MARIN COUNTY
Locally, we may be most familiar with Frank Lloyd Wright’s design of the Marin County Civic Center, but another more surprising work to his credit once stood in the county’s San Anselmo.  It turns out the famed American architect was also reportedly responsible for a pretty special doghouse.

EAST BAY (Alameda and Contra Costa Counties)
A carved redwood relief recently acquired by the Huntington Library, Art Collections, and Botanical Gardens in San Marino, CA once actually had a home here in the Bay Area at a UC Berkeley campus.  The Sargent Johnson piece was misplaced or mishandled, and eventually mistakenly sold for a mere percentage of its current reported value.

SONOMA COUNTY
The Bay Area is home to a number of exciting teams, including the recent near-NFC Champion 49ers and the 2010 World Series Champion San Francisco Giants, but also the hard-playing Sonoma Fog senior softball team.  As the only Sonoma County senior softballers, they are no strangers to traveling for tournament play, but hope to some day soon see more local action.

SAN FRANCISCO
Celebrating 20 years, San Francisco’s Noise Pop kicked off this week, and continues to welcome newcomers along with more-seasoned acts into the music festival lineup.  Historically an indie-rock celebration, the festival is now embracing other creative endeavors — including local food.

NAPA VALLEY
Napa Valley vintners are seeing a growing interest in California wines from Chinese consumers, and greater export demands to Asia overall.  Taking the steps to break into the marketplace, growers are looking at the local scene outside of hotels geared towards Westerners, and introducing California wines to potentially unfamiliar palates.  

(Doghouse image courtesy of marinij.com, Sonoma Fog image courtesy of pressdemocrat.com)

Bernal Heights, a quaint, sunny little neighborhood situated atop a steep hill at the southern edge of the Mission District, is characterized by a throwback feel.  Small markets and cafes share space with fruit stands, barber shops, and community gardens, lending this area the feel of a quiet country village set in the middle of the big city.

The area’s offbeat feel and bohemian charms attract artists and progressives; it’s also a favorite for young families and dog owners, thanks to a plethora of single-family homes with yards. Grassy Precita Park has a great playground, and nearby Bernal Heights Park boasts an off-leash dog area and impressive city views.

Also impressive has been the recent real estate activity. We have been seeing homes getting multiple offers, with several going well above asking. For example, a three-bedroom, three-bath home recently came on the market at $1,195,000 and sold for $1,440,000 a scant 11 days later.

It’s a dramatic change from last year. Inventory is still light, but the demand is high. And based on the competition for available homes that we’re seeing, we’d say it’s gaining strength.

Market conditions indicate that in the past three months, sales prices are significantly up (the average today is $720,960) while the number of properties listed in Bernal Heights is sharply down, as is the number of days on the market — supply and demand in action.

If you’re thinking about buying a new home, it’s worth checking out this hidden gem in San Francisco. And if you’re thinking of selling a Bernal Heights home, you’ll likely find a warm reception.

(image of Bernal Heights courtesy Stephen Sommerhalter)

If you’re considering purchasing a home in the Bay Area, you’re probably hearing plenty about limited inventory, multiple offers, price increases, and other economic news that sounds good for sellers but not so great for buyers.

But we can give you one huge reason to buy now anyway: $100,000 in extra purchasing power.

Our partners at Mortgage Services Professionals point out that today’s historically low interest rates allow you to take a mulligan on any increase in prices — and purchase a home at a higher price while keeping your monthly outlay very similar.

Here’s how that works. Let’s assume you are ready to buy a home and these are your criteria:

• You’re getting a 30-year, fixed-rate mortgage
• You’re planning to put 20 percent down
• You’d like to end up with a monthly mortgage payment of about $3,600

Assuming an interest rate of 4.5 percent, you could purchase a $900,000 home.

But if you wait until rates creep up even 1 percent, the best you’ll be able to do is purchase an $800,000 property.

Take a look at the math:

In other words, taking advantage of today’s interest rates will allow you to have an extra $100,000 in purchasing power.

You don’t need to look back at the opportunities of 2011 and feel like you’ve missed the boat. To the contrary, the buyer who acts now can become the captain of his real-estate destiny!

(image courtesy of woodleywonderworks via Flickr)

SONOMA COUNTY
Even animals aren’t exempt! The tenants at Lovepatch Farms, a Penngrove miniature horse farm, are facing evictionin the coming months as the property owners find themselves in a position to sell. Lovepatch farms houses over 40 horses, which must be quite a financial handful to begin with, and even more so in tough economic times.

SAN FRANCISCO
This week, San Francisco was visited by our Commander in Chief.  President Obama’s time here included both applause and some heckling, speaking to a sold out crowd at the Masonic Center in the city’s Nob Hill neighborhood, fundraising events, and even some takeout in Chinatown.

EAST BAY (Alameda and Contra Costa Counties)
The Westbound lanes on the Bay Bridge will be closed for President’s Day Weekend from 8 p.m. to 5 a.m. Tuesday.  During the closure, construction crews will aim to complete lane configuration that will include new lane markings.  To help compensate for the increase in traffic, other Bay Area bridges are to open additional toll lanes, and both BART and ferries will increase service.

MARIN COUNTY
A new feature with a European flair is popping up in homes around Marin County. Literally digging into their homes to excavate culinary caves, homeowners are creating a space to store fruit, age cheese, cure meats, and more. Promoting style and sustainability, this blank palate pantry of sorts is taking caves from a thing of the past into the present.

NAPA VALLEY
Even with the economic squeeze, the demand for premium living in Napa Valley is there – and so are the properties.  Although the market for that kind of luxury is small, the appeal is large with idyllic surroundings and remarkable amenities.  PUI’s own Jane Garrasino and Avram Goldman weigh in.

(Miniature horse image courtesy of PressDemocrat.com, cave image courtesy of SFGate.com)

The percent of homes in contract clearly rose in the East Bay, Marin, and San Francisco, with the latter two reaching the highest they’ve been in at least a couple of years.

California’s wine country is still doing well, with Sonoma continuing an active trend in the market priced under $1 million with over half of those homes in contract.  And in Napa, not only was the most-active trend in the under-$1 million price range, but an incredible 90 percent of the homes in the $100,001 – $500,000 range were in contract.

Finally, in Contra Costa,  Lamorinda showed the number of units sold rising, while in Alamo/Blackhawk/Danville the number of units sold is holding pretty steady, and in both areas the median price of units sold is down.

Overall, if we consider over 35% in contract indicative of a sellers’ market, under 25% indicative of a buyers’ market, and 25%-35% a balanced market: Marin (42%), Napa (45%), and Sonoma (53%) each seemed to be in the midst of a sellers’ market.  Meanwhile San Francisco (28.78%) and East Bay (29%) markets appear balanced.

For more details, view the complete January 2012 reports from each region below.

East Bay Market Update

Marin County Market Update

San Francisco Market Update

Sonoma Market Update

Napa Valley Market Update

Contra Costa County Market Update

(figures as of January 31,2012)

It’s a great time for sellers to join the party. While this may not be the “perfect storm” we’re all waiting for, which would include accelerating appreciation, there is an opportunity now to take advantage of our current market – the likes of which we haven’t seen since before 2005.

Consider this: In all six counties served by PUI, listing inventory is significantly down compared to six months ago – but by contrast, properties under contract are growing at accelerating and exciting rates. Just take a look at these numbers (click on the county name to get more detailed market condition information from our Bay Area counties):

Many of our listings are receiving multiple offers, tight terms, ultra-competitive closing timelines, pre-approved mortgage commitments with rates at 4.0 to  4.5 percent, and an ample supply of “all cash” transactions.

Buyers are more confident than we have seen in the past 20 months and the Bay Area economic forecast and job markets seem stable, if not downright encouraging.

If you’re thinking about selling, the time is ripe to dip your toe back into the market. Come on in – the water feels fine!

(Photo courtesy of Tom Hilton via Flickr)

Welcome to the world of the dynamic comparative market analysis, or DCMA for short — sometimes also called a digital comparative market analysis. Pacific Union is pioneering its use and finding that clients are thrilled with the immediacy, control, and insight the DCMA offers.

The DCMA is a digitally generated companion to a traditional comparative market analysis created by a PUI real estate professional. This powerful tool, which allows a client to keep tabs on the most current market activity around his home, is housed on a dedicated web space and is updated automatically every night by the MLS.

Four tabs allow clients to view homes in the area; their own home’s value; their estimated proceeds; and market conditions. The “Homes in Your Area” tab can be customized to show just a map with icons, or a listing of property details alongside the map that includes addresses, bedrooms and bathrooms, square footage, and list prices. A client can click on any of those properties to get full information.

The DCMA automatically calculates a market-value range for a client home based on the price-per-square-foot of comparable properties. For the client, it’s easy to fine-tune the analysis — it’s a matter of a simple click to remove a comparable property from the mix. So if you don’t think that fixer-upper down the road is a fair comparison to your home, you don’t need to factor it into the valuation.

“It’s incredibly helpful if someone is starting to think about selling or refinancing, or needs to check data for a property tax reassessment request,” says a Pacific Union branch executive. “It’s an easy way to watch value change right in front of your eyes.”

Want to learn more — or get a DCMA of your own? Contact your neighborhood Pacific Union International office or find a Pacific Union agent.

Currently, a selection of Robert Moore sculptures are showcased at the home’s entry, entertainment deck, and by the pool.  The home is also outfitted with a 12-foot glass and bronze water wall that is a collaboration of two local artists — water wall artist Archie Held and Oakland-based architectural glass artist Dorothy Lenehan.

Architectural elegance is not all this home has to offer:

• 5 bedrooms plus office
• 4.5 bathrooms
• panoramic views
• pool and tennis court
• 1000 vine Petite Sirah & Zinfandel vineyard

See additional property details and photos of 1223 Upper Happy Valley Road

(Sale of Moore sculptures negotiable)

BAY AREA
How sweet it is!  Early this year, Food & Wine announced the addition of the Best New Pastry Chef category to their annual honors of the hottest fresh talent.  The Bay Area is well represented by a number of chefs nominated to the People’s Best New Pastry Chef competition.  Best of luck to our local talent!

NAPA
Eighteen wineries, most asking for reservations, and none large enough for tour buses.  Coombsville, Napa Valley’s newest American Viticultural Area (AVA), stands out of the crowd with a fresh friendliness, bucolic location, and some bold red wines.

CONTRA COSTA
Contra Costa County landowners will be soon be seeing a ballot for a new annual parcel fee of  $12 to $22 dedicated to improving storm water pollution issue.

MARIN
A San Rafael woman’s necklace is returned after having a wet and wild adventure.  The sentimental piece was accidentally flushed down the toilet — but was found and returned by the Marin Sanitation Agency four months later.

SAN FRANCISCO
San Francisco shares the highest rank in the U.S. – for the costliest parking meter fines!  The City by the Bay is also near the top of the charts as the home of the third-highest hourly parking rates.

ALAMEDA
Oakland’s Sunset House has withstood a number of eras, but is feeling the effects of the economy in spite of its Mills Act distinction.  Friends of the homeowner have organized a fundraiser this Sunday, Feb. 12 with the proceeds going towards maintaining the ownership.

SONOMA
Set to kick off this fall, the inaugural season of The Santa Rosa Symphony represents years’ worth of fund-raising, building, and debate. Performances are to include commissioned compositions and a new Family Concert Series.

 (Chef image courtesy of sf.eater.com; symphony image courtesy of pressdemocrat.com)

The big news this week was the $26 billion mortgage settlement, in which five banks (Wells Fargo, Bank of America, Ally, Citi, and JPMorgan Chase) came to a deal with state and federal authorities to give relief to millions of homeowners.

It’s news that’s likely to spur plenty of conversation and debate, especially from people who are considering buying or selling property or who are in that unfortunate majority – the underwater owners who are current on their payments but stuck with a house worth less than what they owe on it.

Here’s what you need to know.

What Is This Settlement?
It’s the culmination of a long series of legal actions by government authorities to hold banks accountable for a variety of mortgage-related concerns, including faulty foreclosures, so-called “robo signings,” and paperwork snafus.

The settlement provides for financial relief for American harmed by these practices in return for securing guarantees to the banks involved that they wouldn’t face lawsuits from federal agencies and 49 state attorneys general (Oklahoma was the sole holdout in the agreement).

According to the New York Times, the bulk of the settlement would go to one million American homeowners who would have their mortgage debts reduced or their loans refinanced at a lower interest rate. It also includes $1.5 billion for roughly 750,000 people who lost their homes to foreclosure between 2008 and 2011, with each receiving between $1,500 and $2,000.

But about half of residential mortgage holders will be left out of the equation because their loans are owned by the government’s housing finance agencies, Fannie Mae and Freddie Mac, and are not covered under the deal.

There’s a lot yet to be ironed out about the settlement, and scant information to be found on the official website set up to answer questions (www.nationalmortgagesettlement.com).  But here’s a summary of what we know so far.

Who Will Get the Money?
There are three main categories of people who’ll benefit from the agreement, either with direct financial assistance or with the opportunity to rework or refinance loans:

• Underwater homeowners, who are current on payments but owe more than their homes are worth, may
be able to refinance older, high-rate loans at the current, rock-bottom rates
• Delinquent borrowers or those at risk of defaulting may get a reduction in loan principal or other modifications
• Borrowers who lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2011, will receive
cash payments of around $2,000

Unemployed borrowers and those in the military may also receive assistance.

How Will California Benefit?
California stands to receive at least $12 billion and up to $18 billion in the settlement, a reflection of the disproportionate number of loans that are delinquent or exceed the value of the underlying property here.

Attorney General Kamala D. Harris obtained separate, enforceable guarantees to ensure that banks will be accountable for their commitments to California. These guarantees also create  important incentives to ensure that banks will reduce the principal mortgage balance of underwater homeowners in California’s hardest-hit counties and that the principal reductions in these communities will occur within the first year of the settlement.

In our area, the counties who took the brunt of the hit were Contra Costa, Napa, and Sonoma. Regionally, Solano, San Joaquin, Santa Clara, Sacramento, and Stanislaus – the ill-fated “S” counties – were pummeled.

Specifically for California, here’s how these guarantees look today, according to the Central Valley Business Times:

Who Isn’t Eligible?
Anyone whose loans are held outside the five banks listed above. If Fannie Mae or Freddie Mac, a private investor, or a bank not included in the settlement holds a homeowner’s loan, he’s not eligible for relief from this deal.

When Will This Happen?
Probably not in the immediate future, and you won’t know if you’re eligible for a while either. The servicers who are part of the settlement will be working over the next six to nine months to determine which borrowers are eligible for relief; the settlement rules require payments and relief to happen sometime within the next three years, although the banks have incentives to do it earlier.

What does the mortgage settlement mean for the market?
That is a bigger question, and the jury is still out. I plan to blog about this question, as well as what might happen to people who hold mortgages above $750,000, next week – so stay tuned!

Mark A. McLaughlin is Chief Executive Officer of Pacific Union International, Inc.

(Image courtesy of AGBeat)