Home Price Per Square Foot: The Bay Area’s Most- and Least-Expensive Cities

For many prospective buyers in the Bay Area, location is the key factor driving a home purchase, whether it’s to live near the office, within the boundaries of a certain school district, or in close proximity to family and friends.

For others, however, a home’s size may be of particular importance – especially for growing families who want to upgrade their space or empty-nesters who no longer need a sprawling house in the suburbs.

We took a look at October MLS data as of Nov. 18 to determine the average price per square foot for single-family homes in our Bay Area regions, as well as towns and cities where buyers paid the most and least for the average amount of space.

We also assembled a list of the 10 most expensive and affordable cities in terms of square footage; scroll down to see the charts.

CONTRA COSTA COUNTY


In October buyers paid an average of $384 per square foot across Contra Costa County, a year-over-year increase of 16 percent.

Homes in Martinez are the most affordable in Contra Costa in terms of square footage, an average of $277 – 28 percent cheaper than the county average. At $280 per square foot, Concord was the only other city in the region under $300 per square foot.

On the other side of the spectrum were Diablo ($574 per square foot) and Lafayette ($514 per square foot) – the two Contra Costa cities where buyers paid the most for space.

EAST BAY

Buyers in our East Bay region shelled out an average of $452 per square foot in October, also a yearly gain of 16 percent.

At $369 per square foot, homes in El Cerrito were the most affordable in the East Bay, 18 percent less expensive than those in the entire region. Homes in Piedmont, meanwhile, ran $615 per square foot, 27 percent higher than in the rest of the region.

MARIN COUNTY


With an average home sales size of 2,185 square feet in October, Marin County properties were the second largest in our eight Bay Area regions. Buyers paid an average of $531 per square foot, 20 percent more than they did a year ago.

Novato was the only Marin County city where homes cost less than $400 per square foot: $347. Homes in San Rafael, Greenbrae, and Fairfax sold for between $435 and $473 per square foot.

In Belvedere, meanwhile, buyers paid an average of $917 per square foot – 42 percent higher than in the rest of the county. Still, it was a substantial price drop from September, when homes sold for $1,410 per square foot.

NAPA COUNTY


In October, the average price per square foot for a Napa County home was $330, short of its 12-month July high but up a bit from the previous month.

Homes in American Canyon boasted the lowest price per square foot of any city, town, or district that we examined — $160. American Canyon was the only city in the Bay Area where the price per square foot was below $200.

On the top end, buyers in St. Helena forked over an average of $729 per square foot in October, 55 percent higher than the county average.

SAN FRANCISCO


With an average price of $737 per square foot, homes in San Francisco sold for 17 percent more than they did last October, when the average price per square foot was $610.

Single-family homes in District 8, which includes the neighborhoods of North Beach, Russian Hill, andTelegraph Hill, were the priciest in the Bay Area in terms of square footage: a whopping $1,476. Homes in District 7, which includes Pacific Heights and Presidio Heights, also broke the $1,000-per-square-foot mark, at $1,147.

San Francisco home hunters seeking the most size per buck should perhaps focus on District 10 in the city’s southeastern corner, where the average price per square foot was $446.

SILICON VALLEY


Our Silicon Valley region showed the largest overall per-square-footage numbers in October, both in terms of average size (2,722) and average price ($946).

Although homes in Palo Alto were an average of 20 percent smaller than those in the rest of Silicon Valley, they commanded $1,152 per square foot: the highest in the region and the second most in the Bay Area. Homes inWoodside sold for exactly $1,000 per square foot in October, fourth highest in the Bay Area.

Homebuyers seeking the most space per dollar should investigate Portola Valley: at $680 per square foot, homes are 28 percent cheaper than the Silicon Valley average.

SONOMA COUNTY


The average price per square foot in Sonoma County showed the largest year-over-year gains in our Bay Area regions, at 21 percent. In October, the average price per square foot was $317, a 12-month high.

Rohnert Park and Windsor were the second and third most affordable cities in terms of price per square foot in the Bay Area, at $240 and $261 respectively. Buyers in Healdsburg paid the second most per square foot in Sonoma County, at $490.

SONOMA VALLEY


Homes in our Sonoma Valley region sold for an average of $448 in October, a yearly increase of 17 percent.

At $414 per square foot, homes in Kenwood were the most affordable in Sonoma Valley. Homes in the city of Sonoma cost slightly more per square foot ($434), while those in Glen Ellen were $776, the most in the Wine Country.









(Photo: Flickr: Jeff_Golden)

October Monthly Market Update

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SF July Real Estate Market Focus

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SF's Planning Push To Stimulate Construction Of 2,600 Approved Units

 

Roughly 190 projects were authorized for development by San Francisco’s Planning Commission over the past eight years with a three year window within which to start construction or risk losing their entitlements to build. Of the 190 approved projects, only 85 have been built or are currently under construction.

Of the 105 approved projects that haven’t started construction, 15 projects have obtained permits but haven’t started contstruction while 55 projects have applied for permits but haven’t yet obtained them and 35 projects haven’t applied for permits at all.

Of the approximately 90 projects that have been approved but which have not yet obtained a permit, 50 have already exceeded their three year window in which to start construction while another 10 will exceed their windows in less than a year.

And of the approximately 50 projects that have exceeded the time frames set forth in their Authorizations, there are 35 residential projects accounting for 2,600 dwelling units and 15 significant non-residential projects (such as those adding at least 10,000 square feet or constructing major new buildings).

Recognizing that the economic crisis from which San Francisco is beginning to recover might have waylaid a share of the dormant projects while weighing the cost of attempting to enforce or extend the three year performance period under which the 90 yet to be permitted projects were approved, San Francisco’s Planning Commission has established a "one-time" economic stimulus program in an attempt to stimulate development.

Under the terms of the stimulus program, sponsors of approved projects who wish to take advantage of the program must respond to the Planning Department by June 3, 2013 and obtain a Building Permit to start construction by October 4, 2014.

The map of where all the already approved but yet to be permitted projects lie across the city of San Francisco.

Real Estate Roundup: Many Homeowners Still Underwater, Global Rents Rising

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

NEED A BUCKET? MANY HOMEOWNERS STILL UNDERWATER
Despite rising home prices and improvement in home equity, nearly half of homeowners with a mortgage are still underwater.
That’s the word from Zillow’s first-quarter Negative Equity Report, which analyzes how many homeowners owe more on their homes than they’re worth — or don’t have enough equity in the property to move. More than 25 percent of homeowners with a mortgage were underwater, while an additional 18.2 percent had less than 20 percent equity.
“Reaching positive equity, even barely, is an important milestone,” Zillow Chief Economist Stan Humphries said in a statement. “But things like real estate agents’ fees and a down payment for the next home traditionally come out of the proceeds from the prior home’s sale. Without enough equity, these cost will instead have to come out of a homeowner’s pocket, leaving many still stuck.”

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SOME BORROWERS BECOMING ACCIDENTAL LANDLORDS
So what’s an underwater homeowner to do? In some cases, become a landlord — not by choice, but from necessity.
CNBC describes how some move-up or move-on buyers, unable to sell their current properties, are now renting out their homes instead. The approach brings in some much-needed cash but can also result in headaches, including nightmare tenants, long-distance property-management challenges, and rent-collection problems.
While there are no real estimates of how many “accidental landlords” now inhabit the housing market, real estate professionals say they’re partially to blame for today’s low inventory issue, CNBC reports. Usually a buyer is also a seller, making the transaction a wash in terms of inventory. But if the buyer doesn’t sell and instead becomes a landlord, inventory takes a negative hit.

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GLOBAL RENTS RISING
Rents in the Bay Area have reached new highs over the past couple of years, but hefty price hikes for tenants aren’t unique to our region.
Indeed, a new report from London-based global property consultancy Knight Frank shows rental prices around the world are rising. Global rents have jumped more than 5 percent over the past year, according to Knight Frank.
Find the whole report here.

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MEET THE PRICIEST HOME IN AMERICA
Got some extra cash lying around? Then perhaps we could interest you in Copper Beech Farm, an estate perched on Long Island Sound in Greenwich, Conn.
The home boasts the distinction of being the most expensive single-family home for sale in the United States, listed at a whopping $190 million. (Yes, $190 million – that wasn’t a typo.) What does that kind of cash get you? SFGate says it features a 13,519-square-foot French-renaissance mansion with 12 bedrooms, seven full baths, two half baths, library, solarium, wine cellar, and an entire floor for staff.
The property includes 50 acres spread over two islands, a 75-foot pool with spa and pool house, grass tennis court, stone carriage house and guest cottage, and of course rolling green lawns and gardens.




(Photo by Peasap, via Flickr.)

Are you ready for March Real Estate Madness?

Springtime is just around the corner, and that means a whole new crop of prospective homebuyers will soon emerge in towns and neighborhoods across the Bay Area in search of the home of their dreams.

 

Homebuyers will be out in force soon across the Bay Area.

 

Are you ready?

Data analysts at Trulia, the online real estate marketplace, say more Californians go on their site to search for available homes in March than any other month of the year. They found that home searches peak in other months in some other states, but March is the most active month in 18 states including California.

That means sellers need to make plans now so their homes will be ready to capture the hearts of buyers in the months ahead. And buyers need to start strategizing on ways to beat the competition and ensure their offers get accepted.

CLEAN IT, FIX IT, SELL IT

For sellers, there’s no better time than now to start getting your home in shape for a sale.

That means washing windows, painting walls, and replacing worn carpeting — some real estate professionals say painting and new carpeting are the cheapest fixes with the biggest payback. And get rid of clutter, especially in the kitchen. Homebuyers love to open cabinets and closets, and sparsely filled storage spaces look bigger than those packed full. Consider renting a storage unit for items that aren’t essential to your daily life.

Take family photos off the walls and put them, along with other personal mementos and family heirlooms, in the storage unit you rented. Buyers want to imagine their own photos on the walls, and yours get in the way. They really do.

If your home needs repairs to the electrical system, or plumbing, heating, or air conditioning, do it now. You’ll attract more buyers and get a higher price for your home.

And don’t forget landscaping. First impressions are hard to shake, and an overgrown yard can turn away buyers before they get to your front door. Pruning shears and a rake, plus a bit of sweat equity, can do a lot to improve curb appeal.

Beyond the cleaning and home repairs, sellers need to take time to determine how much money they need to get out of their home, and then set the sales price accordingly. Pricing is a delicate matter, however, with outside forces such as the surrounding neighborhood and the local economy having a say in the final price.

It’s best to talk with a local real estate agent when determining the list price for your home. He or she knows the community, and its sales history, and can help you set a fair price that will get your home sold.

DREAMS AND REALITY

Buyers, meanwhile, will likely find themselves competing against others in today’s housing market — there are far more buyers than available homes in the Bay Area. They need to develop strategies that will get their offers accepted.

First and foremost, determine how much cash you can pay up front and how much you can afford to spend in monthly mortgage payments. First-time homebuyers may get help from the Federal Housing Administration or other federal agencies, including the U.S. Department of Veterans Affairs.

Work with your bank or other lender to get your financing in order before you get serious about looking at houses. It will save you headaches down the road, never mind the fact that sellers will pay more attention to your bid if they know you’re pre-approved to place an offer.

Make notes about the features you want in your new home, and about the neighborhoods that interest you most, and then go searching for that perfect property. Your real estate professional has a wealth of knowledge about local communities and neighborhoods, as well as the inside story on homes on the market. He or she is a valuable resource.

Spring is around the corner. Good luck!

(Photo of Sausalito homes courtesy of Latteda, via Flickr.)

Home Prices Rise 28%; Bay Area Households Among Wealthiest

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

 

BAY AREA HOME PRICES UP 28%

Home prices in the Bay Area jumped 28.3 percent over the past year, putting the region at No. 3 in the nation for biggest price increases.

A report from the National Association of Realtors says the median sales price was $593,220 in the fourth quarter of 2012, up from $462,300 a year earlier in the San Francisco metropolitan area, which includes Alameda, Contra Costa, Marin, San Francisco, and San Mateo counties. Nationwide, the median price rose 10 percent.

A Bay Area household needed a combined income of $109,779 and a 20 percent down payment to afford a median-priced home, according to the report.

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BAY AREA HOUSEHOLDS AMONG WEALTHIEST

How wealthy are Bay Area residents? Nearly one in eight households here ranked in the top 5 percent of U.S. household income, according to a recent report from the U.S. Census Bureau.
The San Francisco metropolitan area ranked fourth in the United States for the highest concentration of high-income households, 13 percent. The area includes Alameda, Contra Costa, Marin, San Francisco, and San Mateo counties. Napa County, ranked separately, placed ninth, with 9.3 percent of its households in the top 5 percent by income.

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CALIFORNIA NO. 1 IN CREDIT SCORES

Californians have the highest median credit score in the nation, 774, meaning half of all credit applicants in the state had a credit score between 774 and 850, the maximum.
A report from MortgageMarvel.com, a mortgage shopping website, says Californians’ median credit score is 20 points above the national median, 754. Following California in the top five are Hawaii and Oregon (771), Wisconsin (766), and Connecticut (765).



(Toy houses photo courtesy of Woodleywonderworks, via Flickr.)

Where is Everyone Moving To? 2012 Migration Patterns

CLICK IMAGE BELOW TO SEE LARGER

2012 to Set a Record for Housing Affordability

The year 2012 was one of the most affordable years ever to buy a home as prices hit bottom and mortgage rates set record lows.

The National Association of Realtors announced Wednesday that its Housing Affordability Index stood at 198.2 at the end of November, and it forecast a full-year record high of 194 when December’s index is calculated.

The association calculates the index based on the median home price, family income, and average mortgage interest rate. A reading of 100 is the point at which a family with a median income can afford a median-priced home, and a higher index number indicates more purchasing power available to consumers.

Looking ahead, 2013 is expected to be the third best year on record in terms of household buying power — provided buyers are able to qualify for a mortgage.

The NAR projects the national Housing Affordability Index to average 160 during the year ahead, which means that a median-income family would have 160 percent of the income needed to purchase a median-priced single-family home. Even in Western states, where the regional affordability index is lower, a typical family is “well positioned in most markets,” the NAR said.

The past year, while notable for its low home prices and mortgage rates, had its problems, too: low inventory, steep competition for homes, and tight mortgage lending standards, which kept many families from buying homes.

Fortunately, a gradual rise in home prices that started in the second half of 2012 is expected to coax more sellers into the market in 2013, which should help relieve the pent-up demand for homes.

SF Business Times Ranks Pac Union Int'l #3 in Sales

We’re pleased to announce that the San Francisco Business Times has ranked Pacific Union International as the Bay Area’s third-largest residential real estate firm in its annual Book of Lists, published this week.

It’s the second year in a row that Pacific Union placed third on the list, rising from fourth in 2011.

Pacific Union’s Bay Area offices posted $2.29 billion in gross sales in 2011, the measure that the Business Times used to compile the list. That’s an increase of $250 million from 2010.

Pacific Union is the premier luxury real-estate brand in Northern California. We’re known for our neighborhood expertise, our team of talented real estate professionals, and our unflagging commitment to our clients. We don’t define “luxury” by the price point of a home — we define it by the quality of our people and our unparalleled service.

The company is locally owned, with more than 450 real estate professionals in 21 offices in the Greater Bay Area — more than any other independent real-estate firm. We offer a full range of personal and commercial real-estate services: buying, selling, relocation, mortgages, insurance, and property management.

December SF Market Focus

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Barbara Corcoran to Move-Up Buyers: DO IT NOW!

Barbara Corcoran on the TV Show

Fast Money:

 

“Right now, if you are upgrading to a bigger house, even if you’re selling at 10% off, you buy your new house at 10% off. Price appreciation is going to go much higher than people anticipate.”

Article Sourced From: KCMblog.com
Written By: The KCM Crew Dec. 5th 2012

Best Time Ever to Invest in Multifamily

Strong demographic trends and low interest rates are creating the best environment to invest in multifamily housing in 100 years, McKinley Properties CEO Albert M. Berriz said at a Tuesday luncheon.

“Check the math. Check the psychology. This is the most robust time to invest in the history of the country,” 
he said.

Ann Arbor, Mich.-based McKinley owns more then 30,000 apartment units in 14 states. About 40 percent of its assets are located in Florida’s Interstate 4 corridor, including seven communities in Pinellas County and 23 properties in Hillsborough County.

Berriz said the company is close to closing deals on several other properties in Tampa Bay by the end of the year.

Apartment development and attractive investment returns in the I-4 corridor will continue to be fueled by population growth and job growth. “It’s 132 miles of solid opportunity,” Berriz said.

Area rents will double by 2020, he predicted during the Commercial Real Estate Women Tampa Bay Deal Maker’s luncheon at the Embassy Suites in Tampa.

Berriz said many young people view homeownership as an anchor. He downplayed aspirations for transit-oriented development.

“You are not Washington, D.C.,” he said. “You guys are car wired, not train wired.”


Written by Mark Holen, Tamba Bay Business Journal

411 Valencia: New Condominiums in the Mission District

The San Francisco real estate market is not slowing down. 

New developments are popping up all over the city. Sixteen new condominiums will shortly come on the market at the busy Valencia and 15th corridor. 299 Valencia, a 36-unit building, came on the market last Spring 2012, and sold out very quickly.

 The housing demand in the Mission is so high that sales expectations for 411 Valencia will be similar to that of 299 Valencia.

411 Valencia will be a five-story elevator building consisting of 16 one bedroom and two bedroom residences. 

Each residence will have floor to ceiling windows with high efficiency window systems, gas burning fireplaces, Caesar Stone counter tops, Liebherr refrigerators, Bertazzoni gas ranges, Bosch dishwasher, Hans Grohe faucets, and custom designed kitchen and bathroom cabinets.
Amenities include roof terrace with panoramic views, bike storage, and parking garage. 

 The development is close to the tech bus shuttles, 16th and Mission Bart/Muni station, Highway 101, and public transportation along Market St. 
An eclectic mix of cafes, restaurants, and bike shops run along Valencia. Grab a coffee at Carlin’s Café, buy groceries at T&M Market, and dine at Pauline’s Pizza Pie and Coda. 

 To learn more about this exciting new development in the Mission District or other condominium projects in San Francisco, contact Joske Thompson. 


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JoskeThompson.com 

RealtorJoske.com 

www.facebook.com/realtorjoske      






Contributed by: www.sfnewdevelopments.com/

Housing Stats @ A Glance

Neighborhood Price Survey -- Visual

Median Selling Price - Single Family Residences

Explanation

The price survey chart shows the median selling price of SFRs over the last 120 days for neighborhoods where this type of housing is common. Some neighborhoods are composed of mainly single family homes while others are mainly condos. Many neighborhoods have a mix of both and appear on the SFR and Condo version of this chart. 

Individual home prices vary within all neighborhoods depending on the size and condition of each property. In San Francisco, prices are also affected by views and location within the neighborhood. 

Median Selling Price - Condos

Explanation

The price survey chart shows the median selling price of Condos over the last 120 days for neighborhoods where this type of housing is common. Some neighborhoods are composed of mainly single family homes while others are mainly condos. Many neighborhoods have a mix of both and appear on the SFR and Condo version of this chart. 


Many neighborhoods have a low monthly unit sales volume. The median price can be affected by the mixture (size and condition) of properties sold within the 120 day measurement window. To see the monthly and quarterly volume figures, refer to the Statistics page for each neighborhood website. To see the details of the individual properties sold, go to the Comps page and select the neighborhood and other property criteria you are interested in.

July Market Focus Report

Quarter 2 - Real Estate Report

	Joske Thompson Neighborhood Data | Properties for Sale | Explore SF Market Stats | Joske Blog Second Quarter Successes – And More Optimism Ahead As we close the books on the first half of 2012, we're pleased with what we see in the rear-view mirror. Here in the Bay Area, we experienced an over-30 percent increase in homes sold, year over year. Many of Pacific Union International's regions continue to show robust and dynamic growth in homes sold, putting them on track to post their best years since 2005. And we are even more excited about what lies ahead with Bay Area real estate. We've seen numerous positive indicators in our regional data, including firm pricing, multiple offers, and fewer days on the market – all of which support the belief that the current Bay Area housing demand is indeed sustainable. Meanwhile, sellers are slowly coming off the sidelines, and we are finally seeing an improvement in the number of available homes for sale. This suggests that people are more confident of getting the sales prices they want. On a larger scale, the real and marked improvement in our Bay Area economic engines, particularly with job growth and the successful technology sector, indicates that the bottom of the real estate market is finally behind us and we are at long last in a new market. We recently had a conversation with Stephen Levy, one of the top economists in California, whose observations on these topics further fueled our optimism as we swing into summer. We're sharing that exclusive interview with you in this quarterly report and are confident you'll find it as valuable as we did. We wish you all the best for a happy, healthy summer! Exclusive: Pacific Union's Interview With Stephen Levy In late June, Pacific Union International spoke exclusively with Stephen Levy, director and senior economist of the Center for Continuing Study of the California Economy (CCSCE) in Palo Alto, about the state of the economy and the real estate market in the San Francisco Bay Area. Here are the highlights of our interview. Pacific Union: Housing markets are on fire, but this seems to be consumer-led rather than job-led. What's your view of the Bay Area versus the state as a whole? Stephen Levy: For the San Jose and San Francisco metro area, jobs are on fire. The San Jose metro area is the fastest-growing large metro area in the U.S., measured by jobs, and the San Francisco metro area (San Francisco, San Mateo, and Marin counties) is close behind. We've seen 2.8 percent (San Francisco) to 3.5 percent (San Jose) growth from May 2011 to May 2012, which is way ahead of the nation. It's also IPO-led. It's job-related, but also tied to the ability to cash out from the successes of LinkedIn, Google, and Facebook. Is the Bay Area still in economic recovery, or are we transitioning to growth? Both. The Santa Clara valley and San Francisco are transitioning to catch this new wave of growth. Most of the state and most of the rest of the Bay Area is still struggling with the lack of construction and lack of government jobs; there hasn't been really any big pickup in home building. They're definitely in recovery. The only places you could say are in a new growth mode are San Francisco and San Jose. How bullish are you on an appreciable drop in the unemployment rate? Santa Clara is at 8.2 percent, and both San Francisco and San Mateo are below 8 percent already. Those counties will have their own special bonanza. The state is at 10.9 percent unemployment and won't see 8 percent for three years at an absolute minimum. But the Bay Area will be below 8 percent as a region. I wouldn't worry about the unemployment rate quite as much as the rate of job growth. If it stays up, it's because people are pouring into the workforce. Are you saying that the job-growth rate is a more meaningful economic indicator than unemployment? Yes, absolutely. My mother, who made clothes, always said, "You're only as good as your next season." Our current "next season" is looking pretty good. It's not just Facebook and LinkedIn, it's the big run-up in value of Apple, Google … it's pretty broad. What do you see happening in Contra Costa County? Many corporations have moved out there and it seems attractive for business. I think it's an incredibly attractive area for the same reason it has been for past 15-20 years: It captures both the labor market within the region as well as the labor market close to it in the Central Valley — Stockton and Tracy, and further out. It's very well placed for the labor force. They're not doing what San Jose and San Francisco are doing, but for the long-term future they have a great location. Housing has been on a tear in Marin lately. Is that due to a jobs uptick? They have low unemployment, but a lot of those folks work in the city. I don't know about job growth — unemployment tends to affect you where you live, while job growth is where you work. Is there any bright news ahead for the East Bay? I think they're caught up in the national slowdown. I think they'll do fine once we get into a strong recovery nationally. They were a home-building center, and have been hurt by that. They're a very strong region, and historically have had location and price advantages. In the Wine Country — Sonoma and Napa counties — we've noticed increased demand lately, especially for vacation homes. Do you see job growth as an engine there? That area is not my specialty, but I don't think the home buying you are seeing is related to local job growth. Foreign investors from affluent areas find California prices cheap — in Napa as well as Palo Alto and Newport Beach. I think Napa and Sonoma are connected to both the overall Bay Area high-end economic growth and to the worldwide tourism/retirement demand. The Pew Research Center just released a report, "The Rise of Asian Americans" talking about how Asians are now our largest immigrant group. What I see is that the Asian buyer market is on fire, both with new immigrants and because Chinese and other Asian folks are heading into tech companies as employees. Finally, is there anything you see driving jobs besides tech? There has been a resurgence in convention and tourist activity. Hotel and tourist numbers are up. Foreign trade has also been doing pretty well. Tech, trade, and tourism — the three Ts — bring other economic improvement along with them. Retail sales are picking up as the income flow from the tech sector begins to spread into restaurants, car dealerships, and other areas. Bay Area 10-Year Overview Here's a statistical look at the Bay Area's real estate markets in the second quarter of 2012, with a glance back at the 10 preceding second quarters. The numbers show strong sales activity in the quarter just ended – our best since 2005. Click here to see specific 10-year data on selected cities in the Bay Area San Francisco: Q2 Results Single-family homes and condominiums in San Francisco sold briskly at all price points in the second quarter of 2012. The percentage of homes under contract – homes with a sales agreement in place but the paperwork not yet completed – reached its highest point in more than two years, and sales prices also posted two-year highs. Homes that didn't sell last year but were put back on the market in the second quarter ended up selling quickly, and with no price reductions. Turnkey homes sold best – that is, homes in move-in condition. Faced with tight lending regulations, new owners are finding it difficult to get a second line of credit for home repairs and construction, so turnkey homes are desirable. The inventory of homes for sale remained critically tight in the quarter. The number of properties for sale dropped to roughly one month's supply in the second quarter, down from three months' supply of homes one year ago and four months' supply of condominiums. Predictably, most homes sold only after receiving multiple offers. Looking Forward: Home sales show no sign of slowing down in the year ahead, and prices will keep rising. In such a competitive market, serious buyers are advised to get pre-qualified loans and be prepared to move quickly to put in a successful bid. Defining San Francisco: Neighborhoods in San Francisco's District 1 include the Richmond, Laurel Heights, and Lone Mountain. District 2: the Sunset and Parkside. District 3: Lakeside, Ingleside, and Oceanview. District 4: Forest Hill and Sunnyside. District 5: Haight-Ashbury, the Castro, and Noe Valley. District 6: the Western Addition and Hayes Valley. District 7: the Marina and Pacific Heights. District 8: Civic Center, North Beach, Russian Hill, Financial District. District 9: the Mission, Bernal Heights, Potrero Hill, and SoMa. District 10: Bay View, Excelsior, and Visitacion Valley. Single Family Homes – Median Sales Price The median sales price — the midpoint in the range of prices paid – rose solidly in the first and second quarters for single-family homes in San Francisco, up more than $190,000 from December to June. In fact, June's median sales price was the highest in two years — fresh evidence that the Bay Area's housing recovery is real and sustained. Click to view larger chart Condos – Median Sales Price The median sales price saw solid growth in the second quarter for condominiums in San Francisco, up more than $147,000 from January to June – with June's median price the highest in more than two years. Click to view larger chart Single Family Homes – Months' Supply of Inventory (Properties Under Contract) Months' supply of inventory is a common measure of housing supply, and the latest number for single-family homes in San Francisco shows an extremely tight market: almost one-third the number of homes for sale in June compared with the same month last year. Next to the East Bay counties of Contra Costa and Alameda, San Francisco has the lowest supply of inventory in the Bay Area. Click to view larger chart Condos – Months' Supply of Inventory (Properties Under Contract) The months' supply of condominiums in San Francisco is even tighter than that for single-family homes. June's measure, barely a month's inventory, is nearly one-fourth the supply of condominiums in the city one year earlier. Click to view larger chart Single Family Homes – Average Days on the Market (Properties Under Contract) Average days on the market shows the pace of sales activity. In San Francisco, the number of days it took to sell a single-family home peaked in December at 75 days and has been shrinking every month since then – further evidence of an extremely active real estate market. By June, the average number of days on the market shaved a month off the time it took to sell a home one year earlier. Click to view larger chart Condos – Average Days on the Market (Properties Under Contract) The number of days it took to sell a condominium in San Francisco peaked in December at 100 days and has been shrinking nearly every month since then. By June, the average number of days on the market shaved more than a month off the time it took to sell a home a year earlier. Click to view larger chart Single Family Homes – Percentage of Properties Under Contract Percentage of properties under contract is a forward-looking indicator of sales activity, tracking expected home sales before the paperwork is completed and the sale actually closes. In San Francisco, the percentage of single-family homes under contract nearly doubled over the past year, rising in four of the past six months. Click to view larger chart Condos – Percentage of Properties Under Contract The percentage of condominiums under contract in San Francisco more than doubled over the past year, rising in each of the past six months. Click to view larger chart Single Family Homes – Sales Price as a Percentage of Original Price (No Price Adjustments) Measuring the sales price as a percentage of the original price, without price adjustments, measures the success of a seller in receiving the hoped-for sale amount, but it also indicates the level of sales activity in a region. Numbers above 100 percent are clear indicators of multiple bids. Steadily rising numbers for single-family homes in San Francisco point to aggressive activity in the market. Click to view larger chart Condos – Sales Price as a Percentage of Original Price (No Price Adjustments) Solid growth in this benchmark over the past two quarters for San Francisco condominiums underscores the brisk real estate activity in the city. Click to view larger chart Joske Thompson Providing 29 Years of Excellent Service 415.345.3100 Direct jthompson@pacunion.com www.joskethompson.com One Letterman Drive, Building C, Suite 300 San Francisco, CA 94129 © 2012 Pacific Union International, Inc. CA DRE #00843865 | One Letterman Drive, Building C, Suite 300, San Francisco, CA 94129