Luxury Real Estate


We are done with 2009. What’s behind us? In the fourth quarter ’09 the real estate market began to recover from the trauma of the financial market fallout that began in 2008. The quantity of homes and condos sold increased 5% over last year which ends a four year decline. Prices still were down however there are signs that there is competition in the marketplace again as properties sold closer to their asking price in Q4.  But talk to people that have been writing offers in 2009 and you will find many stories of buyers having to write *over* the list price to get the home.

I have detailed neighborhood reports for all districts in San Francisco. Shoot me an email and I will send it to you!

jdavis@mcguire.com

Jenn

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 A new San Francisco development, One Hawthorne,  will be opening in Downtown San Francisco in early 2010.  The location is at the corner of Hawthorne and Howard.  Compared to other new developments in San Francisco,  The Infinity at 656 units, One Rincon at 709 units and The Millenium at 419 units, One Hawthorne is a boutique building offering just 165 units. One Hawthorne will have condos ranging from junior 1 bedrooms to 3 bedroom penthouses.

Pricing can only be estimated right now as ranging from the $400,000s to $2,000,000. And pricing will be key. The South Beach and SOMA developments that listened and responded to the market in 2009 were rewarded with plenty of buyers. For example: The Infinity has less than 50 units available after selling an average of 40 homes a month (making it one of the top selling development in the country) One Rincon states to be 80 percent sold out . Other nearby developments such as The Montgomery have only a few unit left for sale.

One Hawthorne is positioned well as an alternative to the larger towers in South Beach and SOMA: Located on a quiet(er) historic block in Downtown San Francisco.  A rooftop garden for residents.  A new restaurant Benu (from the former chef de cuisine of French Laundry) is opening right on Hawthorne Lane. 

As the debate continues on whether or not we have hit the bottom of the market and starting a recovery, the sales at One Hawthorne will be an exciting indicator. It is looking to be a gorgeous development with the best of the city’s amenities. One Hawthorne will a welcome beginning to 2010.

Have you noticed the shift in the topic on the real estate market?

Just 6-8 months ago the conversation about the market began with ‘How much worse can it get?’  Today, the conversation begins with ‘There are signs of a recovery’.

Earlier this week Bernanke said the deep recession that’s gripped the US economy is “very likely over at this point.” A recent survey conducted by the City Business Journals Network, an alliance with the Business Times, stated that over half of small to mid-sized business owners feel that their prospects will be a lot better in the next 12 months. That is a sizeable increase when just five months ago only a third of business owners felt optimistic about their prospects.

I took a look at recent sales in the MLS (Multiple Listing Service). In San Francisco, from January 1, 2009 through June 30, 2009, 1417 homes were sold or an average of 236 homes per month. From July 1 until now (less than 3 months), 884 homes have been sold or an average of 294 homes per month. That is an increase of 58 homes sold each month. Optimism fuels a recovery just as pessimism fuels a downturn.

I expect we will have a very active fall in San Francisco. Buyers are feeling that optimism and writing more offers. Serious sellers are more acclimated to the current environment and are willing to price their homes to meet the market. Of course, there are also sellers that quickly turn in to buyers as some are willing to take a bit of a loss on their current home and trade up into a larger home to recoup their investment!

Do you fall in one of these categories? Call me today to discuss your needs or if you want more detail about your neighborhood. Enjoy the San Francisco Indian Summer!

jdavis@mcguire.com

http://www.jenndavis.com

As the market shifts and changes, I am starting to see more of a silver lining. Your property may be eligible for a reduction in your property tax. The Assessor’s office is accepting “Requests for Informal Review of Assessed Value” through August 28, 2009.  You may also submit a request for a formal appeal with the Assessment Appeals Board. See below link.

The filing period is between July 2nd – September 15th, 2009. If your appeal is approved by the assessor’s office, you could benefit from the tax reduction for the period of July 1, 2009-June 30th, 2010. You will need sales comparables to support your claims.  Let me know if I can be of assistance!

San Francisco property tax appeal information

Jenn Davis

jdavis@mcguire.com

San Francisco Painted Ladies

San Francisco Painted Ladies

I have been working with a buyer for the past 6 months who wants to upgrade from a condo to a single family home. We all are aware the market has softened and the time is right to make a move.

My client finally found the home of her dreams last month but felt the market had not hit bottom and wanted to wait things out. See if the Sellers would drop their price. Sure enough, another buyer thought this home was their dream home too and made an offer that was accepted immediately. Surprised and disappointed, my client continued her search.

The next dream home surfaced just a week later. The listing agent set an ‘offer date’! (what year is this – 2005?) and would not entertain offers until there had been 2 Sunday open houses. The offer date arrived. Three offers (including ours) were presented. The offer that was accepted was head and shoulders above our offer. The Sellers didn’t even bother to issue a counter. The belief was it is best to accept the top offer than to take their chances in issuing a counter (what if the buyer went away? they felt).

I’ve also seen two fixer single family homes go into contract in under 10 days.

I know we are in a softer market. But it is not a market that can be generalized. The nicer properties, priced well, will go alarmingly fast. My perspective is why wait? If you see a property that fits your needs, write your best offer now. Many times, the first offer in is the best offer. Sellers know that. But even if a Seller does not know that, an agent representing you knows that. Just my 2 cents.

Jenn Davis jdavis@mcguire.com

ggb1

Who would have thought that just last year San Francisco was considered #24 as the best place to invest in real estate? Now in 2009, it has moved up to position #6. This is the year for playing it safe, not investing in creative or far flung opportunities.

The City by the Bay has always been a destination city with international appeal. Only 7×7 miles…the traditional rules of supply and demand apply in this gorgeous city of ours.

For investment opportunities, click here for my info or send me an email at jdavis@mcguire.com.

Jenn

Some beautiful homes keep coming on the market! Be sure to see 145 Mallorca, a 3500 s.f. 4 bedroom, 4 bath home in the Marina! How rare to have all that space. This is a fully detached Spanish Mediterranean home listed for $2.995,000. Email me for more info jdavis@mcguire.com

The next hot property this week is a condo at 3553 Divisadero @ North Point. 3 bedrooms, 2.5 baths on two levels! Hey, and 2 car parking to boot! This dynamite deal is listed for $1,,275,000. I’ve got the details! jdavis@mcguire.com

Finally, in Pacific Heights there is a great 2 bedroom, 1.5 bath condo located at 256 Presidio at Clay. It is one of (or if not the only) condo in the building with deeded outdoor garden. Listed for $789,000.

Deals to be had! jdavis@mcguire.com

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