Bay Area Is the Nation’s Hottest Market for Home Sellers

June 2, 2015 by Pacific Union • Posted in Home Price Conditions

As has been the case for the past few years, Bay Area home sellers remain firmly in the driver’s seat, with four of our local counties ranking among the top 10 in the nation for largest premiums this spring.

RealtyTrac’s most recent U.S. Home Sales Report says that U.S. single-family homes and condos sold for almost exactly 100 percent of their estimated full market value in April. In a statement accompanying the report, company Vice President Daren Blomquist said that while that statistic indicates a national overall housing supply-and-demand balance, most local markets tended to favor either buyers or sellers.

According to the report, homes sold for more than their estimated full market value in 27 percent of U.S. counties in April, with Northern California and Bay Area counties dominating the list of places where sellers enjoyed the largest premiums.

Home sellers in Alameda and San Francisco counties netted the largest amounts over market value in the nation, both at 108 percent. Marin and Contra Costa counties tied four others for second place – including Yolo in the Sacramento area — with sellers receiving 107 percent of market value. Shasta County also cracked RealtyTrac’s list, with the average home selling for 106 percent of market value. No state other than California had more than one market that ranked among the top 10.

In its latest monthly home sales report, the California Association of Realtors said that the Bay Area was the only region in the state where homes were selling for above asking price – an average of 107.1 percent in April. CAR wrote that a lack of inventory throughout the region is the primary factor pushing final sales prices beyond original prices.

Bay Area counties had the fewest available homes for sale in California in April, with the months’ supply of inventory (MSI) at 1.6 in San Francisco, San Mateo, and Santa Clara counties. Alameda had the second smallest MSI – 2.0 – while Contra Costa and Marin tied San Benito and Yolo counties for third lowest at 2.4.

According to Pacific Union President Patrick Barber, employing the services of an expert, trusted real estate professional is the most important thing that sellers and buyers can do to navigate highly competitive markets with low supply levels. “Too often do I see good buyers lose out or sellers leave money on the table because of poor representation,” he says. “Hire a real estate professional the same way you would a doctor or a lawyer; get referrals and interview them.”

(Photo: Flickr/Miran Rijavec)

Real Estate Roundup: Will San Francisco Rental Property Owners Soon Cash Out?

Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious:

SAN FRANCISCO INVESTORS NET BIGGEST EQUITY RETURNS IN THE U.S.
Investors who have funneled money into the San Francisco housing market are netting huge equity returns, leading to speculation that rental property owners may soon sell, a recent report says.

Over the past three years, institutional investors who purchased a single-family home in San Francisco have realized equity returns of 63 percent, according to RealtyTrac, the largest gain of any major U.S. metro area. The company defines an institutional investor as one who buys at least 10 properties in a calendar year.

Across the country, institutional investors earned equity returns averaging 26 percent, RealtyTrac says. The company notes that while institutional investors don’t appear to be selling off assets at the moment, price appreciation gives them the motivation to do so.

Then again, with the most expensive rental prices in the nation, San Francisco investors also have solid incentive to hold.

RUNNING DOWN THE BAY AREA’S MUST-SEE HOLIDAY DISPLAYS
‘Tis the season for holiday decorating, and some local homeowners are sparing no expense to spread the yuletide cheer.

SFGate.com recently took a look at the Bay Area’s best holiday displays, starting with “Deacon Dave’s,” a Livermore home that has been attracting crowds for more than 30 years and contains 372,000 lights. Other locals take less conventional approaches to decking the halls, with two San Jose neighbors synchronizing their homes’ light displays with a variety of holiday tunes, a spectacle known as Glacier Lights.

The article also highlights several streets where all or most owners decorate their homes, including enclaves in Palo Alto, San Mateo, Oakland, and Alameda.

U.S. ECONOMIC GROWTH TO STRENGTHEN IN 2015
Although 2014 has been a volatile year for the U.S. economy and will end with less growth than measured in the previous year, Fannie Mae expects the pace to pick up in 2015.

In a news release, Fannie Mae projects that the U.S. economy will grow by 2.7 percent in 2015, compared with a forecasted 2.1 percent this year. As a result, the company said that it expects housing starts to increase by 22 percent and home sales to rise by 5 percent next year.

“We anticipate a fairly strong increase in housing starts in response to stronger employment and some improvement in related household incomes,” Fannie Mae Chief Economist Doug Duncan said in a statement.

WEALTHY AMERICANS BUYING MANSIONS AS FAMILY HEIRLOOMS
You can’t take your home with you when you die, but luxury buyers are increasingly purchasing high-end properties for the purpose of keeping them in the family for generations to come.

According to The Wall Street Journal, a survey found that 64 percent of affluent Americans said it was likely they would purchase a home in order to pass it on to family members. The article says that so-called legacy homes cost a minimum of $5 million to build, but because their buyers tend to prefer homes in traditionally affluent areas, they represent a solid long-term investment.

The Journal notes that legacy homebuyers are decking out their purchases with features that will appeal to multiple generations, including volleyball courts, equestrian facilities, home theaters, and rooms designed for playing video games.

(Photo: Flickr/Liskbot)

5 Reasons to Sell BEFORE Winter Hits

People across the country are beginning to think about what their life will look like next year. It happens every Fall. We ponder whether we should relocate to a different part of the country to find better year round weather or perhaps move across the state for better job opportunities. Homeowners in this situation must consider whether they should sell their house now or wait. If you are one of these potential sellers, here are five important reasons to do it now versus the dead of winter.




1. Demand is Strong
Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market. These buyers are ready, willing and able to buy…and are in the market right now!

As we get later into the year, many people have other things (weather, holidays, etc.) that distract them from searching for a home. Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now
Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. Any delay in the process is always prolonged during the winter holiday season. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

http://www.keepingcurrentmatters.com/2014/09/03/5-reasons-to-sell-before-winter-hits/

The 10 Best San Francisco Neighborhoods for Home Sellers

Anyone who has been shopping for a home in San Francisco recently will likely share a story involving brutal competition, multiple bids, and ultimately watching a property sell for more than its asking price.

According to Pacific Union’s Q2 2014 real estate report, single-family homes in San Francisco sold for less than 100 percent of original price in just one month of the past year and went for as high as 113.5 percent of asking price in May. These overbids, in turn, drive prices even higher; June’s $1.2 million median single-family home price was the highest recorded in San Francisco in the past year.

Frenzied competition for San Francisco real estate has prompted buyers to scour new areas of the city, according to Pacific Union President Patrick Barber.

“Multiple bids and low inventory has put pressure on buyers and driven them to expand their searches to new, more affordable neighborhoods,” Barber says. “This demand is driving up prices.”

To find out which specific neighborhoods San Francisco home sellers could expect to rake in the highest premiums, we examined second-quarter MLS data for single-family homes in all 88 of the city’s subdistricts.

The data shows that homes in the Inner Sunset neighborhood, located in the western portion of San Francisco, commanded the most above original price in the second quarter: 126.5 percent. One three-bedroom home on desirable 6th Avenue sold for 69.4 above original price in April, the second highest premium recorded in San Francisco so far this year.

Perhaps not coincidentally, Inner Sunset home prices hit three-year highs in the second quarter, rising to $1.5 million.

And of course, residences in San Francisco’s more centrally located enclaves are still fetching handsome overbids. Single-family homes in the Inner Mission and Bernal Heights neighborhoods, popular with affluent young tech workers, sold for more than 20 percent above asking price in the second quarter.

The chart below shows the 10 (11 to account for a tie) San Francisco subdistricts where sellers received the highest premiums in the most recent quarter. Buyers hoping to land a home in these neighborhoods should consider overbidding out of the gate and should certainly factor paying above list price into their budgets.








(Photo: Flickr/Torbakhopper)

A Reminder to Homebuyers: Annoy Sellers at Your Peril

Prospective buyers would do well to remember that they won’t get any closer to their goal of home ownership by annoying sellers.



This may seem an obvious point, but real estate professionals say buyers irritate sellers time and again. Transgressions range from failing to comply with a request to remove shoes while indoors on a rainy day to failing to call well in advance when canceling a scheduled walk-through.

Don’t forget that until the deal actually closes, the seller holds the ultimate trump card: the home itself. And it’s a seller’s market nowadays, particularly in the Bay Area, where single-family-home inventory has been constrained for the past year.

A recent article on Bankrate.com, a website that aggregates financial data, notes that “a little give-and-take is normal, but some buyers push the envelope, as well as the sellers’ buttons.” The article goes on to list eight ways that homebuyers may annoy sellers and jeopardize a purchase:

Skipping appointments: Failing to show up for a scheduled appointment, or canceling at the last minute, is simply rude; the seller may have spent half a day making the house spic-and-span for the visit. Unless there’s a last-minute emergency, buyers must show up on time.

Disregarding house rules: If you (the buyer) are touring a home, remember that it’s not yours (yet). Take your shoes off inside, if requested, don’t let children run amok, and respect the wishes of the seller.

Nitpicking: If you don’t like something in the house, but it’s not a negotiable flaw, be quiet about it while touring the property. Some sellers may secretly install cameras or microphones to listen in on conversations, so save any catty remarks for the car ride home.

Presenting a long list of flaws: Using a laundry list of perceived defects as a negotiating tool could backfire and make a seller wonder whether the buyer is seriously interested. The seller is more concerned with the bottom line than a buyer’s critical observations.

Requesting multiple visits: As a sale approaches closing, sellers are busy making repairs, packing up, and moving. They don’t have time to accommodate a buyer’s repeated requests to come in, look around, and ruminate on future plans.

Renegotiating after reaching a deal: Barring any surprises from a home inspection, the negotiated price should be the final price.

Generating ‘iffy’ commitment letters: You can understand where a seller would get nervous if, after an agreement has been reached, the buyer’s lender steps in with a letter asking the buyer to confirm his or her credit-worthiness. Save everyone a panic attack by securing the loan beforehand.

Speeding up the closing date: It’s understandable that an anxious buyer may want to move up the closing date, but the seller needs time to pack up and move out. An extra ounce of courtesy is always appreciated.





(Image: Flickr/Pall Spera Co.)

3 Reasons to Sell Your Home this Spring

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.
These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition - For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.
The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.
Moving up to a new home will be less expensive this spring than later this year or next year.
If you are a real estate professional and want great information on where prices and interest rates are headed over the next 18 months, we cover both in the March edition of Keeping Current Matters. If you are already one of our 6,000+ members, login in to get the educational resources you need to intelligently discuss the future of values and interest rates with your clients.




Original Article and Photos Sourced From:  http://www.keepingcurrentmatters.com/2014/04/08/3-reasons-you-should-sell-your-home-this-spring/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28Keeping+Current+Matters%29

Spotlight on Sellers: They’re Eager to Buy Again

The year 2013 was the year of the homebuyer, marked by multiple offers for virtually every desirable property on the market in Northern California. Bidding wars frequently pushed sales prices 10 to 15 percent above list.

But 2014 is shaping up to be the year of the seller.

After regaining equity in their homes last year, sellers are eager to get back into the market again, according to a recent survey by the California Association of Realtors (CAR).

More than two-thirds (69 percent) of home sellers purchased another home rather than renting after selling their previous residence in 2013, up from 47 percent in 2012 and only 12 percent in 2011.

“Much-improved housing market conditions in the last year have given sellers more confidence to own a home rather than to rent one,” CAR President Kevin Brown said in a statement accompanying the survey results. “With sellers being more positive about the future of home prices, the vast majority of sellers who are currently renting plan to buy again in the future.

“In fact, 70 percent of sellers who are currently renting said they would purchase another home, up from 22 percent in 2012.”

Sellers are more optimistic about repurchasing a home thanks to strong growth in home prices, record-low interest rates, and better financial situations at home, according to the CAR survey.

The reasons for selling changed significantly in just one year. In 2012, the majority of sellers sold primarily because of financial difficulties, but as home prices surged, a desire to trade up became the top reason for selling in 2013.

Others wanted to take advantage of low interest rates to finance their next home, while some sellers believed the price of their home had peaked and wanted to cash out.

Those survey results bode well for 2014, as more homeowners put their properties on the market and help to meet the demand of homebuyers — both first-time and move-up buyers.

Selling Your Home During the Holidays? Now is the Time!

In today’s competitive real estate market, sometimes the standard, run-of-the-mill open houses aren’t yielding much success, and some sellers are choosing an alternative and effective method, that has been dubbed, “extreme open houses.”

With catered refreshments, prizes and entertainment, these events are causing quite a stir in the real estate world. By that, we mean that sellers are throwing elaborate parties in the guise of an open house, with hope that someone will buy their home. Some sellers hire local musicians and throw a fully catered party, equipped with champagne and expensive hors d’oeuvres. During the holidays, people are in a festive mood, and throwing a party is always a good idea to draw their attention.

The biggest advantage of an extreme open house is that potential buyers can see your home in a different light, giving you a chance to display some of your home’s attractive features. For example, if you are cooking food at your party, your guests can focus on your kitchen. Or, if you’re throwing a barbeque, you can get a chance to show off your favorite patio, drawing attention to some of your home’s best selling points.
Instead of showing a cold, empty home, you can attract potential buyers with a warm and vibrant home full of nice furnishings. Throwing a party in a warm and inviting home is a good idea even when you invite people who don’t intend to buy your home, since many of them will tell their friends about it.

Keep it simple

You don’t really need to throw an elaborate party to draw peoples’ attention, however, you can offer them some nice snacks and a glass of wine, giving them a chance to relax in the living room or the patio, and enjoy some of the comforts of your home. For starters, you can make a list of friends and acquaintances, and then send out some flyers with your contact information and a few facts about your home.

Are the holidays a good time to sell?

Although the holiday season isn’t really considered the best time to sell, the real estate market is much tighter, resulting in less competition for sellers. At the same time, motivated buyers are still in the market for homes, in hopes that they can make a purchase.

During the holidays, you can liven up your home with some lights and ornaments to attract buyers. Although you can make your home “shine” during the holidays, try not to overdo it. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Too many ornaments could have a negative effect, and actually turn buyers away. Obviously, you don’t want to offend people, so be sure to go with tasteful decorations, as opposed to large and gaudy ones.

Also keep in mind that emotions play a big role in homebuyer purchases. A well organized home with a few tasteful decorations shows much better than a cluttered home with your kid’s toys lying around the living room. People will often purchase a home solely based on their gut feelings. If a buyer “falls in love” with your home, chances are they’re going to be more inclined to purchase it.

On a final note, it’s also a good idea to make it easy for people to stop by to see your home. In this case, flexibility is a key factor. People are busy during the holidays, and the chances of selling your home will be much greater if make it available for them to see.


Despite the fact that many people feel that the holidays aren’t a good time to buy or sell a home, this really isn’t the case. With a little knowledge and effort, you can sell your home in a timely manner, relax, and enjoy the Holidays! 



Article & Photos Sourced from the KCMblog:
http://www.keepingcurrentmatters.com/2013/12/11/selling-your-home-during-the-holidays-now-is-the-time/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28Keeping+Current+Matters%29

3 Reasons to Sell Your House Today!

3 Reasons to Sell Your House Today!


See also: Three Financial Reasons To Buy A Home Now

Part I

Demand for Real Estate is Much Stronger
This Year

When selling anything, owners can only hope there is a strong demand for that which they are selling. The great news for today’s home sellers is that the current housing market is experiencing a stronger demand than we have seen in some time.
The  spring housing market of 2013 is projected to be one of the best in years.

Home Sales

The National Association of Realtors (NAR) reports monthly on both pending sales (houses going into contract) and existing home sales (actual closed sales).
In the first quarter of 2013, pending sales have consistently outperformed the numbers reported in 2012. Contract activity has been above year-ago levels for the past 22 months. Before this year, the last time the index showed a higher reading was in April 2010, shortly before the deadline for the home buyer tax credit.
NAR also revealed that closed home sales have been above year-ago levels for 20 consecutive months and sales are at the highest level since the tax credit period of 2009-2010.

Impact on Sellers

This increase in demand has created bidding wars for properly priced homes across the country. This has resulted in two favorable changes for home sellers:

1. They are receiving offers closer to (if not greater than) the list price.
2. The average days it takes to sell a home has dropped by over 20% from last year.

If you are thinking about selling your home, don’t miss out on the strong demand that exists in the current spring market.

Part II

Housing Supply is Low

A seller’s ability to sell their home in today’s real estate market will be determined by both the supply of homes for sale and the demand for that housing. In real estate, supply is represented by the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).

While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:

• 1-4 months’ supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
• 5-6 months’ supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
• 7-8 months’ supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.

What is happening across the country right now?

In most parts of the country, supply is dropping like a rock. According to the National Association of Realtors, total housing inventory is below a five months’ supply. This is almost 20% below inventory numbers of just a year ago and at levels we haven’t seen since 2005.
Based on the table above, we can see that the supply/demand ratio is showing a sellers’ market where prices appreciate. This has created positive movement in housing values in most parts of the country.
Sellers have a great opportunity right now. Historically, inventory increases dramatically as we approach summer. Selling now while demand is high and supply is low may garner you your best price.

Part III

New Construction Will Soon Be Your Competition

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. As an example, the National Association of Realtors revealed, relative to last year, year-to-date new home sales are up 19%.

These ‘shiny’ new homes will again become competition as they can be an attractive alternative to many of today’s home purchasers.


Here are the numbers regarding new construction about to come to market from the Census Bureau:

BUILDING PERMITS

• Single-family authorizations in February were at a rate of 600,000.
• This is 25.5% above February 2012.

HOUSING UNDER CONSTRUCTION

• Single-family housing starts in February were at a rate of 618,000.
• This is 18.5% above February 2012.

HOUSING COMPLETIONS

• Single-family housing completions in February were at a rate of 574,000.
• This is 32.9% above February 2012.

As we mentioned, new construction can be strong competition to a seller of an existing home. It may make sense to list your home before this new inventory makes its way to market.

Article & Photos Sourced from:     The KCM Blog
Link To Original Article