| Condos sales up, but is there a downward trend? | August 10th, 2009 |
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Declining prices are function of inventory. The number of condos for sale has increased monthly since the beginning of 09, with 1,048 condo units for-sale at the end of June 2009. About a third of those condos are in South Beach, SOMA, and Mission Bay, where speculation ran highest. Lots of new homes competing with resales and speculative activity during the real estate boom resulted are the biggest reasons for so many available condos. On the positive side, pending condominium sales increased in June 2009 to 248 units. We should take all this news with a grain of salt, since these figures don’t factor in all new homes sales. Word on the street is that developers are not discounting as heavily in buildings like the Infinity and SFBlu. |
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While prices for houses are starting to level, the median condominium sales price ticked down 0.9% between May 2009 and June 2009 and fell 15.2% between June 2009 and June 2008.| Appraisal Dramas | August 7th, 2009 |
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There are fresh reports each day about how a low appraisal throws a monkey wrench into a deal. Here’s one published yesterday in “Credit.com.” |
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The real estate market is facing challenges because of new laws and guidelines affecting how properties are appraised. Across the nation sellers and buyers who go into contract are faced with low appraisals that can’s support their agreed upon price. When that happens, a transaction can fall apart because the lender won’t lend the buyer enough money to close. Our industry is working hard to get the appraisal process back on track so that all buyers can buy the property they want, and all sellers can sell for their property’s true value. For more information on how new laws are creating flawed appraisals, you can Google “HVCC” and get the full scoop.| Market Trends as of end of June in San Francisco | July 20th, 2009 |
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| 2009 Home Sales in San Francisco : if you Love Statistics, this Post is for You! | June 27th, 2009 |
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What Costs How Much Where in San Francisco as per MLS effective June 22, 2009 The below charts track year to date sales by property type and neighborhood by number of sales; low, high and median sales price; average days on market (how long it took the home to be designated “pending sale”); and average sales price to original list price (that percentage of original list price buyers ended up paying). An asterisk signifies a confidential sale — thus the final asking price is shown, not the actual sales price. Market activity in SF increased substantially these past 3 months – of course, spring is usually the most active time of the year — though median prices generally continued to decline. Buyers are out in increasing numbers but continue to cherry pick those homes they consider the best values, and those they do purchase are selling, on average, at much higher discounts to the original list price than a year ago. As always with general statistics, many aspects of value are not reflected below: curb appeal, condition, views, outdoor space, parking, rooms built without permit, quality of location within the neighborhood, and so forth. Thus, how the following statistics apply to any particular home and its value is unknown. Note the huge disparity that often appears between the low and high price for a particular property type in the same neighborhood: it sometimes runs in the multi-millions of dollars. With real estate, the devil’s always in the details.
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| Luxury home market in San Francisco picking up. . . | June 16th, 2009 |
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In 2009 to May 22nd, 39 houses sold for $2,000,000 or more: their average size was 4062 square feet, with an average price of $3,400,000 and an average dollar per square foot of $773. In the same period, 14 condos sold for $2,000,000 or more, with an average size of 2300 square feet, an average price of $3,000,000 and an average dollar per square foot of a whopping $1317 (think spectacular view condos in very prestigious buildings). Almost half these home sales, 21 houses and 2 condos, took place in the Pacific & Presidio Heights/Marina district. 10 house sales occurred in the Noe-Eureka-Haight area; 2 houses and 7 condos sold in the Russian/Nob/Telegraph Hills area; and 5 high-end condos sold in the South Beach and SOMA districts. A few sales also closed in neighborhoods such as Sea Cliff and St. Francis Wood. Year over year, virtually every neighborhood saw drops of 50% or more in the number of sales of these very expensive homes. As an indication of the increase in activity in this market segment, there are currently 20 homes priced $2,000,000+ which have accepted offers, but not yet closed sale. 12 are in the Pacific & Presidio Heights/Marina district; 3 in the Noe/Eureka/Haight district; and 2 are in the Alamo Square area. |
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Upper-end home sales seem to be picking up as well, though the rate of sales is still far below that of previous years. The financing situation for expensive homes continues to be difficult, so buyers for such properties typically pay all cash or put down-payments of at least 30-40% of the sales price. Though cash-rich buyers are moving back into the real estate market, until financing becomes easier, high-end sales will remain far below previous levels.| Sales activity on foreclosed properties in San Francisco | June 14th, 2009 |
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Through May 22nd, there were 99 REO house sales and 26 REO condo sales, ranging from a low price of $196,000 to a high of $1,320,000, with a median price of about $470,000. The average dollar per square foot for the REO house sales was $374, and for condos, $456/sq.ft. Almost 50% of REO house sales accepted offers within 2-3 weeks of going on market and, reflecting a hot market for such homes, averaged a sales price of 6% above the asking price. Though the sales listed below are from neighborhoods all over the city, in fact over 75% of the REO house sales took place in the southern border neighborhoods of the city, stretching from Bayview to Oceanview. |
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REO sales constituted approximately 12% to 15% of home sales in San Francisco since the beginning of the 2009– a rate that has stayed relatively steady (and far below the rates of many other Bay Area counties).| What you get for how much where in SF for a million dollars or less. . . | June 12th, 2009 |
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For about $1,000,000 For about $750,000 For about $650,000 For about $500,000 Specific sales occurring 1/1/09 - 5/22/09 and not necessarily representative of general values for property type and area delineated. Exact location, condition, construction, renovations, curb appeal, views, lot size and many other factors all impact property values. SFD = single family dwelling (house). Days on market = number of days between going on market and being designated “pending sale, contingencies removed.” Square footage is based on interior living square footage and does not include decks, patios, yards, garages, unfinished basements and attics, or rooms and units built without permit (so-called “bonus room” and “in-law apts”) |
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Properties for sale in San Francisco at selected price points. . .| What you get for how much where in SF: $1.5M-8M Range. . . | June 10th, 2009 |
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SF real estate for sale at selected price points: For over $8,000,000 For about $5,000,000 For about $4,700,000 For about $3,500,000 For about $3,000,000 1 BR, 1.5 BA, 1693 sq.ft. 1930 Russian Hill penthouse; views of bay, 3 bridges, downtown & ocean; doorman bldg; 1 car pkg. $1734/sq.ft. 18 days on market. For about $2,500,000 4 BR, 3.5 BA, 2176 sq.ft. 1880 Pacific Hghts Victorian; deck, 3 car pkg. $1149/sq.ft. 1 day on market, sold for $105,000 over asking price. 2 BR, 2.5 BA, 1782 sq.ft. 2005 St. Regis condo in SOMA; pano water, city & bridge views, 1 car pkg. $1403/sq.ft. 68 days on market, original price $3,200,000. For about $2,000,000 For about $1,500,000 Specific sales occurring 1/1/09 - 5/22/09 and not necessarily representative of general values for property type and area delineated. Exact location, condition, construction, renovations, curb appeal, views, lot size and many other factors all impact property values. SFD = single family dwelling (house). Days on market = number of days between going on market and being designated “pending sale, contingencies removed.” Square footage is based on interior living square footage and does not include decks, patios, yards, garages, unfinished basements and attics, or rooms and units built without permit (so-called “bonus room” and “in-law apts”) |
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| SF Home Market is Heating Up. . . a bit– | June 8th, 2009 |
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From April 15th to May 15th, 2009, 357 SF homes sold at a median price of $688,000 and an average price of about $880,000. Of these, 72 closed for $1,000,000 or more, 18 sold for $2,000,000+, and 5 sold for $5,000,000+. 28% accepted offers within 2-3 weeks of coming on market. Year over year, the number of sales is down 21%, the median price is down 17% and the average price down 18%. Some of the price decrease is due to a considerable reduction in home values but some is due to the major shift towards lower priced homes that has occurred since last year. Remember that city statistics generalize the wide variety of changes that different neighborhoods are experiencing. A fair number of homes (houses more often than condos) are still selling quickly at or over asking price. As of May 22nd, there were 1664 homes actively for sale in San Francisco and 836 homes which had accepted offers but not yet closed sale. (Not all of those will actually close escrow as the fall-out rate is still high by historical standards.) The months supply of inventory (MSI), which is one common measure of the balance of power between buyers and sellers, has been declining since the beginning of the year, though it is still about twice as high as a year ago. Our current market still qualifies as a “Buyer’s Market” but has definitely become more balanced. |
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The city’s real estate market has warmed up significantly in the last couple months. And while it is true that spring is typically a strong period for home sales, considering the fears prevalent just a few months ago, it is heartening that the market has indeed strengthened. There is a growing — but certainly not universal — consensus that the market has reached or is very close to its bottom - this belief, along with low loan rates and tax benefits, has motivated increasing numbers of buyers to act.| How to File a Property Tax Appeal in San Francisco | June 6th, 2009 |
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If you need help gathering comparable sales data with which to make your case, call me at 415-577-0809 or email me at cblase@paragon-re.com , and I’ll whip up some ‘comps’ for you. Typically, the Assessor’s “valuation date” is January 1, 2009 and any sales comparables submitted must have closed before March 31, 2009. Very generally speaking (it all depends on the neighborhood and other details of your purchase), homes purchased 2006 through mid-2008 probably have the best cases for a property tax reduction. The less affluent areas of the city typically peaked in value around 2006 and the more affluent in 2007 - 2008. Declines from peak value generally run in the 10% to 30% range, with the less affluent southern neighborhoods being hit with the largest reductions. (For a broad analysis of value changes by neighborhood, see the link at the bottom of this posting.) Please note: If your appeal is successful, the reduction in assessed value only applies to the 7/1/09 - 6/30/10 tax year. A decline-in-market appeal is only good for 1 year, the year for which it is filed. If you’d rather try for an informal review, the Assessor’s Office is now accepting, through 8/28/09, “Requests For Informal Review Of Assessed Value” for tax year 2009/2010. This applies only to single-family dwellings, residential condominiums, townhouses, live-work lofts and cooperative units. The SF Assessor’s website offers information regarding Decline-in-Value Informal Reviews: Links to Assessor’s Forms and FAQs: These 2 websites offer details regarding the filing of a formal appeal - the instructional videos are highly recommended for those who wish to proceed: • SF Assessment Appeals Board More on this subject: Excerpted FAQs and Facts from the Assessor’s OfficeHow is the amount of my property tax determined?In order for the amount of your tax to be determined, the Office of the Assessor/Recorder must first assess the value of your property. Generally, the assessed value is the cash or market value at the time of purchase. This value increases not more than 2% per year until the property is sold or any new construction is completed, at which time it must be reassessed. For more information on how the assessed value is determined, contact the Office of the Assessor/Recorder at (415) 554-5596. After the Office of the Assessor/Recorder has determined the property value, the Office of the Controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any city or district direct assessments. The general tax levy is determined in accordance with State law and is limited to $1 per $100 of assessed value of your property. After applying the tax rates, the Office of the Controller calculates the total tax amount. Finally, the Office of the Treasurer & Tax Collector prepares property tax bills based on the Office of the Controller’s calculations, distributes the bills, and then collects the taxes. Neither the Board of Supervisors nor the Office of the Treasurer & Tax Collector determines the amount of taxes. Do I have any recourse if I disagree with the valuation placed on my property by the Assessor? Yes. If you disagree with the assessed value of your property you may contact the Office of the Assessor at (415) 554-5596. They can provide you with information on how the value was established. If you still disagree with the assessed value of your property after reviewing it with the Office of the Assessor/Recorder, you may contact the Assessment Appeals Board for the purpose of appealing your assessment. If you choose to appeal your assessment, you must still pay your property tax in full by the appropriate deadlines; otherwise, you will incur penalties while the case is on appeal. If your appeal is granted, a refund will be issued to you. Appeal applications and further information about the appeal process can be obtained by contacting the Assessment Appeals Board. Before You File a Formal Appeal with the Assessment Appeals Board. . . Beginning April 1, 2009, the Assessor’s office started accepting requests for an Informal Review of your 2009/2010 property value. The Informal Review forms can be obtained from the Assessor’s website. If the Assessor’s staff discovers an error, they may be able to correct that error, and you may not need to file a formal appeal with the Assessment Appeals Board. If, however, you and the Assessor’s office cannot reach an agreement, you can usually appeal your assessment to the Assessment Appeals Board during the appropriate open filing period. If you want to file a formal appeal for the value of your property, you must complete an “Application for Changed Assessment,” and your application must be filed with the Assessment Appeals Board in a timely manner. Who Can File a Formal Appeal An assessment appeal can be filed by the property owner or the owner’s spouse, parents, or children, or any person directly responsible for payment of the property taxes; this person becomes the “Applicant”. An application may also be filed by an authorized agent. If an application is filed by an agent - other than a California licensed attorney - written authorization, signed by the applicant, is required. How to File a Formal Appeal Obtain, complete, and return an “Application for Changed Assessment” from the Assessment Appeals Board of San Francisco. We do not accept versions of the form from other counties or the State Board of Equalization. Completed applications must be postmarked on or before the deadline date to be considered as timely filed. |
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If you believe your home may be eligible for a reduction in property taxes based upon a decline in value, there are two ways you might proceed: an informal review by the Assessor’s office and/or a formal appeal with Assessment Appeals Board. The formal appeal, in particular, can be a complicated and time consuming process but may be worth the effort for the savings in property taxes.
