We hope your new year is off to a great start and that you have taken some time to think about your real estate goals for the year. Despite the softening in the growth of home prices, it’s still a seller’s market in virtually every neighborhood! Locally, we are seeing a dramatic pick-up in buyer activity and some remarkable properties are coming into the market as the Spring selling season kicks into gear – statistically the best time to be a seller over the last 5 years.
From an investment perspective, it is not surprising that homeowners across the U.S. are seeing an average of 34% return on investment compared to the original purchase price.
Sellers in San Francisco, however, have experienced the highest returns in the country for the second consecutive year with a 72.8% cumulative return based on original purchase price– more than double the national average (data from Inman)!!
A new year also brings new laws for 2020, a summary of which you can see below. We also include a macro update on Bay Area home trends and some of our recent activity!
As always, we hope you will think of us next time you or someone you know is considering selling or buying.
Dale + Alla
A few laws passed by the California Legislature that may affect you (CAR):
IRS finalizes 20% qualified business income deduction: 250 hour a year safe harbor for rental real estate owners
Individuals or entities who own rental real estate directly or through a disregarded entity may treat it as a “business” for purposes of the QBI deduction. “Management of the real estate” is considered a “rental activity.”
FHA spot approvals for individual condo units
FHA Allows approvals for Individual Condo Units even if the condominium project is not FHA approved. As a result of this new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
1031 exchanges partially conforms with federal law
California tax law is now partially conformed to federal tax law limiting 1031 exchanges to exclude recognition of gain or loss for real property only. For most individuals, however, California will continue to extend non-recognition of gain or loss for exchanges of both real and personal property.
Due to January being the lowest sales month of the year, and its sales mostly reflecting deals made during the December holiday doldrums, its statistics are typically unreliable for assessing meaningful market conditions or trends.
This month, we have included a Bay Area survey as it covers macro-angles on the market that are important to be aware of on a bi-annual basis.
Fantastic English Tudor view Single Family Home nestled in the heart of Old Miraloma Park
Panoramic-view Golden Gate Heights flat
1 Bed | 1 Bath | Parking | View Deck | Shared Garden
Traditional detached Single Family Home w/ Ocean views
2+ Bed | 2 Bath | Great Floor Plan | View Deck | Yard
Top-floor renovated Noe Valley Edwardian Condo w/ gorgeous period details
3 Bed | 2 Bath | 1,500+ SQFT | Parking | Laundry
Call for more info! 415.845.5614.
A unique opportunity to own one of the 40 spectacular 1 and 2 bedroom owners residences on Blue World Voyages, the world’s first cruise line fully dedicated to sports and wellness.
Call for more info! 415.845.5614.
Gorgeous Remodeled Top Floor Condo
Convenient and Stylish Noe Valley Flat
Sold for $1,635,000!
Beautiful and Bright Glen Park Home
Sold off-market for $1,350,000!
Remodeled Mission Dolores Oasis
Sold for $1,125,000! All Cash | 10 Day Close
Stunning Pacific Heights Condo | Buyer Represented
Sold for $2,300,000!
Renovated Ocean-View Home | Buyer Represented
Sold for $1,670,000!
Stunning Cow Hollow Full-Floor Residence
Disney FREE Art Event
Friday, February 21st 6-9 pm
Saturday February 22nd 12-6 pm
Sunday February 23rd 12 – 5 pm
Palace Hotel (2 New Montgomery St)
Meet Artists Christopher Clark, Dominic Glover & Bucket who will be signing and adding paint highlights & embellishments to their purchased artwork at no additional charge, turning each piece into a one of a kind original. Featuring the Art of: Hary Potter, Marvel, DC Comics, Star Wars, Anime and Parody.
Princesses, Princes, Superheroes, Jedi, witches, wizards and muggles of all ages are welcome to attend. Kid and Stroller Friendly.
Margarita Crawl San Francisco
Saturday, February 22nd 2-8PM
Registration Time: 2p-4p
Registration Venue: Socialize SF
Discounted Drinks at all venues!
Free take-home giveaways limited quantities.
Tickets sold here.