Home of the Week: It Doesn’t Get Any Greener Than This!

I was wowwed!  LEED Certified Platinum construction meticulously designed by Handel Architects.  The development is called NOVE and it contains nine homes, each with outdoor space, direct connect parking (not a common garage), bright white modern finishes, private outdoor spaces and views and lots of bright sunlight.

My favorite features were the shiny orange epoxy garage floors and the completely real looking artificial grass in the “backyards.”  That and the fact the solar panels are cleverly integrated into the curved roof design to catch more of that south sun.

These 3 and 4 bedroom homes are all designed on two levels and are well located on Guerrero between 21st and 22nd (where the Palm Broker used to be).  Just the right place for a low-carbon footprint pedestrian lifestyle.  Bargain priced at between 1.1MM and 1.6MM, but they seem to be going fast.  the two top corner townhomes are already sold.

Please let me know if you want to take a look!

Taking Good Care of Your Credit Score

Susan Reber of Mission Hills Mortgage Bankers provided this great list of suggestions and I thought I would pass it along.  Susan can be reached at sreber@mhmb.com.

Most home buyers know little about the whole credit scoring process. Borrowers often find themselves at a loss when trying to find ways to upgrade their credit history. While credit repair is necessary for some, it’s not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps:

 Evenly distribute your credit card debt to change the ratio of debt to available credit. Let’s say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer to that ideal bracket. 

• Keep your existing zero balance accounts open and active; not doing this means you lose the benefits of a long-term credit history and increase your ratio of debt-to-available credit. The bottom line is don’t close those old accounts! 
• Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you’re only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame. 

 

 Remember, credit scores don’t change overnight; get the ball rolling at least three months prior to applying for home financing. 

Thanks Susan!

Update on “Decline from the Peak”

We have a lot to be thankful for in San Francisco. We have largely survived this real estate downturn without the enormous declines we are seeing on the news. However, they have been significant. Anyone in the market today on the seller side certainly can tell you that.

I thought it was a good time to check in and update the article from earlier this year “How Much Have San Francisco Home Values Declined Since their Peak?” Thankfully, many neighborhoods have not had a change since April, when values were even lower than in February, and some have even climbed a percent or two.

Below is an analysis of San Francisco neighborhoods comparing Average Dollar per Square Foot ($/sqft) at what is estimated to be peak value, to the average for sales occurring 10/15/08 – 4/1/09 (the market period right after the 9/15/08 financial markets meltdown), and then to the average for more recent sales occurring 5/1/09 – 10/30/09 (as home sales volume – and financial markets – surged again).

Different areas reached peak values at different times – in 2006, 2007 or 2008 – and the asterisked notes denote the estimated peak value period that pertains. The price ranges of the sales included were chosen to be in a standard range of value for the area and property type specified – thus attempting to eliminate both the ultra high end and the ultra low end, which often distort averages.

Dollar per square foot is based upon the home’s interior living space and does not include garages, unfinished attics and basements, rooms built without permit, or exterior spaces. These figures are usually derived from appraisals, tax records or condo maps, but are sometimes unreliable (especially for older homes) or unreported altogether. There are often surprisingly wide variations of value within neighborhoods, and averages may be distorted by one or two sales substantially higher or lower than the norm. They may also be distorted by confidential sales, which are not uncommon at the upper end of the market. (For confidential sales, the list price, and not the sales price, is used for the calculation.)

Key to Estimated Peak-Value Period for the Chart Below:
*             Peak values estimated to have been reached 1/1/06 – 6/30/06
**           Peak values estimated to have been reached 1/1/07 – 6/30/07
***        Peak values estimated to have been reached 1/1/08 – 6/30/08

Changes in Average Dollar per Square Foot Values
for Selected San Francisco Neighborhoods & Property Types

Neighborhood or District	Property Type Price Range	Avg $/sq.ft. at Peak Value	10/15/08 – 4/01/09	5/1/09 – 10/30/09	Change from 4/1/09	Total Change from Est. Peak Value
Bayview*	House $300k – 800k	$507/sq.ft.	$294/sq.ft.	$280/sq.ft.	- 5%	- 45%
Ingleside/ Hghts / Oceanview*	House $400k – 800k	$580	$449	$444	- 1%	- 23%
Excelsior/Portola*	House $400k – 800k	$600	$457	$450	- 1.5%	- 25%
Central/Outer Richmond **	House $700k – 1.4m	$569	—	$488	—	- 14%
Inner Mission**	Condo $500k – $800k	$621	—	$496	—	- 20%
Central/ Outer   Sunset**	House $500k –  900k	$626	$533	$501	- 6%	- 20%
Miraloma/ Sunnyside**	House $500k – 1m	$677	$598	$550	- 8%	- 19%
Hayes Valley/ Alamo/ NOPA***	Condo $500k – 900k	$684	$602	$559	- 7%	- 18%
SOMA**	Condo $500k – 900k	$689	$553	$562	+ 2%	- 18%
Neighborhood or District	Property Type Price Range	Avg $/sq.ft. at Peak Value	10/15/08 – 4/01/09	5/1/09 – 10/30/09	Change from 4/1/09	Total Change from Est. Peak Value
Bernal Hghts***	House $500k – 1m	$651/sq.ft.	$556/sq.ft.	$567/sq.ft.	+ 2%	- 13%
St Francis Wd/W. Portal/Forest H **	House $800k – 2.5m	$687	—	$585	—	- 15%
Noe & Eureka Valleys***	Condo $500k – 1m	$751	$675	$613	- 9%	- 18%
South Beach***	Condo $500k – 1m	$785	$681	$640	- 6%	- 18%
Potrero Hill**	House $700k – 1.4m	$753	—	$648	—	- 14%
Russian/Nob/ Telegraph Hills***	Condo $600k – 1.2m	$798	—	$692	—	- 13%
Noe & Eureka Valleys***	House $800k – 1.5m	$891	$755	$707	- 6%	- 21%
Pacific Hghts/  Marina (Dist 7)***	Condo $600k – 1.2m	$809	$763	$733	- 4%	- 9%
Most Expensive North SF Areas***	House $1.5m – $4m	$975	—	$797	—	- 18%

Averages are generalities and cannot account for the varieties in location, condition and amenities found in SF homes. Averages may be affected by unusual events or short-term trends, and do not necessarily reflect values for specific properties.  Average dollar per square foot values fluctuate even in a stable price market as they are impacted by individual sales, and changes of less than 3-4% should probably be ignored. All data from sources deemed reliable, but not guaranteed and may contain errors and omissions. Sales not reported to MLS – such as many new condo-development sales – are not included in this analysis.

Put on your Poker Face … Or Join me way up in the sky!

A couple of things happening in the next few weeks I wanted to mention.

First, Paragon is having a client appreciation event – and I wish Icould take each and every one of you – at the Millennium Tower.  This is the shining 60 story tower at 301 Mission with the new Michael Minna restaurant RN74 on the ground floor.  Way up in clouds on the 50th floor, there is a newly unveiled decorator showcase and we are having a party there on November 12!  Please let me know right away if you’d like to join me there!

Second, as many of you know, I am a big fan of San Francisco’s public schools and my son, Elvis, goes to Claire Lilienthal.  We are having our 2nd annual Texas Holdem Tournement – and yours truly is one of the sponsors!  So if you like kids and you like Poker (no, there won’t be any kids at the event), come and gamble the night away!  Tickets are $100 in advance and prizes include $3500 worth in value of American Express Gift Cards, Dinners at great restaurants such as Perbacco and Harris’ Steak House, health club memberships, and much, much more!  See evite for details by clicking here.

Home of the Week: Modernist with a Four Bridge View

When I read “four bridge view,” I had to stop and count them… I suppose on a really clear day you must be able to see just a hint of the Dunbarton, which would make five.

In addition to unique, sweeping views, 116 Sugerloaf in Tiburon has a really cool floating fireplace, view bubble with hanging see-thru chairs, an amazing open, indoor/outdoor living design. It was designed by architects Scheidegger & Tobias with construction completed in 2004 by the current owners. A link to the previous listing can be seen here (the pictures are just so fab – kudos to the photographer!). Shown by appointment only – let me know if you or someone you know can’t resist.

House of the Week: Think Pink!

Those of you who have known me a while will remember my obsession with a particular pink farm house on the eastern slope of Twin Peaks back in 2001. I spent several months scheming how I was going to get my hands on it and eventually wrote an offer to buy it for $875,000 without most of the adjacent and very valuable land. The owner eventually rejected my offer, and moved in herself, but I had the pleasure of imagining it could be mine for about 3 weeks and dreamed every night about what it would be like to wake up with the sun streaming in and views of Mt. Diablo and the bay from our bedroom.

I take it as a sign of personal growth that I can now present this fabulous property as my Home of the Week without too many pangs. It will be open this Sunday from 2 to 4 and I highly recommend you make viewing this wonderful estate property a part of your afternoon.  For the MLS listing, click here.

Cine al Fresco

I am a huge fan of free public activies in general – just seeing all my fellow San Franciscans out enjoying our community gives me a thrill.  And nothing is more fun than free movies in the park – a picnic dinner under the stars and snuggling those you love under a blanket while you watch a favorite movie. . . it’s like a modern urban campfire. 

At least two organizations offer movies in San Francisco every summer:  The San Francisco Neighborhood Theater Foundation (http://www.sfneighborhoodtheater.org/) and Dolores Park Move Night (http://www.DoloresParkMovie.org).  Both are non-profits and could use your support.  Last year there was a third organization, Alamo Square Movie Night that seems to be no longer functioning.  Stefan and I attended several and think it’s perhaps because it was a tad too chilly for anyone but die-hards like us. )

You can generally count on my family planning to attend, so if you ever want to join us, just let me know.  Here’s what I know about the schedules:

 

SF Neighborhood Theatuer Foundation Movies:

Saturday, 6/20, Dolores Park, GOLDFINGER (1964)
Saturday, 7/11, Union Square, MANHATTAN (1979)
Saturday, 8/1, Dolores Park, PRETTY IN PINK (1986)
Saturday, 8/22, Union Square, ON THE WATERFRONT (1954)
Saturday, 9/19, Dolores Park, THE DARK KNIGHT (2008)
Saturday, 10/3, Wash. Sq. Park, SLUMDOG MILLIONAIRE (2008)

Dolores Park Movie Night:

Thursday, July 9, at 8:30 P.M. – Annie Hall (1977)
Thursday, August 13, at 8:30 P.M. – TBD.  They are open to suggestions.  See the Web site.
Thursday, September 10, at 8:00 P.M. – TBD.  They are open to suggestions.  See the Web site.
Thursday, October 8, 7:00 P.M. – TBD.  They are open to suggestions.  See the Web site.

Growing Up in a Garden

If we’re connected on Facebook, you’ve already seen this picture of Elvis at our new community garden plot.  Just two weeks later, we have arugula, radishes, basil, pumpkins, peas and various other things sprouting.  We also, unfortunately, had a gopher siting.  It’s been really fun so far!  Although we have a yard, the placement of the fences does not make it ideal for cultivation of vegetables and we’ve also enjoyed getting to know some of our fellow gardeners.  The cost?  $25 a year.  The land is owned by SF Park & Rec and the $25 goes into a community fund for things like garden hoses and other improvements. 

These gardens are tucked away in out of the way unused spaces and offer an opportunity to experiment, grow your own food and make new friends.   If you’d like to participate in a community garden, here’s a complete list of what’s out there in San Francisco.  Waiting lists range from none to a few months or even several years.  It’s worth checking out, as there’s no better way to eat local than to grow your own.  To see the complete garden list, click here.  If you belong to a garden, post on the blog and let me know what you think of yours!

Tax Credit Chart

Many of you have asked me about the implications of the Federal Tax Credits as well as the California Tax Credits for first time homebuyers. I have sent this out as a separate email, but I thought I’d include it in this newsletter as a refresher because it’s such pertinent information if you are currently thinking of buying your first home. Also, there is a movement among lenders to allow buyers to use part or all of these credits toward downpayment and/or closing costs. This is not actually in effect yet, but it may be soon, and I’ll keep you posted!

HOMEBUYER TAX CREDIT	FEDERAL	CALIFORNIA
Amount of Tax Credit	10% of purchase price not to exceed $8,000.	5% of purchase price, not to exceed $10,000. Maximum tax credit for all taxpayers is $100 million to be allocated on a first come, first served basis.
Principal Residence	Yes.  Property purchased must be the taxpayer’s principal residence which is generally the home the taxpayer lives in most of the time (26 U.S.C. § 121).	Yes. Property purchased must be a qualified principal residence and eligible for the homeowner’s exemption from property taxes (Cal. Tax & Rev. Code § 218).
Type of Property	House, condominium, townhome, manufactured home, apartment cooperative, houseboat, house trailer, or other type of property located in the U.S.	Single-family residence, whether detached or attached, condominium, cooperative project unit, houseboat, manufactured home, or mobile home.
First-time Homebuyer	Yes. The buyer (and buyer’s spouse if any) must not have owned a principal residence during the three-year period before date of purchase.	No. The buyer need not be a first-time homebuyer.
Unoccupied Property	No.  Property may have been previously occupied or not.	Yes. Property must have never been previously occupied as certified by the seller.
Minimum Occupancy Requirement	Must be the buyer’s principal residence for 36 months after purchase, otherwise credit must be repaid.	Must be the buyer’s principal residence for 2 years after purchase, otherwise credit must be repaid.
Income Restriction	Yes. Tax credit begins to phase out if modified adjusted gross income is over $75,000 (or $150,000 for joint filers). No tax credit at all if modified adjusted gross income is over $95,000 (or $170,000 for joint filers).	No.
Date of Purchase	January 1, 2009 to November 30, 2009, inclusive.(Note: A repayable $7,500 tax credit is available for purchases from April 9, 2008 to December 31, 2008.)	March 1, 2009 to February 28, 2010, unless $100 million funding runs out.
Refundable	Yes. Any amount of the tax credit not used to reduce the tax owed may be added to the taxpayer’s tax refund check.	No.
Repayment	The buyer need not repay the tax credit if the buyer owns and occupies the property for at least 36 months after the purchase.	The buyer need not repay the tax credit if the buyer owns and occupies the property for at least two years immediately following the purchase.
Multiple Buyers(not married to each other)	The $8,000 tax credit may be allocated between eligible taxpayers in any reasonable manner.	The $10,000 tax credit may be allocated between eligible taxpayers based on their percentage of ownership.
Maximum Credit for All Taxpayers	N/A	$100 million.
When to Claim	Full tax credit may be claimed on 2008 or 2009 tax returns.	1/3 of total tax credit may be claimed each year for 3 successive years (e.g. $3,333 for 2009, $3,333 for 2010, and $3,333 for 2011).
Tax Agency	Internal Revenue Service (IRS).	Franchise Tax Board (FTB).
How to File	First-Time Homebuyer Credit(IRS Form 5405) to be filed with 2008 or 2009 tax returns	Specific procedure for claiming credit includes completing an Application for New Home Credit (FTB Form 3528-A).
When to File Form	Form 5405 must be filed with 2008 or 2009 tax returns.	FTB Form 3528-A must be faxed by escrow to the FTB within one week after close of escrow and filed with the buyer’s 2009 or 2010 tax returns.
Exceptions	Acquisitions by gift or inheritance, acquisitions from related persons as defined, and buyers who are nonresident aliens.	Credit allowed is not a business credit under Cal. Tax & Rev. Code § 17039.2.
Legal Authority	26 U.S.C. section 36.	Cal. Rev. & Tax Code section 17059 (as amended by Senate Bill 15).
Date of Enactment	February 17, 2009.	February 20, 2009.
More Information	IRS website at http://www.irs.gov/newsroom/article/0,,id=204671,00.html.	FTB website at http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml which includes a tally of the $100 million original funding that is still available.

California Association of REALTORS®

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Copyright ã 2009 CALIFORNIA ASSOCIATION OF REALTORS â (C.A.R.). Permission is granted to C.A.R. members only to reprint and use this material for non-commercial purposes provided credit is given to the C.A.R. Legal Department. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R. Legal Department. All rights reserved.

The information contained herein is believed accurate as of April 13, 2009. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.

 

HOMEBUYER TAX CREDIT CHART

Market Update – Signs of Life (at last)!

In recent weeks, the number of listings accepting offers has increased substantially, while the number of price reductions and expired and withdrawn listings – though still high by historical standards – has decreased significantly. Months-supply-of-inventory (MSI), an indicator of seller supply and buyer demand, has also declined. (The higher the MSI, the greater the buyer advantage.) Whether this will prove to be the beginning of a durable resurgence for SF real estate or simply a springtime bounce, it is too soon to tell.

The area where most house sales are now occurring is Realtor District 10 (Bayview-Portola-Excelsior). Then comes District 2 (Sunset-Parkside), District 5 (Noe-Castro-Haight) and Bernal Heights. District 10, with the greatest number of foreclosure sales, has been hardest hit by price declines, and has roughly as many sales as Districts 2 and 5 combined – so it has had a massive impact on overall median price in SF. (Which is one reason why the overall city median home price is virtually worthless as an indicator of changes in market values.)

Most condo sales are occurring in South Beach-SOMA, then District 5 (Noe-Castro-Haight), and then District 7 (Pacific Heights-Cow Hollow-Marina). These numbers don’t include new development sales unreported to MLS – which would greatly increase the South Beach-SOMA sales numbers. The new developments are doing everything they can to move inventory right now.

Foreclosure Sales Update

Since mid-October 2008, 17% of house sales and 6% of condo sales in San Francisco have been REO (bank-owned) homes. The median sales price of an REO house during this period has been relatively stable at about $500,000; the median sales price for an REO condo has been $432,000. 78% of REO house sales have occurred in the less affluent south/southeast part of the city, stretching from Bayview to Oceanview. 85% of REO condo sales have been in the neighborhoods stretching south from SOMA along the east side of the city down to Bayview and across to Oceanview. The greater part of the city – northern, central and western neighborhoods – continues to be relatively unaffected by foreclosure sales.