One Million Dollars Over Asking. Market “Crazier Now Than In ’05 And ’06″

Where on Earth!? Right here, 2821-2823 Broderick, San Francisco, CA 94123.

As if $1,000,000 over asking wasn’t enough, how about a two (yes 2) day close of escrow. Still shows Pending in MLS, so look for it to close on Tuesday.

How do I know?

A legit friend of mine offered $3.515 and didn’t get it. I don’t know exact price, heard from another friend the seller accepted $3.56 but not confirmed. Asking price was $2.495. I also tried to buy 2740 Lake St a few weeks ago, it went to an all cash buyer, 5 day close for $620k over asking. There was another house on El Camino in Sea Cliff that went like $1.2MM over asking recently. Market feels crazier now than it did in ’05 and ’06.“–A Trusted Developer Here in San Francisco

-2821-2823 Broderick, Cow Hollow 2 Unit Asking $2,495,000 [MLS]
-Google Earth Fun with 2821-2823 Broderick [Google]

It Is Certainly Brisk Out, And We’re Not Talking Weather

Somebody has certainly turned the tap on with regards to San Francisco real estate. Case in point (like we need to see more), 1998 Broadway #1007.

I just called on this Pacific Heights property to get an appointment for a client to take a look at it next Tuesday. How foolish of me to think it’d still be available! They accepted offers yesterday, received five, and will certainly not be looking for another by next Tuesday.

That’s a two bedroom, one and one half bath, 1030 square foot condominium asking $750,000, gone in seven days.

-1998 Broadway #1007, $750,000 [MLS]

San Francisco Market Focus Report May 2012: Translation = The Market Is Kinda Hot

San Francisco Housing Market Accelerates

The spring home-buying season is well underway in San Francisco, as historically low interest rates and a limited supply of homes for sale have prompted nascent home buyers to pull the trigger. Cash transactions, competitive bidding and multiple offers are once again commonplace throughout the city.

Single-Family Home Sales

The city’s inventory of single-family homes for sale dropped by 30.7 percent compared to April 2011. With a substantially lower inventory, the number of homes under contract rose by 12.6 percent compared to this time last year, while the number of homes sold increased by 10.7 percent.

For homes that were priced below $700,000, the months of supply inventory fell by 61.4 percent to 1.3 months. For higher-priced homes between $700,000 and $1.2 million, the months of supply inventory also dropped, by 53.9 percent to 1.2 months. These exceedingly short time frames continue to place San Francisco high among cities in the nation where homes are selling the fastest.

One area of town which continues to experience high sales activity is the Central District. Since April of last year, the number of homes under contract in this point of the city has increased by 3 percent, but what is more noteworthy is that the number of homes sold has jumped by 51.9 percent, with 41 transactions closed. The Central District is home to a variety of neighborhoods, including the family-friendly Eureka and Noe Valleys, which are where many new affluent technology workers are competing to purchase homes. The median price for a home here is $1,355,000.

Another area of the city which experienced healthy sales activity is the southeastern section, east of Interstate 280 and extending past Candlestick Park. Compared to one year ago, the number of homes under contract here has surged by a whopping 76.5 percent, while the number of homes sold has also increased by 23.1 percent to a total of 48 transactions closed. Homebuyers seeking an easy commute to the Peninsula and some of the best prices in the city are turning to neighborhoods in the southeastern section like the Outer Mission and Mission Terrace. The median price for a home here is $477,500.

Condominium Sales

Just as with single-family homes, the inventory of condominiums for sale in the city dropped, by 38.9 percent compared to April 2011. Despite this, the number of condominiums under contract increased by 33.8 percent, while the number of condominiums sold rose by 15.6 percent.

For condominiums that were priced between $500,000 and $900,000, the months of supply inventory contracted by 68 percent to a reading of 1.2 months. For luxury condominiums priced above $900,000, the months of supply inventory also fell by 30.2 percent to 2.2 months.

One area of the city which experienced a robust increase in condominium sales activity is in the central-eastern section. Since April of last year, the number of condominiums under contract here has jumped by 48.5 percent, while the number of condominiums sold has only dropped by a marginal 1.1 percent, rounding out the month with 86 units closed. Stylish and contemporary mid-rise condominiums line the streets of the neighborhoods here, including South Beach, whose close proximity to Caltrain and AT&T Park is ideal for commuters and baseball fans alike. The median price for a condominium in the central-eastern section is $697,500.

Outlook

Nationally, there is strong evidence that the housing market is stabilizing, as all-time low borrowing costs and improving employment have helped fuel demand for a shrinking inventory of available homes. And, prices have bottomed out. The National Association of REALTORS® reported that prices for single-family homes improved in the first quarter of the year compared to last year for 74 of 146 metropolitan areas.

The consumer confidence index, which had declined slightly in March, remained virtually unchanged in April. The index now stands at 69.2, down slightly from a reading of 69.5 in March. Regarding the short-term outlook, Lynn Franco, director of the Conference Board Consumer Research Center, says that, “Overall, consumers are more upbeat about the state of the economy, but they remain cautiously optimistic.”

According to the latest figures from the California Employment Development Department, the unemployment rate for the San Francisco Bay Area rose slightly this past March, from 8 percent to 8.1 percent, following a similar statewide trend. Between February and March of this year, leisure and hospitality were among the top industries with added job growth. In San Francisco, 38,200 people were out of work in March, while 432,600 had jobs.

Prospective home buyers still on the fence about purchasing should consider the current state of the rental market in the city, which continues to tighten with rising rents. Based on a recent article published in the San Francisco Chronicle, rental rates in the city rose by 15.8 percent compared to the same time last year, with an average rent of $2,663 for all units. Studio apartments rose by 16.5 percent to an average of $2,075, while one-bedroom, one-bathroom apartments also increased by 19.9 percent to an average of $2,611.

-San Francisco Market Focus Report May 2012

San Francisco Association Of Realtors Finally Incorporates Facebook/Twitter Sharing Directly From MLS. Still Trying To Keep Control, However

The San Francisco Association of Realtors and our local MLS are FINALLY getting in touch with reality. That reality being, sharing a listing on Facebook and Twitter should not mean having to go to yet another third party to make it easy.

Listings can now be posted on Facebook and Twitter directly from SFARMLS. The icons for Facebook and Twitter are displayed in the Links section of the Listing Detail page just beneath the listing’s photos. Please note that only listing agents will be able to view and use the social media links for their own listings. Users can click the Facebook and Twitter icons to be taken to the corresponding social media site. If they are already logged into Facebook or Twitter on their computer, they will be automatically redirected to the post editor. If they are not logged in, the site will ask for the user’s credentials. Once they are on the site, they will redirect to the post editor. A public link to the listing, as well as basic information on the property, will show on the user’s Facebook or Twitter page with any agent comments.

All it took for them to get on board was a multi billion dollar IPO. Still trying to hold on to a sliver of control however, “Please note that only listing agents will be able to view and use the social media links for their own listings.” Isn’t the whole point of social media to get more exposure?

Why wouldn’t I want other agents to share my listings on their Facebook profiles? All they have to do is grab the link and they can share it that way anyway. In fact, why wouldn’t MLS want a Facebook or Twitter icon to go on every listing page, so anyone anywhere can share that listing with someone else? Why bother with the “only with their own listings” bull shit? Just let it go man!

“You Know Me I’m On The 333…”

I know of another unit at 333 Grant Avenue that is not on MLS and hardly being marketed. If you have interest in living downtown, a stone’s throw away from Union Square, give us a shout. This is a two level (loft style) unit, and it’s awesome.

I know of a a few other epic off market opportunities as well in case you keep missing the boat.

-Hipster Hilarity on the 333… [theFrontSteps]

Live Amongst History On Hotaling Place

I’m in process of securing a pied-à-terre for a client in 25 Hotaling Place*, and I was reminded of not only what a great building it is, and how rich it is with history, but also what an incredible location!

The best of San Francisco right at your doorstep
Located in San Francisco’s historic Jackson Square District, 25 Hotaling Place is surrounded by four of the city’s most vibrant neighborhoods—North Beach, The Financial District, Chinatown and The Embarcadero Waterfront. Intimate cafes, sophisticated restaurants and colorful watering holes are just steps away and a stone’s throw from the city’s spectacular waterfront.

A little street with a big past
Originally called Jones alley, the small street that runs between Jackson and Washington Streets started life as an alley servicing the warehouses of old San Francisco’s bourgeoning waterfront. In the early 20th century it was given its present name—Hotaling Place— commemorating one of the Gold Rush-era’s most successful entrepreneurs.

Anson Parsons Hotaling arrived in San Francisco in the mid-1850s and founded A.P. Hotaling & Company, a distributor for Cutter’s Bourbon Whisky. During the 1906 Earthquake and ensuing fire, sheer luck and a change in wind spared Hotaling’s warehouse. This led to one local commentator to pen the following lines that are now etched in the city’s folklore:

“If, as they say, God spanked the town for being over frisky, Why did he burn the churches down and save Hotaling’s Whiskey?”

To put it in my words: the location is BUTTER!!! One of the best spots in San Francisco. Right smack dab in the thick of it all, yet quaint enough to feel like you just stepped into a small part of history, lore, and a European side street. One of my favorite restaurants (Bix) is just around the corner, you can purchase any number of SWEET espresso machines and grinders around another corner at Thomas E Cara, Ltd, and for those of you that love a little late night entertainment, you’re stumbling distance to all that jazz too. It is quite simply, awesome.

Guess what? If you missed out on getting into this building before, your chance may just be coming around again. There is talk of another resale unit hitting the market soon (maybe not on MLS), and I have the inside scoop. So if you’ve been looking for a place in and around Union Square, Financial District, North Beach, Embarcadero, have I got the property for you! Oh…if you like Frida Kahlo and Diego Rivera you’re really going to want to contact me.

Since we’re on the subject of Hotaling, you might like to try some of Hotaling’s Whiskey, produced by San Francisco’s own Anchor Distilling Company, while you ponder the possibilities of owning a slice of San Francisco history.

*25Hotaling.com is from the original marketing of the property and is NOT the current unit for sale, or necessarily an accurate depiction of the unit coming for sale. The finishes, exposed brick, and location are indeed accurate.

The Anti-Facebook Effect

San Francisco is all abuzz about the Facebook Effect, and how it’s fueling our real estate market. It’s a good thought indeed, but also important to note that for as many articles published about it, it is, in fact, just opinion and a lot of hype. I, for one, am thankful to see another type of article posted today (I’ll call it the anti-Facebook effect), and I thought you all should read it too.

Some talking points:

People, mostly real estate agents and sideliners, are saying that the San Francisco real estate buyer mindset is that they “better get in before they’re priced out.” I do think this is a discussion point to get buyers to jump pushing days on the market (DOM) down and keeping competition fierce, yet what is fueling the market is cash and inventory

and…

The new techies are putting money in the market yet as renters, not buyers. They are not seeing real estate as a day trade and are waiting to purchase until they can get what they really want. Even though amazing three and five year arms are available, most buyers are opting for 30 year fixed loans. Twitter and Airbnb employees do not have the low or no down payment options that were available during the last boom and unless they have family money or cash from the last start-up; they are still in the very expensive rental market.

“The Facebook Effect”, as Julian Hebron of the Basis Point calls it, is a justification, yet not likely a true driver, of a seller holding strategy. Most owners sitting on the sidelines who might want to sell are holding specifically due to their financial circumstance. “The Facebook Effect” is a nice way to predict a positive future where they may get their money back and perhaps a slight gain. People who are looking to trade property in the Bay Area are going to be impacted on both sides of the deal, whether it be buying or selling.

-Facebook Effect [theFrontSteps]
-Anti-Facebook Effect (“Cash, Not Facebook, Is Fueling The San Francisco Real Estate Market”) [Real Estate Trading Game]

Facebook Friday Open House? Really? Come On!

It took exactly less than one full day for the real estate industry to latch on to yet more of the Facebook effect hype, and send off a bit of spam that caught my eye: Facebook Friday Open House? Really?

How about just “Come see this amazing house on Friday”. Why Facebook Friday?

Any reports of a “Facebook Frappuccino” at Starbucks today? Or how about an order of “Facebook Fries” at McDonalds? Just sayin’….

Looks like a cool house though.

-5626 Vine Hill Road, Sebastapol, California: $5,100,000 [Redfin]

San Francisco SOLD Properties And New Listings Report

San Francisco recently listed and SOLD property by neighborhood. This is the sh*t you need for house hunting and house selling. Get rid of the fluff and focus on the good stuff. Recent sales comparables.

I send this out every other week. If you want to be added to the list, just holla (alexclark@gmail.com)!

-sfnewsletter MarketTracker San Francisco real estate report

“Web 2.0 Remaking Real Estate, Again”- SFGate Gives Props To PocketListings.net!

Featured on SFGate (San Francisco) yesterday.

PocketListings.net

Much like finding love on a dating site, Web 2.0 lets buyers meet their dream homes and sellers meet their dream buyers in a direct, match-making process– without the MLS.

Because of new technology, many agents and their clients are turning to unconventional ways to list property for sale, and the increasing speed and reach of the internet (especially social networking) makes it easier to get attention to a property for sale, attention that was previously reserved for listings on the MLS. As more and more agents and their clients begin to achieve an “off market” sale at a desirable price and terms for all parties, the boundaries of ‘one national listing place’ expand– potentially to the point of blowing apart.

That’s what PocketListings.net is all about. Says co-founder Alex Clark: “We’ve already seen a high volume of posts for higher end property and I expect that will continue, and we’re seeing a much larger number of agents using our service to promote ‘buyer needs,’ which bring fence sitting sellers and their agents out of the woodwork, and into contract. As we develop our technology further to simplify the process of posting pocket listings and buyer needs to our site, we suspect many more brokerages to get in the game as their clients (the buyers and sellers) become more and more savvy to the alternatives available to them.”

-Web 2.0 Remaking Real Estate, Again [SF Gate]