In January, we suggested that the San Francisco real estate market turned a corner in 2011, and indeed that we might be at a point similar to 1996, when the market began to accelerate after the 4-5
years of down market in the early nineties. (See the Case-Shiller chart below.) Consumer confidence, buyer demand and general economic conditions in the city improved markedly last year, and we also experienced surging high-tech employment and wealth (which looks likely to continue), skyrocketing rents, climbing stock market values and the lowest interest rates in history.

Everything we’ve seen since 2012 began only reinforces January’s conclusion. The major statistical measures of supply and demand – which constitute the dynamics that ultimately result in changes in value – show a market dramatically accelerating. Besides the statistics, this is also what we’re viscerally experiencing on the street, in the day-to-day business of representing our clients buy and sell real estate. [More]

Of all the homes bought and sold in San Francisco in 2011:

How many had Golden Gate, Bay Bridge, downtown or ocean views? How many were Victorian, Edwardian, Art Deco, Spanish Mediterranean or brand spanking new? How many had elevators or pools, wine cellars, doorpersons or in-law apartments? How many were probate sales, bank sales or short sales?
We data-mined all of 2011’s MLS sales to answer these questions and more. We hope you find the details as interesting as we did. [More]

"Years of falling prices and falling mortgage rates have made home buying more affordable than it has been in decades. Moreover, home prices look downright cheap, not only from the perspective
of mortgage rates and income, but also relative to the cost of renting or the cost of constructing a new home."

For the full excerpt:

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Paragon's chief market analyst, Patrick Carlisle, was extensively quoted in a front page article by Amy Hoak in the Wall Street Journal online edition regarding low-ball offers. The complete article is here:

http://online.wsj.com/article/SB10001424052970203476804576619622412494348.html?mod=googlenews_wsj

Here are the excerpted quotes (under the headings under which they appear). They by no means constitute a comprehensive analysis of the complicated subject of making and negotiating offers: [More]

Chief economist -Wells Fargo John Silvia (formerly chief economist for the Senate Banking Committee). Quote provided by the San Francisco Chamber of Commerce:

“San Francisco is becoming more like London / Paris and a lot less like Denver…It's a city that doesn't add a lot of people, but the people it's adding to the metropolitan area are very well-paid people…The city will grow good paying jobs in health care, education, leisure, hospitality and information technology, which will cause property values and rents in San Francisco to go up.“
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In one of the largest, most complicated financial
transactions of your life, what exactly
does a good real estate agent do?

A good agent… [More]

Generally speaking, ours is not a society comfortable with spirited or aggressive negotiations, but effective negotiating can reap large rewards in the large, complicated financial transaction of buying or selling a home in the San Francisco Bay Area.

You never know until you ask: never assume you know the other party’s final position. Indeed, oft times the other party doesn’t know themselves.

For the rest of the outline: [More]

In San Francisco, 3 big factors are impacting the Rent vs. Buy equation: the general 15-25% decline in home prices since 2008 (declines vary by neighborhood), rising rents and the lowest mortgage rates in history. These charts compare the median SF asking rent for a 1-BR apartment ($2600) to buying a median-priced, 2-BR condo in SoMa ($650,000). With 20% down, adjusting for principal pay-down and tax deductions, the net monthly cost is actually lower for the buyer. And the financials get better over time....

To review the charts and/or link to the Rent vs. Buy calculator to make your own calculations:

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