And You Thought San Francisco Home Prices Were High?

According to an interesting story in The Economist, home prices in the U.S. might not be over-priced when compared with other countries.  The outrageously high home prices in Hong Kong, Australia, France, Spain, Sweden (and other developed countries) make American real estate look like a relative bargain.

The Bottom Line on Foreclosed homes in SF

Many of my clients ask me how to find great deals on foreclosed homes.   Also known as REOs or bank-owned properties, foreclosures are generally listed in Multiple Listing Service just like other homes.  Complimentary MLS access can be found at www.PatrickLowell.com .   Unlike many areas in California, there are relatively few foreclosures in San Francisco.  As reported at www.TheFrontSteps.com there is a misconception that SF has a large inventory of foreclosures in all neighborhoods, as is the case in some other communities.  In reality, the few bank-owned homes we do have are sprinkled throughout just a few SF neighborhoods.

From TheFrontSteps.com:

Out of 465 Active house listings, only 40 are REOs, of which 24 (60%) are in districts 3 & 10 (Bayview to Oceanside). Only 2 are in district 5 (Noe/ Castro/ Haight), and zero are in District 7 (Pacific Heights/ Marina). Those waiting for an upcoming deluge of bank-owned houses in the better neighborhoods of the city (and a downward spiral of prices) are probably waiting in vain.

The number of REO sold houses in 2010 in SF was 291 (out of 2309 sales) down from 309 sales in 2009. Of the 291 REO house sales in 2010, 216 (74%) were in districts 3 & 10. In district 7, there were 3 REO houses sold in 2010, less than 1 per quarter.

Out of 721 Active condo/TIC listings, only 41 (5.7%) are REOs, of which 15 are in district 9 (SOMA/ South Beach), 6 are in district 5, and 1 is in district 7.

The number of REO condos sold in 2010 did go up as a percentage of total sales, coming in at 7.7% of sales up from 5.6% of sales in 2009. But still a relatively small percentage of total sales.

Of the 239 condos and TICs sold district 7 in 2010, 10 (4%) were REO sales.

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It seems to me that the size of our small city has again reduced our market volatility and protected us from the waves of distressed property sales that have inundated other communities.  There’s no denying that foreclosures are up and prices are down in SF, but when compared with places like Sacramento, Palm Springs, San Diego, Las Vegas or Tampa, we are really doing relatively well.

To Rent or To Buy? That is the question.

Prospective clients often ask me how they can calculate whether it makes sense to rent or to buy.  Finally there is an excellent Rent vs Buy calculator from the New York Times that calculates the variables quickly and accurately.  Check it out here.

2011 Will Bring Many Great Changes to San Francisco

According to 7×7 Magazine, 2011 will be the year of some major improvements around SF.  Here are the 10 most notable.

It’s Condo Conversion Lottery Time!

It’s that time of year again for TIC owners who are yearning for condo conversion.  Tickets for the 2011 Condo Conversion Lottery are now on sale and will be available through Friday, January 21st. The ticket cost is $250 per application. Details can be found on the DPW’s website.
The scheduled 2011 Lottery Drawing will be held at City Hall on Wednesday, February 2, 2011 at 9AM.

Target Gets the Green Light at Metreon

SF is getting a Target store at the Metreon in 2012!

Check out the SF Gate story here.

 

 

The Future of the Mortgage Interest Tax Deduction

According to CNBC’s Realty Check blog, our nation’s coveted mortgage interest tax deduction represents about $131 billion in potential tax revenue in 2012.  That is a lot of cash and it’s now the focus of the president’s deficit commission. Read the story here.

Historic Converted Ice House is home to 51 Hip New Condos

Regardless of how familiar you may be with downtown San Francisco, you probably still don’t know where 1 Ecker Place is located.  Originally an old ice house from the early 1900′s, this unique condo building sits tucked away on a tiny alley between Market & Mission and First & Second.

The condos were originally marketed a few years ago.  The developer eventually bailed out on the project and 1 Ecker stalled for a very long time.  It is back now with a new owner and a new marketing company.    1 Ecker Place offers 51 very unique condos in the heart of the Financial District.

Check out the details here and let me know when you’d like a tour.

Case-Shiller Home Price Index

The latest Case-Shiller Home Price Index Report has just been released.  This report has long been the holy grail of the US real estate market.

Take a look.

The Basics of Vesting in Property

Buying a home is an exciting and sometimes hectic process.  Many buyers fail to think about important details such as how to be vested (or hold title) in their new property.   Here is a helpful summary chart from First American Title. It is important to consult your attorney or tax adviser to confirm your understanding of these options, but this is a great overview to get you started.