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Re-Siding Curb Appeal: The State of Real Estate in Bay Area...

Posted by Eva Daly

Aug 8, 2014

 

describe the imageIn this installment of the SEA/Peninsula Siding Company blog article, we are going to throw a new topic into the mix here - a topic we are all talking about around the office and from what we hear, all you locals are all talking about it too.  The topic of Bay Area real estate.  More specifically, the state of Bay Area real estate is this - Bay Area real estate is on fire.  But its precarious world from an inventory, buyers, sellers and property value standpoint.  The Bay Area is experiencing some of the lowest inventory ever -  meaning less houses on the market.  We are also experience a glut of too many buyers.  The result? Bay Area houses are going way, way, way over bid/the properties value. This is also affecting the rental market. Rents are the highest anyone has ever seen ($3,500/mo for a one bedroom apt that is not very appealling is the norm in SF).

A recent column that covers the topic of Bay Area real estate was titled (paraphrasing here...) "$1M won't buy you much around here...." To prove that point, here is a snapshot from California Realtors' Association, of current sales conditions here in San Mateo County, CA:

                                   %           July 2014        June 2014             2013

Median Home Price     +2.7%     $1,130,000       $1,100,500          $890,000

Average Sales Price    -2.7%      $1,362,200       $1,400,110       $1,219,130

No. of Homes Sold      -3.5%                 467                  484                  549

Pending Properties      -17.5%               287                  348                  469

Sales vs. List Price       -0.4%             105.7%            106.1%            105.4%

bay area real estate is on fire picIn a recent news article, San Francisco Association of Realtors President Betty Taisch has two words of advice for those who want to live here and thinig $1M will buy them their dream home:  Think Again.

In the souped-up world of San Francisco real estate, where the median selloing price for houses and condominimums last month hit seven figures for the first time, the cool million that would fetch a mkantion on a few acres elsewhere in the country will now barely cover the coswt of an 800 square-foot starter home that needs serious work and may or may not include private parking.

Taisch, a veteran broker who is used to managing her clients expectations, has experienced first-hand the heartbreak and hair-pulling inherent to house-hunting in what she considers on the world's "most desireable and fabulous" locales.  She put her professional skills to work this summer on behalf of her adult son and his family, who had outgrown their one-bedroom apartment.  After three unsuccessful offers, they ended up paying $913,000 for a two-bedroom, one-bath house with an outdated kitchen, a yard that can charitably be called overgrown, and a big basement that Taisch counts as its most attractive feature.

"It certainly is a milesonte.  It's like, 'Wow!',", she said of the this locales new million dollar median.  "Everyone thinks San Francisco is all Pacific Heights Victorians, and its not.  Not at all. There are many, many areas of San Francisco and the peninsula that are just normal, single-family homes that are small and not posh at all."

The technology's industry rapid growth coupled with the constraints of space (i.e. the peninsula) and constained supply of housing is a ig part of hte story behind the ascdensioin to a rarified real estate bracket already occupied by New York City, but Sillicon Valley wealth also is stoking the market in the Bay Area, according to Andrew LePage, an analysit with CoreLogic DataQuick, a real estate research firm in Irvine, Calfornia.

 

sf victorians as sunset great pic

What does all this mean for you the homeowner? How do you protect your home value?  How do you make sure to maintain your home investment?  How do you make sure your home has what it takes to reap the benefits of this trend?  Call us at SEA/Peninsula Siding Company if you need any insights in how to do that - from a simple remodel, to custom designs to re-siding - we're here to help!

Tune in for our next article, which will be a follow on to this one, as we explore how the real estate market is affecting expansion/remodel work and how you the homeowner can capitalize on this as well.  Like I said, we are here to help!

We really do love hearing from you. Leave us a comment at the bottom of this post. We'll be so thrilled that we'll even answer. 

Steven and Petalyn Albert

S.E.A. & Peninsula Siding

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