GREEN REALTOR NEWS | Vol. 36
Market Update | Realtors in the News | Center for Food and Agriculture | Photo Contest
The winner of our February photo contest was Alexis Armenakis! Alexis is a psychiatrist in private practice who, together with her architect husband, Lincoln Lighthill, recently bought their dream mid-century fixer in Mill Valley. I visited them not too long ago and their home is coming along beautifully. This photo, as several of you knew, is one of the entry paths to Crissy Field’s East Beach in San Francisco. East Beach is known as where the locals come to play and is also one of the world’s best destinations for kitesurfing, according to the International Kitesurfing Organization
Scroll down to the bottom to see if you can guess the location (hint: it’s always in San Francisco or Marin) of our March photo. The first person to email me with a correct answer wins a $25 gift certificate to local green business Sports Basement! (Maybe you could take up kitesurfing!)
Market Update
The prevailing industry sentiment suggests that the San Francisco real estate market experienced its low in 2023 and is presently in the midst of a significant recovery. Demonstrating this positive trend, the median sales price for single-family homes in San Francisco experienced a substantial 10% increase compared to the previous year. In Marin they are up 6.6% overall, far more in certain desirable areas such as downtown Larkspur. Core downtown markets in San Francisco that were hit especially hard during the pandemic are witnessing increased sales, coupled with a resurgence of confidence in the city’s future. The city is reclaiming its position as a notable financial and cultural center, gaining momentum in the anticipated technology boom, particularly in AI. This renewed sense of optimism is not only enhancing the city’s appeal to residents but is also attracting investors, thereby solidifying its reputation as a global powerhouse and lifting markets in the surrounding areas. Despite a slight rise in interest rates in February, they are still considerably lower than they were several months ago. Financial markets are hitting record highs, and consumer confidence is increasing.
On the ground, we’re seeing buyers out in droves at open houses though the market is still a little patchy. Houses with special features, such as spectacular views, exemplary layouts and in excellent condition are getting multiple offers and going for stratospheric prices. At the same time, there are deals to be had as some beautiful homes are overlooked. It’s still early in the spring season so we’ll see how things unfold between now and the end of June.
Click the buttons below for the full market reports
Realtors in the News
Many of you have asked about the recent settlement by the National Association of Realtors that’s been in the news lately. There is some misinformation out there, some positive changes for both realtors and consumers, and some changes where we will have to wait and see how they play out. Of everything I’ve read or heard, probably the best source of balanced information about the issues being litigated, the terms of the settlement and how it impacts our local real estate market was a segment broadcast on KQED Forum on March 26th. If you are interested, I encourage you to listen to the full podcast by clicking on the button below.
Previously, buyer’s agent commissions were paid using a cooperative commission structure where sellers paid their agent typically between 5 - 6% and those agents shared their commissions with the buyer’s agent, usually 50/50 but sometimes a different arrangement negotiated with the seller. This arrangement evolved out of a need for fair, competent representation for both parties in the transaction, particularly for first time buyers who are often most in need of guidance. The settlement, which takes effect in July, does not prevent sellers from paying for buyer representation or offering credits for other costs, but it does not allow cooperative compensation to be listed in the multiple listing service, the place with the broadest reach to the greatest number of agents. It can be posted on websites, through brokerages and on marketing materials, but buyers and agents will have to know what to look for and how to find it.
Will this lower prices? It remains to be seen. If the burden of paying for good representation falls on buyers, it makes sense that their purchasing power will decrease. If buyers are responsible for their own representation on top of other purchasing costs then sales prices will have to come down. Sellers' net proceeds may end up about the same, since the sales price deficit should roughly mirror the now absent buyer agent’s commission.
Things will change the most on the buyer’s side. Starting now, a Buyer Representation Agreement is required before agents can show any property. This is a good thing for both buyers and agents, as it spells out each’s responsibility to the other and how the buyer’s agent will be compensated. Ideally, buyers will become more educated consumers about buyer representation. Full time agents with strong track records, training and certifications above and beyond the minimum required to maintain a license, deep networks to find off market properties and competent vendors for any possible need are essential for successfully completing a transaction in our highly competitive market. Working with a trusted advisor to review disclosure documents and uncover potential pitfalls can save buyers money and heartache down the road.
Stay tuned for updates. For now, I’m working on a handy guide to how to shop around for good buyer representation. Click the button below to see my recent blog post on what you should expect from your agent when buying a home.
AIM Center for Food and Agriculture
Earth Month is almost here! In celebration, check out an amazing new community resource scheduled for completion in 2025. The Agricultural Institute of Marin are the folks behind 9 Bay Area Farmers Markets, including the phenomenal market at the Marin Civic Center on Thursdays and Sundays year round. They operate a number of community programs as well including a mobile market truck, CalFresh/EBT programs, and farmers market incubator programs. I recently learned about an exciting new program coming to the Marin Civic Center site - the Center for Food and Agriculture. The goal is to build a permanent market with fixed stalls, improved amenities, indoor and outdoor teaching spaces including a demonstration kitchen and edible gardens, and ambitious public programs. Click on the button below and scroll down to watch their promotional video. I can’t wait to check it out!
This is it! 2024 is the big year! Stay tuned for an announcement about an exciting birthday event!
Photo Contest
All of the beautiful photos in our contest are provided by Green Realtor News’ Artist-in-Residence, Esther Vermeer. Esther 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.
If you know the location email me at lucinda@lucindaotto.com. The first person with a correct guess wins a $25 gift card to Sports Basement.
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!
