Wednesday, October 12, 2016

New Listing Market Watch

During the last two week the number of new listings matched almost exactly the number of new listings a year ago (370 vs 365).  If usual annual patterns hold (and they have every year since before the last recession) the number of new listings will continue to fall through the holiday season until after the new year.

The percentage of new listings going into contract within the last two weeks has ticked up, double the percentage we saw two weeks earlier.  For single family homes, this is almost identical to a year ago (8.4% vs 8.6%).  For condos, we're still significantly lower than we were a year ago (9.3% vs. 15.0%)

Also notable, during the past two weeks the number of price reductions for single family homes is identical to what we saw during the same period last year (13 vs. 13).  For condos, the number of price reductions is also about the same as a year ago (46 vs 41) and down significantly from the previous two-week period (46 vs 59).

Click here for the full report.

The state of TICs in San Francisco

1. Tenants-in-Common (TICs) are now about 9% of all sales in the condo/TIC market.  This is approximately the same percentage the last four years but well below the peak of 24% back in 2007.

2. Average selling prices are approx. 7-13% less than a comparable condominium.

3. TICs comprise approx. 13% of all condo/TIC listings. Average listing price for 2 bedroom TICs is currently is 9-13% higher than the comparable condo. This is an anomaly since historically TICs sell for below a comparable condo.

Click here to see the full report.

Monday, September 12, 2016

New Listing Market Watch -- (mixed signals after Labor Day)

During the last two weeks (which included the Labor Day weekend), the number of new listings increased compared to the previous two weeks.  This is generally consistent with what happens this time of year.  There was a particularly notable jump in condo listings -- 207 vs 122 for the previous period.  A year ago, new condo listings jumped up by 258.

New single family home listings were 159 compared to 101 during the previous period and compared with 185 a year ago.

The number of listing going into contract was at a very low level -- just 2 single family homes and 8 condos.  However, if previous years are a guide, these numbers should increase dramatically during the next few weeks.

Finally, price reductions for condos increased to 35 compared to 24 the previous week and compared to just 16 a year ago.  Price reductions of single family homes dropped to 10 compared to 20 during the previous period and compared to 19 a year ago.

Monday, August 15, 2016

The Ethics of Real Estate Photography

This is a big topic but here, in one screen grab, sums up my take (pardon the pun) on it.

A newish company in the real estate listing photography business is offering two "enhancement services".  1. They will add a blue sky to a photo instead of the gray sky that was there the day the photos were taken.  2.  They will turn the brown lawn green.  They normally charge extra for these services but during this promotion they are free.

In my view, one of these is OK and the other isn't.

We don't always have the luxury of photographing a listing on the perfectly sunlit day.  Adding a blue sky enhances the photo without changing the presentation of the property.  On certain days there will be a beautiful blue sky above; on other days there won't.  In any case the sky it's not part of the sale.

On the other hand, the brown lawn is going to be there until the season changes or new sod is installed.  It's part of the sale.  You could argue that the lawn will be green in the spring.  Maybe or maybe not.  And, the prospective buyer is going to see the brown lawn as soon as they arrive at the showing.  What message does that send?  What other edits or "enhancements" have been made in the marketing materials?  What other important information about the property is the seller/listing agent trying to hide or misrepresent?

New Listing Market Watch -- right on track (almost)

We could almost repost the same information we showed a year ago since  the number of sales and the percentage going into contract for the last two weeks is almost identical to a year ago.

During the last two weeks 90 single family homes came on the market compared to 102 last year in the same period.  4 homes went into contract compared to 2 last year.  129 condos came on the market during the last two weeks compared to 114 a year ago.  6 condos went into contract compared to 9 a year ago.

Price reductions for single family homes is also in line with last year:  22 during the last two weeks compared to 20 a year ago.  The only number not consistent with a year ago is the 33 condos posting price reductions during the last two weeks compared to only 13 last year.