Pending Homes Sales on a Record Roll!

Pending Home Sales on a Record Roll

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.


My Opinion: We have seen a rise in the number of multiple offers on properties here in the city. of course every market is different. Especially here in San Francisco. We have sub markets within the San Francisco market that are divded up my neighborhoods. But with rates at an all time low, tax credit of $8,000 available to first time home buyers and the times of processing and underwritting from banks are getting faster. Does this mean a recovery of the market? The only way to measure that will be time and facts or statistcs to be released. The ONLY way to know if the time is right for you if affordability. Everyone has a different situation. If you can afford the payments on a home than you should own one.

Any thoughts?

Happy Belated Birthday San Francisco Rent Ordinance

On June 13the rent ordinance had it's 30th birthday. Do you think this ordinance has lived up to it potential?

To evaluate whether the Ordinance has accomplished it purposes in life, we have to go back to the beginning. The Ordinance starts out with the following:



“Tenants displaced as a result of their inability to pay increased rents must relocate but as a result of such housing shortage are unable to find decent, safe and sanitary housing at affordable rents levels. Aware of the difficulty in finding decent housing, some tenants attempt to pay requested rent increases, but as a consequence must expend less on other necessities of life. This situation has had a detrimental effect on substantial numbers of renters in the City, especially creating hardships on senior citizens, person on fixed incomes and low and moderate income households.”



“. . . a housing shortage still exist with the City and County of San Francisco and total deregulation of rents at this time would immediately lead to widespread exorbitant rents increase and recurrence of the crisis, problems and hardships . . .”


National Apartment Association for several years in a row, has identified San Francisco as one of the cities with greatest annual increases in rents. How can that be? 1978 is looking pretty good by comparison if you’re a renter.

The basic economic rule here that we need to remember is that when you have adapted such a rule and allow a restriction on rents you create a shortage of available units. When available housing does come on the market it's allows for those rents to be higher to balance for the lower rents.

In order for this ordinance to create reach exactly what it was meant to do it would have to create complete stagnation in San Francisco. Does everyone want to live in the same apartment from 22 until they die? I don't believe so, so this basic human nature eliminates the use of this ordinance. San Francisco with it's great weather, beautiful views and strong economy would not allow for this.


Your Thoughts?