Real Estate Update for San Francisco Homebuyers and Sellers
courtesy of:
Eileen Bermingham
DRE# 01352627
Most Recent Sales  citywide in the last 21 days
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In This Issue…

Most Recent Sales
San Francisco Market Overview
Prop E Recap
New Investor Strategy Driving up Rental Prices
Bridge News
San Francisco Market Overview 
  Single Family Homes Condos/TICs/Lofts 2-4 Units
Median Sales Price, last 180 days
% Change from prior 180 days
Avg. Days on Market, last 180 days
% Change from prior 180 days
Prop E Recap 

The results are in folks, and San Francisco voters have approved Proposition E with an overwhelming 70% margin! As reported in our last issue, Proposition E would do away with the current payroll tax system that has been perceived to drive expanding business out of San Francisco. With the passage of Prop E this payroll tax will be phased out over the next five years and be replaced with a gross receipts tax based on a company's sales.

This tax change is being called one of the most significant shifts in San Francisco tax code in a very long time. And while the changes should have a positive outcome for both business expansion within San Francisco and the amount of business tax collected, it will also be a large, costly and arduous job for the SF Tax Collector's office, which has the lead role in the transition. The tax collector is gearing up to field questions from large and small SF business alike.
New Investor Strategy Driving up Rental Prices 
The California Association of Realtors chief economist, Leslie Appleton-Young spoke to the San Francisco Association of Realtors and gave her annual California housing economic forecast lecture. Good news abounded! Last year she had predicted that 2012 would be a year of housing market recovery, but she vastly underestimated how great the recovery would be. She predicts further improvement in 2013 when we will hopefully see some increase in housing inventory so as to offset some of the currently huge buyer demand.

One point of her presentation that struck a chord regarded investors and the current trend in what these investors are doing with their purchased property. Before the economic bust a vast majority of investors were buying and "flipping" homes, quickly sprucing them up and putting them back on the market at a higher price. Now an overwhelming majority of investors and buying properties and renting them, as current rental rates are sky high. Since investors are currently buying and holding, this is one of the many factors keeping housing inventory low. That in turn is driving up buyer demand, and inching rental prices higher as potential buyers are stuck renting until they can find a suitable home to buy. Makes your head spin, doesn't it?
Bridge News 
Two bits of news to bring you this week about San Francisco's beautiful and iconic bridges. First off, the eastern span of the Bay Bridge has cleared another one of its huge milestones, and builders and engineers are breathing a sigh of relief. Over the last three months, 45,000 tons of steel and concrete roadway were transferred onto the eastern span that caused enough tension to lift the bridge so that the main suspension cables could be locked into place. Great, that's what you need for a suspension bridge, tension! But it sounds as if this was a super tricky step that doesn't always go as planned and often results in months and months of correction work and delays. Great job Caltrans! Sounds as if the span is set to open on schedule by the end of next year.

In other bridge news, things are not going quite so well for the long overdue plans to put a moveable median barrier on the Golden Gate Bridge. The project that began in the mid-90s has been mired in a head spinning amount of red tape. Duh, seems like a no-brainer to use a moveable median barrier instead of the tiny pylons currently delineating the median; studies have shown that a one foot moveable median would virtually eliminate future crossover accidents on the bridge. The project is currently funded, but due to back and forth between the Bridge District and Caltrans there is still no hard completion date in sight.
Eileen Bermingham • 415.823.4656 • ebermingham@zephyrsf.com
Recent listings, sales, and market data are based on information from the San Francisco Association of Realtors MLS for the periods shown.
Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.