GREEN REALTOR NEWS | Vol. 16
Market Update | News | Photo Contest
We had several correct guesses for our June photo! This image is of artist Andy Goldsworthy’s Earth Wall, located inside the Presidio Officers Club in, of course, the Presidio! The first correct guess came from Leslie Dixon. Leslie is a long time Mill Valley resident. She serves on the board of the Homestead Valley Community Association and she wants to invite you all to the Homestead Valley Music Festival! It’s happening on Saturday, August 27th from 11 am - 6 pm in the Homestead Community Center Meadow, located at 315 Montford Avenue in Mill Valley. It’s FREE and always a good time. Hope to see you there! 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
By now, we’ve all heard about the interest rate hikes and some of the impact on the local housing market. The somewhat surprising news is that, at least according to our most recent June stats, housing prices don’t seem to be dropping outside of their normal month-to-month movements, which are typically lower in the slower summer months. Overall prices in San Francisco have jumped over 14% in the last two years, even more in Marin. Rather than prices falling, the local pundits are predicting that they will move to a steadier growth rate of 6 - 8% per year, which is still a great return on an investment. While there is a bit more inventory on the market, coupled with fewer sales, housing inventory remains historically low. The number of single family homes on the market in San Francisco is 39% lower than it was in June 2020. It’s still a sellers’ market out there and well priced homes are getting multiple offers and selling for over their asking prices.
An interesting perspective to consider is how investments in housing have held up compared to other investments in the first half of 2022. The S&P 500 is down 21%, the NASDAQ is down 30% and Bitcoin is down 59%. In the same period, housing prices increased 15% nationally. Owning your home not only provides stability, a place of refuge and a sense of security, it’s still a great long term investment.
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.
New Listing!
$835,000
601 Van Ness Avenue, #43, San Francisco
Our new listing in Opera Plaza has launched! Huge thanks to Michele Nessier at AMI Staging who did a fantastic job managing our refresh. Check out the before and after photos! 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. Centrally located on Van Ness Avenue between Turk and McAllister, the residential complex 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, Books, Inc, Max’s Opera Cafe, and other convenient businesses surrounding a sunny courtyard with a big fountain. Where else can you sunbathe poolside in the middle of downtown San Francisco?
In Contract!
136 Cityview Drive, Daly City
It didn’t take long to sell this spacious, updated 3 bedroom/2.5 bath townhouse in the Village in the Park complex in Daly City. This complex represents #goals (as the kids say) for a homeowners association. I met tons of friendly neighbors who were all eager to talk about how much they love living in this vibrant and diverse community. Not only is there an official welcoming committee, there is a bake off contest using apples from their community trees and well attended community volunteer days that end with potluck BBQ parties. All of this on top of excellent maintenance and financial management. Needless to say, I was impressed.
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.
I was hoping to have photos of our solar installation this month, but we’ve had a little delay. Nothing much new that’s green around here except our new baby figs. Aren’t they cute?
Freddie Mac Expands Their Green Bond Program
When you stroll past real estate offices in the European Union, looking at postings for local listings (not that anyone here is trying to turn their vacation into a tax write off), along with the usual pictures and property descriptions the flyers have a home energy score, which includes the average annual cost for utilities. This is required on every listing, and a local agent I met told me that due to high energy costs, having a score in the A, B or C range increases the value of a property significantly. The U.S. real estate market is behind on this, probably due to our subsidized energy prices. However, this is changing, as evidenced by some new guidelines from Fannie Mae and Freddie Mac (the government-sponsored enterprises that underwrite most of the home loans in the United States.) According to the Better Buildings project of the US Department of Energy, getting a home energy score report can not only help buyers better understand the true costs of owning a home, it can also help them qualify for greater purchasing power. Specifically, if a home has a score of a 6 or higher, lenders can provide a 2% stretch on the debt-to-income ratios required for buyers to qualify. Fannie and Freddie will provide a $500 incentive to lenders to work on Energy Efficiency Mortgages. In Vermont, the Department of Energy is funding a pilot program that gives a .5% interest rate discount for homes with low energy efficiency, as long as 10% of the loan will be used to install energy upgrades.
Given how the tide is turning, I predict that in the next few years home energy scores will be required, much like they are on new appliances. Sellers are already required to provide them in Portland and a few other places around the country. Energy upgrades will directly pay off not only with lower energy bills, but when buyers have an easy way to compare the costs of both owning and running a home. Homes with demonstrated energy efficiency will have greater value, just like for our friends overseas.
Side note: Did you catch that this listing, which was on the window of a real estate office in the gorgeous town of Cassis, France, is advertising a California-style Villa? Must be why I took the photo.
July 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 might look like Alameda, but it’s somewhere in San Francisco or Marin. Many of you drive right past it on a regular basis. If you know the location 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!
