San Francisco Real Estate Market saw the usual year end slowdown as buyers and sellers turned their attention to the holidays, family and friends, and last minute shopping.

Yet there were pockets of activity where focused buyers competed for limited inventory, determined to wrap up transactions before 2011 ended.  

As throughout the year, well priced properties continued to sell in the first  30 days on the market evidenced by  mulitple offers with Buyers offering the asking price or more to purchase.  

One interesting observation that occurred towards the end of 2011 was that many properties that had been on the market for a very long time are now sold … which speaks to the diminishing inventory and the pent up demand to buy in the city.  

For the astute Buyer: What hadn’t sold in 2011 and was taken off the market during the Holidays, tends to sell in January and February while still off the market…our so called “hidden market”.  Call me so as not to miss out.

Generation X – young families and adults ages 31 to 45 are likely to lead the home buying recovery as they are in full force with their careers; they see the benefits of homeownership and they need  room to accommodate their growing families.

Baby Boomers comprise of 41% of our prospective Buyers today – buying their “essence of San Francisco” (i.e. second home) and/or downsizing to smaller homes in other neighborhoods within their city.

“It’s hard to see the possibility of losing on a home purchase right now, with these low mortgage rates”, quote from a Dean Baker of Businessweek 10/24/11.

Yet, it is worth knowing what the coveted 2000 block of Jefferson has been touting for decades…and that is, there is another island in the Marina District of San Francisco.

Over the years, these neighbors have shared and accumulated?documentation showing that they are living on top of an?”ancient island” that was mapped as early as?1789,? just off of?”Wash Woman Cove”.

These neighbors know the “ancient island” as “Strawberry Island” surrounded by an estuary to the West and South West and the Bay to the North and North East?extending over portions of 10 blocks in the?Marina.?

The National Geologic Map Data Base for the Marina also shows “Strawberry Island” as “Qb” made up of coarse gravel and large cobble stones.

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This little bit of Marina trival is worth?knowing, if you live on “Strawberry Island”.

On the Northside of San Francisco the median asking price for Condos?is now $1,095,000 and for Homes, it is now?$3,495,000.

For stellar buyers that have been eyeing?prime located Condos and/or Homes in “done” condition?on the Northside of San Francisco, they are?now able to take full advantage of? a “jumbo conforming” loan (up to) $729,750 at an?attractive rate below 5% that the Fannie Mae & Freddie Mac “conforming” loans (up to $417,000)?have been touting?for some time now this year.

Under Fannie Mae & Freddie Mac guidelines on the Northside of San Francisco:

29 Condos out of 179 Condos on the market have asking prices of $556,000 or less. Buyers for these 29 Condos are able to take full advantage of the lowest interest rates with 25% down payment and the “conforming” loan amount of $417,000.

An additional 52 Condos out of 179 Condos on the market have asking prices between $556,000 and $973,000.? Buyers for these 52 Condos are?able to take?full advantage of the lowest interest rates with 25% down payment and the?”jumbo conforming” loan of $719,750.

There is only one home out of 64 homes on the market is?asking price below $912,000 for Buyers to?take full advantage of the lowest interest rates with 20% down payment using the “jumbo conforming” loan amount of $719,750.

With the new appraisal rules, appraisers will be an “arms-distance” from the lender and a “done” condition will be a Seller’s best defense in getting an accepted offer closed.

Listen to this video?(below) to understand that multiple buyers in San Francisco are?no longer waiting to?get ready?and now are taking action.?

Real Estate Rebound Video from CBS5.com

Only one lucky Buyer bought each of these homes…leaving all these other Buyers still wanting to buy and ready to buy.

With this upsurge of 1st time Buyers’ demand in San Francisco, now is the time to do your homework,?get qualified, and be ready to?get what you want.

The tide is changing in San Francisco, the sun is coming out, spring is in the air…get going!

Historically speaking the affordability standard?has never?changed over the years for 1st time Buyers.?

What did change is those Buyers with no money (that bought in recent years) had a short time view on a long term investment.

Affordability?has always been reflected in?a comfortable monthly mortgage payment with?an initial cash investment into the property (i.e. down payment) and the peace of mind of?an interest rate?that is within one’s means now and for?the long term.

Today’s 1st time Buyers have a lot more going for them by getting off the fence?with lower interest rates, the federal government paying them to buy before 12/01/09 with a $8,000 tax credit,?and affordable prices.??

…even if you do the numbers?to check out price per square feet, days on the market/when properties came on the? market, original price?/current price, built date, …etc. etc. etc.??

This is not an ordinary market on the Northside of San Francisco. And Buyers that are really seriously looking to buy and do not have an agent yet…need an “experienced” agent?early on.

At my Open Houses now, I have set up an easel to show 1st time Buyers the opportunities they are not recognizing for themselves.

Cutting through the numbers on a spreadsheet and visiting open houses is worth the time in recognizing this rare moment in time for 1st time Buyers on the Northside of San Francisco.

Yet,?there are actually 3 markets for one bedroom condos on?the North side of the city…

… and without recognizing these 3 markets, one will not to?see the “real values” of buying in?the one bedroom condo market?on the Northside of San Francisco.

Market One – New construction with & without parking located on the edges of the Northside of San Francisco.?

Market Two – Condos without parking or with only leased parking available are generally considered the lower end of the market.

Market Three- Condos with parking (deeded) that is included in the price of the condo?tend to have the highest resale value of all three markets.

Recognizing the?”real value” of?each of these one bedroom markets is important and more important is, “What do you want that you don’t have now?”

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…the weather has been overcast or rainy and yet Buyers are out there looking and they are not just coming in from?my open house?signs scattered along the four neighborhood commerical areas.

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Buyers?are wondering?whether to wait or to buy now.?

And I have had to ask…waiting for what?

Waiting for a bargain? vs. finding a home on the North side of the city?now???

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Waiting for where?the market?bottoms out vs.?investing in?”Location, Location, Location” in?our great city?

Note that property values are holding their own – see circled neighborhood?areas on map above and below.

Waiting for prices to rise vs. finding the value of a home now?

Waiting for multiple offers again vs. writing an offer without the competition now?

Waiting for the interest rates to rise?vs. getting tax deductions now??

Waiting until it is too late to meet the deadline?to use the?1st time Buyer’s stimulus tax credit package vs. taking advantage of?this $8,000 one-time incentive now?

When is waiting better, if you can get what you want now?

And if? “to be smart” is to be “everyone” that won’t do what it takes to get what they want until “everyone else” is?getting it….than again smart they are.

The?”smart” time to buy?would be?when there are historically low interest rates?coupled with a Buyers’ market in San Francisco…and “everyone”? thought?that will never happen in their life time.

The opportunity to?own apart of?San Francisco is right here and now for those that are “just smart”!?

Follow the signs…

?So selling homes in San Francisco during the winter may be considered as the perfect time of year?to test if the roof is currently leaking or not by looking for the?tell tale signs of discoloration on the ceiling, around skylights and windows.??Inherently?a ??œgood??? roof can leak if the gutters, scuppers, and downspouts are clogged and water finds its way in.???I like to?remind Sellers that prudent Buyers will?locate those areas on the exterior before walking into an Open House.?? As the?agent holding the Open House (and especially if it is raining), I?customarily have the?San Francisco Sellers???? Disclosures out in plain view for Buyers to review.? ?

I?highlight the?six questions in the disclosures asking the?Seller to disclose his knowledge of any present or past water inclusion; even leaks have been repaired and/or stopped.? Below are two of the six questions about?water inclusion:???? ??