Marin Market Update for February 2016

There was so much anticipation for 2016, “another banner year ahead for real estate!” But, what happened? Not to worry, there's still time for the market to heat up, but man was it dead in January. Not by sheer numbers sake, we did end up selling 126 homes and condominiums in Marin (compared with 115 in January of 2015), but there was just a feeling that nothing was happening. Nothing on the market, nothing to sell, buyers not awake yet from their holiday slumber... what was going on? 

Well, maybe it was a bit of a hangover from 2015. Perhaps it was the small interest rate increase by the FED. Maybe it was the stock market scare that had stocks plunging to record drops. Maybe it was the El Nino storms. Who knows? But, rest assured, the heat is back on and the market is just NOW getting going for 2016. Some people say it's "after the Super Bowl" when everything starts happening. This year, and maybe because the Super Bowl is in our own backyard, I'd say that may definitely be true. There's an energy out there – a frenzy descending on the paltry amount of inventory that has shown itself in January. There's an excitement about what's "coming soon" and let me tell you, everybody is ready to go.

Buyers are pre-approved and ready to pounce as soon as they see the home they like (or kind of like). Sellers are still pushing the market, wondering just how far they can take it from a price standpoint. Savvy buyers say “don't take it too far, ‘cause we ain't stupid!"

While mortgage rates are at the lowest they have been in eight months, they will eventually rise, inventory will remain tight, rental rates may also rise making housing feel like a better option, and experts expect slower growth of housing values at about 6% this coming year. We are seeing Gen-X’ers moving into prime wage earning years and enjoying their newly improved financial situation, perhaps new job opportunities, relocation, or even seeking out better neighborhoods for their growing families. In Marin we have the older boomers approaching — or already in — retirement and seeking to downsize or lock in a lower cost of living. Together, these two generations will provide much of the suburban inventory that Millennials will start to acquire. Sellers may finally be ready to put their homes on the market after a few years of equity building, and the realization that with interest rates on the rise, buyers may have less ability to pay top dollar as the year progresses.

There was very little to report as far as stats go this month (only 208 homes in Marin on sale at this writing). Few properties are currently on the market, and some have been sitting for quite some time. Perhaps price is the issue, perhaps there are some hidden defects, or perhaps nobody has come up with the right offer to charm the sellers, but I am happy to show them to you, so call me if you have some interest! Perhaps the sellers will entertain a lower offer, and perhaps this is the diamond in the rough for which you’ve been looking.

Are you looking to buy or sell a home in Marin? Contact us to find out how The Costa Group can help.  

San Francisco Market Update for February 2016

Solid Economic Indicators

The first month of the year saw continued upward pressure on pricing, despite headwinds in the international economy. The Citywide January 2016 median price grew 16% year-over-year, while sales volume decreased slightly, by eight-percent. As expected, inventory levels have increased substantially, rising about eighty-percent versus the first week of January. This dramatic rise in inventory is partly accounted for by a relisting of properties which did not sell in Q4 2015.

San Francisco continues to post near-record low unemployment rates, with the most recent figure clocking in at 3.3%. Recent turmoil in international markets has placed some doubt on the continued strength of the local economy. In a recent opinion piece, San Francisco Fed President John Williams stated that “...the economy still has a good head of steam...and strong fundamentals point to continued strength going forward.” The upcoming spring selling season is expected to be fruitful. Between January and May of last year, the median sale price grew by over 30 percent. Interest rates and lending programs continue to be favorable to the growth of the market.   

Click here to read the complete market update.

If you are in the market to buy or sell in San Francisco, The Costa Group can help. We have extensive knowledge of the market, the neighborhoods and will prove ourselves a valuable member of your team.

3 Home Buying Trends That Will Hold True in 2016

Today's home buyers are poised to move and are equipped with more knowledge and information than ever. Buyers are searching for homes on the Internet and using different communication methods than they did 20 years ago. But there are 3 real estate trends that will continue into 2016 and beyond.

1. Buying costs less than renting

Based on data from Trulia, it is 35% less expensive to purchase a home than to rent and for Millennials, its 23% cheaper says CNN Money.

If recent trends continue (and it appears they will), rents will continue their upward spiral. If you've been considering buying a home, now is the time to start your search. Take advantage of still historically low interest rates and take advantage of the tax benefits home ownership affords.

2. The Internet is king

The first stop for both buyers and sellers, the Internet is the go-to information source. 43% of all buyers began their home search online prior to contacting an agent or looking for specific information about the home buying process. This percentage increases for younger buyers as this group has grown up with access to technology.

3. Having an agent is still necessary

Technology hasn't made real estate agents and brokers obsolete. In fact, 88% of buyers would use their agent in the future and would recommend them to others, states a National Association of Realtors profile of home buyers and sellers. Even though they have tremendous access to real estate information, both sellers and buyers still rely on knowledgable agents to guide them through the real estate transaction.

Buyers want an agent to find them the home that meets their needs, negotiate a great price and help them through the escrow process and the documentations that entails. Sellers want their agent to market and showcase their home, sell it within a certain timeframe and get the best possible price.

When its time to buy or sell, being armed with information from the Internet is great but having an experienced agent that understands your requirements and can guide you through the process is still crucial.

When you're ready to make a move in Marin or San Francisco, contact us. The Costa Group can help. 

Excerpts from Inman Real Estate Trends by Brian Buffini.

How to Enhance Your Open-Plan Living Spaces

The open, free-flowing floor plans offered by many of today's homes offer a wide range of lifestyle possibilities. To make the most of your space, use light, layout and designated 'zones' to create deliberate layers.

Define your zones

The relationship between different zones can be manipulated by varying degrees, to emphasize their separation or integration. Changes in floor level, floor finish, ceiling condition, furniture arrangement and many other devices can all contribute to this fine-tuning.

Create layered views

Look for opportunities to create layers within each space to give an illusion of depth. Layering using changes in color, furniture arrangement and flooring, especially when there are multiple rooms that all flow together. 

The home in this image illustrates the layer idea. You can see across a dining area (first layer), through the kitchen (second layer) and to a garden beyond (third layer). 

Use natural light as a highlight

Sunlight coming in through skylights or large windows can accent spaces, giving them a sense of separation and depth while at the same time maximizing the sense of space in an open floor plan. This does need done properly to avoid too much daylight, which can be overwhelming. 

Islands as separation

In open plan kitchens, an island creates a defined space and purpose from adjoining rooms. It also helps outline other areas connected to the kitchen.

For more tips on how to make the most of your home's open environment, read this article on Houzz. 

Hunter Pence Buys Second Millennium Tower Condo

Outfielder for the San Francisco Giants, Hunter Pence has purchased a second condo on the 51st floor of the Millennium Tower, reports the San Jose Mercury News. 

In 2014, Pence purchased Joe Montana's one-bedroom unit and last October, he laid down $4.25 million for the 2,230 square foot, 2 bedroom, 3 bath residence with floor-to-ceilings views of the Bay Bridge. Whether Pence resides in his newly acquired residence remains to be seen.

Click for more photos.       

The tallest residential building gracing San Francisco's skyline, the South of Market Millennium Tower offers over 20,000 square feet of amenities including a 5,500 square foot fitness center, a screening room, wine cellar and tasting room, pool and outdoor terraces, and children's play area to name but a few. 

Are you in the market to buy or sell in San Francisco? Contact The Costa Group. We can help you meet your real estate goals. 

5 Tips When Buying A Condo

Buying a condominium brings with it different considerations and involves things that buying a single family home does not. Below are 5 things to keep in mind if you're in the market for a condo.

1. Get all the documentation and allow enough time to review

Buyers are supposed to receive all Home Owner Association financial documentation during the inspection period. Ask you realtor for a complete documentation package as soon as you enter your escrow period to allow enough time to thoroughly read and understand all the data provided.

2. Take a close look at the exterior

Make sure all community areas including pools, fitness rooms, balconies, paint, landscaping, parking areas, stairways and roofs, are in good repair. Although the HOA should be responsible for the majority of exterior maintenance, a large number of issue should be a red flag. 

3. Know your association fees

Most condo communities include a fee that is paid on a regular basis, whether that be monthly or annually. Fees vary significantly and play a part in whether or not you can afford the property as your lend will factor the fees into your monthly debt. 

These dues cover common expenses like maintenance and insurance. but you should know specifically what your fees include and what they don't. Do fees cover any exterior maintenance? What do they exclude?

Its wise to understand how these fees are allocated and if any goes into a reserve for large repairs, such as roof replacement. Buying into a community with a healthy reserve fund will generally ensure most major repairs are covered.

4. Review the rules

Since the community is a group of people living in close proximity, there are set regulations on pets, renters and a variety of other established rules. Be sure to  read and understand all the rules.

5. Check the financial statement

Look in detail at where the association is spending their money. As a rule, about 2/3 should be spent on basic operating expenses such as water, lights, landscaping and other maintenance while the remainder should be placed in a reserve for larger, longterm repairs. 

Do expenses exceed revenues? Find out why and how the HOA plans to rectify this. Its best to know in advance if a special assessment or an increase in dues will be the solution. 

If you're in the market for a condo or townhome in Marin or San Francisco, The Costa Group can guide you through the process and assist in finding you a wonderful home in a community perfect for your lifestyle.

Wicked: Best Musical of the Decade at the Orpheum Theatre

Winner of over 100 international awards including the Grammy Award and three Tony Awards®, WICKED is the untold story of the witches of Oz. Long before Dorothy and Toto arrive, WICKED tells the story of two very different girls who meet in Oz and how these two unlikely friends grow to become the Wicked Witch of the West and Glinda the Good.

Declared “The Best Musical of the Decade” by Entertainment Weekly and “A Cultural Phenomenon” by Variety, WICKED is based on the novel by Gregory Maguire, has music and lyrics by Stephen Schwartz, and a book by Winnie Holzman. The production is directed by Joe Mantello with musical staging by Wayne Cilento.

This award-winning musical about the untold story of the witches of Oz will be playing at the SHN Orpheum Theatre from March 9th through April 16, 2016.

For more information or to purchase tickets, click here.

To learn more about WICKED and its cast, click here.

New Seasons Market Coming to 555 Fulton?

Portland-based New Seasons Market is considering the large retail space on the ground floor of 555 Fulton. 

Though this is still speculation as it hasn't been officially confirmed, it seems that the rapidly expanding grocer is indeed being considered as a tenant. Rumors about a market taking over the long-vacant space has been swirling around since late 2013 and early 2014 with no news until now.

                                          555 Fulton, located between Laguna and Octavia.

Launched in 1999, New Seasons Market has a neighborhood vibe and offers a variety of products including organic, gluten-free and other 'health food' items as well as conventional food items, allowing them to be the grocer for all.

In addition to restaurants, nightlife and shopping, 555 Fulton includes 139 modern residences, all set in the sought-after Hayes Valley borough of San Francisco.

Click to read the entire article.

San Francisco Residential Development-December 2015

December has been a busy month for real estate development in San Francisco. 

Many units are still available at 1001 Seventeeth, Onyx on the Park, Sapphire, Luxe and Fulton 555 to name a few. Others including Townhomes on Tennessee, Mission@1875 and V20 recently sold out. 

A quick recap of the highlights:

• Price per square foot remains static at $1,250.
• Only one unit remains at Potrero Hill's Onyx II
• New list prices were announced at Sapphire, with an average price per square foot of about $1,100
• 60% of the homes at Summit 800 in Park Merced are sold, with a square foot price of $680

Q1 is generally the strongest three months for apartment supply and Q1 2016 will bring 8 new projects offering over 1,500 units.

based on year-to-date production levels, San Francisco is projected to have 14% fewer units than in 2014 but requires 3,600 new units annually through 2022.

Click here for the complete report.

Preparing Your Home For El Niño

With talk of a "Godzilla" El Niño, it pays to prepare your home now to weather the coming storms. 

The forecast for this winter seems to bring with it a prediction for a new El Niño. With that in mind here are 15 tips to prepare for the anticipated downpours. Getting these things in place before the rain begins can help avoid issues in your home and garden.

• Clean out your rain gutters and downspouts. Clean all of them before it rains, then check and clean them after the first rain. Leaves and debris from your roof may have accumulated in rain gutters after the rain. Make sure your rain gutters aren’t damaged.

• Fix any leaks before it starts to rain. Check your roof for any trouble areas.

• Invest in an emergency generator. Think about a portable generator or permanent standby generator that comes on automatically when the power goes out.

• Check any decks and balconies. Make sure water flows away from your walls and foundation.

• If your crawl space, garage or basement could be flooded, think of installing a sump pump. El Niño rains can cause water to gather where you normally don’t find it.

Read the entire article here.