Your Real Estate Market Snapshot for January 2017 from SFAR

January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in thsnip20170218_11e first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.

New Listings were down 24.6 percent for single family homes and 7.5 percent for Condo/TIC/Coop properties. Pending Sales decreased 9.1 percent for single family homes but increased 0.7 percent for Condo/TIC/Coop properties.

The Median Sales Price was up 7.1 percent to $1,250,000 for single family homes but decreased 5.7 percent to $1,000,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 18.8 percent for single family units and 5.0 percent for Condo/TIC/Coop units.

In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut on mortgage insurance premiums for
loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy.

FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.

Click here for full report: sfar_marketfocus_2017-jan

Your Real Estate Market Snapshot for December 2016 from SFAR

Most of 2016 offered the same monthly housing market highlights. The number One-Year Change in of homes for sale was drastically down in year-over-year comparisons, along with days on market and months of supply. Meanwhile, sales and prices were up in most markets. Unemployment rates were low, wages improved and, as the year waned, we completed a contentious presidential election and saw mortgage rates increase, neither of which are expected to have a negative impact on real estate in 2017.snip20170118_3

New Listings were down 26.9 percent for single family homes and 40.5 percent for Condo/TIC/Coop properties. Pending Sales decreased 11.5 percent for single family homes and 2.9 percent for Condo/TIC/Coop properties.

The Median Sales Price was up 8.9 percent to $1,309,011 for single family homes but decreased 8.3 percent to $1,007,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 16.7 percent for single family units and 20.0 percent for Condo/TIC/Coop units.

The overwhelming feeling about prospects in residential real estate for the immediate future is optimism. Real estate professionals across the nation are expressing that they are as busy as ever. There are certainly challenges in this market, like continued low inventory and higher competition for those fewer properties, but opportunities abound for hardworking agents and diligent consumers.

For the full report, click here: sfar_marketfocus_2016-dec

Your Real Estate Market Snapshot for November 2016 from SFAR

NOVEMBER 2016

The story has remained consistent as concerns residential real estate. In year-over- year comparisons, the number of homes for sale has been fewer in most communities. Meanwhile, homes are selling in fewer days and for higher prices.

This hasn’t always been the case, but it has occurred with enough regularity and for enough time to make it a trend for the entirety of 2016.

snip20161220_1New Listings were down 21.7 percent for single family homes and 31.3 percent for Condo/TIC/Coop properties. Pending Sales increased 17.7 percent for single family homes and 10.9 percent for Condo/TIC/Coop properties.

The Median Sales Price was up 8.1 percent to $1,365,000 for single family homes but decreased 7.2 percent to $1,044,500 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 10.5 percent for single family units and 4.5 percent for Condo/TIC/Coop units.

Financial markets were volatile in the days surrounding the presidential election, but they self-corrected and reached new heights soon after. Long-term indicators of what it will be like to have a real estate developer for a president remain fuzzy, but the outcome is not likely to be dull. Prior to the election, trend shift was hard to come by, and unemployment rates have not budged since August 2015. Post-election, mortgage rates are up and so are opinions that a trend shift is likely in the near future.

For the full report click here: sfar_marketfocus_2016-nov

Your Real Estate Market Snapshot for October 2016 from SFAR

As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.

snip20161116_6New Listings were down 22.4 percent for single family homes and 15.8 percent for Condo/TIC/Coop properties. Pending Sales decreased 15.4 percent for single family homes and 14.1 percent for Condo/TIC/Coop properties.

The Median Sales Price was up 11.0 percent to $1,407,500 for single family homes and 4.5 percent to $1,150,000 for Condo/TIC/Coop properties. Months Supply of Inventory increased 9.1 percent for single family units and 14.8 percent for Condo/TIC/Coop units.

Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.

For full report, click here: sfar_marketfocus_2016-oct

Your Real Estate Market Snapshot for September 2016 from SFAR

Posted by Charlene Delaney

As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are prosept-snapshotbable for the rest of the year but not guaranteed.

New Listings were down 1.5 percent for single family homes and 11.6 percent for Condo/TIC/Coop properties. Pending Sales decreased 9.0 percent for single family homes and 2.3 percent for Condo/TIC/Coop properties.

The Median Sales Price was up 5.4 percent to $1,216,875 for single family homes but decreased 2.6 percent to $1,012,500 for Condo/TIC/Coop properties. Months Supply of Inventory increased 4.2 percent for single family units and 14.8 percent for Condo/TIC/Coop units.

In general, today’s demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.

Click here for full report: sfar_marketfocus_2016-sept

Your Real Estate Market Snapshot for August 2016 from SFAR

Posted by Charlene Delaney

August 2016

Closed sales began to cool for much of the country last month, and One-Year Change in conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership.

New Listings were down 26.5 percent for single family homes and 21.7 percent for Condo/TIC/Coop properties. Pending Sales decreased 6.3 percent for single family homes and 1.7 percent for Condo/TIC/Coop properties.snip20160921_1

The Median Sales Price was up 2.6 percent to $1,257,500 for single family homes and 1.4 percent to $1,060,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 10.0 percent for single family units but was up 21.1 percent for Condo/TIC/Coop units.

As inventory continues to drop, the contradictions of today’s market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment. However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. That news should be weighed against the fact that the highest level of activity is in multifamily rentals.

For full report click here: sfar_marketfocus_2016-aug

New San Francisco Hospital Increases Net Worth of Real Estate

Posted by Charlene Delaney

A long time in the making, the new California Pacific Medical Center hospital on the corner of Van Ness Avenue between Post and Geary Streets is due to be completed by 2019. It will be state of the art, and a really innovative concept in that all hospital rooms will be private. It will be a showplace, and the area is already bustling with surrounding offices renting to doctors and other related businesses.

For property owners in the area, the impact on value will be good.  Doctors, nurses, and all other employees will find it attractive to live in walking distance to their work.  Whether it be the rental or sales of properties nearby, values should continue to be strong.

Welcome, CPMC!

Click here for full article: cpmc-article