Fall Market Outlook
With the many recent media announcements that 'the recession is over!,' you may be wondering what that means for San Francisco real estate. Our market has definitely picked up over the last four months. The sales figures for June and July were some of the best that we've seen over the last year and a half, both in terms of number of properties sold and in terms of median sale prices. I heard a report on KCBS this morning in which the 'experts' concluded that the recession being over and the recovery being over are two completely different things. I think it's fair to say that the patient is stable, but that they can expect some long term physical therapy after leaving the hospital.
Factors that will affect the recovery time frame will be strongly impacted by how quickly we can see the end of home foreclosures as well as the revival of skittish home lending sources. Both will undoubtedly trail other indicators of the economic turnaround.
The good news is that buyers seem to be coming around to the idea that prices and rates are both enticing. The more our elected officials and the news media pronounce that we've reached the bottom and that recovery has begun, the more consumer confidence will rise and we can begin to clear the obstacles to full recovery of our local market.
Can You Trust Your Appraiser?
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NAR and the National Association of Home Builders have noted that some appraisers are lowering home values by comparing conventional sales to foreclosed homes and distressed properties. |
The National Association of REALTORS® (NAR) is warning that as a result of May's passing of the Home Valuation Code of Conduct (HVCC), a significant number of agents have reported that appraisals are taking longer, and in some cases, deals are falling through.
According to the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac, the HVCC is designed to "improve the reliability of home appraisals." This is accomplished by placing a firewall between appraisers and mortgage lenders, who must now order independent appraisals through Appraisal Management Companies. These agencies are essentially middlemen, charging high fees that are putting some of the most experienced appraisers out of business. As a result, 76 percent of REALTORS® say the time it takes to obtain a completed appraisal has increased, with 37 percent of REALTORS® reporting lost sales due to said delays.
Worse still, both the NAR and the National Association of Home Builders have noted that some appraisers are lowering home values by comparing conventional sales to foreclosed homes and distressed properties. Additionally, a significant number of NAR appraisers have reportedly been assigned to unfamiliar geographic areas.
The NAR is working to protect consumers by taking these concerns to Congress and the FHFA, with some success. On July 23, Fannie Mae and Freddie Mac issued guidelines stating that lenders should use appraisers who have demonstrated experience in the geographic area. Second, it clarifies that appraisers are not prohibited from talking to real estate agents.
In the meantime, the NAR will continue to speak for consumers and the real estate community on this important issue.
Little Feet Hit the Street for Walk to School Day
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Mark your calendars and keep your eyes open for pint-sized pedestrians: the annual Walk to School Day is Wednesday, October 7th. |
The familiar sight of kids skipping off to school has become a thing of the past. Heavy traffic, the risk of strangers, and sometimes just a simple lack of time seem to have done away with this tradition. But some parents face a dilemma: What about a child's sense of independence? Are they getting enough exercise? What impact does driving to school each day have on the environment? Especially in a big city like ours, it seems important to teach kids how to be safe pedestrians and cyclists.
Walk to School Day is observed around the world; this year, it will fall on October 7. Presented by the City's Shape Up San Francisco program, this event gives kids and their parents an opportunity to spend a little more time together, and learn how to be responsible walkers.
Whether you are a parent who'd like to learn more about upcoming events at your school, or simply a driver who'd like to be ready for an increase in neighborhood foot traffic, stay tuned to www.sfwalktoschool.com for updated information.
Walk up to Bernal Heights for Annual Fiesta
One of my favorite fall traditions, Fiesta on the Hill, is a great community event and fundraiser for the Bernal Heights Neighborhood Center.
This year's alcohol-free event promises to be a fun-filled day of family activities, great food and music.
Join the Fiesta Sunday, Oct. 18 from 11 a.m. to 6 p.m. on Cortland Avenue between Bocana and Folsom.
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