Alan Mark Reads the South Beach Market

Two weeks ago I attended the South Beach Mission Bay Neighborhood Association. Alan Mark of The Mark Company was the speaker for the evening, and if you do not know who he is, just think of sales and marketing for The Infinity, The Brannan, The St. Regis, 200 Brannan, The Arterra, The Montgomery, 733 Front, and the soon to be released One Hawthorne.

Alan Mark and his company represented the sales of all of the above buildings in the South Beach and SOMA areas of San Francisco and many more since his company was founded 11 years ago. So I was dying to hear his perspective on the sales activity in the South Beach area that night.

What did he say? He said that within 2 years he sees us with a shortage of inventory in South Beach. Why? New construction loans are extremely tough to get these days. But let’s say an entity was fortunate enough to get a loan. Getting the entitlements to the land is another time-consuming hurdle that could take years. Then there’s the time it takes to build.

What is available today in new construction? As of February 2010:

• Only 14 units are left at The Infinity
• One Hawthorne is going to open soon with just 119 units
• The Montgomery is sold out, and
• The Arterra is also close to being sold out

If an entity gets that new construction loan and the entitlements to build, it could be up to 10 years before the building would be complete and ready for sale.

Realtors get accused of being overly optimistic. So I’m not going to make any recommendations; I’m just reporting this is what Alan Mark sees on the horizon. He’s pretty credible in my book. Like I said, think The Infinity, St. Regis, The Brannan, 200 Brannan, One Hawthorne….

 

How did we do in San Francisco in Q4?

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

 

A Great New Development Opens in 2010 – One Hawthorne

 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.

 

How to Reduce your San Francisco Property Tax

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

 

Competitive bidding in this San Francisco real estate market?

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

 

San Francisco moved up to sixth place from 24th as the world’s best place to invest in real estate

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

 

Signs of a San Francisco Real Estate Rebound…

A San Francisco property received 42 offers…others went into contract immediately. There are some great properties out there and great loan rates. The Infinity is selling an average of a property a day…what’s going on? Is this the rebound?

http://cbs5.com/video/?id=47401@kpix.dayport.com 

Email me, Jenn Davis,  for more information jdavis@mcguire.com

 

Credits Available to Homeowners…

 Take a look through the latest offerings from the Stimulus Plan. Incentives for first time home buyers as well as buyers of new construction. There is an opportunity here especially with the low interest rates.

Contact me for details jdavis@mcguire.com.

Obama’s Federal Stimulus Plan:

 $8,000 federal tax credit for first-time home buyers (have not owned a
home in the past three years);

Applies to any primary residence (new construction or previously
owned, but not second homes or investment property), purchased between
January 1, 2009, and November 30, 2009;

Up to modified adjusted gross income less than $95,000 for single taxpayers and
$170,000 for married taxpayers;

Still eligible for the credit, even if overall tax liability is
insufficient to cover the amount of the tax credit;

Must live in the residence for a minimum of three years, or the credit
will have to be repaid.

California State Plan:

 $10,000 state tax credit, spread out over three years;

Applies to anyone (first-time or previous home owners) buying a
primary residence (i.e. not second homes or investment property),
between March 1, 2009, and March 1, 2010;

New construction only (i.e. not previously owned or occupied);

No income limit on the credit, but overall tax liability must equal or
exceed the amount of the tax credit;

Must live in the residence for a minimum of two years, or the credit
will have to be repaid;

$100,000,000 has been set aside for this credit, to be allocated to
the first 10,000 eligible home buyers who apply, on a
first-come-first-served basis.

New construction in San Francisco such as the Infinity, One Rincon, Millenium, Blu, The Montgomery…so many choices and a lot of options!

Why wait?

www.jenndavis.com

jdavis@mcguire.com

 

Jackie Speier helping Bay Area homeowners

Jackie Speier is doing a great job trying to help Bay Area homeowners. In her words,  “I’ve drafted an amendment so that rather than being limited to whether the loan was conforming at time of origination, it will be based on (whether it’s conforming at) the time of (modification), which will take the limit up to $729,750 in high-cost areas. This should make more people in the Bay Area eligible.”

The Chronicle article  states that Pelosi supports the bill and it is expected to pass the House.  Some much needed relief!

jdavis@mcguire.com

www.jenndavis.com

 

Chinese Buyers of San Francisco Real Estate

The buying opportunities abound in San Francisco and condo shopping sprees are on the rise! This month, a tour of 40 executives from China will be ascending San Francisco, Boston, New York and Los Angeles in search of a sweet deal.  I’d bet this is the first of many trips.  Is this the sign of things to come? Does this mean we are at the bottom and the market is about to move up?

Avram Goldman, CEO of Pacific Union, posts recently that things are getting better all the time. I still hear about multiple offers on well priced homes. That is the key, a realistic seller and a motivated buyer. This market will flesh them out.

Buyers out there, keep looking seriously.  We won’t be in this market forever.

www.jenndavis.com

jdavis@mcguire.com