Hi Everyone -
Welcome to 2012, and to my quarterly newsletter where I give you an insider’s take on Real Estate — with a special emphasis on where I sell: San Francisco!
M A N Y T H A N K S!
Thanks to you, 2011 was a great year for my business: I was again honored to be a part of Alain Pinel’s President’s Roundtable, a designation for the top agents in our firm nationwide; I continue to rank in the top percentile of all San Francisco Realtors; and I also continue to successfully represent amazing clientele (both buyers & sellers) with diverse needs. The properties I sold in 2011 included mixed-use/investment buildings, condominiums and single family homes (including a gorgeous $3,000,000 Noe Valley modern masterpiece featured in the Chronicle), in various neighborhoods across SF — including Cole Valley, Duboce Triangle, Bernal Heights, Noe Valley, Inner Sunset & Glen Park, to name a few. The prices of the properties I sold last year range from $500,000 – to the multi millions. I truly appreciate all of the personal referrals to your friends and family. I absolutely love taking care of those to whom I am connected, and as you do (or should) already know I will always go above and beyond for you and yours!
GETTING STRONGER
The US economy overall looks to be slowly, steadily gaining steam. Last year was a rocky ride as congress played chicken with our livelihoods during the debt ceiling debacle, European economies teetered on the brink of demise, and our own jobs and economic data seemed to go up and down like a yo-yo. Last week’s job news showed the sharpest drop in unemployment claims to date since the recession began — enough to bring down the overall unemployment numbers, according to economists. Europe, while still not close to being out of the woods, is a bit more stable, consumer spending was up over the holidays, the stock market is gaining — our economy is continuing to grow. We are not out of the woods yet — especially with Europe’s issues and the potential impacts on us — but I feel things have begun looking healthier for the first time in a while.
SEEING BOTTOM?
And the numbers prove me right. The US housing market finished 2011 on a stronger note. According to the National Association of Realtors, US home sales were up 5 per cent last month to an annual rate of 4.61M. The third straight month of gains was not as strong as forecast by economists, but “the continued acceleration of the market suggests that the troubled real estate sector may have finally bottomed.” [Jan 20, 2012 Financial Times article: "US Housing Market Stabilises in December"]. I guess we will believe it when we see it — but I, personally, just purchased a multi-unit investment property of my own (!) – putting my money where the collective mouth is, so to speak. And, I know several other Realtors who have made personal property purchases here within the last couple of months, as well. It could be a sign.
GOOD PROBLEMS TO HAVE
Banks are still being tightfisted with their credit and loans — but credit is as cheap as has EVER been, and San Francisco has buyers in droves. I am not sure what’s spurring buyers more: the combination of great rates and great prices, OR the rush to get in before Facebook and other IPO’s flood the market with cash buyers who want to live in SF (Facebook’s IPO slated for May — but for the real story you will have to stay on top of my husband’s reporting – he covers Facebook and other Internet companies for Reuters: http://blogs.reuters.com/alexei-oreskovic/).
And while some markets in other cities are still glutted with a slogging, surplus of inventory, San Francisco is, as usual, its own little Alice in Wonderland-like world — with its lowest housing inventory in years. Buyers are chomping at the bit here to take advantage of low home prices and low interest rates in one of the best cities in the world — and they cannot find anything to buy! Many neighborhoods’ average sale prices are only a small percentage off where they were in 2007 — BC (Before Crash). Noe Valley, in particular, is close to 10% UP from 2010 and only 5.8% off of it’s 2007 high. I wrote an offer for clients last quarter on a home in Noe that received 22 offers and went well over the asking price. Demand going up and supply going down can be a challenge for buyers for sure, and prices for sellers are not where they were in ’07 – but ultimately, I believe this is a sign of a market returning to health and strength. Let’s hope this trajectory continues (I mean you — Europe, Congress, etc!).
GATHER YE ROSEBUDS
If you own, have equity, and have not refinanced to take advantage of these incredibly low rates — do so now. The Fed announced today it would likely keep interest rates low until 2014. I have told you and can tell you where to find the best rates — whether for investments or homes. Sometimes without closing costs and appraisal fees — depending on your situation. After so many negatives, we must take full advantage of ANY of the positives that come out of this market.
EYE-CANDY
If you want to see the gorgeous house I am selling now, look here: www.24JoyStreet.com — I will be serving wine there tonight from 6-7PM in fact!
It’s looking to be a good year, with a lot of positive signs already underway.
As always, please don’t hesitate to call with any real estate question, big or small, or just to catch up. If you want to know how much your place is worth in today’s market, recommendations for contractors, painters, gardeners, mortgage brokers, where to get the most bang for your buck in your remodel, and etc. give me a call. I’ll continue to keep you updated.
Happy New Year — it’s the year of the DRAGON!!
Jessica
