Danielle Lazier

Archive for the 'Real Estate Financial Knowledge' Category

San Francisco Real Estate: Enough about 1st Time Buyers! What About the “1st Time Sellers”?

Real Estate Realities:

…Tales from the front line of buying and selling San Francisco real estate

 

There is a lot of talk today about historically low interest rates & the amazing opportunity for “first time buyers.”

It is likely that today’s mortgage rates are the cheapest money we will see in our lifetime so if you have grown out of your home or are just ready for a new scene, it makes sense to explore your options. Believe it or not, you may find that you can live in a larger home for approximately the same monthly payment. Now, that is strategic planning!

Let’s talk about your ideal housing plan.

Have a question or want more info? Call, email, or comment.

Tags: first time buyers, first time sellers. trade-up, mortgage rates

San Francisco Real Estate: A Brief History of the 30-Year Fixed Rate Mortgage

Real Estate Realities:

…Tales from the front line of buying and selling San Francisco real estate

Last year was an amazing year for mortgage rates. This year is even better. Of course, this means a continuing sluggish national economy but locally, the market is stable and improving. Hey, it’s true! Ask you techie friends?

Check out the average interest rate on a conforming 30 year fixed interest rate home loan over the past 3+ decades.

1981 = 18.45%

1991 = 9%

2001 = 7%

October 2010 = 4.25%

November 2011 = 4%

2012 = ?

Q: Who should act in today’s housing market?

A: First time buyers…with stable employment, “trade-up” or “trade-out” buyers (buyers who are also sellers), and financially distressed homeowners who need to lower their overhead.

Have a question or want more info? Call, email, or comment.

Tags: history of mortgage rates, mortgage rates

Got Cash? Just how many San Francisco real estate sales are ALL CASH?

Got Cash? Just how many San Francisco real estate sales are ALL CASH?

A colleague of mine at Zephyr Real Estate recently polled the community to ascertain approximately how many deals sell with “ALL CASH”. ALL CASH means that the home buyer buys the single family home, condo, loft, building, or what have you, without a loan…i.e. they pay ALL CASH.

In San Francisco with all of our dot-coms, start-ups, IPOs, LPOs, and so forth, there is a lot of cash in the real estate market. But just how much?

Our friend and excellent escrow officer, Charles Richards, of Chicago Title Company had this to report:

Using March 2011 as a sample : 13-14% of San Francisco home sales were all cash and additional 20-25% were 50% down or more

This means that last month, 13-14% of home buyers in San Francisco bought their property with all cash (no loan) and 20-25% of SF home buyers had a down payment of 50% of more.

Got cash? Er, it seems, we do!

Tags: all cash

A Brief History of the 30 Year Fixed Rate Mortgage, or If You Need Yet Another Reason to Buy a Home in SF

As if you needed another reason to get off your tush and buy a home in San Francisco… here’s a brief history of the 30 year fixed rate mortgage or home loan.

Average and approximate interest rates on the 30-year fixed rate home loan*:

• 1981 = 18.45% (Holy crap.)

• 1991 = 9%

• 2001 = 7%

• October 2010 = 3.875% (with 1 point) or 4.25% without

• October 2011 = ?

Will interest rates be lower or higher next October? Check back next year and find out, but here’s a sure bet: interest rates are amazing NOW and prices are down for San Francisco real estate (a rarity). We’ve suffered through a deep, dark, and lingering recession. It’s time to make lemonade.

Who should make a move now? San Francisco first time buyers and so-called “move up” or “trade-up” buyers. Move-up buyers are folks who have grown out of (or just sick of) their starter home, loft, condo, or TIC. We won’t see prices like this again. (OK, the End of Days is hard to predict but I’m pretty certain.)

Now is the time to suck it up and sell your current home at the reduced market value and buy the home you really want at a serious discount. Looking back in 5 years, as you relax on your sunny deck in Noe Valley, in a home with enough room for you and your family, increasing your equity every year by paying 3.875% interest on a 30 year fixed rate fully amortized home loan, you’ll be VERY happy you took the leap of faith and sold your starter home.

(Even my own accountant is encouraging me to do this! )

Check out an example of why it makes sense to trade up in a down real estate market.

* Thanks again to the fabulously competent, professional and friendly Guarantee Mortgage Zephyr Real Estate team of San Francisco home loan consultants and in particular, Pete Elting for providing this valuable information for first time and move up home buyers in the San Francisco Bay Area!

Tags: 30 year fixed rate home loan, First Time Buyer, guarantee mortgage, interest rates, mortgage broker, mortgage rates, move up buyer

Single-Family Homes, TIC’s, Condos and Loft Condos in the Inner Mission

Check out this month’s real estate activity in the Inner Mission in San Francisco, CA.

Single-Family Homes

• Number of listings: 8
• Average list price: $907,182
• Average days on market: 89
• Number of sold: 2
• Average sold price: $812,500

Condos/TIC’s

Number of listings: 54

Average list price: $672,192

Average days on market: 56

Number of sold: 5

Average sold price: $593,400

**We just helped our client purchase a great new condo at the Union SF.  Interested in new construction?  There are a lot out there.  Talk with us first!  Read about why it’s beneficial to work with your own buyer’s agent when purchasing a new construction condo. 

Loft Condos

Number of listings: 6

Average list price: $955,350

Average days on market:64

Number of sold: 2

Average sold price: $585,750

What did last month’s real estate activity look like in the Inner Mission; take a look.

Want to know how much your property is worth?  Send us a request for your own San Francisco home values report.

Make sure to check back here for the HOTTEST news and updates on all things real estate in San Francisco, CA.

What is new in the Inner Sunset?

Here is this week’s real estate report for the Inner Sunset in San Francisco, CA.

• Number of active properties: 13
• Average list price: $983,079
• Average days on market: 48
• Number of sold: 7
• Average sold price: $909,000

Any changes from the last post?

Want to know how much your Inner Sunset home is worth?  Just send us a request.

Make sure to look back here to get acurate and up-to-date real estate news and activity.

Tags: Inner Sunset real estate, Single-family home search

What will “normal” look like after the SF housing market recovers?

As this is a blog and not my college thesis, I’ve try to be brief. Try not to harangue me too much if my sources are limited too! Part of my mission with this blog on San Francisco real estate is to keep myself informed over a wide range of real estate-related topics and then, share so you can become informed home buyers and sellers of SF and Bay Area real estate whether in Pacifica or Bernal Heights.

So, what will “normal” look like after the SF housing market fully recovers? What amount of appreciation can we expect from our homes & condos, if any? When will the San Francisco real estate market recover? Has it already begun the march? Will investors return? Does it make financial sense to own a home in San Francisco and the closer Bay Area? Will it differ if you live in Noe Valley or Vallejo? Read the rest of this entry »

Tags: housing market, recovery, Richard Florida, SPUR

FHA Low Down Payment Options for San Francisco Condo Purchase About to Get Easier

Yes, you read that right. For a change, the rules are about to make purchasing a San Francisco condo easier, not harder. As of October 1, 2009, FHA Low Down Payment Options for San Francisco condo purchases will get easier.

Read the rest of this entry »

Tags: Esprit Park, fha, FHA home loans, low down payment, Soma Grand

SF Real Estate Home Sales Affected by New Appraisal Rules

I wish I did not know first-hand about the problems arising from the so-called improved appraisal process, aka The Home Valuation Code of Conduct.

My SF home buyer and seller clients and I have danced the dance of this new system and as a manager, I’m privy to many more San Francisco real estate purchases waylaid by out-of-area appraisers driving too many miles from Fresno to appraise a house in the Sunset.
View Larger Map

Fresno to Sunset District SF = 191 miles

Yes, it’s supposed to help ensure a safe, transparent home appraisal process whether you are buying  a single family home in Bernal Heights or a Mission Dolores condo. The devil is in the details. Read the rest of this entry »

Tags: appraisal, hvcc

San Francisco Real Estate: Condos are a deal but can you get a loan?

San Francisco Real Estate: Condos are a deal but can you get a loan?

As Kenneth Harney confirmed last week in his column , “Mortgage rates and house prices are down – which sounds great for buyers and refinancers. But a series of mortgage industry underwriting and appraisal changes taking effect this month is throwing new hurdles in the way of borrowers and loan officers.”

Bottom line: What does this mean for a San Francisco condo would-be home buyer?

Read the rest of this entry »

Tags: Condo Home Buyer, Condo Loans, FHA Condo Loans, Kenneth Harney