Posted by insidesfre on December 9, 2009
New Federal Housing Administration (FHA) financing rules for condo buyers are already limiting purchases—particularly in new developments.
The FHA is now limiting the number of buyers who can obtain loans insured by the agency in one building, effective as of Monday. The rules also put limits and a lot more restrictions on loans granted to buyers purchasing units in buildings which have too many delinquent owners, poor finances and high quantities of rentals.
It’s understandable the FHA is taking these measures, because approximately 18% of loans the agency insures are either delinquent or in foreclosure. The agency’s financial cushion has dipped below the federal minimum.
Another new rule requires that at least 30% of units in new buildings be pre-sold before the agency insures any loans. The number will rise to 50% in 2011.
Buyers in San Francisco won’t be as affected by the changes in FHA policy as some other, less expensive markets will be. I think the new rules will actually be a good thing in San Francisco; our city is small and one building gone wrong can have a far-flung effect on an entire neighborhood.
Posted in FHA, Home Buyer Tips | Tagged: condos, FHA loans | Leave a Comment »
Posted by insidesfre on December 8, 2009
I often get contacted by prospective buyers wondering what’s available for around $400,000 in San Francisco. Unfortunately, the options are limited and usually don’t involved parking. But if you’re looking for a highly walkable condo with luxury finishes in an affordable price range, 901 Bush Street may be for you.
A bit of background on this 38-unit building: Its owners Ellis Acted the property back in 2006. (This means they used legal means to get out of the rental business and empty the building of tenants, making it the largest property ever Ellis Acted in San Francisco.) Then came a fire and rehab. And an attempted condo conversion by the owners. The city denied the conversion—not surprisingly, since you can only convert buildings with six or fewer units. Lawsuits followed, and there was reportedly a settlement with the city that paved the way for a “special use district” that enabled the building to be considered new construction. The units then came on the market as condos.
The units were priced in the $300,000-$500,000 range. They feature high-end finishes such as Caesarstone countertops and stainless-steel appliances. Twenty-two units have sold since 2008, and sixteen have sold this year—the latter being mostly one bedrooms with an average sales price of $397,430. There are seven available now and four in contract. The owners have somehow managed to withstand the economic downturn that hit in late 2007 and got even worse in October 2008. The building is even approved for FHA financing. Monthly homeowner association dues (HOA) are $270.
Though the building history is rather unfortunate, I have to admit that 901 Bush addresses the need for housing in this price range that’s located in a walkable, transit-rich area.
Posted in Downtown, FHA, North End of Town | Tagged: affordable housing, first-time home buyers, nob hill | Leave a Comment »
Posted by insidesfre on December 5, 2009
A great way to get to know San Francisco better (and to pass the time with visiting relatives for the holidays) is to go geocaching.There are almost one million caches hidden worldwide, according to the Geocaching Web site. The activity involves using a GPS device in conjunction with the Geocaching Web site to find hidden containers.
I had the opportunity to go geocaching over the Thanksgiving holiday, and thought I’d share my experience with you. My partner and I decided to head to Miraloma Park and Mount Davidson (click here for a map) to find a couple caches. Our first one was off Myra, where we had to find some secret steps between people’s houses. Here they were:
A short while later, I was heading uphill to find a cache that was hidden in a fake rock, according to the instructions:
And about twenty minutes later, we found the cache:
This would be a great cache to seek with relatives. Once you’re up those steps and on the trail, it’s like you’re hiking somewhere outside San Francisco.
The other cache we hit was on the northeast side of Mount Davidson. We parked down the street from the trailhead, and then headed up. We were looking for an ammo box hidden somewhere near a dead Eucalyptus tree. The best part was when we got to the top, we had the honor of standing at the highest point in San Francisco. And the views were there to prove it:
We made the find after a while, and then descended. Fun outing—we also hit Golden Gate Park earlier that day. But since this is a real estate blog, I’ll throw in that Miraloma Park has some pretty good homes for sale. There are eight houses listed from $699,000-$1,098,000. All have been listed for an average of 42 days, so if you decide to look for a cache in the neighborhood, you might want to also look for a holiday house bargain.
Posted in Miraloma/West Portal | Tagged: geocaching, miraloma park, mount davidson | Leave a Comment »
Posted by insidesfre on December 4, 2009
230 Duncan between Dolores and Church wasn’t always the plastic bag disaster it is today. It was a 1,000-square foot single-family home from 1900-2007 that was used as a rental property in its later years.
The Planning Department granted a demolition permit back in 2006. John Pollard and his 5-12 Constr. Inc DBA SF Garage crew then obtained their permit in November 2007 to erect four stories and create two dwelling units for a recorded cost of $850,000.
Things didn’t go wildly smoothly after that. The next-door neighbors filed a complaint at the end of 2007 when the demolition damaged part of their building. And the 230 Duncan project has been at a standstill since its last story went up. Neighbors are disgusted, the site’s a blight, and the portatoilet at the curb stinks. I know, because I walk my dogs past the place every day. Even they avoid the outhouse.
No word on what the outcome will be. My guess is that a replacement developer may get a pretty good deal on an unfinished structure.
Posted in New Developments, Noe/Eureka Valley | Tagged: development, john pollard, noe valley | 2 Comments »
Posted by insidesfre on December 3, 2009
Just wanted to pass along some insightful reader comments in response to Ken Rosen’s theories on where interest rates are heading:
“I don’t necessarily disagree, but what did he say about the length of time we can expect rates to stay this low, and what happens when they start to rise? As an economist, he should be pointing out that there is a balance; and that prices will react (decrease) if interest rates are increased.
So the question becomes, does the proportionate rise in rate offset the decrease in price? For me, especially in SF, price is a big deal since our tax rates are tied to price and I’d much rather have a low cost basis. Another point to consider is the impact that raising interest rates will inevitably have on the broad basis of home owners with variable rate loans. It’s not a good impact, let’s leave it at that for the sake of this discussion.
This fact probably is more a signal that rates will remain low since no one but the sadistic want to see more homeowners pushed out and more bank foreclosures. The real estate market is very fragile right now. Several external forces are controling “prices” unlike the heyday when real estate itself was rising tremendously. For me, I’d encourage potential buyers and sellers in that it looks like the worst is behind us and very few are predicting anything remotely close to catastrophic in residential real estate—so it may make sense to consider a transaction if you think you’ve found a good home.”
Good thoughts, all of them. Ken’s theory was based on the fact that he thinks the economy will continue to steadily improve. As a result, the Fed won’t keep interest rates as low as they are.
Any further thoughts, readers?
Posted in Home Buyer Tips | Tagged: interest rates, ken rosen | Leave a Comment »
Posted by insidesfre on December 2, 2009
How much appreciation can you expect five years after buying your TIC interest and condo converting it? In the case of 135 Steiner, apparently almost half a million dollars’ worth! This condo is now being shown by Coldwell Banker, but won’t be listed in the Multiple Listing Service (MLS) for a while. For December sellers, pocket listings are a great way to attract potential buyers without racking up “days on market” in the MLS. If the property doesn’t sell, the sellers will likely bring it on the market next year.
Purchased for $1,250,000 in April 2005 as a TIC in a two-unit building, this 4BR/2.5BA, two-level condo has approximately 3,000 square feet and lots of high-end renovations. The kitchen has 50 hickory cabinets and all the Fisher Paykels, Viking and Wolf appliances you’ll ever need. There’s also a built-in speaker system and two-car parking.
And of course, the location at Steiner and Waller is ideal for the neighborhood, 94 Walk Score and all. List price: $1.7M. (Note: Building has been painted since the above photo was taken–defer to the current Web site photo.)
Give me a call if you’d like to see the property.
Posted in Noe/Eureka Valley, Pocket Listings | Tagged: Duboce Triangle, Queen Anne | Leave a Comment »
Posted by insidesfre on December 1, 2009
It’s got concrete floors in which you can see your reflection, integrated raw materials and artful finishes, and almost 2,000 square feet of space. I’m liking 410 Jessie #602 in the Martin Building.
Current competition is a 2BR unit in the Heublein Building at 601 4th Street #223—similar square footage, but without the Mint Plaza cache, glossy floors, and high-end finishes. List price: $1,580,000:
My money’s on 410 Jessie.
Posted in SoMa/S. Beach/M. Bay | Tagged: 601 4th, heublein building, martin building, mint plaza | Leave a Comment »
Posted by insidesfre on December 1, 2009
The low interest rates we’re currently enjoying will be higher by the middle of 2010, according to economist Ken Rosen. I attended yesterday’s First Republic holiday luncheon in San Francisco, where Rosen presented his thoughts on the state of the current residential real estate market.
Realtors love to tout low interest rates as a way of encouraging buyers to get off the fence. So coming from a Realtor, this sentiment is looked upon by consumers with a grain of salt. But when it’s coming from a well-known economist, the news should make consumers take notice.
In other parts of the economy, we have a long road to recovery. On the positive side, Rosen pointed out capital markets improvements and the stimulus package. But the “foreclosure tsunami,” continued credit losses, employment weaknesses and high oil prices are still dragging everything down.
There have been small housing price increases of late in San Francisco, but those have taken place in the entry-level part of the market, according to Rosen. In the last three months, averages in this market segment have gone up 2-3%. He expects the tax credits and low interest rates to spur purchasing activity in the new year, and the jumbo loan market to pick up again in—when else?—mid 2010.
So buyers, get busy while you still have the advantage. Rosen’s belief is that the best loan to get is the one given at the bottom of the market. That, apparently, means now.
Posted in Home Buyer Tips, Market Snapshots | Tagged: first republic, ken rosen | 2 Comments »
