GREEN REALTOR NEWS | Vol. 15
Market Update | News | Photo Contest
Just one reader guessed the location of our May photo! This is, of course, at the Mill Valley Lumber Yard. How many of you walked right past it on your way to hang out in their beautiful outdoor spaces during the gorgeous (and hot!) June weather we’ve had lately? The correct guess was from previous contest winner and avid reader of the Green Realtor News, Abby Burton. I’ll have to give more hints for the next one. Scroll down to see if you can be the lucky winner.
As always, our photo contest winner receives a $25 gift card to Marin Green Business Good Earth Natural Foods.
Market Update
Nationally in May, housing demand softened a bit as mortgage rates hit 13-year highs. Locally, I’ve heard it expressed as “the market went from 160 MPH to 80 MPH, which is still really fast.” The feeling is that rather than a drop in prices or a big swing from an extreme sellers’ market to a buyers’ market, home price appreciation will continue, but at a slower, steadier pace than the giant leaps we saw earlier this year. The fact that we are still seeing high demand despite inflation, rising mortgage rates and a fluctuating stock market speaks to the desirability of our area and the lack of housing supply. Mortgage rates have increased by about 2% in 2022. For each 1% in interest rate one’s loan payment increases by about 13%, so if your monthly payment was $5,000 at a 3% interest rate, it might be $6,300 at 5%. While the opportunity to secure a 30 year fixed mortgage at under 5% interest may be gone for now, many lenders are using the phrase “marry the house, date the rate.” This means that 7 or 10 year adjustable rate loans - fixed for the first 7 or 10 years and then turning to an adjustable rate - may be a good option to keep rates lower for now, and give time to refinance in the future when, theoretically, rates will come back down.
In the short term, rates are predicted to continue to rise while inventory slowly increases. If you are thinking of buying, right now, during our traditionally slow summer months, might be a window of opportunity to get in before interest rates rise even higher. Especially in Marin, I’ve seen some fantastic options out there with little to no competition. I predict that will change towards the end of the summer when families are back in town and thinking about work and school again.
Want more information about the local markets in San Francisco and Marin? Email me to sign up for the Attain Real Estate monthly report which goes into all the stats and forecasts in much more detail.
In Contract!
Patience was rewarded! After months of waiting for the beautiful new condos at West End Village to be completed, my clients were the first buyers in the door and scored the very best one. This fantastic new building has been in the works since 2017. Ideally situated at 1628 Fifth Avenue, between the bustling streets of downtown San Rafael and the desirable Forbes neighborhood, the building consists of nine single level units, each with two bedrooms, two bathrooms and an open living area featuring tremendous light and space, gourmet kitchens and high end finishes. The top 4 units all have enormous private roof decks in addition to balconies off the main living areas. There is deeded parking in a common garage accessed by an elevator.
The main shopping/dining area in downtown San Rafael, Fourth Street, is just one block away. This summer it features Dining Under the Lights every Thursday night, when streets are closed to car traffic, live bands play, restaurants pull out their tables - there’s even a salsa party. Throughout the year ArtWorks Downtown sponsors the Second Friday Art Walk with studios and galleries throwing open their doors up and down the street. And of course, there’s the Smith Rafael Film Center just a short stroll away. Sound exciting? Units are still available but probably won’t be for long.
Coming Soon!
We are in the final stages of polishing up a lovely townhouse in the dynamic Opera Plaza complex in downtown San Francisco. This two-level unit features two bedrooms and two bathrooms on the lower level, and a large, open living area on the upper level with views looking out to an enormous common patio area with a swimming pool and covered hot tub. On the desirable, south-facing side of the building, this unit has no upstairs neighbors. New paint, carpeting, flooring and refreshed bathrooms. This centrally located complex, located on Van Ness Avenue between Turk and McAllister, features 24 hour security staff, on site management, concierge, a large gym including basketball and racquetball courts and more, including valet parking in the underground garage. On the ground floor there’s the popular Opera Plaza Cinema (the new Baz Luhrmann movie, Elvis, opened there on June 25!) Books, Inc, Max’s Opera Cafe, and other convenient businesses surrounding a sunny courtyard with a big fountain. We should be on the market right after the 4th of July.
Also coming soon is a spacious, updated townhouse in a surprising spot. This hidden gem is the Village in the Park complex in Daly City, located directly across from access trails to San Bruno Mountain. Superbly managed, the complex features a pool, hot tub, and gorgeous downtown and city views. This 3 bedroom, 2.5 bathroom townhouse (plan 6 to those in the know) features a large, two car side by side garage with room for extra storage. The open main living area with an enormous vaulted ceiling flows to a large private patio with a glass railing for unobstructed downtown views. The large, eat-in kitchen also opens to this patio. Upstairs, three full bedrooms and two bathrooms, including a main bedroom with vaulted ceilings, two large closets, ensuite bath and downtown views, provide ample space for families, working from home, or whatever you need. Easy commute location, ample outdoor space, friendly neighbors and tons of amenities, without San Francisco high prices, make this place an absolute winner. Want a sneak peek? Give me a call.
The Hundredth Birthday Project
For anyone new to the Green Realtor News, the 100th Birthday Project is our family’s effort to make incremental upgrades to our San Rafael bungalow to achieve green certification by her 100th birthday in 2024.
Last month, we talked about improving the building envelope with added insulation, improved windows, and a whole house fan for better ventilation. This month, we also decided to move ahead with adding solar panels, even though typically they would be at the end of a green remodeling project. If you are wondering why we made this choice, check out the April edition of the Green Realtor News (hint: it’s all about NEM 2.0).
Choosing a solar provider is not as easy as one might think. There are about a million different companies, all with their own marketing and strategy to get you to think they are the very best out there. After talking to some friends to get their recommendations, we checked out Energy Sage. Funded in part by the US Department of Energy’s Sun-Shot program, Energy Sage’s mission is to provide unbiased information tailored specifically to your property, allowing you to compare multiple quotes free from all the marketing. You put in your information online and they send you quotes from up to 7 providers, all in a consistent format. They are ranked by price per watt, quality of equipment, total cost, and best value overall. Super helpful! They even have friendly counselors who will walk you through the quotes and help you figure out what is best for you.
Then comes the next big question - how to pay for it? There are several options out there for no or low cost programs for lower income households and/or seniors. If you qualify for these you should definitely check them out, as they can be incredible deals. For the rest of us, the question is to lease, finance, or pay cash. One reason for going solar is to add value to your property, and leasing your solar panels does not always accomplish this. It can be hard to transfer the lease to a new owner and not everyone wants to take over the lease payments, or can qualify for them. Paying in cash is the cheapest option, but not everyone wants to put down a big cash payment at once, particularly if there are multiple projects underway. Most of the loan programs that are available for energy efficiency improvements do not cover solar installation, making the solar providers themselves the default lenders. Conveniently (this is corporate America, after all) solar bids come with financing options, all of which have to be compared as well. In the end, we picked an option with financing from a provider recommended by our Energy Sage counselor and vetted by our financial advisor. We’re now in the final permitting stages, so hopefully by the July edition of the Green Realtor News, you’ll see some photos of our new panels in place!
June Photo Contest
Green Realtor News’ Artist-in-Residence, Esther Vermeer, is a Mill Valley resident with a background in branding and graphic design. Originally from the Netherlands, she moved with her family to Montreal, Canada for a while, and came to the Bay Area 14 years ago, where she has since established herself in the world of interior design. She loves to journey around California and discover the lush natural beauty the state has to offer. You can reach her at esther@prevalentprojects.com.
HINT: this piece by a well-known contemporary English sculptor asks viewers to think about what separates “nature” from “built.” If you know the location - another hint - either in San Francisco or Marin, email me at lucinda@lucindaotto.com. The first person with a correct guess wins a $25 gift card to Good Earth Natural Foods!
I hope you enjoyed the Green Realtor News! If you know anyone buying or selling, or if you are curious to hear more about the market, please don’t hesitate to reach out. I’d love to help you or your friends make moves. As one of my happy clients loves to say:
Everyone Needs A Lucinda!
