Weekend Events and the Weekly Real Estate Update

The 2017 Yerba Buena Night Outdoor Arts Festival takes place on Saturday night, from 6 to 10PM. Also on Saturday night, Lit Crawl San Francisco will happen, attracting close to 10,000 people to the Mission District’s Valencia Street corridor. Part of Litquake, this is the largest LitCrawl in the world.  Finally, Pier 39 had a planned 39th anniversary party for Saturday that was to conclude with fireworks. In light of the North Bay wildfires, they have canceled the fireworks, and have now turned their Birthday Bash into a Party with a Purpose. See their Facebook page for details by clicking here.

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 10/8/17 – 10/14/17

Preemptive Offers in Today’s Marketplace

Hill & Co. Sales Manager Jill Gumina was quoted again in a recent San Francisco Chronicle real estate column, this time responding to the question “What are the pros and cons of preemptive offers?” Here’s her reply:

“Preemptive offers are buyers’ written offers that sellers are willing to consider prior to a previously set offer date. In other words, an offer date may be set for October 5th but a buyer offers to purchase the property at a certain price before that date and if successful, no other offers can be accepted.”

“It can be a controversial move, as one can imagine, that might anger potential buyers and their agents who were acting in good faith that a date is set and everyone’s offers will be considered at the same time.”

“On the other hand, aggressive buyers who are willing to offer more than market price, perhaps pay all cash and have few if any contingencies want their offer to be considered without competition from other buyers – a possible win-win for both seller and buyer.”

“Many listing agents and their sellers will refuse to consider preemptive offers once the date has been set. A professional Realtor can explain fully the pros and cons of making and/or accepting this type of offer.”



Dropbox Just Signed the Biggest Lease in the City’s History

Dropbox just signed a lease for a whopping 736,000-square-foot office complex under construction in Mission Bay, according to sf.curbed.com. This makes it the single largest lease in San Francisco history. The new complex, a $570-million development, consists of four buildings located at 1800 Owens. Employees will begin moving in towards the end of 2018.

Dropbox will now occupy even more space than Salesforce, the San Francisco’s former leasing champ, which has a lease for 714,000 square feet in the City’s largest tower.

Facebook also made headiness recently by locking up space at the coveted 181 Fremont location. The social media company’s Instagram division will move to Yerba Buena when the tower opens in 2018.

Of 5.4 million square feet of office space under construction in San Francisco, 84 percent has been pre-leased. That is an astonishing figure!

Giants’ Giant Development Plan for AT&T Parking Lot Approved

After more than a decade of planning, the Giants’ Mission Rock project secured a round of city approvals on Thursday to build up to 1,600 homes with 40 percent of the units priced for low-and moderate-income households.

In addition, according to the San Francisco Examiner, Mission Rock will include 8 acres of open space, 1.4 million square feet of offices and roughly 244,800 square feet of retail and industrial spaces. The project also calls for the renovation of the adjacent Pier 48 bulkhead.

The Planning Commission unanimously voted to certify the environmental review of the project, among other approvals. The project will still need to go before the Board of Supervisors, Port Commission and state bodies.

But hey, this at least gets them to first base, and we say way to go! That massive parking lot south of the stadium couldn’t remain a parking lot forever.

Weekend Events and the Weekly Real Estate Update

This is one of the biggest weekends of the year in San Francisco. It all starts with Fleet Week, and the incredible air show that takes place today, Saturday, and Sunday above our City and the bay. Over the same three days, the Hardly Strictly Bluegrass free music festival happens in Golden Gate Park — with 90 performers on seven stages. And Litquake starts tonight with hundreds of authors, poets, and journalists featured in a myriad of separate events over the next nine days.

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 10/1/17 – 10/7/17

What It Means When You Hear a Home Has Good Bones

Buyers and sellers hear this phrase from time to time, and so we thought we would explain what it means. When someone says, “This home has good bones,” they are often suggesting that while the house on the surface may not be as appealing as others, it possesses some attributes that might make it worth a second look.

In homes with good bones the floor plan flows well so it’s easy to get from one area of a home to another, and it all makes sense based on what you’re doing in these spaces. For example, the kitchen should be next to the dining room, rather than at the opposite end of the house. Homes with good bones typically feel spacious rather than cramped, thanks to ample room size and high ceilings. Meanwhile, large windows let in plenty of natural light.

A home with good bones generally needs little work in terms of major repairs. The infrastructure — such as the foundation, electricity, and plumbing — are all in good shape. You may need to paint the walls, or sand down those hardwood floors, or update that trapped-in-a-1980s-time-warp kitchen. But the good news is cosmetic renovations are less expensive than major repairs.

Weekend Events and the Weekly Real Estate Update

There’s a lot to do this weekend. The 2017 SF Chinatown Autumn Moon Festival takes place on Grant Avenue on Saturday and Sunday from 11AM to 6PM both days. On Saturday night, two outdoor movies are being shown; Wreck-It Ralf on the Balboa Park Lawn in Balboa Park, and The Iron Giant at the Civil War Parade Ground in the Presidio. The 82nd Annual Blessing of the Fishing Fleet takes place this Saturday and Sunday, with activities planned for both days. And finally, the  Bridge to Bridge Run — named “America’s most beautiful run” by Sports Illustrated — happens on Sunday morning at 8AM.

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 9/24/17 – 9/30/17

A Shortage of Single Family Homes and Price Increases

Business Columnist Kathleen Pender with the Chronicle wrote a column last Sunday that looks at the Bay Area real estate market. She quotes CoreLogic, and reports that the median price paid for a Bay Area home in August posted its biggest year-over-year gain in 19 months, rising 11.6 percent to $742,000.

The median price dropped 3 percent from the month before, but as she points out prices typically dip between July and August, by an average of 1.6 percent over the past few decades. The figures she quotes include new and existing single-family homes and condos in the nine-county Bay Area.

In San Francisco, she says that the hottest part of the market continues to be single family homes in more affordable neighborhoods such as the Sunset, Richmond and Bernal Heights neighborhoods.

She goes on to say that only eight to 10 brand new homes come on the market each year in the City, and that includes homes that were torn down and rebuilt. In fact, single family home inventory has been static for about 50 or 60 years, while over the same period tens of thousands of condos have been built.

Weekend Events and the Weekly Real Estate Update

The largest used book sale on the West Coast continues this Saturday and Sunday at Fort Mason, with books, audio books, CDs, and DVDs all selling for $3 or less at the 53rd Annual Big Book Sale. SF Music Day  takes place on Sunday, with 35 ensembles and 155 musicians performing on four stages between noon and 7:45 PM at the ornate and wonderful San Francisco War Memorial Veterans Building. Admission is free! And finally, the 7th Annual Marina Family Festival also takes place on Sunday, from 11 AM to 6 PM on the Marina Green.

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 9/17/17 – 9/23/17

The World’s Most Valuable Asset Class Real Estate

HSBC just released a report, distributed at a recent conference, which looks at real estate worldwide.

Global real estate is a more valuable asset class than all stocks, shares and bonds combined. Residential property had a combined value of $168.5 trillion in 2016, and high quality commercial property had a combined value of $32.3 trillion. The value of all gold ever mined throughout history pales in comparison at only $6.5 trillion.

In advanced economies, real estate is a big part of personal and household wealth. As more people grow wealthier in new and emerging economies across the globe, they seek to buy real estate as an investment.

The report profiles 12 global cities, and here’s what it has to say about San Francisco — largely a familiar story to those of us who live here:

“San Francisco is attracting large numbers of young professionals, tech entrepreneurs and other creative people. It has seen an increasing number of successful people migrating out of Silicon Valley in search of an urban, rather than suburban, lifestyle. People from all over the world choose to make San Francisco their home.”

“A small city, just 46 square miles in size, its compactness and walkability is central to its appeal, but that also means that new housing delivery is restricted by a very limited supply of land. Hayes Valley, the Mission District, Mid-Market and SoMa have seen an influx of tech firms, pushing up commercial rents and in turn demand for residential property.”

“Of all the world-class US cities, San Francisco has experienced the highest growth since 2008.”

Weekend Events and the Weekly Real Estate Update

J-POP SUMMIT takes place on Saturday and Sunday at Fort Mason. The annual festival features the latest in Japanese music, fashion, film, art, games, tech-innovations, anime, food, as well as niche subcultures! Meanwhile, San Francisco Opera is celebrating the opening of its 95th season, and once again the opera company invites you to join them for Opera in the Park this Sunday at Sharon Meadow in Golden Gate Park. It’s a free event!

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 9/3/17 – 9/9/17

Declining Home Sales Across the Nation Due to Low Inventory

The National Association of Realtors® just released their July report on the nation’s real estate market. It’s worth mentioning that the market conditions that existed in July are still with us today. According to the report, much of what we have experienced in San Francisco is now taking place across the country.

The report looks at pending home sales for the nation as a whole, and describes a continuing decline. Fewer homes are being sold because fewer are available for sale. Lawrence Yun, NAR chief economist, continues to blame the weak real estate market on the lack of homes for sale and called the inventory woes throughout the country “staggering.”

According to Yun, in the past five years, the national median sales price has risen 38 percent, while hourly earnings have increased less than a third of that (12 percent). This unsustainable trend is putting considerable pressure on affordability in some markets — especially for prospective first-time buyers — and is pricing out some households who would otherwise be looking to buy a home. Yet, despite this growing obstacle, Yun says data and feedback from Realtors® continues to confirm that the slowdown in existing sales since spring is the result of a supply problem and not one of diminished demand.

These are market conditions that San Franciscans are all too familiar with. If you’ve ever considered selling your home, clearly, this is a great time to do so!