Averages relating to San Rafael home sales in March 2012 are as follows:

• days on market — 108
• sales price — $660K
• home size was 1,923 square feet
• $363 per sq. ft.

Properties in Lucas Valley, Gerstle Park, Peacock Gap, and Loch Lomond  generated the most calls and showings this past month. If you would like me to run the exact numbers for your San Rafael, CA neighborhood or if you have any questions about our many delightful communities, just give me a call at  (415) 350-9440 . My name is Kyle Frazier. I am a J.D., Broker, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s International Real Estate | Pacific Union International. It is always my pleasure to be of service.

Simply put, bad news on the economy can be good news for interest rates, and JPMorgan’s headache – plus uncertainly in Europe and talk of tough new financial regulations – may cause mortgage rates to fall significantly in the coming weeks, presenting an exceptional opportunity for homebuyers and current borrowers thinking about refinancing a mortgage.

Here’s why: Mortgage rates are closely aligned with the yield on 10-year U.S. Treasury bonds, and the yield falls as more bonds get bought up by investors.

As the trading practices at JPMorgan get a public airing, investors may very well decide that securities are a bad investment right now and turn to Treasurys. That, in turn, would drive down yields, and mortgage rates with them.

At Pacific Union International, we keep a close eye on Wall Street as well as Main Street, and we encourage buyers and sellers – and current borrowers, too – to pay close attention to Treasury yields and mortgage rates in the weeks ahead.

It’s a sellers’ market across the Bay Area, with buyers in April snapping up properties in all six counties served by Pacific Union International’s real estate professionals.

In both Contra Costa and Marin counties, 48 percent of homes on the market had sales contracts in place at the end of April. In Contra Costa, 67 percent of the homes in Pleasant Hill were in contract, followed by Concord (60 percent), Martinez (58 percent), and San Ramon (55 percent).

In Marin County, fully 77 percent of the homes priced between $100,000 and $500,000 were in contract, with 58 percent in contract for homes priced $500,001 to $750,000, and 49 percent in contract for homes priced $750,001 to $1 million.

San Francisco had 40 percent of its homes in contract, with 1,029 homes priced between $100,000 and $1 million, and 236 priced between $1 million and $2 million. There were 97 priced between $2 million and $4 million, and 36 priced above $4 million.

In the East Bay (Alameda County), the percentage of homes in contract has been rising steadily since September, and 41 percent were in contract by the end of April. Piedmont topped the list, at 52 percent, followed by El Cerrito (51 percent), Berkeley and Albany (44 percent each), and Kensington (36 percent). In Oakland, the percentage of homes in contract ranged from 18 percent, in the 94705 ZIP code area, to 48 percent, in the 94609 ZIP code area.

Sonoma County had 46 percent of its homes in contract. Rohnert Park led the way, with 85 percent, followed by Santa Rosa (66 percent), Petaluma (62 percent), Sonoma (51 percent), Sebastopol (45 percent), Healdsburg (35 percent), Glen Ellen (28 percent), and Kenwood (19 percent).

In the Napa Valley, an average 55 percent of the homes were in contract across seven select cities – Napa, Yountville, Oakville, Rutherford, St. Helena, Calistoga, and Angwin. Of those, 76 percent of the homes priced under $1 million were in contract, while only 15 percent of the homes priced over $1 million were in contract.

Generally, a housing market favors sellers when more than 35 percent of homes are in contract, and a buyers’ market is indicated when less than 25 percent are in contract. A market is considered balanced when 25 to 35 percent of the homes are in contract.

April’s trades averaged 83 days on market, were about 2,030 sq. ft., and averaged roughly $259 sq. ft. Novato’s absorption rate (e.g., number of months’ inventory of homes for sale based on last month’s sales totals) continues to be extremely low with just a little more than one months’ worth of available inventory overall (a mere 84 single family homes are actively for sale in Novato). The hottest component of the Novato real estate market (as always) is the entry and move-up levels — homes priced under $500K — 76% of these homes are in escrow (up from 72% last month). It remains an extraordinarily strong sellers’ market all the way up to about $750K, where 65% of homes are in escrow.

Below are the percentages of homes in escrow in each of Novato’s major price bands:

■76% of homes priced under $500,000;
■65% of homes between $501,000 and $750,000;
■31% of homes between $751,000 and $1 million;
■24% of homes between $1 million and up.

Of the 55 homes that sold in January 2012:

■33 homes were priced under $500,000;
■22 homes priced from $501,00 to $1 million; and
■1 home priced from $1 million and up.

Homes in The Landing at Hamilton Field, Breakers at Pointe Marin, Marin Country Club, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month. If you would like me to run the exact numbers for your Novato neighborhood or if you have any questions about Novato’s many delightful communities, just give me a call at (415) 350-9440. My name is Kyle Frazier. I am a J.D., Broker, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s Great Estates | Pacific Union International Real Estate. It is always my pleasure to be of service.

The Landing at Hamilton Field — NEW CONSTRUCTION. Prices start in the mid – $700′s. We are SOLD OUT of current inventory, but will have three unsold homes available in late August to early September (we are currently building seven homes, but four of those are SOLD. Please call me at (415) 350-9440 for more information. Or visit our website at www.TheLandingNovato.com.

Immaculately maintained home in a “Best Of” location at the end of a quiet and level cul-de-sac. Large back yard with afternoon sun. One block from the park. Excellent flow. Great home for entertaining. Click HERE for more pictures.

Superior finishes inside, including: granite, berber, hardwood, stainless appliances, plantation shutters, steel balusters, and lots of crown molding. Also, you will find a Formal dining room, Butler’s Pantry with wine chiller, 2 fireplaces, 3-car garage, HUGE Master Suite with extraordinary bath and walk-in closet, bedroom with full bath downstairs, two more en suite bedrooms upstairs, and a large loft.

To learn more about Southern Novato’s highly desirable Pointe Marin neighborhood, please click below on our Pointe Marin video courtesy of www.ImagineMarin.com.

Homes in Southern Novato, including: Pointe Marin, Country Club, Bel Marin Keys, and Hamilton Field are my specialty. If you would like me to run the exact numbers for your Novato neighborhood or if you have any questions about Novato’s many delightful communities, just give me a call at (415) 350-9440. My name is Kyle Frazier. I am a J.D., Broker, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s Great Estates | Pacific Union International Real Estate. It is always my pleasure to be of service.

The results are in from the annual Real Trends 500 survey, which ranks the 500 largest residential real estate brokerage firms in the U.S. Pacific Union International ranked fifth nationwide in closed sales volume for its real estate professionals — and the per-associate number was an impressive $6,372,309.

This is more impressive given the fact that two of the firms in the Top 10 operate primarily in San Francisco, whereas Pacific Union operates in six Bay Area counties, several of which have average prices at about 1/2 of those of San Francisco. Congratulations to our real estate professionals and the entire Pacific Union team for an outstanding 2011! I am looking forward to an equally, if not more, impressive 2012.

In addition, we climbed five spots from last year’s nationwide list to rank at 24 in closed sales volume overall for 2011.

]]> http://northbayre.com/blog/2012/04/05/pacific-union-agents-rank-5th-nationwide-in-productivity/feed/ 0 http://northbayre.com/blog/2012/04/03/the-marin-county-bay-area-rental-bubble-%e2%80%93-and-why-buying-might-be-better/ http://northbayre.com/blog/2012/04/03/the-marin-county-bay-area-rental-bubble-%e2%80%93-and-why-buying-might-be-better/#comments Tue, 03 Apr 2012 22:10:24 +0000 kylefrazier http://northbayre.com/?p=1858 The economic events of the past few years have spurred more than a few Bay Area residents to become renters rather than homeowners. After all, they reason, that way they’re not tied to an asset that may become devalued.

And with the supply of new homes on the market outstripped by demand, renting seemingly offers more flexibility and immediate gratification.

Well, not so fast.

It turns out that would-be renters may have as many – or even more — challenges than prospective homeowners. Let’s take a look at the state of rental housing in the Bay Area.

1. Rents are sky-high – and climbing

According to a new study by the National Low Income Housing Coalition, rents in much of the Bay Area are the least affordable in the country. The study, called Out of Reach 2012, found that the most-expensive counties in the United States – tied for first place, in fact — are San Francisco, Marin, andSan Mateo.

Over the past four years, rental prices have climbed 13.7 percent in San Francisco, while occupancy rose only 1.3 percent. At the beginning of this year, the average monthly apartment rent in San Francisco County was $2,585.

It’s much higher in the city’s most desirable areas. For example, listings for lofts in the South of Market/South Beach area are starting at $2,700 and skyrocketing to $7,000.

In late 2011, apartments in Marin were more expensive than they had been in six years, with the average rent in Marin County up to $1,903, a 10 percent increase over 2010.

Data from Cassidy Turley reveals rent increases across the board in the Bay Area:

2. Inventory is tight

Fueling the fire is the lack of inventory.  In a classic case of supply vs. demand, one of the factors driving up rent is the paucity of rental units.

For example, the vacancy rate in San Francisco is 3.2 percent, the tightest it has been since the height of the dot-com bubble in 1999. In Marin, the vacancy rate is around 2.8 percent – making rental units the scarcest they’ve been since 2008.

New construction hasn’t kept pace with demand. Since 2008, only about 1,710 units were built each year in San Francisco, compared with an average of 2,220 each year between 2004 and 2008 – and although new construction is on the way, many of the new units will be priced beyond the reach of working- and middle-class residents.

The result? Waiting lists, climbing rents (that supply and demand thing again), and increased competition for available units. The media is reporting on the rental feeding frenzy out there, withdesperate applicants willing to bid up the monthly rate and looking for insider tricks to nab a place before it hits the market. And applicants are forking over nonrefundable application fees — some to the tune of hundreds of dollars — in the hopes of landing a home.

3. The dot-commers are coming (again)

And if you think it’s bad now, just wait until Facebook goes public.

The increasing number of Bay Area tech firms and workers, coupled with the increases in rental costs, has many pundits predicting another technology bubble. But even if that’s true, there’s no sign of it bursting any time soon. In fact, it could get worse.

The upcoming Facebook IPO will mint a host of new millionaires, many of whom will be looking to upgrade their accommodations. That might mean purchasing a home. But many will turn to the rental market, for two reasons:

• They are young and not yet ready to put down roots.
• They’ll be fighting the same battle as current home buyers: not enough inventory.

That influx of cash and demand could contribute to even higher rents.

Should you buy instead of rent?

Would-be apartment dwellers who haven’t been able to find a reasonable rent in the Bay Area don’t have many options outside the standard ones: split the rent with a roommate or two, move further away from the priciest areas, look at alternatives such as renting a room instead of a full apartment, and so on.

There’s another option that may be in reach for some: buy instead of rent. In today’s market conditions, it may make financial sense to explore this option. In fact, the national media will tell you it’s almost always better to buy than rent these days – with the caveat that this doesn’t necessarily hold true for, you guessed it, San Francisco. (Or for the other top-priced market out there, Honolulu.)

But it’s still possible to make the math work in the Bay Area. With restrictions on mortgages easing, andinterest rates at near-record lows, you can end up with a home that represents an investment and equity, rather than simply shelling out cash for a rental with nothing to show for it.

For example, suppose you’re looking in the Sunset District of San Francisco for a 3-bedroom, 2.5-bathroom option with a two-car garage.

• Option 1: Rent a 1,350-square-foot home for $3,300 a month.
• Option 2: Purchase a 1,600-square-foot home (list price: $979,000) for $3,197.35 a month.*

*This assumes a 5/1 adjustable rate mortgage at 2.75% with a 20% cash down payment and doesn’t include insurance or property taxes in the calculation.

So it makes sense to explore your purchasing options before you resign yourself to paying ever-increasing rents. And if you need guidance, our partners at Mortgage Services Professionals are happy to help.

(Photo credit: Bay Citizen)

Number of Sales: 13
Average Days on Market: 162
Price: $2.152 million
Square Feet: 2,755
Price per Square Foot: $764

If you have any questions or would like a custom market analysis of your home’s current likely sales price (I specialize in selling homes that have been listed before unsuccessfully — expired listings), please call me at (415) 350-9440 . And if you are a buyer, I am also a member of the Top Agent Network (Top 10% in Marin County) and the Marin Platinum Group (Top 100 agents in Marin County). These are elite agent networks with access to dozens of homes being marketed informally and not on the MLS. It is always my pleasure to be of service.

Kyle Frazier, J.D., Broker, Certified Residential Specialist (CRS), and Certified Luxury Home Marketing Specialist (CLHMS) with Christie’s International Real Estate | Pacific Union International Realtors.

Listings in Strawberry, Middle Ridge, Sycamore Park, and Tam Valley generated the most calls this month. Well-priced homes continue to generate multiple offers. If you would like more information about neighborhoods, sales, schools, or local Mill Valley services references, just give me a call at (415) 350-9440 or e-mail me at Kyle@MillValley101.com. I currently have several clients who want to sell, but are waiting in the wings for Spring 2012. Please contact me to determine if any of these opportunities fit your needs. I am also a member of the Top Agent Network and Marin Platinum Group with access to dozens of homes not “officially” on the market but available for sale.

If you would like my Mill Valley Hot List, e-mail me. It is always my pleasure to be of service. Christie’s International Real Estate | Pacific Union International Mill Valley, CA.

Averages relating to San Rafael home sales in February 2012 are as follows:

• days on market — 120
• sales price — $685K
• home size was 2,082 square feet
• $334 per sq. ft.

Properties in Lucas Valley, Gerstle Park, Peacock Gap, and Loch Lomond  generated the most calls and showings this past month. If you would like me to run the exact numbers for your San Rafael, CA neighborhood or if you have any questions about our many delightful communities, just give me a call at  (415) 350-9440 . My name is Kyle Frazier. I am a J.D., Broker, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s International Real Estate | Pacific Union International. It is always my pleasure to be of service.