In the Know with Kevin + Jonathan, September Selling Season Starts! Sept. 6-7, 2014 Ed., No. 36
And We’re Back!
The fall selling season is here. It’s time to get back into it if you’ve given up as there are properties for everyone.
The market is at an interesting point right now: It’s in a weird place because we have no inventory but yet inventory is starting to build up as time moves on. This makes the stories we hear (and the ones you read below) are instructive as to where we’re going — at least until we have more of a regular market. And yes, we’ve said this for a couple of years now, but nevertheless!
Anyway, last week was one where many buyers got properties at, or very near list price in many cases according to the Stories of the Week that you’ll see below. Of course, feel free to ask us details about what you read here as there’s usually much more detail and context that we can share.
147 — One Hundred Forty-Seven new listings came on for this weekend! And with that, the Fall selling season has begun. After our end-of-August slowdown it’s time to get back to business. Compared to last week’s paltry 36 this is huge. But even compared to weeks where we see surges (post-Memorial Day, post-4th of July) this weekend’s surge looks more substantial. For skeptics out there worried about a bubble figures reported in this week’s SF Business Times show that the region is now employing more people than in 2000 for an all-time high. And unlike previous employment cycles it appears that the job is being added range in a variety of industries apart from technology including healthcare, education, retail and, of course, real estate. The region’s unemployment rate now averages 4.5% some employers, hiring at least 50 people a month. Think about those 50 people not as new employees but as folk who need a place to live….
No on G! No on G! Why you need to be concerned about an unabated 25% potential transfer tax in San Francisco
A couple of weeks ago we mentioned Proposition G and why you should vote to stop this non-sensical transfer tax increase that could possibly lead to an additional 24% tax on a property’s entire sale price if sold within the first 5 years of ownership — would this reach back to transactions that have changed hands in the last 5 years?
The proposed law itself is unclear. No one knows where the money will go. Also unclear is that the law is intended to cover buildings with 2 to 29 units — including the 40,000-50,000 single-family homes with in-law units. It’s unclear if you need to rent the units out or not but if the law passes one unintended consequence is that owners of these homes with in-law units may well remove those units from the rental pool to avoid the onerous tax. Also unclear is if the law’s exemption for an owner’s continuous occupancy of 12 consecutive months is voided if the owner moves out before a transaction close, which is what most people do given renovations, staging and open houses. Also unclear is whether TIC developments would be covered by the law. So many questions without answers means the proposed law is deeply troubling at minimum and reckless at worst. Apart from Voting No on G this fall, tell your friends and learn more at No on G’s website.