Archive for December 2009 | Monthly archive page

Limited Exposure to Exotic Mortgages Has Helped Spare San Francisco from Severe Home Price Corrections

Although it has been a difficult year for residential housing markets nationwide, San Francisco has fared better. The market’s inherent high barriers to entry, combined with the city’s limited exposure to exotic mortgage abuse during the most recent housing cycle have helped protect it from the initial wave of home price corrections, according to the latest Market Focus report, published jointly by Rosen Consulting Group and the San Francisco Association of REALTORS®.

The report indicates that in recent months, the San Francisco housing market has shown increasing price stability, particularly at the low-end of the market, while for-sale inventory levels have declined significantly and at a much faster rate in comparison to other parts of the country. (more…)

2009 Real Estate in Review

December 2009 Newsletter: Real Estate in San Francisco

It has been an interesting year in real estate, and it continues to be a very interesting time for home buyers and sellers in San Francisco. Below are a number of charts which review the city’s market from a variety of angles.

The data below is from sources deemed reliable but may contain errors or omissions, and is not warranted. Sales not reported to MLS (such as many new-development condo sales) are not reflected in these statistics.

Paragon Real Estate Group

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The Simple Truth: Paragon Newsletter

Paragon Real Estate Group

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Sales Price to Original List Price Percentage
This chart shows the average percentage of original asking price achieved upon sale when acting as listing agent. It is a truism that if the property is priced, prepared and marketed well, and the purchase contract is negotiated effectively, it will sell quickly at its highest possible price. When even a half percentage point in sales price equals thousands of dollars, Paragon agents average 5.6% above the city’s average sales-price-to-original-list-price percentage. On a $500,000 home, 5.6% equals $28,000; on a million dollar home, it equals $56,000. In this analysis, the home sales assessed are capped at $3,000,000, because at the higher end, most sales prices are confidential, which distorts the statistics.
Paragon Real Estate Group

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Average Days-on-Market
This chart shows the average number of days it takes the listing agent to secure an offer acceptable to the seller on transactions which then proceed to a successful close of escrow. Again, if a property is priced, prepared and marketed effectively, typically buyers feel a sense of urgency to act quickly — with strong, clean offers. Paragon’s average days-on-market figure as listing agent is 4 weeks below the city average. Price the property right; prepare it to show in its best possible light; market it comprehensively; sell it quicker; sell it for more money.
Paragon Real Estate Group

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Average Sales per Agent
Founded in 2004, Paragon is already consistently in the top 3 or 4 San Francisco brokerages in both dollar volume and unit sales. This chart illustrates the fact that Paragon also has the highest average number of sales per agent of any of the top 10 companies. According to the San Francisco Business Times, Paragon also closes the highest average number of sales per agent of any residential brokerage in the Bay Area with at least 100 agents. It’s not that we have more clients; it’s simply that we’re more effective at helping our clients achieve their goals in real estate.
Paragon Real Estate Group

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Changes in Market Share
Year over year, Paragon had the largest increase in market share of any of San Francisco’s largest brokerages. When the market went into a tailspin after last year’s financial markets crash, we simply kept working and stayed focused on helping our clients with the purchase and sale transactions they needed or wanted to complete, doing our best to get them the best possible price and terms. That is our fiduciary duty.
Paragon Real Estate Group

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Characteristics of a Good Agent
What does a good agent actually do for his or her client? We find that most people really don’t know. Here is a link to a list of those characteristics we believe a good agent incorporates in his or her practice. We believe it is these characteristics that lead to the best possible end result for our buyers and sellers. As the above charts make clear, if we take care of you, our market share takes care of itself.
Characteristics of a Good Agent
361553

701 Minnesota Street, Unit 117


Represented Seller
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362691

1221 Harrison Street, Unit 24


Represented Seller
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An analysis of Average Buyer-Rep Sales per Agent for the top brokerages

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Seeing San Francisco From a Different Angle – NY Times

November 27, 2009
Seeing San Francisco From a Different Angle
By NAN K. CHASE

SAN FRANCISCO — As fires raged downtown after the 1906 earthquake, residents of this city fled to two nearby districts to the south, Bernal Heights and Glen Park. Though part of San Francisco, both areas looked more like countryside then, with open ranchland, vineyards and orchards, dirt roads and wetlands, and a few houses. The windswept peaks above Glen Park were called Little Switzerland.

Many of the earthquake refugees wound up settling there, (more…)