Jeffrey Tung's Real Estate Blog

With all the talk about more foreclosures and short sales coming in record numbers, you might have thought about buying a home instead of renting. There are a few things to consider when you do make the purchase. Although home ownership offers a lot of benefits, (i.e. tax shelter, appreciation, etc.), it may not be a good time for you now.  

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Last month San Francisco’s sales price for median priced homes have increased by 11.6% from the same month the previous year. During the month, 188 single family homes were sold and 284 homes were pending. This is an increase of 27% in sales from April 2009 and 33% increase in pending properties during the same period. This is a good sign that we might be on the right track to recovery. Property values are better but they still have a long way to what they were a few years ago. This is still a good time to buy something. Prices are still very attractive, however some prices in some areas are so attractive that it is generating multiple offer situations.

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Where did the year go!!!! The holidays are just around the corner and it’s time to look back and think about next year. This year has been better then last year in terms of the market. Property values have gone down so low that it has spurred a lot of buyers to purchase instead of renting. Some areas have decreased in price to what it use to be 10 years ago. The market seems to be stabilizing and the government is trying a bunch of stuff to help.  

Our government is trying to assist more homeowners that are facing foreclosure with senate bill S1731 . The bill’s intent is to force the lenders to do a loan modification analysis on loans that are in trouble or going to be in trouble, to see if it is possible to lower their payments. By keeping people in their homes and not going into foreclosure, property values should not decline and will help hold the prices up for the area. If more foreclosures hit the market place, it would drag all of the other homes for sale in the area down.

 The real estate market is still not fully recovered but there are positive signs that we are at the bottom and maybe moving up. The prices of homes fell so much that it is tempting many renters to buy a home instead of renting. The monthly payments might be the same especially when you include your tax savings. Rates are still affordable and there are many homes to choose from. The only problem we have is that many of these homes have gone down so far in price that it is creating a buying frenzy. Many of the homes that are less then $400k are getting multiple offers. Be patient because there is talk that more REO’s and Short Sales are going to hit the market next year.

San Francisco is experiencing  an increase of sales prices for median priced single family homes.  The prices rose about 3% between June and July of this year for the 4th consecutive month.  The Median sales price is $785,000. The inventory is lower and there are 644 active listings for sale. And it takes less time, about 46 days, to sell the home.  This is due to the availability of  low interest rate loans consumer confidence and the reduction in prices.

For more information, click on the links below.

http://www.sfrealtors.com/pdf/realtor_advantage/Revised_Press_Release_August.pdf

http://www.sfrealtors.com/pdf/realtor_advantage/Revised_Market_Focus_August2009.pdf

Summer is almost over and I hope you’re enjoying the season. 

 The worst recession in 70 yeas is also showing signs of being over too. The Commerce Dept. reported that the economy shrank at an annualized rate of 1% which is better then the 6.4% shrinkage in the first quarter of this year. Economist think the economy is poised for growth, but slowly. You can read more of the state of the economy by clicking this link: http://rismedia.com/2009-08-03/signs-of-life-slower-decline-may-signal-recessions-end/.