The summer months typically see a slowdown in home sales, but this summer was anything but slow. An exceptionally tight supply of homes on the market resulted in frenzied activity among buyers looking to get into contracts at all price points in the third quarter, and multiple bids were the norm for all fairly priced properties – both single-family homes and condominiums.Sellers found themselves choosing among multiple offers – in some cases 20 or more – which helped push single-family home prices higher across the city. Prices are now very close to the highs reached at the peak of the market in 2005-2006.The limited homes-for-sale availability, coupled with strong buyer demand, should contribute to an increase in the median price for single-family homes. We expect this will encourage more sellers to come off the sidelines, which will help inventory levels rise.Noe Valley, with its family-friendly ambience and the easy commute to the South Bay, was one of the hottest real estate markets in the third quarter. Overall sales volume in the neighborhood was sharply up compared with Q3 in 2011 – a trend that was also seen in the rest of the city’s District 5, which includes Cole Valley, Duboce Triangle, Haight-Ashbury, Mission Valley, and Twin Peaks.
In the condominium market, limited inventory woes continued through Q3, with the months’ supply of inventory tightening up. Even though inventory was down 40 percent, sales were up 38 percent, year over year – a tremendous increase.
As young professionals move into the city with cash in hand from recent tech IPOs and expansions, South Beach will certainly solidify its status as one of the most desirable neighborhoods for condos, especially along the waterfront.
Looking Forward: The constrained inventory that has played havoc with buyers over the past year is finally showing signs of loosening. Our real estate professionals are hearing of a sharp increase in business for stagers, who typically prepare properties for sale, and for professionals who do pre-sale inspections, so expect to see a wider selection of homes for sale over the next six months.
Check out these amazing and exclusive PUI listings. If you need more information on any of these properties please contact us immediately. The market has turned from COLD to HOT in a very short time and combined with historic low interest rates makes it a great time to buy.
An amazing opportunity awaits at this stunning Larkspur home. Located in a private cul-de-sac within steps of world class trails and the historic town of Larkspur California. Contact Jimmy directly for more information on this spectacular property. Available for immediate sale.
|Pacific Union International, One Letterman Drive, San Francisco, CA 94129
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As part of a continuing trend suggesting that the housing crisis is tailing off, foreclosures dropped sharply in Marin, the Bay Area and California last quarter. Foreclosures in Marin were down 58 percent in the third quarter of 2012, to 55, compared with 131 in the third quarter of 2011, according to San Diego-based DataQuick. Also, fewer homeowners fell behind on their mortgages, the real estate tracking firm reported Wednesday.
“Marin is right in there with the other wealthier California coastal counties where the market has stabilized,” said DataQuick analyst Andrew LePage. “There aren’t as many people getting in trouble.” The county recorded 241 notices of default in the third quarter, down 18 percent from the same period in 2011 and the lowest figure in at least five years. Default notices are filed when borrowers fall behind on their mortgages.
“Everybody keeps asking, ‘Have we hit bottom?’ and we have,” said David Smadbeck, president of the Marin Association of Realtors. He said the numbers indicate that the housing crisis has passed its peak and is beginning to resolve. LePage affirmed Smadbeck’s judgment, saying, “We’re three-and-a-half years past the peak of the notices of default.”
Smadbeck said the dramatic drop in foreclosures was due at least in part to banks’ increasing willingness to work with homeowners on loan modifications and short sales. A short sale is when a homeowner sells the house for less than is owed to the bank.
Other real estate professionals agreed.
“There are incentives from the government to have people do these things rather than go into foreclosure,” said Kathleen Freitag of Frank Howard Allen in Novato. “It’s better for people to do a loan modification and stay in their home. Typically the bank will amortize the mortgage over a longer period of time and lower the interest rate and hence the monthly payments.”
Patti Cohn, a broker, said she is seeing far fewer foreclosures, and sales volumes are up. In some instances, homes are going for more than the asking price, she said. “Yesterday I sold a property at 12 percent over asking,” said Cohn, who operates out of Pacific Union International in Novato.
Foreclosures saw double-digit drops in all nine Bay Area counties, including San Francisco, where they were down 31 percent, from 162 in the third quarter of 2011 to 112 in the third quarter of 2012. In the East Bay, Alameda County saw a 50 percent drop in foreclosures, while Contra Costa County had a 46 percent drop.
Last quarter’s foreclosures were the lowest for California since 2007, according to DataQuick. The median price for a home in California was $300,000 in the third quarter, while the median price of a home in Marin was $748,500 in September.
If you haven’t heard yet. Barry Zito and the San Francisco Giants held off elimination against the St. Louis Cardinals last night when Zito pitched 7 2/3 innings of scoreless baseball and the Giants won 5-0. During the game the hashtag #rallyzito literally took over the Twitter World and is still the number one trending hashtag this morning. Take a tour on twitter. An amazing occurence. The questions is can the Giants fans carry the #rallyzito trend through Sundays 4:37 pm game. Sunday’s starter, Ryan Vogelsong #RallyVogelsong traditionally eats Chicken Enchiladas the night before the game. So if you are a true Giants Fan, join the fun and #chickenenchiladas for the team. Go Giants!
During the height of the boom, 2845 Broadway in San Francisco came on the market in 2006, asking a dizzying $65 million. The French limestone property has had a hard time finding a buyer and has dropped its price significantly over the years, shaving 42% off its original listing price to its most recent ask of $38.5 million.
The enormous, neo classic home and guest house sits on the prestigous Gold Coast neighborhood of Pac Heights and is owned by the Sperling family, who amassed their fortune by starting the private University of Phoenix. Our friends over at SocketSite now report that the home is finally in contract, after being quietly pulled from the market last week. Listing agent Warwick Properties also notes the property status as “in escrow,” on its website.
While the contract price has not been disclosed, it may possibly go down in record for the most expensive home sold in SF. The title currently belongs to neighboring 2840 Broadway, which snatched a cool $33 million in 2011. One big distinction is that 2845 Broadway is a fixer. From the curb, it looks all well and done, but the home is like a Hollywood set and really nothing but a shell. SocketSite reports:
As plugged-in people know, the site upon which 2845 Broadway was built was purchased for $32 million in 2002, the cost of construction for the 17,500 square foot main home and 6,000 square foot guest house has already reached roughly $20 million, and the “buzz among brokers” is that it will cost another $8-16 million to finish the build.
We hope it will be one snazzy estate when the property is all done and finished.
Quarterly Real Estate Report Q3.2012
Pacific Union International has had an amazing year in 2012. Our CEO, Mark McLaughlin sent the attached market share graph which represents the success we have had as a company in 2012 in every county within the Bay Area. Take a peak at the numbers below. In addition, I have attached the text of the email Mark sent to us. Mark is an incredibly motivating leader who understands what it takes to motivate his team. Looking for a team of professionals to represent you in your real estate transactions then look no further. We are ready to help you win in your transactions using our incredible technology and teamwork.
Enjoy the article and GO GIANTS!
Trailing 12 Months % Growth Year-Over-Year by County: Oct ’11- Sep ‘12
Dear Pacific Union Colleagues;
The intensity of professional sports in the fall season is exhilarating! The recent performance of the A’s, Giants, and 49ers has been most inspiring – not to mention the America’s Cup World Series and yesterday’s excitement on San Francisco Bay.
I was celebrating the Giants heroics via text last week with Mary Thomson, PUI Mill Valley when she pointed out thatteamwork overcomes everything! Mary referenced Hunter Pence’s locker room speech, which clearly motivated his teammates to outperform all expectations. “Play for each other” was such an inspiring and passionate statement – I get goose bumps thinking about how it must have felt to be in that locker room!
Then Sunday’s New York Times had an article about Alex Smith titled “Quarterback Replaces Himself”. Clearly Smith has had his challenges, but it was his ability to look in the mirror, own his challenges, and focus on greatness that now has him outperforming everyone’s expectations. And what a difference a coach (read: “mentor”) can have on an individual’s performance. When Smith’s former coach (initials MS) was asked what he learned about offense as 49ers head coach, his response was, “You gotta have a quarterback”.
Clearly Mr. Harbaugh found a quarterback to run his offense!
Team PUI’s intensity is impressive to me. I see you playing for each other and 100% see you playing for your clients with passion and intensity every day!
Yesterday I received the six-county market share report and a comparative analysis as to how Pacific Union is outperforming the market. Our collective intensity over the past twelve month has once again delivered impressive results.
The chart above illustrates the difference between the growth in the markets we serve and Pacific Union’s performance. Overall, for just those sales reported in the MLS, Pacific Union’s growth rate of 26% year over year is twice the growth rate of the market of 13% year over year. If you include our “off-market” closings, our growth rate is 38% — or three times the market’s pace year-over-year. The attached file expresses the results in a quantitative manner.
We are closing out an amazing run in 2012 – none of us expected the demand we have experienced or the amazing lack of inventory in nearly every one of our local markets. When I visit our offices I see the stress and emotions in your eyes. None of our opportunities seem simple; in fact, they are often more complex than expected.
Sometimes I wish we could wake up to a practice day instead of having to wear our game faces 24/7. But champions are measured by their performance in extreme situations, and I witness championship performance in each of you every day.
From me, a personal thank-you for your intense dedication, your willingness to play for each other, and your continued confidence in PUI.
Mark A. McLaughlin
CEO Pacific Union International
Quarterly Real Estate Report Q3.2012
One of the biggest conferences of the year is in San Francisco this week. Hotels are booked all over the Bay area as Dreamforce takes over San Francisco. The speaker list is impressive, as is the list of over 350 companies exhibiting. Take a peak at the site for Dreamforce 2012 and take a few minutes to hit the city and see what it is all about. We’ll be there off and on! The networking of some of San Francisco’s finest will be evident all week long.