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San Francisco Market Report

Britain’s June vote to exit the EU has already had an impact on the market in the US, including here in San Francisco. Mortgage rates have dropped almost a quarter of a percent, making the monthly payments on our pricey housing slightly more affordable. The result is that it will support continuing increases in sales prices, as decreases in interest rates always do. For example, a $1,000,000 loan at 3.75% costs $4,631/month, but at 3.5% you can borrow $1,032,000 for the same monthly payment. And monthly payments are what buyers focus on.

The Federal Reserve Bank of San Francisco published its upbeat Economic Forecast in June which indicated continued strong job and economic growth, continued low business and mortgage interest rates (this was published prior to the vote in Britain), coupled with historically low unemployment and inflation below the Fed’s target of 2%. The conclusion is that they see Gross Domestic Product growth around 2% for the year, at a “pace consistent with moderate ongoing expansion, which we expect to continue over the next few years.”

Of interest was their findings about the cause of the lower labor force participation rates that have been occurring since 2001 that have been noted by many previous reports. It turns out that because of the considerable shift in the wage gains during this time period to the higher income households, that these households have fewer multiple earners. On the opposite end of the spectrum, lower wage earners continue to need multiple earners to make ends meet.

The Fed report hypothesizes that this is a shift that the upper-income households have made in the work-life balance and that the workforce participation in this group may remain low. It is also mimicked by the young workers in upper-income households, where labor force participation is also significantly lower than in the general population.

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San Francisco Single Family Home median prices have been hovering between $1,352,000 and $1,380,000 for the past four months since peaking at $1,400,000 in February 2016. That was the second time median prices had hit that number, first back in May of 2015. With the drop in interest rates, we could break through that median price soon because that drop from 3.75% to 3.5% finances another $45,000 in the loan amount for the same monthly payment.

The Condo/Loft Median Sales Price hit an all time high of $1,180,000 in June 2016, up 4.9% from June 2015.

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Resale Condos-Lofts jumped 59% in both Days on Market and Months Supply of Inventory compared to June 2015, but both are still in strong sellers market territory.

Single Family Homes are up slightly in Days on Market from 16 to 20 both for May to June, 2016 and from June 2015 to June 2016. Months Supply of Inventory dropped from 2.3 in May to 1.9 in June 2016 and was also down from June 2015’s 2 months. Both market indicators continue to show a strong sellers market.

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Single Family Homes New Listings dropped by 55 from May to June 2016. It was also off 61 compared to June 2015. Of additional continuing importance is that the year-to-date number of new listings is down 60 from year-to-date 2015, a 4.1% decline. This helps explain why Months Supply of Inventory is lower than last year.

Resale Condos/Lofts had the reverse trend, with 1 more new listing on the market in June than May, 2016, and 27 more new listings in June 2016 than June 2015. And, significantly, year-to-date new listings are up 167 over year-to-date 2015, which represents a 10.3% increase in inventory. This helps explain why Months Supply of Inventory and Days on Market has risen sharply for Resale Condo/Lofts.

No Mass Exit from San Francisco on the Horizon

At last month’s SFARMLS Building Boom forum, the Bay Area Council presented its latest poll of Bay Area residents, and said that the results show that a third of Bay Area residents “are likely to bolt the region in the next few years”. In truth, that is a big overstatement of the poll results.

What the poll actually asked for was a response to: “I am likely to move out of the Bay Area in the next few years.” What people answered was: 13% said they strongly agree with that statement and 21% said they somewhat agree.

That is certainly not a third of the residents saying they are likely to “bolt” in the next few years. Exactly where would they go? Jobs are here, families are here, the great weather is here. There’s a reason our population is growing – this is a fabulous place to work and live, in spite of high prices and congestion.

1011 23rd Street | Modern Loft In Dogpatch

1011 23rd Street #10 | Dogpatch Loft | $699,000

Dogpatch, San Francisco: according to Wikipedia “is located on the eastern side of the city, adjacent to the waterfront of the San Francisco Bay, and to the East of Potrero Hill. Its boundaries are Mariposa Street to the North, I-280 to the West, Cesar Chavez to the South, and the waterfront to the East. It contains housing, some remaining heavy industry, more recent light industry, and a new but growing arts district. In 2002 it became an officially designated historic district of the city of San Francisco….[and] there is no definitive explanation for the name

One thing we know for certain, Dogpatch has some amazing properties, and 1011 23rd Street #10 is right up there…

Situated on the corner of 23rd Street and Minnesota, this corner unit residence features soaring (approximately) 17′ ceilings, enormous windows that flood the home with natural light, an open kitchen/living area with bar seating, granite countertops, stainless appliances, fireplace, refinished hardwood floors, in unit Washer & Dyer, new carpet in the loft bedroom, and parking.

Just a short walk away from the increasingly vibrant Dogpatch shops and restaurants, and half a block away from Philz Coffee (yes, that’s a selling feature, since Philz was voted the best coffee house in San Francisco, and this is their Mothership location), living at 1011 23rd Street will afford you all of the new things San Francisco is offering up, as well as some of the old that seems to have been lost (especially some grit and character).

Come check out this wonderful loft, introduce yourself, feel the vibe, cruise the neighborhood, bring me a coffee, and I’ll hand you the keys – coffee and a few hundred thousand dollars.

Listing Details:
$699,000
1 bedroom
1.5 bathrooms
1 parking space
Corner Unit Loft
Soaring (Approx. 17′) Ceilings & Windows
Custom Window Coverings
Open Kitchen w/bar counter
Granite Countertops
Dishwasher
Hardwood Floors
New Carpet in Bedroom/loft
Fireplace
Washer & Dryer
Storage
Fitness Area
View Roof Deck
HOA Dues: $512.94/mo (Includes Water, Garbage, Webpass Internet, Building maintenance, gym, roof deck, building insurance, outside management)
A+ Dogpatch Location

Showing Schedule:
Private Showings Upon Request
Open House Sundays 2-4pm

Exclusively listed by:
Alexander Clark
Keller Williams Luxury Realty International
theFrontSteps.com
alexclark@gmail.com
415-254-5351

Box Factory Lofts

2169 Folsom M202 | Allied Box Factory Lofts | Mission District | $1,375,000

From your first look at the exterior of the historic Allied Box Factory, to the time you stroll through the lush courtyard to this one of a kind Live/Work loft, you will be in awe…

Originally built in 1907 as a timber factory, the Allied Box Factory was converted to a mixed-use development in 2001 with the intent of fostering a creative community. Of the Allied Box Factory’s 31 spaces, 15 of them are live/work condominiums, eight of the building’s non-residential units are used as creative studios, and six house commercial enterprises.

Situated on the second floor, unit M202 has recently been transformed from cool to ultra cool with the complete remodel of the kitchen/living/dining area that creates an ambiance second to none. Entertain guests in your modern, open kitchen complete with a 5 burner Thermador range, grey Caesarstone Countertops, Custom Walnut Cabinets, Carrera Marble Island (with seating), Thermador Dishwasher, GE Monogram Refrigerator, and original bar lighting from the previous owner, famous artist Rex Ray.

A combination of hardwood and concrete flooring with large exposed timber and open ceilings is certain to capture your attention. Extend your living area by opening the doors to your large outdoor PRIVATE patio with room for seating, dining, gardening, and of course barbecuing. Enjoy the warm weather the Inner Mission provides, soak in the city vibes and rooftop views, and live the San Francisco dream.

Not only does this amazing unit feature a completely remodeled kitchen, a designer bedroom with custom closets, hardwood floors throughout, a designer bathroom with custom mosaic tiling, washer & dryer, and deeded parking, but also a completely separate bedroom/office/studio across the hall. This room also contains gorgeous wood floors, original windows, tons of natural light from the courtyard, and is ideal for the live/work lifestyle so many of us strive to achieve.

Listing Details:
$1,375,000
2 bed
1 bath
1 car parking
Remodeled Designer Kitchen
Carrera Marble Island
Caesarstone Countertops
Custom Walnut Cabinets
Thermador Range
Private Patio
W&D
Hardwood & Concrete Floors
HOA Dues: $437.96/mo + approx $40/50/mo for common utilities
Prime Inner Mission Location
*Live/Work loft. Certain restrictions/stipulations may apply. Buyer is advised to investigate

Showing Schedule:
Private Showings Upon Request

Exclusively listed by:
Alexander Clark
Keller Williams Luxury Realty International
theFrontSteps.com
alexclark@gmail.com
415-254-5351

beach cottage

The Itsy Bitsy Teenie Weenie Million Dollar Beach Bungalow

It’s official…in San Francisco a million bucks barely buys you an (almost on the beach) beach bungalow…actually you need $1,050,000…and depending on what size waves you’re thinking of surfing at the most popular surf spot north of San Diego, you’ll want to consider ultra custom space-saving racks.

In case you’re wondering, it was listed at $699,000. It is close enough to catch the blowing Springtime Sand, so I guess you can call it a “beach bungalow”.

Surf is not up this weekend in San Francisco (Surprise!), but surely you know a friend with a boat. Happy Memorial Day weekend!

Top 20 Overbids, Underbids, and so much more, right here on The Goods.

3434 Rivera, Street, San Francisco [Property Detail Page]

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From $899,000 To $1,400,000 | Holy (160) Santa Marina!

Would you look at that…the #1 Overbid of the week is not a fixer! It’s a been a while for that, but we’re pleased to report the market is strong…very strong for any reasonably good property in any reasonably good neighborhood of San Francisco, which is pretty much everywhere now.

This property (160 Santa Marina) was ridiculously under-priced at $899,000, but still.


It sold half a million dollars over the seller’s asking price and just clinched the top spot on this week’s Top 10 Overbid list by selling for a stunning $1,400,000.

As for the rest, here you go.

sfflowermart

New Renderedings of Above-Ground SF Flower Mart Revealed

The SoMa-based SF Flower Mart has been a bay city institution for almost 60 years, but when plans were unveiled in 2014 for the establishment to move underground, public outcry was fierce.

Finally, the project has been revamped and the renderings depict a much more appealing above-ground facility, dotted with coffee shops, open space and plenty of sunlight for SF’s floral proprietors. The updated plan follows news that development company Kilroy Realty Corp. had purchased an adjoining  1.75-acre property at 620 Brannan St. bringing the square footage of the entire project to 2.1 million and making it the second biggest commercial development in SF after the Embarcadero Center.

Project Breakdown (see details below)
Creative Office Space: 2 mil sqft
Flower Mart Warehouse: 115,000 sqft
Retail / Market Hall: 100,000 sqft
Public Open Space: 40,000 sqft
Delivery: ~2020

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Mixed-use Retail

Retail:
The San Francisco Flower Mart continues to witness the evolution of one of America’s greatest cities. What began almost 100 years ago as a loose arrangement of local growers selling their wares near Lotta’s Fountain soon grew into a physical marketplace at the corner of 5th and Howard. The market later became a formal institution at its current space at 6th and Brannan. This time, the market will remain in its current location in SoMa, but a major reshaping will make it the focal point of a dynamic, mixed-use space that offers a unique take on the urban lifestyle.

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Revamped Warehouse

The Warehouse:
The new San Francisco Flower Mart will include a modern, 115,000 sqft street-level warehouse, large enough to accommodate all tenants of the existing flower market. The improved layout will include secured entry points, as well as direct access to loading and parking to better service both input and output activities. 24-foot-high ceilings and strategically placed skylights create a light and airy feel inside of the warehouse and provide enough space for a multipurpose mezzanine level along the perimeter of the market. Energy efficient refrigeration will be located adjacent to each individual vendor stall. The specific details of the new facility will be further developed over the next several months by Kilroy Realty Corporation, San Francisco Flower Mart LLC, and a committee of Flower Mart tenants to ensure that the new market functions efficiently and effectively for businesses and customers.

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Public Plaza

Integrated Public Plaza:
A series of integrated stairs throughout the site connect the amenity levels above to an expansive public plaza at the street level. The plaza will be the focal point of the Central SoMa neighborhood, which is currently lacking in high quality, well-maintained public open space. Boasting several convenient access points, connecting through the Market Hall, and encouraging pedestrian activity from nearby public transit, the plaza will also act as a programmable space for events such as famers’ markets and floral exhibitions. Pedestrian connections woven through the site are designed to address the recommendation of the Central SoMa Plan to link the surrounding city blocks to create more of a neighborhood feel. Through integrated windows off of the plaza, visitors and tenants will have the opportunity to catch a glimpse into the world of the fast-paced flower business without disrupting the busy wholesale operation inside.​

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Creative Office Space

 

Creative Office Space:
Rising above retail experience will be a series of LEED Platinum-certified creative office buildings connected by sky bridges, giving tenants the flexibility to enjoy either large or medium-sized floorplates. A mix of rustic and modern facades and a low-rise podium building above the Market Hall on Brannan Street celebrates the industrial history and creative future of the neighborhood. Amenity plazas located above the Flower Mart warehouse at 14 and 24 feet contribute to a healthy office environment by providing office tenants with a convenient connection to the outdoors, attractive seating zones, recreational areas, and kiosks. This amenity zone, activated by the adjacent market and dynamic landscaping, will also extend the visual and functional identity of the Flower Mart.

More like this:
179 Carl Designer Bathroom Featured in California Home & Design

SOLD | 179 Carl | Cole Valley Victorian | $3,200,000

I’m pleased to report the sale of this amazing property, which we were able to get featured not only on SFGate (Cole Valley Queen Anne with fabulous wallpaper for $2.695), but also Curbed (Queen Anne Done Up in Designer Style Looks for $2.695), and possibly even in San Francisco Cottages & Gardens just closed today for a whopping $505,000 over list price at $3,200,000. Considering we were targeting a $2.9-$3M sale, I’d consider this knocked out of the park.

Congratulations to my wonderful clients on an extraordinary Cole Valley sale, as well as to the buyers who are sure to love this amazing home in an epic location.

Property Details: