With potential home sellers feeling that the market is on the upswing and that housing prices will soon appreciate, many of them have elected to hold off listing their homes, resulting in a citywide inventory shortage. At the same time, potential home buyers fearing higher prices are rushing to buy, particularly with the low-interest rate mortgages that are available today. These two forces are causing the already low for sale housing inventory in the city to be gobbled up at a faster rate. And, without new homes for sale to replace those that have been sold, the city’s inventory remains low, while home sales are staying high.

Single-Family Home Sales

Although the city’s inventory has dropped by 25.5 percent compared to February 2011, inventory levels also have ticked slightly upwards since January of this year, by 7.7 percent. And, despite the low inventory, homes under contract showed improvement compared to the same time last year, rising by as much as 22.9 percent. Moreover, the number of homes sold has almost doubled, by 40.7 percent, with a tally of 173 properties.

For homes that were priced below $700,000, the months of supply inventory fell by 66.2 percent to 1.2 months. For higher priced homes between $700,000 and $1.2 million, the months of supply inventory fell by 30.4 percent to 1.6 months. These short time frames continue to indicate a seller’s market, where sellers have more leveraging power over buyers who are competing against a limited group of properties.

One part of the city which experienced an above average increase in sale activity is the Sunset district. Since February 2011, the number of homes under contract has risen by 11.4 percent, while the number of homes sold has jumped by 52.4 percent to a total of 32 properties. The Sunset district, a predominately residential area, rests on the central-west side of the city. With good schools and plenty of family-owned businesses, home buyers seeking a more conservative and small town approach to living would find the Sunset district ideal.

Another area of the city which saw notably positive real estate activity is the central-eastern section. Compared to the same time last year, the number of homes under contract in the section increased by 4.8 percent, while the number of homes sold spiked by 157.1 percent, to a total of 18 properties. Although generally associated with the condominium markets of the South of Market (SOMA) and South Beach areas, the central-eastern section also includes neighborhoods such as Bernal Heights and Potrero Hill, which offer an assortment of cottages, bungalows, and single-family homes in a very friendly, community type setting. Home buyers who yearn to be close to the city, but who also desire amenities such as a small garden or yard, would find solace here.

Condominium Sales

Similar to single-family homes, the number of condominiums for sale throughout the city also has lessened by 33.6 percent since February 2011. Still, in spite of the low inventory, the number of condominiums under contract rose by 17 percent this past month, while the number of condominiums sold remained relatively the same, dropping only by 1.2 percent.

For condominiums that were priced between $500,000 and $900,000, the months of supply inventory shrank by 51.9 percent to a reading of 1.4 months. For luxury condominiums priced above $900,000, the months of supply inventory also decreased, by 28.9 percent to 2.5 months.

One region of the city which continues to experience strong condominium sales activity is Downtown San Francisco. Compared to this time last year, the number of condominiums under contract rose by 9.3 percent, while the number of condominiums sold shot up by 50 percent to a total of 42 units. Quintessential San Francisco neighborhoods such as Nob Hill and Russian Hill offer some of the most stunning and luxurious condominiums in the city. Those seeking to take an elevator up to their home and views worthy of magazine covers will find just what they’re looking for in Downtown San Francisco.

Outlook

Nationally, the consumer confidence index, which had decreased in January, increased in February. The index now stands at 70.8, up from 61.5 in January. (A reading of 90 indicates a healthy economy.) Lynn Franco, director of the Conference Board Consumer Research Center, says, “Looking ahead, consumers are considerably less pessimistic about current business and labor market conditions than they were in January. And, despite further increases in gas prices, they are more optimistic about the short-term outlook for the economy, job prospects, and their financial situation.”

Based on the preliminary unemployment rates from the California Employment Development Department, the statewide and local job outlook is showing continued improvement, with the State’s unemployment rate dropping in January to 10.0 percent from 11.2 in December. Overall unemployment throughout the Bay Area also was down, with San Francisco seeing its unemployment rate decline from 9.5 percent last year to 8.1 percent this past January.

Earlier this month, the Federal Housing Administration announced that it would slash mortgage insurance premiums for certain home owners who refinance an FHA loan into a new one under its streamlined program. According to the San Francisco Chronicle, “The administration estimates that 2 to 3 million homeowners could be eligible to refinance under the reduced fees. But in the Bay Area, FHA loans were relatively rare until March 2008, when FHA raised its loan limit in high-cost areas to $729,750.

The San Francisco real estate market is likely to experience the same trend of low inventory and high sales in the next few weeks as home prices are expected to go up. When they do, San Francisco should begin to see a greater inventory of homes hitting the market.

In laymen’s terms…it’s a good time to sell!

-San Francisco Real Estate Market Focus Report (PDF)

We were relatively new to the Bay Area and had been conducting a very haphazard and ineffective home search until we were introduced to Alex. He came highly recommended and we quickly found out why. He introduced us to different neighborhoods and new pockets of the city, opening our eyes to possibilities that we had neglected on our own. Alex helped us to be aggressive (but smart) in our negotiations. He was our ally and a trusted advisor from our very first meeting and we couldn’t be more pleased with the results. Alex is without a doubt an extremely important (and fun) person to have on your side during any home search.
-Annie and Morgan

Thanks guys! You rule! Enjoy your home and don’t be shy with invites to some barbecues in that awesome east facing (we talked wind) backyard…

-More Testimonials

I have word of a house, on the Great Highway at Noriega (the best sandbar on the beach right now), that is very much for sale, and very much not on MLS radar. Price hovering around $1,050,000 and $1,100,000. That is the view above, and here are the details below. As always, I am here to help get you in.

3 Story SFR taken to the studs and beyond in 2008
2BR 2.5 BA + Office
3 car tandem parking
LOTS of storage
Dog wash station
Hot/Cold water hookups for outdoor shower in the backyard
Ipe flooring throughout
Open layout with 8′ wide sliding birch pocket doors separating living/dining/kitchen
8′x15′ Blomberg window in living room
Custom cabinetry throughout
Spark brand fireplace in living room with flat screen TV mounted above
Half bath on living level
Huge dining room
Gourmet kitchen
Wenge cabinets
Subzero fridge
6 burner Wolf Stove with a grill and 2 ovens
Stainless sinks
Island with prep sink
Ceasarstone counters
Bosch dishwasher
Walk-in pantry
2 person office with built in Wenge desk and cabinetry
Baths all feature custom bamboo cabinets, modern Italian tile and Italian fixtures
Laundry room
Rear bedroom with attached bath has shower over tub
Master bathroom has walk-in 2 person shower with seat
Soaking tub with river rock surround
2 sinks
Separate room for toilet and bidet
Master bedroom has his/hers closets + walk-in closet for shoes (most closets in the house have storage by california closets)
Also has Spark brand fireplace with flat screen TV mounted above, cathedral ceiling, built in Wenge headboard with nightstands, plus built-in bed (plus a platform for a dog bed)
Expansive deck overlooking the surf
Ocean views from living and sleeping levels

From what I know, this is a home built for entertaining, hanging out, and enjoying all that Ocean Beach has to offer.

Contact me to go take a look. Principals Only.

This property is located at the end (or beginning) of 18th Ave in San Francisco. It can be yours for $3,995,000, and I’d be happy to get you a tour.

-5 beds, 3.75 baths, 5700 square feet, $3,995,000 [MLS]

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Sexy it is not. Eichler it is, and sometimes that all you have to say…

-76 Amber Drive, 4 bed, 2.5 bath, $819,000 [MLS]
-Ditch Your Realtor, Get Ahead Of The Pack By Working With Me [theFrontSteps]
-Mid Century Modern With An Emphasis On Modern [theFrontSteps]
-More Off Market Real Estate [PocketListings.net]

Are you, or any of your friends, looking for a single family home in Noe or Cole Valleys (or anywhere in San Francisco for that matter)? Are you getting beat out by multiple offers in the over million dollar price range ($1.5M+), and showing up late to the party? Is your Realtor telling you they’re doing all they can (simply checking MLS everyday, which you can do too), but really not delivering? If so, you’re not alone, and I can help.

Within the past couple of months my buyers and readers have known about dozens of properties prior to them going to MLS. To think I share all of them online with everyone is simply silly. For example, my circle of clients knew about 707 Cole, 1027 Cole, 313 Parnassus, 785 Cole, 1340 Cole, 121 Beulah, 471 Duncan, 2975 Lake, and many more. There are also a dozen or so homes that never even made it to MLS and were shown without a hint of market activity, such as a mid-century home in Noe Valley, a grand, modern home on Sanchez, an AIA tour home in Golden Gate Heights, a penthouse stunner in SOMA, and a few others that I can’t recall the address off the top of my head.

Today, I present to you two more opportunities in Cole Valley, one in Nob Hill, and another on Lake Street not on MLS. Nowhere near MLS in fact. Not on PocketListings.net, not in my pocket, and not even on anybody’s radar. They are all single family homes, and they are all at least 2 bedrooms, and close to or over $1,500,000. They are not fixers, they are done, done, done…or turnkey as we like to say.

If you are interested, or know somebody that might be, you gotta contact me directly (alexclark@gmail.com), you gotta be unrepresented, and I’m going to ask you to work with me going forward and sign a written agreement confirming exactly that. No co-agents, no “I’ll work with you if you find me the property”, no “let’s try it out on this deal”…none of that. You either marry me as your agent or you don’t. Not sure if you should? Have a look at some recent testimonials I’ve been gathering and come take the plunge.

Like I’ve said, working with and finding a Realtor you like is like dating. If it’s not working out with one, you are free to leave to find another.

I’m also beginning to dabble in Lake Tahoe real estate, so if you’re interested in a second home, ski pad, lake front property, my finger is finding the pulse of that market too (and I know where all the good powder is).

So feel free to give me a shout, and let’s work on getting you ahead of the pack and into the home of your dreams. I’m also happy to help any of you sellers out there sitting on the fence in these markets. It’s a good time to sell in certain areas and certain price-points. I am at your service and available for consultation.

-Prior off market opportunities I presented [theFrontSteps]
-Testimonials
-Lake Tahoe Ski Cabin [theFrontSteps]

Alex Clark did a fantastic job as my agent. He was incredibly responsive. It was rare that a communication would go more than 5 minutes without being answered. He listened to what I wanted and helped me find it, despite some difficult multi-bid situations. Alex worked tirelessly to look for what I wanted and also to make sure I saw other comparable options on the market so I could make an informed choice and know that I was paying a reasonable price. Alex’s knowledge of the local market is impressive. He was friendly but firm with the agents on the other side and was instrumental in getting me a large credit on the purchase price after we were already in contract. I will absolutely use him again the next time I buy or sell real estate and would refer him to anyone else looking to do so.

Thanks Rick!

Rick and I enjoyed a great celebratory round of golf at the Olympic Club, followed it up with fresh tracks at Squaw Valley last week, and plan on surfing together today. (You gotta love Northern California). Remember, it’s not only important that your real estate agent know their sh*t, but also important that you get along, because no transaction is easy, and most sales/purchases take time…lots of it. Don’t choose an agent simply because they’re claiming “top producer” and want to cycle you through their sales system. Choose somebody you wouldn’t mind hanging out with for a few hundred hours.

-More Testimonials

I continue to give you opportunity after opportunity and you have been great. You have been loyal, you have been kind, you have been my source of income (and food and clothing for my two shining young pains in the ass…I mean sons who I love dearly…but sometimes want to wring their necks.) You have referred friends, you have referred family, you have given me tips on hot (and cold) property, and I greatly appreciate it.

I hope you continue to do so in 2012, as you have done since I started this thing back in 2007, and I hope to continue to give you the goods as I have done since before I launched this blog. (Can you believe I’ve been reporting on real estate since 2004!) I want to continue to give you the inside scoop, with a twist and some flavor, because Lord knows our market is a complete mind thrash, so we might as well have a good laugh along the way.

With that said, I have the scoop on a property in Cole Valley for some of you Cole Valley buyers:

and I also have a scoop on 471 Duncan for all of you Noe Valley buyers.

So if you, or anybody you know, was/is interested in a Single Family in Cole Valley, or took a look at 471 Duncan (or any other Noe Valley Single Family recently), give me a call. Principals only please. (If your agent isn’t digging up this kind of dirt for you, why are you paying them!?)

Happy New Year to all of you wonderful people. I hope to kick it up a notch this year on theFrontSteps, and continue to see PocketListings.net to become the successful site it deserves to be.

I look forward to helping you, and everyone you know, buy and sell tons of San Francisco real estate in 2012.

Sincerely,

Alex Clark

-Marina Blvd Luxury Waterfront Home: $4,750,000 details [Principals contact me for details, agents just create an account.]
-(Potential) America’s Cup Race Route Revealed, Realtors Frothing [theFrontSteps]

-Contact For Details
-~3800 Square Foot Sea Cliff Home (Fixer) For You [theFrontSteps]