If Good News Is Boring, Prepare to be Bored.

Welcome to the fourth quarter of 2009. It was just one year ago that the sky started to fall as most investment banks and the stock market sank like snitches wearing cement footwear in the bay. It was a scary time. The first few quarters of 2009 didn't make people feel any better with job losses mounting, foreclosures rising and no end in sight to the federal bailout-palooza.

That was the bad news. The good news ? Here we are, one year later and... things seem to have stabilized. Although employment numbers in the Bay Area could be better, we haven't seen the massive job losses other regions have endured.
Why ? San Francisco and the Bay Area have a diverse employment base. Tourism, finance, software, technology, government, and bio-tech have all helped the region weather the storm. People continue to move to San Francisco for jobs. Evidence ? The new rental complex Strata in Mission Bay is fully leased after three months of marketing. Most tenants are transferees.

But what about real estate ? San Francisco has seen some values slide a bit. The first six months of the year, buyers and sellers were trying to get a grip on where the floor was for prices in all city districts. As Spring turned to summer, Downtown buyers found comfort in where pricing had landed and came out in droves. With the lending climate thawing, it was a perfect storm and developments like The Infinity and The Hayes booked record numbers. As I mentioned in this space before, we did not see that high a rate of absorption even at the height of the boom.

Another sign of stability: Multiple offers. If the price is right and value is obvious, properties are garnering multiples. This isn't true for all property types, but does prove that there are plenty of buyers out there that are qualified and ready to purchase. Example: A single family home in Eureka Valley was priced aggressively two weeks ago when it went on the market as a short sale with a lender approved list price. It went into contract over asking with 14 offers.

Cheers to a peaceful September and have a great Labor Day.

Questions about the current value of your property or what your dollar will buy you Downtown ? Let me help.