Bay Area Real Estate Sales.com Newsletter
January 2005
In this Issue:
Marin & San Francisco Real Estate Market
Update
Exciting Liz McCarthy News for 2005:
§1031 Tax Deferred Exchanges and Home Offices
News: 2004 California Housing Market: One
for the Record Books
News: Historically Strong U.S. Housing
Market Seen for 2005
Fast Facts
January 2005
Marin & San Francisco Real Estate Market Update
Although the
holidays are behind us, winter has certainly arrived! I hope you are staying
dry with all of our recent rain. As you can see by the statistics chart in
this newsletter, there are very few available properties for sale in Marin and
SF Counties. Currently, there are only 458 homes for sale in Marin (as
compared to 927 in November). Almost half (46%) of those are already in
contract, which means we are still in a "Strong Seller's Market". The
situation in San
Francisco is even
worse, as 63% are in contract which makes it an "Extreme Seller's Market".
|
Annual Marin & San
Francisco Home Sales Statistics
|
|
City
|
Total
|
Active
|
Number in Contract***
|
Percent in Contract*
|
|
Marin County
|
|
1/10/2005
|
458
|
246
|
212
|
46%
|
|
1/1/2004
|
596
|
334
|
262
|
44%
|
|
1/10/2005
|
775
|
506
|
269
|
35%
|
|
San Francisco County
|
|
1/10/2005
|
984
|
360
|
624
|
63%
|
As of 1/10/05, the average price in Marin County is $1,845,095 and the median is $1,100,000. (A number of
high-priced properties skew these figures). Multiple offers still are the norm
for properties that are properly priced in sought-after areas. Currently Marin
home-buyers seem to want properties close to town with level yards.
The extreme shortage of homes for sale in San Francisco has made Marin County with it's proximity to
the city, a great option for many buyers. Other great Marin qualities that are
helping to drive prices upward: top-rated schools, low crime, quality of life
and outdoor activities. Furthermore, with interest rates remaining fairly low
I don't see prices dropping anytime soon.
In
the next few weeks I will send out a special 2004 Housing Statistics report
that I hope you will find helpful.
Back to top
Marin & San Francisco
Home Sales Statistics**
|
Marin & San Francisco Home Sales Statistics - by city as of 1/10/05
|
|
City
|
Total
|
Active
|
Number in Contract***
|
Percent in Contract*
|
|
Marin County
|
|
Belvedere
|
14
|
8
|
6
|
43%
|
|
Corte
Madera
|
11
|
3
|
8
|
73%
|
|
Fairfax
|
12
|
5
|
7
|
58%
|
|
Greenbrae
|
6
|
2
|
4
|
67%
|
|
Kentfield
|
20
|
10
|
10
|
50%
|
|
Larkspur
|
10
|
5
|
5
|
50%
|
|
Mill Valley
|
66
|
38
|
28
|
42%
|
|
Novato
|
111
|
49
|
62
|
56%
|
|
Ross
|
6
|
5
|
1
|
17%
|
|
San
Anselmo
|
16
|
11
|
5
|
31%
|
|
San Rafael
|
74
|
35
|
40
|
54%
|
|
Sausalito
|
30
|
19
|
11
|
37%
|
|
Tiburon
|
34
|
32
|
2
|
6%
|
|
Others-Marin
|
48
|
24
|
23
|
48%
|
|
Total Marin 1/10/05
|
458
|
246
|
212
|
46%
|
|
Total Marin 12/6/04
|
756
|
367
|
389
|
51%
|
|
Total Marin 11/4/04
|
927
|
489
|
438
|
47%
|
|
Total Marin 10/5/04
|
968
|
564
|
404
|
42%
|
|
San Francisco City & County
|
|
Total
SF 1/10/05
|
984
|
360
|
624
|
63%
|
|
Total SF 12/6/04
|
1402
|
556
|
846
|
60%
|
|
Total SF 11/5/04
|
1656
|
740
|
916
|
55%
|
|
Marin Home Sales
Statistics - by price range as of 1/10/05
|
|
Price
|
Total
|
Active
|
Number in Contract***
|
Percent in Contract*
|
|
$100,000-$499,999
|
47
|
14
|
33
|
70%
|
|
$500,000-$749,999
|
92
|
31
|
61
|
66%
|
|
$750,000-$999,999
|
96
|
48
|
48
|
50%
|
|
$1,000,000-$1,499,999
|
68
|
41
|
27
|
40%
|
|
$1,500,000-$1,999,999
|
70
|
43
|
27
|
39%
|
|
$2,000,000-$,2499,999
|
23
|
20
|
3
|
13%
|
|
$2,500,000-$2,999,999
|
15
|
8
|
7
|
47%
|
|
Over
$3,000,000
|
47
|
41
|
6
|
13%
|
|
Total Marin 1/10/05
|
458
|
246
|
212
|
46%
|
|
Total Marin 12/4/04
|
756
|
367
|
389
|
51%
|
|
Total Marin 11/4/04
|
927
|
489
|
438
|
47%
|
|
Total Marin 10/5/04
|
968
|
564
|
404
|
42%
|
|
San Francisco Home Sales
Statistics - by price range as of 1/10/05
|
|
Price
|
Total
|
Active
|
Number in Contract***
|
Percent in Contract*
|
|
$100,000-$499,000
|
188
|
60
|
128
|
68%
|
|
$500,000-$749,000
|
437
|
134
|
303
|
69%
|
|
$750,000-$999,000
|
182
|
59
|
123
|
68%
|
|
$1,000,000-$1,499,000
|
76
|
41
|
35
|
46%
|
|
$1,500,000-$1,999,000
|
36
|
24
|
12
|
33%
|
|
$2,000,000-$2,499,000
|
13
|
9
|
4
|
31%
|
|
$2,500,000-$2,999,000
|
14
|
7
|
7
|
50%
|
|
Over
$3,000,000
|
30
|
24
|
6
|
20%
|
|
Total SF 1/10/05
|
984
|
360
|
624
|
63%
|
|
Total SF 12/4/04
|
1402
|
556
|
846
|
60%
|
|
Total SF 11/4/04
|
1530
|
746
|
924
|
60%
|
*Key:
0% - 10% of Homes in Escrow: Extreme Buyer's Market 36%
- 45% of Homes in Escrow: Seller's market
11% - 20% of Homes in Escrow: Strong Buyer's Market 46%
- 55% of Homes in Escrow: Strong Seller's market
21% - 30% of Homes in Escrow: Buyer's Market 56%
- 100% of Homes in Escrow: Extreme Seller's market
31%
- 35% of Homes in Escrow: Balanced Market
**Charts
represent information gathered from BAREIS and SFMLS at a specific point in
time.
***Includes
all: Sale Pending & Contingent properties
Back to top
Exciting Liz McCarthy News for 2005:
·Brokers License. I have taken and passed
my Real Estate Brokers exam although I have no intentions of leaving my
fantastic employing broker, Pacific Union.
·E-Pro Certification: I took and passed the
National Association of Realtors (NAR) endorsed e-Pro Certification program.
This means that I am prepared to employ the latest technology and internet
techniques for my clients' benefits. I was awarded the e-Pro scholarship
courtesy of Rapattoni Software (the software that is used to run the SF and
Marin MLS systems due to my technical background. I am one of only 10 Realtors
in all of Marin County to be e-Pro Certified.
·Published. I am going to be
published weekly in the following Marin Newspapers (Mill Valley Herald, Ross
Valley Reporter, Twin Cities Times (Larkspur & Corte Madera), Marin Scope,
& News Pointer. Look for my weekly Real Estate column called: Liz's Real
Estate Corner. If you would like to receive a copy of this column via email,
please reply back and let me know!
Back to top
§1031 Tax Deferred Exchanges and Home Offices
Liz recently
interviewed Toni Esposti, a Certified Exchange Specialist and is the North Bay
Regional Account Manager from OREXCO (Old Republic Exchange Company).
Q: TONI,
WHAT IS AN IRC §1031 TAX DEFERRED EXCHANGE?
A: A tax
deferred exchange is a wealth building tool. An individual can dispose of an
investment property, use all the equity to leverage into a replacement property
to be held for investment and defer the capital gains tax. There are
requirements and time limitations to be followed to successfully complete a tax
deferred exchange which should be understood before starting the process.
Q: CAN I
EXCHANGE MY PERSONAL RESIDENCE?
A: A
property that is currently being used as a personal residence is not eligible
to be exchanged under IRC § 1031. A property that was previously a personal
residence and later converted to an investment rental could be eligible after
being held as an investment for a period of time. There is no stated time
period in the regulations so it is best to consult with a tax advisor when
trying to determine if a property is eligible.
Q: IF I
HAVE BEEN USING A PART OF MY HOME FOR BUSINESS PURPOSES WOULD THAT PORTION BE
ELIGIBLE FOR AN EXCHANGE?
A: If you
have been using a part of your home as an in home office or other business
purpose and have been writing that portion off on your taxes, it may be
beneficial for you when selling your personal residence, to exchange that
portion that has been used for business into either your new personal residence
if you still intend to use a portion of your home for business purposes or into
another entirely separate investment property. To determine if this would be
to your advantage, you should contact your tax advisor.
Q: HOW CAN
I FIND OUT MORE INFORMATION ON THIS SUBJECT?
A: I would
invite you to call me with any questions you may have or for a copy of our
exchange booklet. You can reach me at 888.677.1031, email me at:
TEsposti@ortc.com or visit our website at www.orexco1031.com.
Back to top
2004 California Housing Market: One for
the Record Books
Here are
some highlights:
·
2004 will be a
record year for home sales, which are projected to increase 3 percent over last
year's record sales figure of 601,800 existing detached homes.
·
2004 will be a
record year for home prices. The median price of a single-family home in California crossed the $400,000 threshold late
in 2003, and will finish the year with an annual median in excess of $450,000,
22 percent higher than the 2003 annual median of $372,700.
·
The percent
increase in the median price of a single-family home increased by double-digits
for the third consecutive year in 2004.
·
C.A.R.'s Unsold
Inventory Index reached a historic monthly low of 1.5 months in April 2004.
·
Time on the
market -- the median number of days it takes to sell a single-family home --
was the third lowest on record at a projected annual average of 29 days,
surpassed only by 2003 at 27 days and 2002's all-time low of 26 days.
·
C.A.R.'s Housing
Affordability Index (HAI) fell to 19 percent in May, the first time the index
has hit the teens since December 1989. Since that time, rapid price
appreciation and marginally lower interest rates have generally offset each
other, keeping the
