Nobody Left California in 2007, Either.

Last year I wrote on the United Van Lines 2006 report, which stated that there was little to no change in California’s population. United Van Lines, the largest household moving company in the United States, released its 2007 annual report on US Migration earlier this month. California's statistics for 2007 came out the same.

The company report on moves across the nation in 2007 stated that North Carolina was the top state for inbound residents for the second year in a row. Nevada also kept its second place slot. The top states for inbound traffic were in the South and the West, the company reports, including Alabama, South Carolina, West Virginia, Oregon, Arizona and Wyoming. Biggest population loser? Detroit, Michigan.

California saw its lowest annual exodus of residents for the 5th straight year. Considering the recent mortgage crisis, record sales declines, and high foreclosure rates in various communities throughout the state, it seems that quite a few people are still staying put.

Interestingly, today the San Francisco Chronicle also released details from the Census Bureau’s 2007 report on how Americans have moved, and noted that Texas (Houston, Dallas, Austin & San Antonio) and Georgia (Atlanta) were the top two states for incoming residents. Both the Chron and United Vanlines reports confirmed that the Southern and Western regions saw the biggest jump in population.

And a bright note… also coming from both reports: New Orleans saw its first year of increased inbound migration since Hurricane Katrina.

Are you ready to buy or sell your home? Contact me today.
Amy Blakeley, REALTOR®
McGuire Real Estate
www.AmyBlakeley.com
ablakeley at mcguire.com

Esprit Park Model Homes Now Open

Esprit Park will unveil 4 model homes this Thursday, March 20th, beginning at 12 PM. Two of models will be in the South Court, which combines new construction with preserved brick and timber architectual details. The other two models will be North Court units, which are entirely new construction.

One bedroom units at Esprit Park range from the low $600,000's - $900,000's; two bedroom units range from the mid $900,000's - $1,500,000.


Are you ready to buy or sell your home? Contact me today.
Amy Blakeley, REALTOR®
McGuire Real Estate
www.AmyBlakeley.com
ablakeley at mcguire.com

Many New Developments Now Offering Incentives

Many new developments are currently offering incentives:

Mission Valencia has lowered prices, and is offering up to 6 months prepaid mortgage as well as 2 years of paid HOA
The Arterra is offering 4.125% financing to qualified buyers who purchase units starting at $700,000 and up
The Hayes is offering 4 months prepaid mortgage plus a 1 point buydown on interest rates
Esprit Park has lowered prices, with 1 bedrooms starting at just $595,000, and are now accepting 100% refundable deposits ($3000) on reservations
The Portrero is offering up to 6 months prepaid mortgage as well as 2 years of paid HOA on 1 bedroom units
733 Front Street is still offering a free Moped (!), along with 2 years paid parking in a nearby lot for units that don't included parking within the building.

For more information on these developments or any other San Francisco developments, please contact me.

Amy Blakeley, REALTOR®
Ablakeleyatmcguire.com
(415)296-2173 Direct
www.AmyBlakeley.com

Esprit Park Promises to Impress for Less

McGuire Real Estate agents received an impressive sneak peak of Esprit Park and considerable details on design & finishes, building amenities, completion/occupancy dates and more. The project rivals most of the newer condo projects in SoMa/Mission Bay, and has a much sweeter price per square foot.

Located in the up and coming Dogpatch neighborhood, Esprit Park will consist of 142 units in 25 different floor plans, including 14 2-level penthouse townhouses with rooftop terraces. Almost 85% of the units will have some outdoor space in the form of a balcony, terrace or roof deck. The completed units will have any one of three pre-chosen design palettes, all of which are modern, sophisticated and calming. Kitchens are finished out with fantastic appliances: Liebherr side-by-side stainless refrigerators and Bertazzoni stainless gas ranges. Prices from the mid-$600’s to $1.5M+ with surprisingly low HOA (mid-$300’s to the high $400’s).

The Sales Office is slated to open the end of this month. Buyers interested in Esprit Park should contact me immediately for more information and an exclusive opportunity to get in prior to the opening of the sales office.

Buying Property in SoMa

San Francisco buyers who are tired of battling through the endless tide of multiple offer properties might consider buying in the South of Market area. Although the neighborhood may not appeal to everyone, the opportunity to buy sans competition may just be worth it.

With a number of developments with available units, and even more developments on the way, SoMa, more than any other area in San Francisco, is a location where buyers can actually walk away paying asking price for a property. Additionally, although I occasionally question the price per square foot projections for some projects, SoMa’s long-time residents have developed a solid community; they are not only defining what type of retail dynamics will be coming to the neighborhood, but they are accelerating how quickly the retail is coming in. Seeing this type of positive hyper-movement makes me more comfortable with future appreciation for SoMa properties.

Many purchasers of SoMa properties, I have discovered, simply enter the Sales Offices, review a model or two and floor plans, and proceed to write an offer with the sales team. What these buyers often fail to realize is that Sales Offices for developments are agents for the seller. The tragedy is that, without proper buyer representation by a knowledgeable Realtor®, they are quite often leaving money, or developer concessions, on the table.

Here is some helpful advice on how to purchase in SoMa:
1. Use your own real estate agent;
2. Shop multiple buildings and make sure you and your agent walk out with financing sheets and priced floor plans for units you are interested in;
3. Let the sales office know you are doing this;
4. Make sure you purchase parking if it is not included in the sale;
5. Ask for seller concessions or you have little chance of getting them.

Have more questions about the San Francisco real estate market? Ready to buy or sell your home? Contact me today for honest, experienced answers.

Amy Blakeley, Realtor®
McGuire Real Estate
(415)296-2173 Direct
Ablakeley at mcguire.com
www.AmyBlakeley.com

KRON 4 Reports on the Complexity of the Bay Area Real Real Estate Market

Maureen Kelly of San Francisco's KRON4 News came across my recent post regarding demand in the luxury real estate market. Intrigued, she did some additional research, and shortly thereafter, did this segment on the evening news, which gives great case-in-point examples of a demand-driven real estate market.



Thank you for persmission to embed the video, Maureen.

A Question From a Reader - Fractional TIC Financing

A lot of readers come to my blog looking for information about TICs (Tenancy-in-Commons). One reader asks:

Q: I am a Mortgage Broker from Los Angeles and [I have] a client who asked me about purchasing an individual unit in a building that is being converted into a TIC property... having never heard of a residential TIC property, I did my research today and found your name on an article about Sterling Bank & Trust and their entrée into the individual lending on TIC properties. The property in question is in Santa Monica, CA where Coop’s and condo conversions are the norm and where apparently there are only 2 of these TIC properties either being built or in the process of conversion too – My question can you forward me any additional info on TIC’s and do you have a contact at Sterling that I might call and get loan info from?

A: Thanks for your inquiry. First off, there are 2 ways to purchase a TIC. One is in the traditional TIC way, is in which all buyers purchase a percentage interest in the property that adds up to the total of the purchase price TOGETHER. This is the most common way. So, if there are 4 units, each buyer is purchasing a percentage of the whole building, and each is doled out a “unit” which represents his or her percentage, all on one loan together. This is risky, as if one person defaults on his or her portion, all of the others have still have to pay the entire come up with the entire mortgage. The second risk in TIC ownership is that local and state changes in legislation can be put into place which directly affect ownership rights (in San Francisco, for example, TICs groups can enter into a city lottery to convert to condominiums, but the city can change the rules and upset the balance at any time). Also, no one owns a unit separately – so they don’t have the same rights as condominium owners do (which is why the impact of legislative changes makes this a rather volatile sector of real estate).

Individual TIC financing, (known as fractional TIC financing) is a relatively new financing tool that was born from the above noted risks in attempt to minimize the volatility of owning property as a TIC. A few banks, such as Sterling, have come up with a way to allow TIC purchasers to each have SEPARATE loans for each unit, which act much like loans for condominiums. Since the risk is higher for the bank, because it cannot leverage the entire building in case of a default, these loans tend to be at a higher interest rate, need better credit scores to obtain, and ultimately require a high down payment (20-25%), which historically has created a barrier for some people in purchasing units in this fashion. Additionally, fractional TICs must be in place for every unit in the building; your buyer cannot just decide that she, outside of everyone else, will have her own, individual financing, while everyone else is on a loan for the remainder of the building.

I just last week received a notice from Sterling Bank & Trust that announced they can now offer fractional TIC financing which would only require 10% down, which may make fractional financing a more viable route to affordable housing. The phone number listed on the announcement is (415)970-9889. If you would like to learn more information about TICs, Attorney Andy Sirkin has a great website that addresses the most frequently asked questions. Good luck!

Are you ready to buy or sell your home? Contact me today.
Amy Blakeley, REALTOR®
McGuire Real Estate
http://www.amyblakeley.com/
ablakeley at mcguire.com