The expo will offer information and resources for both perspective home buyers and current homeowners.
Current home buyers will be able to get the latest information about down payment assistance programs, credit tools and special mortgage products. Buyers will also be able to tour affordable homes for sale. Be sure and book the tour early because last year the tour booked up quickly.
For current homeowners, the expo will offer counseling and on the spot loan modification services for those in distress or suffering a hardship. The program will also include updates from Keep Your Home CA as well as other programs such as the CA Homeowners Bill of Rights to help avoid foreclosure.
With the San Francisco real estate market continuing to climb, we see more San Francisco Real Estate Graffiti (see photo). We took this photo at 1155 Page St., a former SFUSD school site which will be leased to the private French American International School, which will operate a preschool and kindergarten facility there. The building sat vacant for six years. According to reports, the private school has agreed to pay nominal rent for 20 years and to invest about $5 million to rehabilitate the site. It is not more condos but what do you think of what will soon stand there?
Luxury homes continue to foreclose at a record rate.
Even though pundits say that the economy continues to gain more traction and that the worst of the real estate crisis may be over, distressed properties continue to pop up in the Bay Area.
Inventory continues to be in short supply and experts say that we have 4-5 years (we’ve heard up to 10-12 years) left of REOs coming on the market. Unlike the past years, the upcoming REOs tend to skew toward the high end. Homes valued in the $1.5 million-plus range continue to climb in the foreclosure scene. For a couple of examples, a $2.5 million home recently foreclosed in Cow Hollow and likewise for a $1.8 million home in Hillsborough.
Folks over at RealtyTrac state that foreclosure activity on homes in the $5 million-plus value range jumped 61 percent from the same time period in 2012. During the real estate meltdown, high end homes certainly did see their share of REO casualties but banks often held off foreclosing because of the high losses. Instead the banks worked toward loan modifications, forbearances and short sales.
Now with values on the rise, many luxury homes have fallen into the foreclosure track. In the past, banks often hesitated at foreclosing due to possible high losses. Now, banks may take more chances to foreclose on the high ticket homes. With increased profits, banks with defaulting loans seem more willing to roll the dice on the luxury inventory. Such actions may end up signifying snake eyes for distressed high end homeowners.
With most of the San Francisco focus on real estate maps that show various home prices and where the most and least expensive houses and condos can be found, we decided to post a map with a little cultural humor.
This map originally pictured on the Bold Italic, the “bro-ster” map, part of Movoto’s collection, displays where to find what type of San Franciscan by neighborhood.
SF Housing EXPO Offers Resources For Current And Future Homeowners
After a one year hiatus, HomeownershipSF presents the upcoming HomeownershipSF Housing Expo. The free expo will present information opportunities for future and current homeowners. HomeowershipSF partners with the Mayor’s Office of Housing the five member agencies, Asian Inc., Consumer Credit Counseling Service of SF, Mission Economic Development Agency, SF Housing Development Corp. and SF LGBT Center to promote affordable housing in the city.
For those who don’t work at Google, Facebook or Twitter and may be thinking that affordable homeownership in San Francisco represents an oxymoron of epic proportions consider that possibilities do exist for low to medium income San Franciscans. Come to the expo to discover about city, state, and federal down payment assistance programs, as well as special loans for veterans, emergency first responders, and teachers. Keep in mind that Below Market Rate (BMR) properties have become available again.
Expo Also Offers Info For Current and Distressed Homeonwers
In addition to workshops about buying a home, the expo will offer workshops for current owners. Although the San Francisco real estate market continues to rise at a steady pace, some current owners still face distressed situations. The expo will offer sessions to educate homeowners about many topics including the important California Homeowners Bill of Rights as well as updates from Keep Your Home California.
Although the expo is free, it is a good idea to register in advance due to the limited capacity of some workshops.
Golden State Leads Nation in Property Appreciation in Veros 12-Month Real Estate Forecast
San Francisco Hits #1 Position With An Expected 12.7% Increase
With most of the Bay Area real estate market in overdrive, we don’t find it so surprising that San Francisco and other metro areas in California are poised for the country’s strongest levels of appreciation in the coming year.
Guess what area will gain the most appreciation in the next year? Give yourself a Kewpie doll if you guessed San Francisco. The gaining numbers come via Veros Real Estate Solutions who specialize in predictive analytics. They recently announced that the top three positions now have double-digit forecast appreciation, with the re-emergence of California markets taking over three of the top spots.
Projected Five Strongest Markets*
San Francisco-Oakland-Fremont, CA +12.7%
Los Angeles-Long Beach-Santa Ana, CA +11.6%
San Jose-Sunnyvale-Santa Clara, CA +11.1%
*Markets demonstrated are for residential real estate in major metro areas (typically greater than 250,000 residents) among single-family homes in the median price tier.
San Francisco Has Low Inventory, Good Affordability Levels, Relatively Low Unemployment
The numbers can be attributed to the San Francisco housing shortage, with supply down nearly 80% from its peak in 2008. Although prices still maintain relatively high price tags compared with much of the U.S., affordability sits at 2004 levels. The low supply, historically good affordability, relatively low unemployment of 6.7% (compared to the 7.5% national unemployment rate) and continued low interest rates continue to propel the SF Bay Area market to the #1 spot with 12.7% appreciation forecast.
Similarly, the Los Angeles and San Jose market upswings can be seen due to significantly reduced housing supply, down more than 70% and 75% respectively from their peaks. In Los Angeles, affordability returned to levels not seen in more than a decade and the low unemployment rate in San Jose position these markets in the #2 (+11.6%) and #3 (+11.1%) spots respectively.
California’s Version Of Mortgage Debt Forgiveness Relief Act Passed With A Hitch
Amendment holds SB 30 hostage to passage of SB 391
In the midst of all of the discussion about rising home prices and rising interest rates, the Senate Appropriations Committee recently approved Senate Bill 30, which would extend existing provisions of state law protecting homeowners from having to pay income tax on a short sale. Good for homeowners.
However, like so many other bills, the committee attached SB 30 to another bill that many real estate industry people (including Realtors, county recorders, assessors and title industry) oppose. That measure, Senate Bill 391, would establish a $75 per document recording tax to fund an affordable housing trust fund. In a sense, the amendment holds SB 30 hostage to the passage of SB 391. Not good for homeowners.
Federal Mortgage Debt Forgiveness Relief Act until December 31, 2013
The federal government already extended the Mortgage Debt Forgiveness Relief Act until December 31, 2013. However, if the state does not extend the California version then those homeowners who do short sales or have their homes foreclosed will be held responsible to the tax on the “phantom income.”
To be clear, SB 391 does not apply to sale transactions, the measure applies anytime a home/property owner records a document (e.g., refinancing, transferring into or out of a trust, liens, quit claim deeds, etc.).
To some this bill simply tacks on a new tax for homeowners to fund affordable housing.