The Latest San Francisco Real Estate Report

Still want some charts about the SF Real Estate Market?  You can get your fill from our most recent Compass San Francisco Real Estate Report

If you’d just as soon hear my Cliff Notes version, here it is in five easy pieces.

  1. Year-to-Year the market has remained strong with prices up and number of sales down.
  2. San Francisco is outperforming other Bay Area market.
  3. Our median house sales price in San Francisco hit a new high this spring BUT our rate of appreciation is significantly slowing down.
  4. Looking forward, October is typically one of our busiest months for closed sale after a big spike in September’s inventory.
  5. We should also see more price reductions as Sellers try to spark renewed buyer interest for overpriced homes before the market slows for the winter holidays.

The Transformation of a Grand Old Lady

My Victorian listing on Bush Street sat virtually untouched for over 70 years before we got it ready for sale. This video shows the “before and after” transformation framed by a terrific back story. It’s a really good video and worth the two minutes of time it takes to watch it. Just remember to get out your hankie before you start.

Compass arranged for this production to promote their Concierge Service– which paid the renovation costs up front so the family that owned the home didn’t have to come out of pocket.

Looking to Become a Millionaire?

DID YOU KNOW?  Warren Buffet who turned 89 this past weekend, made over 95% of his fortune after the age of 50 years.  95%!!! He only became a billionaire at the age of 56.  Just like that $50 million house that sold in 2 days with multiple bids over ask, we tend to only hear the exceptional stories of those who make their first billion before the age of 25 in the media. The reality is that the vast majority of fortunes are amassed over the age of 50. The average person becomes a millionaire closer to the age of 60, and women hit this milestone sooner than men, under 59 years of age!

What are a few things you could initiate today to help you accumulate more wealth by this time next year?

  1. Set up automatic savings.
  2. Put your money in a high-yield savings account. Most basic savings accounts pay a very low rate. An extra percent can add up.
  3. Increase your 401k contribution.
  4. Analyze your monthly expenses and set a new budget that cuts out any excess.
  5. Do some after-hours/outside-of-your-routine work for 1-2 hours a week or month for additional income set aside purely for savings.

How Strong is the Bay Area Market?

We’re topping it off with charts this week! For those of you who are just here for the graphs and data, I will not be offended if you leave off after you’ve digested the data below:

We’ve had a strong market for longer than normal this cycle. But San Francisco is always last in and first out when it comes to a slump. Forecasters say that the market should remain strong through 2020. In the meantime, the chart below indicates a slight dip in some Bay Area markets.

The good news in the next chart? While we sometimes fall harder, we come back stronger relative to the national market.

Five cents worth of advice:

  1. Don’t try to time the market. Wondering when we’ll peak or if we’re peaking will exhaust you. And you’ll never know the answer until the moment has come and gone. 
  2. Think of the home you buy as a place to live first and an investment second. There’s so much more to owning a place than the dollar payout at the end, like you get to paint the rooms any color you want, never worry about the rent going up and finally get a dog!
  3. Plan to stay at least seven years. Over my 30+ years of selling, I’ve always seen the market run in seven year cycles from peak-to-peak. I’m especially aware of this because I have a knack for buying at the top. We purchased our current home in 2009, just a few months before the market melt-down. There was some slippage in value after we closed, but today it’s worth 35% more than what we paid for it.

Single Family Home Rentals on the Rise

DID YOU KNOW? Demand for single-family rental homes is surging, and homebuilders are now stepping in, redesigning and reimagining the sector — and becoming landlords themselves. In 2018, about 43,000 single-family homes were built for rent, the largest number in nearly 40 years according to National Association of Home Builders analysis of U.S. Census data. The built-for-rent share of housing starts is also rising, nearly double its recent historical average (from 1992-2012). (CNBC)

Affordability Crisis Spreads to the Heartland

What began on the coasts, in areas like New York and San Francisco, is now radiating into the nation’s heartland, as well as to cities from Las Vegas to Charleston, South Carolina. Entry-level buyers are scrambling to purchase homes that are in short supply, sending values soaring.  Expectations that the Federal Reserve will reduce interest rates this week will do little to change the sober reality: For many, prices have risen much faster than incomes, pushing homeownership out of reach for a new generation of hopeful buyers (BLOOMBERG).

You can read the full article HERE.

Fun Things to Do This Weekend July 27-28

One of the many reasons I love this city is that there is ALWAYS something fun to do.  Here are just a few things to check out this weekend.

“Crazy Funny Asians” Comedy Showcase

July 28th, 7:00pm

Neck of The Woods, San Francisco, CA

Inspired by the blockbuster movie, see some of the Bay Area’s top comedians at San Francisco’s Crazy Funny Asians comedy showcase! Let’s celebrate the Bay’s Asian-American culture and heritage with laughs.

Stern Grove Festival presents the San Francisco Ballet

July 28th – Show starts at 2:00pm.  Seating is first come, first served.

Artistic Director Helgi Tomasson, performs a selection of highlights from their current repertory at Stern Grove Festival. Conductor Martin West leads the San Francisco Ballet Orchestra.

Treasure Wine Fest Happy Hour on Treasure Island

July 27th & 28th, 12:00-5:00pm

Winemaker Studios

Winemaker Studios is a collective group of urban wineries located in a rustic, relaxed setting with waterfront and Bay Bridge skyline views, providing a genuine, winetasting experience. Located on San Francisco’s historic Treasure Island, Winemaker Studios brings together great winemakers to provide a one-of-a-kind urban wine experience for individuals, private events and unique corporate gatherings.

Secrets to Happiness

DID YOU KNOW? 95-year-old billionaire Charlie Munger’s advice for a happy life is worth repeating:

  • You don’t have a lot of envy.
  •  You don’t have a lot of resentment.
  • You don’t overspend your income.
  • You stay cheerful in spite of your troubles.
  • You deal with reliable people.
  • And you do what you’re supposed to do.

Staying cheerful, regardless of how bad things can be at times, is great advice. Nothing new, but worth repeating. (CNBC)

Luxury Russian Hill Remodel. Before and After Pictures

1750 Taylor #504 is a luxury co-op that sits at the apex of Russian Hill. It was purchased in its original condition by a real estate agent named John Farnham in 2016 for $1,667,250.

John’s plan was to extensively remodel the home and enjoy it for many years with his partner. However, after the remodeling they decided to sell #504 so they could buy a different property that had grabbed their attention. After some months on the market, my clients purchased the home in June of 2019.

Below are some before-and-after pictures that show you the home’s transformation. One of my buyers has a background in home design, so she appreciated the effort that went into renovating #504.

Happy Fourth of July

San Francisco’s fireworks show will get under way Thursday at 9:30 p.m. or thereabouts from the foot of the Municipal Pier and from barges north of Pier 39 at Fisherman’s Wharf.  Here are a few good places to view them.

  1. Take a ferry to either Angel Island or Treasure Island
  2. The Crissy Field picnic area
  3. Off the dock at Pier 7
  4. Take a cruise on the San Francisco Belle
  5. Grab a blanket and head up to Twin Peaks