Winter Market Update

Positive or even realistic headlines are rarely seen in newspapers, but sensationalized reports sure are. Recent media coverage suggests that the sky is falling in the Bay Area real estate market, but what does that have to do with San Francisco?  The Bay Area encompasses nine counties, and reaches as far inland as Bay Point and Brentwood, which have very little in common with San Francisco's market, even in the best of times.

There is some reassuring news to be found in the fine print of all this media coverage: San Francisco remains a sound market.  Sales prices are down in some neighborhoods, but not by the huge double-digit losses that are occurring in the outlying areas.  And many neighborhoods in the City have seen appreciation happen over the last year.  Yes, you read that correctly: highly desirable, sought-after neighborhoods, such as Noe Valley, have seen price gains since last year.

It's without question that there are a lot of outside forces affecting the real estate market right now: the bailout of the financial industry, the tensions and apprehensions leading up to the election, and the uncertainty of the stock market.  Many economists agree that with the election behind us, a President Elect who has made reducing foreclosures and boosting job growth a priority, and the influx of federal money into banks finally making it to Main Street, we will begin to see these market tensions subside to ease the way ahead to a more stable market better poised for a strong recovery.

There are many great deals to be found in this market, and some properties with very unrealistic pricing. Conversely, there are some niches where sellers may command a strong price, occasionally over asking. In this market, more than ever, it's vital to have a knowledgeable real estate advisor on your side to help guide you through the variables to reach the best outcome for you. If you have any questions about what's happening in your neighborhood, or need any real estate guidance, please don't hesitate to contact me.

Now is the Time to Tackle Remodels

Every homeowner knows that remodeling is often a great way to boost a property's value. Surprisingly, now is actually a great time to tackle a project, since San Francisco is staying afloat while other regions are dealing with economic downturn.

RemodelOrMove.com's Fall 2008 Remodeling Sentiment Report found a 15% decline in remodeling activity in the past year. And with low levels of new home construction, the costs of both materials and labor are going down. It may also take less time to complete your project.

Some homeowners are reportedly planning to further cut costs by doing some of the work on their own or by not hiring a general contractor. Of course, some projects generate greater returns than others. According to Remodeling magazine's annual Cost vs. Value Report, in the Bay Area, the top projects are:

• Deck addition - wood, 108% cost recouped.
• Minor kitchen remodel, 103.5% cost recouped.
• Window replacement - wood, 102.9% cost recouped.
• Window replacement - vinyl, 98.5% cost recouped.

To see the full report, go to
www.remodeling.hw.net/costvsvalue/index.html

San Francisco is Going Solar at Home and at Work

A few months back, I told you about GoSolarSF, the City's groundbreaking solar rebate program. Well, earlier this month, the Mayor's office reported that since then, applications for new solar installations have quadrupled!

Rebate incentives range from $3,000 to $6,000 for residents and up to $10,000 for businesses. In addition, the program helps create new jobs. Since July, 16 solar installation companies have hired or will hire graduates of local workforce development programs for solar installation jobs.

"Today, we have proof that if you give people the incentives to install solar panels on their home or business, they will do it," said Mayor Gavin Newsom.

I also recently learned about an exciting new development in solar technology: Fremont-based Solyndra has started manufacturing cylindrical solar panels. Similar in appearance to a fluorescent tube light, these are capable of capturing up to 20% more light than traditional solar panels. And because they don't have to move to follow the sun, they're much more cost-effective to install. These are currently only available for commercial rooftops; visit www.solyndra.com to learn more. And to find out if you qualify for the City's program, visit www.sfwater.org/gosolarsf.

Make the Holidays Brighter for S.F. Families

Every year, Zephyr sponsors a holiday food and toy drive to benefit kids and families in need throughout our community. This year, more than ever, we invite you to participate by bringing unwrapped new toys and non-perishable food to any of our offices, November 6 through December 23.