.

Last weekend, the government (finally?) stepped in and took over Fannie Mae and Freddie Mac. As there are hundreds of articles, blogs, and opinion columns on this and sure to be more, I want to share some information that I feel well-described what the bailout means to you, me and other folks interested in local SF real estate.

How does this affect you if you are a San Francisco first time buyer? What about if you are already a homeowner who is looking to refinance or move up to a bigger or nicer home?

Here’s what one of our local mortgage experts has to say about the situation and how it’ll affect us, at least in the short term. No one knows the long-term effects. Not yet.

Based on what’s happening, what would I recommend? If you’re on the fence about buying, stop worrying about timing the market and get yourself a good value on a home, loft, condo or TIC and take advantage of the interest rate drop!

If you don’t have a lender, call C.J. or ask me for more referrals. As my livelihood depends on working with solid San Francisco mortgage brokers, I certainly can recommend some great ones.

Here’s what local mortgage broker, CJ Kerls of Guarantee Mortgage has to say on the PROS & CONS of the government bailout…*

“On Sunday morning the US government took over the ailing mortgage giants Fannie and Freddie.  Below are what I believe to be the Pros and Cons to this historic event.

Pros:

 

1. Interest rates immediately took a positive outlook to the news.  The benefit to consumers is clear.   Cheaper money makes homes more affordable and refinancing into a 30 year fixed a better option for those who qualify.  Rates are down to 5.625% - 6.0% depending on points or no points for a 30 year fixed!
2. The move will strengthen the US housing market.
3. Line of Credit – the two firms will have an unspecified line of credit… essentially, they’ll be able to operate without the looming threat of running out of money and collapsing! In an effort to provide even more liquidly for the credit strained market, the fed will be purchasing mortgage-backed securities issued from the two firms later this month.

 

Cons:

1. This won’t make it any easier for a borrower who can’t qualify for a loan now.
2. We could see guidelines get a little tougher… especially regarding limited documentation and low down payment loans.
3. If you owned common stock of either of the two firms… you just lost big.
4. No silver bullet – the credit crisis isn’t over because of the move.

Sincerely, CJ Kerls: Managing Partner, Guarantee Mortgage Corporation, 415.586.6003, cj (at) kerls.com “

SIDE BAR PLEASE:

Who are these characters Freddie Mac and Fannie Mae? According to Wikipedia, that all-knowing source…

The Federal Home Loan Mortgage Corporation (FHLMC) (NYSE: FRE), commonly known as Freddie Mac, is a privately-owned and run government sponsored enterprise (GSE) of the United States federal government. It is a stockholder-owned corporation, authorized to make loans and loan guarantees.

The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors on the open market. This secondary mortgage market increases the supply of money available for mortgages lending and increases the money available for new home purchases. The name “Freddie Mac” is a creative acronym of the company’s full name that has been adopted officially for ease of identification (see “GSEs” below for other examples). More HERE.

The Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, is a publicly owned government sponsored enterprise (GSE) of the United States currently run by the Federal Housing Finance Agency (FHFA). It is a stockholder-owned corporation authorized to make loans and loan guarantees.

The name “Fannie Mae” is a creative pronunciation of the company’s acronym, FNMA, that has been adopted officially for ease of identification. It is more than an informal nickname; FNMA now refers to itself by this name. The acronym “Fannie Mae” is a borrowing from the well-known candy company, Fannie May Confections but with the spelling altered from “May” to “Mae,” so as not to confound the two, in writing. More HERE.

 

* Have more information you’d like to share on how the current economic news affects us here in the crazy world of San Francisco real estate? Let us know. We do not easily promote other businesses but if you have good ideas and a good track record, we want to share your insights with our readers. The idea is to educate, inform and help our clients and readers. So, with that in mind, send over whatcha got!

 

How’s the San Francisco single family home market doing in this economy, you ask? Well, it’s a mixed bag. Overall, our market is holding up VERY well. Kiss your sidewalks, folks.

There is some price depreciation in areas but it’s minimal as compared to the greater Bay Area, California and certainly nationwide.

August 08 v August 07 shows an overall median single family home price decrease of 7.4%. Of course, 2007 was already past the peak so prices may be down more than that from the top of the market.

However, keep in mind that these numbers can be VERY skewed. Some districts have so little inventory that one big or small sale throws off the numbers completely.

For example, there was only 1 sale in all of District 8 in August of 2007 and only 3 in August of ‘08!

If you want to know specific sales prices in your neighborhood, send me an email and I’ll get that info to you asap. No obligation, of course.

Click here for a larger version of the chart.

I am sure to blog more about this topic. First off, don’t panic.

The good news is that right now, interest rates are down! Other than that, we are just sorting out what this will mean long-term. I don’t know and frankly, neither do you!

There is a lot of gossip going around the water coolers right now. I urge you to make the best decisions for yourselves based on accurate data and information.

And by accurate, I do not mean what you hear mumbled over the cube.

In San Francisco, at least, many people are successfully buying and selling real estate.

Think about the long-term and put yourself where you want to be. Be careful. Be smart. Don’t max out. But think long-term. 5 years from now, where do you want to be? What do you think property in San Francisco will be worth in 5 years? 10 years? And so on.

And now, back by popular demand….drum roll, please. Another exciting video from the California Association of Realtors. Yes, folks, you ask and I deliver.

But seriously, it is interesting and informative. Turn off the pundits and hear what the experts in the trenches have to say.

Check out the video here.

10 Reasons You SHOULD Buy Your First Home Now (or very soon)

• While financing sucks for most home buyers right now, it is actually very good for San Francisco entry-level or first 1st time buyers (prices up to about $800,000).
  • Higher loan limits for FHA loans (and super conforming loans) mean fantastic loan options for loan amounts up to about $729,000 in San Francisco. With only 3%-5% down payment, you CAN purchase either a single family home or condo in a larger building AND obtain a really safe, 30-year fixed interest rate loan. This is very new and very exciting.
  • The loan limit DECREASES next year so to make it work best in San Francisco, buy in 2007.
  • 
    
• Follow the leaders not the followers.
  
  • Prices are down so you should be buying. Prices may or may not come down further but as the investment leaders know…. timing the market is a fool’s game. Be happy that you can buy at or very near the bottom and move on with your fabulous life.
  • 
    
• Following #2, most folks are in fear-mode right now or they are waiting for prices to fall further. This means less competition for you!
  • Let the masses wait until the media reports the market is recovering (and we are already seeing glimmers of this) while you take advantage of the even playing field, the great loans available in 2007 and become a homeowner. Most folks make their buying decisions on emotions rather than facts. The market is down so we panic and do nothing when we should be buying.
    
  • 
    
• The markets may be down but your job is solid and you could use the tax break.
  • Talk to your tax adviser. You will be surprised by how much money you will save as a home owner. If can afford market rate rent in San Francisco and have a little bit of savings, you are likely to be able to afford a starter home in SF.
  • 
    
• The seller may even throw in the kitchen sink.
  • Seriously, not only is their less competition for the house you want, you may even be able to negotiate a credit to help pay your closing costs or help you replace that nasty shag carpeting with trendy green bamboo flooring.
  • 
    
• Owning is just much cooler than renting.
  • Let’s face it, most of us have that home ownership dream. It is very cool to be able to host a housewarming party at a house you actually own. You can do what you want, change what you want, create your party central or your peaceful sanctuary. The space is yours to do with as you please. (Well, we hope you follow the law and neighborly codes of conduct but you get the point.)
  • 
    
• You don’t have to live in a rental to find your soul mate!
  • There is no rule stating that you must be a renter to get hitched. Truly, too many of us wait around for the perfect partner before we achieve the financial security of home ownership. What is up with this? Why not be that much more financially secure and successful when Mr or Mrs Right comes a knockin‘? You can always keep your 1st place as a rental or sell it and buy a bigger home together. Single women are getting much savvier at this. They are the largest segment of home buyers after married couples. Yet, I am talking to everyone here! Guys, you too can commit to your own home. It doesn’t have to be for forever…
  • 
    
• Your pet can poop in their own yard!
  
  • Seriously, folks, I’m pretty sure I moved out of my condo and bought a little single family home so my dog would be happier! Moving out of the Mission didn’t exactly help my nightlife, that’s for sure. Being able to stumble home from the bars is a benefit in one’s 20s but in one’s 30s, your dog having her own Barbie Dream Cottage becomes much more important. Plus, I can always take a cab home or heaven forbid, the bus.
  • 
    
• Your parents have a place to stay when they visit. Okay, this may be more of a con, depending on your situation.
• 
  
• Well, I have to say it. You can raise your family in your own home. Let that one sink in a little. It is deep and….important. Of course, it is crucial that you buy what you can afford as the benefits of home ownership on your family come from the stability & consistency of the home.
  

Who will benefit MOST from the new FHA financing available in expensive Cities, like San Francisco?

First Time Home Buyers Who:

• want to purchase a home between $575,000 and $800,000.
  
• have secure, steady jobs with retirement savings but little savings for a down payment.
  
• may or may not have good credit. FHA loans don’t require good credit!
  
• want safe, affordable home loans.
  
• understand that home ownership benefits them.
  
• want to take advantage of San Francisco’s “relative” buyer’s market.
  
• have their own reasons for buying instead of renting and are willing to buy the best home that they can safely afford.
• are realistic about their starter home. They want to get into the market and stay put for about 4-5 years. Then, they’ll move up to a different neighborhood or bigger home.
  
• want either a single family home or a condo in a larger building. (FHA loans don’t usually work in 2-12 unit buildings…)

Wondering what kind of home you can get in San Francisco for less than $800,000? Right now, there are 180 single family homes for sale between $575,000 and $800,000. Click here to see what is for sale right now.

575k-800k-san-francisco-homes

Right now, the real estate market can be tres confusing. Frankly, I am confused too! Many houses continue to fly off of the shelves, while others sit around…not selling. What is the deal?

In markets like ours, there is a wide variation of both inventory (housing stock) and marketing (presentation/staging and exposure of home to the public by agent).

Some houses are priced to bring in the crowds and presented to get those crowds to pull the trigger, i.e. write an offer to purchase.

Other houses are priced at the top of the value range (or higher) and do not show their best. While you may love Mr. Winkles more than you love your own children (C’mon, you know who you are!), many homebuyers will not appreciate how your home has been decorated as a shrine to the little pup.

Staging is CRUCIAL, especially right now. No, you do not need to hire a professional (though it will greatly help and most likely end up saving you time and money) but you do need to do some staging. I have written posts about how to set up your home for sale and I can give so much more specific advice in this arena but alas, I digress.

The real topic is Bernal Heights and what your Bernal Heights home is worth today. Or, for you home buyers, what does it cost to own in Bernal Heights? Property owners click here to find out specifically what your home is worth.

The reason I digressed into staging is that Bernal Heights is one of the best neighborhoods in which to see the vast variation of pricing, presentation and marketing in today’s San Francisco real estate market.

Want to see competitively priced, perfectly staged and appropriately exposed homes that sell over the asking price due to the 7 offers the sellers received?

Or would you rather see the over-priced house on lockbox with the entire extended family still in residence (along with their 30 years of bric-a-brac)?

Uncle Manny will happily show you around and by that I mean, follow you around the ENTIRE time you are viewing the house. Where’s their Realtor, you ask? Good question. Most likely, he is at his office which is located somewhere far, far away like Daly City!

Yup, we’ve got a lot of each plus many other variations on the theme. So, when you look at the attached data, keep in mind this variation….

Enjoy and let me know if you have questions!

Click here to see Bernal Heights homes for sale NOW and homes that have sold in the past 90 days. DOM means Days on Market, i.e. how long it took the home to sell.

bernal-heights-home-values

As you know, Forbes recently listed San Francisco’s Sunset District as over-priced. Of course, they were using a Price to Earnings ratio as their gauge. In my opinion, single family home values in this neighborhood should not be evaluated through this lens.

Certainly, there are rentals in the area but mainly, this is a steady, reliable residential neighborhood. Yet, it is important to differentiate within the Sunset. The Inner Sunset, Central Sunset and Outer Sunset all have micro-markets as do the Parkside and Outer Parkside districts.

Generally speaking, this area is consistently in demand. Single family homes in San Francisco are a limited stock. Plus, the Sunset has easy commuter access via car or MUNI, Golden Gate Park’s wonders, great restaurants and stores, and of course, the Ocean….among other quality of life benefits.

It must be said that if you want clear skies and warm days, the Sunset may not be for you! Being someone who complains EVERY summer about how freaking cold, windy and depressing it is here even in the “fogfree-ish” zones like the Mission, Bernal Heights and Potrero Hill, I have to say that if you want real warmth, move to Palm Springs!

So, what is the market like in San Francisco’s Sunset District? Since a question about 3 bedroom homes in the Central Sunset was recently posed on Trulia, I thought I would give you some facts for fun.

Below is a chart of 3 Bedroom Single Family Homes in the Central Sunset. The list includes homes currently for sale, homes that are in escrow (Act.Cont and Pending), and homes that sold within the past 6 months.

Curious about another ‘hood? Let me know and I’m happy to post the results. So go-ahead and geek out on the stats. Just be sure to keep in mind that SF home values can vary A LOT depending on the specific house, block, and even if it’s vacant or comes with tenants. As with all stats, your critical eye is a good thing….

Sunset Home Values Report Here