Archive for the ‘1st Time Home Buyers’ Category

Choos vs. Condo: The Dilemma

February 7th, 2012 by Katy Dinner

That is the question today’s house hunters are asking themselves as they contemplate a move. If city life has got you living the high life, renting may be a more lifestyle-friendly option. How can you determine what is right for you? Here are four factors that you should consider:

  1. Your Platinum Amex is literally weighing you down: You have a closet full of Fluevlogs or Choos and credit score of 540. If your finances are stretched too thin, you are not ready to own. Just because FHA-insured loans allow for a much smaller down payment, it doesn’t mean buying is a smart decision. Simple as that.

    Summer 2012 $750

  1. You have wanderlust: While moving into a new flat is pricey, moving out is often more so. When you purchase a home, you do not pay a fee to the realtor. However, when you sell a home you are obligated to pay the agent’s full fee, which can be up to 6%, plus closing costs, final repairs [lime green walls were a good idea at one point, right?] and moving costs. These expenses can add up, and quickly eat into your investment return–if you stuck around long enough to gain one! So if you are thinking an Eat. Pray. Love. journey in the near future, don’t buy.
  1. Your calculations are incorrect: There are several wonderful tools available online to help you assess your home buying viability. Check out our Renting Vs. Owning page, with a link to a calculator, to see if you measure up. http://863katy.com/renting_vs_owning.php
  1. You still need your landlord to hold your hand:  Let’s face it- leaky roofs, broken dishwashers, and dripping faucets are not only annoyances, but harsh realities of home ownership, and amount to out-of-pocket expenses that you would not incur as a renter. If just the thought of a broken water heater causes heart palpitations, rest easier by leaving the upkeep to someone else. There is nothing wrong with that approach, and there is no rule that says you must own, even if you have the money. Whatever gives you peace of mind is the right choice.
Tags: , , ,
Posted in 1st Time Home Buyers, For Renters | No Comments »

WeeklyBasis 12/24: Better Housing News & The Fine Print

December 27th, 2011 by Julian Hebron
 

Rates were up .125% last week, retreating slightly from record lows: 30yr single family home loans to $417k closed at 3.875%.

Below I recap last week’s good (and not so good) economic data, and preview the rate and stock week ahead. Scroll to ‘Bottom Line’ if you’re in a holiday rush. And I hope you get some time to sit back and relax this long Christmas weekend.

RECAP DECEMBER 19-23 MARKET WEEK

Homebuilder Confidence Best Since 2006: The index of homebuilder confidence rose for the third straight month in December to 21. Still a long shot from 50+ mark that signals a healthy market, but it’s the best since April 2006. Here’s how it looks 1985-Present.

Home Construction Jumps: Construction was up 9.3% in November to 685k (seasonally adjusted, annualized). Still below 1.5m needed to keep in line with population growth and scrappage, but highest since April 2010 when homebuyer tax credit boosted production. Excluding that one-time event, construction is highest since October 2008. Here’s the single family vs. multifamily breakdown. Building permits were up 5.7% to 681k, best since March 2010.

Existing Home Sales-Watch This Closely: November’s existing home sales were 4.42m annualized, up 4% in November and up 12.2% since November 2010. This is the highest mark in 10 months and 34% above mid-2010 low point. But NAR also revised 2007-2011 sales down 14%, tarnishing credibility of current numbers. And cancelled deals spiked again: 33% of Realtors reported at least one cancelled contract in November. Same for October, which was up sharply from 18% in September and August, and up from 9% in September 2010. I’ll be watching this EHS dataset, very interesting on many fronts.

Worst New Home Sales Ever?: November’s new home sales were 315k (annualized), 1.6% better than October, 9.8% better than year ago. This is the best since April, but well below the 700k needed for a healthy market, and 2011 looks to be the worst year ever for new home sales. Average November new home sale price: $242,900.

GDP Cut Again: The third of three GDP readings for 3Q20111 was revised down to 1.8%. Second reading was 2%, first reading was 2.5%. Like existing some sales, revisions are moving in the wrong direction.

Good News On Jobs Outlook: Claims for unemployment insurance were 364,000 for week ended December 17, down 4,000 from previous week and the lowest post financial crisis reading so far. Below 400k signals improving jobs picture and the average since 2000 is 390,000. So 1-week and 4-week numbers are trending below this long-term average: good news. More in next week’s preview below.

Inflation Flat, Again: The Fed’s favorited measure of inflation, the personal consumption expenditures index (PCE), is flat. November’s annual figures were 2.5% total and 1.7% excluding food and energy. Same story with flat monthly and annual PPI and CPI the week before last. November’s annual PPI was 5.7% total and 2.9% excluding food and energy. Annual CPI was 3.4% total and 2.2% excluding food and energy.

PREVIEW DECEMBER 26-30 MARKET WEEK

Next week’s economic calendar is light, but below are noteworthy highlights with rate impacts.

Home Prices Down Again?: Last month, Case Shiller’s September report showed home prices across 20 major U.S. metro areas were down 0.6% since August and down 3.6% since September 2010, breaking a (rather weak) five-month ’20-City’ gain streak. Tuesday’s October report will determine if the monthly figure can reclaim positive territory or not. Either way, rates won’t move much on this data.

Jobless Claims Trend: Rates didn’t rise last week despite declining jobless claims (recap above). Markets will wait for December jobs report January 6, and to see more jobless claims declines–next read this Thursday.

Pending Home Sales: Existing home purchase contracts entered into were up 10.4% in October and up 9.2% since October 2010. November figures are Thursday. This is a leading indicator of existing home sales expected to close in 60 days. But remember stat from above: 33% of Realtors are reporting cancelled existing home sales contracts. Rates don’t typically move on this report.

Stock & Bond Technicals: Looking at stocks, the S&P 500 closed at at 1265, up 3.69% on the week, ending above its 200-day moving average of 1259. Huge change from last week when it closed below 50- and 200-day moving averages, signaling a rally could continue next week. But analyst Robert Sinn warns that last week’s rally was on anemic volume and fails to meet key technical qualifiers for a run higher. As for mortgage bonds (MBS), the 3.5% Fannie Mae coupon—a key benchmark lenders use to price consumer rates—dropped 66 basis points on the week to close at 101.98. This is why rates rose .125%, and this kind of MBS drop would normally mean rates rise more but lenders held the line since MBS moves were (like stocks) on very low volume. MBS are now just 18 basis points above their 50-day moving average, a line that’s been a concrete floor of support even when stocks rally. But downside risk (pushing rates up) exists because MBS dropped below their 25-day moving average to close last week.

Bottom Line: Last week, I said “rates should be even to up .125% as MBS drop a bit and stocks rise a bit” which happened. That makes a two month roll of nailing weekly rate predictions. Now that I’ve said that, I’m sure the streak will be broken! Anyway, next week has little MBS-moving data so stock activity will drive bonds. Sentiment seems to favor a Santa rally for stocks, suggesting rates should be even to up slightly as the 25-day average on MBS is tested.

Tags: , , , , , ,
Posted in 1st Time Home Buyers, by Julian Hebron, For Home Buyers, For Owners & Sellers, Mortgage Market, National Housing News, New Construction | No Comments »

Which SF Neighborhoods Have the Most Sales?

November 15th, 2011 by Katy Dinner

Which San Francisco neighborhoods have the most sales? To determine where the most turnover was and how the market has changed since the peak, we took a look at the sales of single unit properties (single family homes and individual condominiums) in select San Francisco real estate districts, including Districts 4,5,7,8,9 (see this map for reference:  http://www.sfrealtors.com/dw_sfarmls_map.html)

  • District 4:  Twin Peaks West (St. Francis Wood & surroundings, including Miraloma Park & Forest Hill)
  • District 5:  Central (Noe Valley, Castro, Inner Mission)
  • District 7:  North (Pacific Heights, Cow Hollow, Marina)
  • District 8:  North East (Russian Hill)
  • District 9:  Central East (SOMA including Potrero Hill, Bernal Heights, & South Beach)

Please contact us at our email address below to discuss your interest in in other parts of San Francisco.

As shown by the above graph, we can see that the number of properties sold overall bottomed out in 2009, and recovered a little in 2010.  If the 2011 year-to-date figures hold steady, volume will remain flat.  Overall, we can estimate that the volume of transactions will remain 18% lower than five years ago.  What can we learn from this?

San Francisco is more fortunate than Southern California and the rest of the country in that there are far fewer distressed properties for sale.  How are people holding out?  It seems that we are in a cash- and equity-rich environment, especially given the challenges in the mortgage financing arena.  Also, many current owners are choosing to remodel and/or simply hold instead of trading up their property.  We can tell this by looking at the number of withdrawn & expired listings for the same neighborhoods over the same time period, which has overall remained steady over the past three years.  We can infer that the most desirable properties are being snapped up by cash buyers, but the rest are not receiving offers which current owners are willing to accept.  Given how much prices rose, those owners in the middle of the market are choosing the hold and/or remodeling path instead rather than take a loss.

Most of the sales activity has taken place in District 5 and District 9.  They are no longer alternative to neighborhoods to the north of market San Francisco.  They are destinations demanding often demanding a higher price per square foot.  District 5 appears to be more transitional in that the demographics are changing as people move out to follow jobs and schools.  District 9 has become the focus of many first time buyers, second homes and also a great location for “empy-nesters” coming back to the city.

To learn more about trends in the SF real estate market, email us at Team@KatyDinner.com, or call our office at 415.863.5289.

Tags: , , , , , , , , , , , , , , , ,
Posted in 1st Time Home Buyers, About San Francisco, Castro, For Home Buyers, For Owners & Sellers, Neighborhood Focus, Noe Valley, Pacific Heights, Potrero Hill, Russian Hill, SOMA, South Beach | No Comments »

WeeklyBasis 10/22: HUGE Market Week Ahead

October 24th, 2011 by Julian Hebron

Rates dropped .125% last week but are still up .25% from all-time record lows set the week of October 3. Next week is huge for U.S. economic data, corporate earnings, and Eurozone debt crisis updates.

I’ll quickly recap last week, then preview what’s coming. Also please note: loan limits weren’t increased in Washington last week, just discussed.

 

Recap Oct 17-21 Market Week
Last week’s slight rate drop was due to mortgage bonds remaining a safe investment amidst global market uncertainty. Rates drop when bond prices rise on buying. Here are the key stats:

Weekly jobless claims were 403k, close to the 400k mark below which the job market is considered to be improving. The 4-week moving average was also reported at 403k. This is better economic news if it holds.

Consumer and producer inflation were both near the 2% Fed comfort zone: CPI 3.9% and PPI 6.9%. Even the Fed’s preferred ‘Core’ readings that exclude food and energy crept up: Core CPI 2% and Core PPI 2.5%.

Manufacturing is still weak, measured by two key regional October surveys. Philly Fed (PA) was 8.7, up from September’s -17.5, the first positive in 3 months. Empire State (NY) was -8.48 vs. -8.82 September, fifth straight monthly contraction. For both surveys, 0 is line between growth/contraction.

Existing Home Sales were down 3.0% in September but up 11.3% since September 2010. UGLY STAT: 18% of contracts didn’t close, same as August but up from 9% in September 2010. This was due to homes not appraising for contract price and buyers getting cold feet after inspections.

Preview Oct 24-28 Market Week
Here are next week’s economic calendar highlights with rate impacts:

August Home Prices: Tuesday brings Case Shiller and FHFA home price reports. Case Shiller was up 0.9% in July, the fourth straight monthly gain, but prices were down 4.1% since July 2010. It’s the broadest home price measure. The FHFA report only measures prices of homes with Fannie/Freddie mortgages. Annual Case Shiller figures aren’t likely to go positive, so rates even.

GDP: Thursday is the first of three 3Q2011 GDP readings. Estimates range from 2% to 2.5% economic growth, compared to 1.3% for 2Q and 0.4% for 1Q. And remember 1Q was revised down sharply along with the first 2Q release. Rates up if higher-end estimates prevail.

Consumer inflation: Friday brings the Fed’s favorite measure of consumer inflation, the Personal Consumption Expenditures Index (PCE) for September. The Fed looks for ‘Core’ PCE (which excludes food and energy prices) to be 2% or less. In August, PCE was 2.9% total and 1.6% Core. Rates up if Core hits 2% or more.

Corporate Earnings: 790 companies report earnings this week including Caterpillar, Netflix, Amazon, UPS, Ford, Boeing, Exxon, Procter & Gamble, and Altria.

Technical Trading Factors: On the stock side, the S&P 500 has traded above key overhead resistance levels and is around its 200 day moving average. On the mortgage bond side, the FNMA 3.5% coupon (that most lenders watch to price rate sheets) is just below it’s 50 day moving average. If anything, the charts look like stocks correct a bit and bonds hold.

Europe Drives Everything: Economic data and earnings will still take a back seat to Europe. This weekend, the 27 EU leaders met then the 17 Eurozone leaders met separately to discuss options. Their latest: To be properly capitalized for Eurozone defaults (my words, there was no explicit mention of defaults), European banks need about 100b euros in capital after marking their sovereign-debt holdings to market values. This estimate looks low. Let’s not forget that during testimony Q&A back in July 18, 2007, Ben Bernanke told congress subprime losses would be contained to “$50 to $100 billion,” then a few weeks later he said it could be “several multiples of that,” then one year later financial markets imploded. The same EU/Eurozone leaders meet again this Wednesday, October 26 to fine tune a plan. Markets await.

Bottom Line For Rates: Rates will be extremely volatile next week, but it’s hard to see rates spiking since European uncertainty will likely cap stock gains. Rates should trade in a +/- .125% range next week. I’m holding to my premise that rates can touch record lows as Eurozone issues play out. Here’s a MUST READ to explain this: How To Shop For A Mortgage.

Tags: , , , , , , , ,
Posted in 1st Time Home Buyers, by Julian Hebron, For Home Buyers, For Owners & Sellers, Guest Bloggers, Mortgage Market, National Housing News | No Comments »

The Value of Parking in San Francisco

September 15th, 2011 by Katy Dinner

Parking is a major consideration when deciding to purchase property in San Francisco, and over 80% of the Condo sales offer at least one parking spot. The vast majority (72%) of the sales offer deeded parking or a guaranteed parking spot, usually located in the building. In general, condos that offer 2-car parking sell at a higher price than those with 1-car (or no parking), although these condos are typically much larger in square footage. When comparing condos with 1-car parking that is leased versus exclusive use, condos with deeded parking generally sell for more than condos offering leased parking. In other words, the cost of the deeded parking spot is ‘included’ in the price of the property, and consequently sells for more than those offering leased parking for an additional monthly cost. As there is clearly a difference in the price of condos with and without parking, is it worth it to pay a higher price for a property that includes parking?

So far this year, the median prices for condos is as follows*:

  • No Parking:                          $420,000
  • 1-Car Leased Parking:      $557,500
  • 1-Car Deeded Parking:     $670,000
  • 2-Car Deeded Parking:     $900,000

If we were to consider this price differential as the cost of parking, the median price for 1-car leased parking would be $137,000; 1-car deeded parking would be $250,000; and 2-car deeded parking would be $480,000 (or $240,000 per deeded spot). It’s important to note that these prices (and all the subsequent figures) represent the median, and are the point at which half of the prices were higher and half were lower.

Perhaps the most important question to consider is whether to ‘lease’ or to ‘buy’ a parking spot.  To answer this question, we must add the monthly cost of the leased parking spot to the cost of ownership.  Let’s consider the median property prices, described above, financed at a conservative 6% interest rate, fixed for 30 years.  The monthly mortgage payments will be:

Parking Status Median Price Rate Term Mortgage Pmt/mo Parking Lease Mortgage + Parking
1-Car Leased: $557,500 6% 30 yrs fixed $3,342.49 $250.00 $3,592.49
1-Car Deeded: $670,000 6% 30 yrs fixed $4,016.99 $4,016.99
Premium paid for deeded parking: $424.50

Assuming an average monthly cost of $250 per month for leased parking, the monthly cost of condos with leased parking would be $3,592.49/mo (or $3,342.49 + $250), while the monthly mortgage cost for condos with deeded parking is $4,016.99/mo. Therefore, the monthly premium paid for deeded parking is $424.50 per month. Considering that this additional expense is also subject to an interest charge (because it is included in the monthly mortgage payment), it would appear that condos with leased parking offer a better value than those with deeded parking. However, there is certainly an intangible value associated with not having to walk back to your condo, in the rain, after parking your car.

Intangibles notwithstanding, it would appear that condos offering 1-car leased parking are of the best value. These condos are offered at a lower price than those with deeded parking and are similar in p.p.s.f to those with deeded parking.  Even with the addition of the monthly leasing cost for parking, the monthly housing expense would still be considerably less than those with deeded parking. The intangible cost of parking in the building versus around the corner does not seemingly equate to the additional monthly premium paid for deeded parking. If parking is a necessity, it would appear that condos offering leased parking are of the best value amongst those that offer parking as part of the sale. However, because this analysis is based on generalities and medians, it is important to consider the individual aspects of any particular property and its value.  In particular, properties without parking often take longer to sell, as shown on the attached chart by the Days on Market (DOM) figures next to each bar.  In a down market, such properties seem to take a bigger hit in price, and may require greater negotiation concessions.

When making decision based on transportation considerations, remember to consider the feasibility of the alternatives to storing a car:

Contact us for an analysis, specific to the properties you are considering.

*Data gathered from the MLS on August 2, 2011, and is deemed reliable but not guaranteed.

Tags: , , , , , , , , , , , ,
Posted in 1st Time Home Buyers, About San Francisco, For Home Buyers, For Owners & Sellers, Neighborhood Focus, SF RE Market Analysis | No Comments »

SF Housing Market Continues to Show Strength

August 25th, 2011 by Matt Hinkle

The SFAR MarketFocus report for August 2011 has been  released and it reports that our fare city demonstrates remarkable resilience in a time of uncertain macro-economic conditions. Median sales prices for Single-Family Homes increased to $753,000, whereas Condos decreased to $600,000.

Other highlights include a recent survey by Realtor.com reporting that San Francisco ranks 4th nationwide in terms of median age of available homes inventory at 54 days. Translation: San Francisco homes sell more quickly than a vast majority of other metropolitan areas.

  • Spotlight Lake Merced, Haight Ashbury, Castro, Noe Valley, Glen Park
  • Single Family Homes months of supply has fallen to 1.8, Condos 2.5
  • Unemployment trends down for SF-Oakland-Fremont metro
  • Fed confirmed continuation of low interest rate policy
  • Reductions in fed-sponsored loan limits is some cause for concern

The report is available for downloading here. Enjoy! Your comments and feedback are welcome. –>m

Tags: , , , , , , , , , , , , , , , ,
Posted in 1st Time Home Buyers, About San Francisco, For Home Buyers, For Owners & Sellers, Glen Park, Haight Ashbury, Lake Merced, Neighborhood Focus, Noe Valley, SF RE Market Analysis | No Comments »

Housing Price Index Gains, Losses Slow

July 21st, 2011 by Matt Hinkle

Time Machine

The Federal Housing Financing Agency (FHFA) has published their “House Price Index” report recapping trends in regional purchase and refinance activity through the month of May 2011. 

The HPI report is available here for download.

According to the report, housing prices nationwide are off 6.3% for the 12 months ending May 2011 and 19.7% down from their peak experienced in April 2007. On the whole, the HPI is back to January 2004 levels.

Posted in 1st Time Home Buyers, For Home Buyers, For Owners & Sellers, National Housing News, SF RE Market Analysis | No Comments »

San Francisco Real Estate @ the All-Star Break

July 17th, 2011 by Matt Hinkle

Mark It Down: Repeat

How is the SF real estate market looking half-way through 2011? Judge for yourself.

Monthly the SFAR publishes MarketFocus recapping performance of the San Francisco residential real estate market. Straight-forward and insightful, this month’s report is a great primer for Buyers, Sellers & Investors.

Find it here:  market_focus_july_2011

Quick observations:

  • Cash buyers continue to drive the market
  • Transactional volume is heaviest near the $700k price point
  • Excelsior, Outer Mission, Mission & Noe Valley neighborhoods remaining very active
  • Proposed changes to conforming loan limits loom large for Buyers & Sellers

Enjoy!

Posted in 1st Time Home Buyers, About San Francisco, For Home Buyers, For Owners & Sellers, Neighborhood Focus, Noe Valley, SF RE Market Analysis, SOMA | No Comments »

San Francisco Real Estate Glossary: What is a Homeowners’ Association?

July 14th, 2011 by Lindsey Moses

When you buy San Francisco real estate in a subdivision, co-op or planned unit development, you may be subject to a host of rules and regulations as established by the Homeowners’ Association (HOA) governing that development. You’ve most likely heard of HOAs, but you may not know exactly how they operate and how they can impact you. In this article,, you’ll get information on some of the broader issues that you should be aware of when moving into a community governed by an HOA.

What is a Homeowners’ Association?

It is a corporation formed by real estate developers to market, manage and sell homes and condos within a development or building.

Does the San Francisco real estate developer retain control of the HOA forever? No. After a predetermined number of homes or lots are sold, the control is turned over, first, to a handpicked group of homeowners. Later in the process, elections are held once a year within the development to choose board members.

Can Anyone be a board member?

As long as you’re a property owner in the development governed by the HOA, you can campaign for the position. Elections are held once a year. It is not a paid position; board members volunteer their time.

What is the primary function of the HOA?

The primary function of an HOA is to maintain the rules and restrictions that were put in place by the developers and to maintain the community’s common areas.

Common areas include streets, parking lots, parks or green areas, pools and buildings used by the owners like a clubhouse or fitness center. If your San Francisco real estate is an attached condo unit, this would include the exterior of your unit as well.

Can I elect not to join the HOA?

No. HOA membership is written into the covenants, conditions and restrictions (CC&Rs) when the development is formed. No matter how many times the property changes ownership, the HOA requirements remain with it.

You’re also required to pay HOA fees, which are used to maintain the common areas. If you do not stay current on the fees, the HOA can put an assessment lien on your home.

Before buying into a development with an HOA, read and understand the CC&Rs. Also, take the time to talk with some of the other homeowners in the devvelopment to find out how they feel about their HOA.

If you are interested in buying San Francisco real estate, with or without an HOA, call the Legacy Real Estate San Francisco office today. Lindsey Moses, Katy Dinner, and Matt Hinkle are here to help you navigate San Francisco real estate opportunities.

lm@lindseymoses.com

415.529.1529

Links:

Homeowners’ association

http://www.wisegeek.com/what-is-a-hommeowners-association.html

Covenants, condition and restrictions (CC&Rs)

http://real-estate.lawyers.com/homeowners-association-law/CCandRs-and-other-Homeowners-Association-Documents.html

Katy Dinner Real Estate/ Legacy Real Estate and Associates

www.katydinner.com

Tags: ,
Posted in 1st Time Home Buyers, About San Francisco, Education, For Home Buyers, New Construction, SF RE Market Analysis | No Comments »

So you have a dream home in San Francisco… Now What? Who? When? Where? Why?

February 17th, 2011 by Katy Dinner

“As a homeowner in San Francisco, you have plenty of responsibilities — and, no doubt, a number of concerns, too. From property taxes to sidewalk repair, from legal obligations to house maintenance, and from taxes to utilities, you’ll want to be aware of your legal obligations and find out all you need to know to make your home, neighborhood and city the best they can be.

Maybe you’re confused about who’s responsible for repairing the fence between your neighbor’s backyard and your own. Or perhaps you’d like to remodel your bathroom but aren’t sure if you need a permit for the work.

SF Bay Window, your guide to homeownership in San Francisco, can provide you with the answers to your questions or point you in the direction of the source that can. From asbestos to water and sewer service, we’ll help you find the information you to need to improve and protect your most substantial investment.”

-San Francisco Association of REALTORS®.

Tags: , , ,
Posted in 1st Time Home Buyers, About San Francisco, For Home Buyers, For Owners & Sellers, Investment Properties, Neighborhood Focus | No Comments »
« Older Entries