Which Neighborhoods Have the Best Weather?

If you’re new to San Francisco, then it’s important to be aware that our city has a variety of microclimates. One minute you can be driving around with the top down, sweating, and the next you’re turning on the seat warmers. If you’re considering purchasing a home here and are particularly weather sensitive, it’s important to know which neighborhoods tend to have the most favorable climates.

Of course, San Francisco has citywide fog and wind no matter where you go. But some areas have longer periods of time during a given day when the sun shines and the wind is at a minimum. So here’s a quick rundown:

Bernal Heights. Make a good garden space a priority in Bernal, because you’ll be able to spend a lot of time enjoying it. And the Cortland retail strip is usually pretty hoppin’ because you can wander in and out of the shops and restaurants and not have to keep zipping and unzipping your jacket.

The Mission. Bernal’s neighbor is the Mission, which also shares in the weather fun. The nice part about the Mission is that the dining scene has exploded, so there are tons of restaurant options, as well as unique shops along Valencia and throughout the neighborhood. If your commute involves walking to BART at either 16th/24th and Mission, your morning and evening strolls won’t force you to confront driving winds.

Noe Valley. I live in the part of Noe that’s defined as “Upper Noe”—the area bordered by Guerrero, Cesar Chavez, 30th Street, and up as far as Diamond. For the most part, you can avoid the high winds in Noe, but it does depend on how into the “valley” part you are. Most days when I walk my dogs in the late afternoon, I’m wearing sunglasses and have a light jacket on. However, up there in Diamond Heights, the fog hangs thick. And when I drive down, say, Clipper, from Portola in the Twin Peaks area, I typically experience a transition from no sun and heavy fog to sun. There’s a notable difference every time.

South Beach. Located right off The Bay, South Beach is blessed with lots of sun most of the time. This is conducive to a very desirable, urban lifestyle that involves walks to the Ferry Building, runs along the Embarcadero, and Giants games.

South of Market. The blocks are long in SoMa, but that’s okay because if you’re running, biking or walking, you’re not being blown into traffic. The neighborhood is always developing, and it’s definitely the most urban area in this list. But having good weather is key to enjoying those shared rooftop decks that pervade SoMa living.

Mission Bay. Constantly in development, Mission Bay has amenities like Mission Creek Park, the ballpark, and outdoor dining. Developers have taken advantage of the on-the-Bay setting by incorporating as many deeded outdoor spaces as they can in condo complexes.

Potrero Hill/Dogpatch. Potrero is a well-established neighborhood offering a mix of residential and industrial properties, and Dogpatch (a.k.a. the Central Waterfront) has truly been transformed over the past decade into a hub for local businesses, restaurants, wine bars and the like. The T Muni line connects Dogpatch to downtown, and the freeways are extremely convenient to access.

Best Neighborhoods for Dog Owners in San Francisco

San Francisco is one of the more dog-friendly cities in the country, and many of its neighborhoods offer ideal environments for dogs and their owners.

I’m a dog owner myself, and frequently meet clients looking for a home in a neighborhood that will provide what we all need for us and our pets—ideally, proximity to open space, dog-friendly cafes and shops, and a community of dog owners who support each other and their ‘hood.

So here are my picks for the best dog-owner neighborhoods in San Francisco:
1. Bernal Heights. It’s got a great retail area on Cortland Avenue, with plenty of shops and cafes, including Bernal Beast pet shop. But most notably, Fit Bernal Fit is a gym that invites “Bernal locals and their dogs to join us to exercise, socialize and engage in a more healthful, energetic and stress-free lifestyle.” If that’s not enough, there’s Bernal Hill itself, which has trails and off-leash areas, as well as Holly Park. The weather is superior in Bernal, so when you head out for a walk in the late afternoon, don’t expect to encounter much fog.

2. Inner Sunset. The weather may not be as desirable, but the Inner Sunset has Golden Gate Park at its doorstep. Yes, you have to keep your dog on a leash, but at least there’s a lot for your dog to smell and see. (My terriers love the gopher holes.) There’s also the Irving Street corridor, which is a great place to stop for coffee or lunch. Le Video—one of the few bonafide video stores left in the city—also lets you bring in your dog. For pet care, there’s Irving Pet Hospital and Animal Emergency Services.

3. Noe Valley. Ok, so I’m a bit biased on this one because I live here. But if there are two requirements for living in Noe, it’s that you need a dog or a kid. I’ve picked a leash over a stroller, and have plenty of company. There are two dog runs—one on 30th Street, and one up the hill at 27th and Diamond. Noe Valley Pet Company at Church and Cesar Chavez is an excellent store, and K9 Scrub Club lets you wash your dog in one of their many giant tubs. Le Zinc on 24th and Castro has an outdoor patio where you can sit with your pooch. And don’t overlook the Friends of Upper Noe Dog Owners Group, which makes sure the 30th Street dog run stays in shape.

4. Parkside. This is a great neighborhood for dogs because it’s near vital open spaces. There’s Stern Grove, an excellent dog-walking area. But the canine epicenter lies over at Fort Funston, a short drive away. The area even has its own Fort Funston Dog Walker (FFDW) organization that works to preserve off-leash areas and good dog ownership practices. The Parkside is also blocks away from Ocean Beach and the Great Highway, which are great places to bring your dog. The streets in the Parkside are nice and wide, so there’s plenty of sidewalk room, too.

5. NoPa. The North Panhandle neighborhood suits dog owners well, as the architecture allows for spacious flats. It’s a little more low-key than the busier Haight area, which can be stimulation overload for dogs if you decide to troll along Haight Street itself. The Panhandle is a good dog destination, as it’s a sizeable open space for walks. Nearby Alamo Square has a play area. There are a lot of great shops and restaurants scattered throughout NoPa to which you can walk your dog, particularly along the revitalized Divisadero corridor. Don’t forget about Osso & Co, where you can pick up specialty items as well as everyday pet products. (There’s also one in the Inner Sunset.)

6. Mission Bay. Far less established a neighborhood than the others, Mission Bay is your best bet if you want to live downtown and own a dog. The Mission Creek Dog Park lets you meet other Mission Bay dwellers and their pets. If you get bored with Mission Creek, you can simply walk your dog up and down the Embarcadero, which has wide streets and provides nice Bay views.

1031 Exchange: Great Way to Defer Paying Taxes After Selling

I recently attended a seminar on 1031 exchanges, as I frequently work with buyers and sellers who own rental properties in one capacity or another. The Internal Revenue Code Section 1031 allows investors to reinvest proceeds from the sale of one investment property into another similar property while deferring capital gains that would otherwise be due on the sale.

A 1031 exchange is an excellent option to have if you’re looking to move up to a bigger and better property down the line, and want to build your wealth in the process.

However, you need to be aware of the fundamentals before you can reap the benefits. Here are the four simple guidelines for exchanges, as per the Asset Exchange Company in San Francisco:

1. The properties involved must be held for “productive use in trade, business or investment” and must be like-kind. You can sell your four rental units on Haight Street and reinvest the proceeds into a six-unit rental property on Lake Street. But you can’t sell that Haight building and go buy a single-family house for yourself.

2. You have to complete the exchange in 180 days. The timeline begins when you close escrow on your “relinquished” property. There are no exceptions to this timeline.

3. You must identify your next property purchase within 45 days. After you close escrow on your relinquished property, you have 45 days to identify your replacement property. You have to identify all properties in writing, with a clear description. And there are two IRS rules for identifying replacement property. The first is the Three Property Rule, which allows for identification of any three properties, anywhere in the United States. The second is the 200% Rule, which is an option for identifying more than three properties. With this rule, you can identify four or more properties, but their combined value can’t exceed 200% of the property sold.

4. To defer 100% of the capital gains tax liability, you must meet two requirements. The first is that you have to reinvest all the cash that was generated from the sale of your relinquished property. And the new property must be equal or greater in value to the property sold. So you can’t use part of the money, or transfer any or all of the money into your own bank account. Once you touch it, you knock out the ability to do the exchange.

As you can imagine, these four points are the tip of the iceberg. There are all sorts of buying and selling situations, and it’s important to consult with a 1031 exchange consultant, as well as your CPA and attorney before making any moves. I have a great team in place if you’d like to explore your options, so feel free to contact me at 415.823.4656 / ebermingham@zephyrsf.com.

Should You Buy Earthquake Insurance?

I’m often asked about earthquake insurance—do most homeowners in San Francisco have it? Do the majority of condo buildings have an earthquake policy?

Only about 12-15% of California homeowners have earthquake insurance, and I believe that ratio drops further in The Bay Area and San Francisco. The reason behind this is that earthquake insurance is very expensive. In a condo building, it doubles your homeowners association dues (HOAs). Additionally, most policies come with a 10-15% deductible. This means the damage to the building would have to be pretty severe in order for you to use your coverage.

What do you look for when evaluating how well a property will hold up against an earthquake? Take note of its overall construction material (i.e., wood-framed buildings tend to hold up better against ground shaking). Review the hazard report rating (i.e., is the building located in a Zone A–the most susceptible to an earthquake, or a Zone D/E, which would have a better chance in an earthquake). And consult a general contractor about how seismically sound the property may be (i.e., foundation bolted, etc). If a property was built before 1906 (year of the big earthquake) and it’s still standing, that’s a good indication that it’s been constructed well.

I have sold many condos in San Francisco over the past decade, and maybe one or two condo buildings I’ve sold actually had earthquake insurance. Ironically, the buildings with earthquake insurance tend to be harder sells, because the HOA dues are prohibitively expensive for buyers. If you’re buying within a building that doesn’t have earthquake insurance, the HOA would have to decide whether to obtain that coverage. It’s not available on individual units.

If you’re interested in more information, contact your favorite insurance rep and inquire about the specifics for earthquake coverage.

Watch for Dog Breed Restrictions in Condo Buildings

It used to be that condo associations limited their pet restrictions to two pets per household. Then some buildings started throwing in weight restrictions. These days, it’s become commonplace to ban certain dog breeds.

This is particularly true in new-construction buildings, where you can expect CC&Rs to specifically state that Pit Bills, Presa Canarias, Rottweilers, Doberman Pinschers, Mastiffs or any other fighting breed cannot live in the building. There are also sometimes more restrictive weight limits for dogs (i.e., only 100 pounds combined for two dogs per unit).

With older condo developments, you’re probably good to go if you own one of the aforementioned breeds, unless there is a weight restriction or the particular HOA has amended its CC&Rs to ban the breeds. So before you write your offer on that nice 2BR condo in Pacific Heights, check to see if you’ll be able to bring your dog along.

Hot Properties of the Week

Yes, we have a low inventory level in San Francisco right now. This is not surprising, given the time of year. But there are quite a few very nice properties available. Here are my three picks for this week:

7 Topaz
Diamond Heights
3BR/3BA, 3000 sq ft
$1,649,000

Though its 1968-era construction won’t win 7 Topaz the prize for curb appeal, it’s what’s inside the box that counts in this case. The living and dining rooms have vaulted ceilings, and there are French doors that lead to a walk-out deck with sweeping views of downtown and the Bay bridge. The well-appointed kitchen has a gas range, Sub-Zero and Bosch dishwasher. And the huge family room features an adjacent walk-out sun porch. Stunning views from the master suite, and there’s also a large bonus area for a media/workout area that clocks in at almost 1,000 square feet. Walk-out patio to private yard, one-car parking, and plenty of storage. This Diamond Heights location is great for dog owners and those who want proximity to Safeway.

1741 Waller
Cole Valley
3BR/1.5BA, 1444 sq ft
$995,000

1741 Waller is a spacious flat in an extremely central and historical San Francisco neighborhood. The top-floor condo features high ceilings, refinished softwood floors, stained-glass windows, and built-in bookcases. The kitchen features high-end appliances and leads out to the south-facing, landscaped garden. One-car parking and in-unit laundry, too. Excellent location near Haight Street, Cole Valley retail district, Golden Gate Park, Whole Foods and Muni to downtown.

1939 30th Avenue
Parkside
2BR/1BA, 1175 sq ft
$649,000

1939 30th Avenue is the perfect starter home. This 1940s tunnel-entrance property has a living room with fireplace, remodeled kitchen, and interior access to the garage, which has good development potential (say, for that master suite). There’s a large yard, hardwood floors and great natural light. Location is not wildly central to public transportation, but if you don’t mind walking about five blocks, you can catch the street car on Taraval.

First Look: The Heights Condos in Pacific Heights

I toured The Heights yesterday, a 13-unit, two-building condo development on California and Divisadero on the border of Pacific Heights/Lower Pacific Heights. There are two- and three-bedroom residences available, all with parking and unique floor plans. Finishes are all high-end, running the gamut from Bertazzoni ranges and Liebherr refrigerators to Carrera marble and quartz countertop islands and Heath Ceramics backsplashes.

The more desirable of the two buildings fronts California Street and has nine condos over a commercial space (and an elevator). Four of the units have list prices ranging from $1,249,000 for a 2BR/2BA, 1273-square foot condo to $1,949,000 for a 3BR/2BA, 1920-square foot unit. (They’re waiting to see how sales go on these initial units before pricing the remaining condos, which range in square footage from 1,371-1,693.)

I liked the least expensive unit of the bunch, which was #3C. This is a 3BR/2BA for $1,249,000 and it had a great patio that spans the width of the unit and is situated right off the main living area:

The bedrooms in #3C all face a small interior courtyard, so you don’t get any views. But this unit is all about the outdoor space. The master is one floor up, so it’s pretty private if you want separation from a guest bedroom.

I also walked through the top-floor units, many of which have large private rooftop spaces accessed via staircase within the condo. The floor plans vary; for example, in #8C (listed for $1,949,000) the bedrooms have south-facing outlooks and get great light.

The building that fronts Divisadero has four condos and is a little less posh. Its units range from 1,768-2,000 square feet. There’s no elevator, for example. #1 has a small kitchen area, though nicely done:

There were two bedrooms on the main level, and a staircase down to a family room and bathroom:

#1 didn’t get great natural light, but it does have usable space.

I liked #3 a bit better. That has two bedrooms on the entrance level, and includes a master bedroom with a cute bathroom “window” that reminded me of a hotel I stayed in during a Bali holiday:

The upper level in #3 has the same open living/dining/kitchen floor plan, with a skylight over the dining area and a staircase to the private rooftop area. There’s also another room that has a closet and is being called a bedroom. But as there’s no window, I would define this as a den.

There’s no pricing available for the Divisadero building just yet; they’re basically seeing how things go with the first four California building unit sales. Offers on the first four units will be reviewed on January 21st or 28th, depending on which condo you’re interested in.

HOA dues are between $300-$500/month. The commercial spaces so far include a vegan restaurant, dentist’s office and “something really exciting” that’s not been announced yet. There’s storage available and there are 18 parking spaces, which means you can try to arrange for more than one space if you get in early enough.

Overall, I liked the California building and thought the units were priced realistically (a bit more than $1,000/sq foot) for new construction in a central area that doesn’t often see much “in-fill” development. (It’s not as if you can plop a 13-unit development in the middle of a prime Pacific Heights block.) Based on my recent sales in other new developments, I can say that $1,000/sq foot is roughly the going rate, particularly if you’re getting parking and private outdoor space. You can check out the Web site here for floor plans and more details on the development. I’m a fan, and would be happy to take you through the project if you’d like. Just give me a call at 415.823.4656 or email at ebermingham@zephyrsf.com.

What You Can Buy in District 5

“District 5″ in Realtor terms refers to the gaggle of centrally located neighborhoods in San Francisco—areas such as Noe/Eureka Valleys, Glen Park, Mission Dolores, Cole Valley and the like. It’s one of the largest and most popular districts in the city, and one in which I frequently sell homes.

It’s early in 2013, but here’s a roundup of what’s available right now in District 5:

235 Duncan Street / Dolores
Noe Valley Single-Family Home
3BR/1BA, approx 1350 sq ft
3-car parking
List Price: $1,300,000

Though this mid-century home in Upper Noe is generously proportioned and totally liveable, 235 Duncan is all about the oversized lot that offers its future owner the potential to expand on the garden level. (At the very least, you can hopefully add a bathroom.) The floor plan works, the kitchen and bath could use an update, and the location is convenient to the J Muni, as well as many restaurants and cafes.

1250 Page #3 / Baker
Haight Condo
2BR/1BA, approx 824 sq ft
1-car parking
List Price: $599,000

1250 Page #3 is a very charming and efficient unit with all the basics in place—good-sized galley kitchen, private patio overlooking Page Street, two bedrooms separated by the bathroom, and a living room that gets nice natural light. No, the 1980s building is not a charmer in a neighborhood known for its architecturally unique Edwardians and Victorians. But if your budget is in the $600,000-$700,000 range and you want two bedrooms in a great location with parking, 1250 Page #3 could be the perfect home for you.

3322 16th Street #3 / Dolores
Mission Dolores TIC
2BR/1BA, approx 850 sq ft
1-car parking
List Price: $600,000

The tenancy-in-common (TIC) proposition is that you can buy a unit in a neighborhood that otherwise wouldn’t be affordable. 3322 16th Street #3 falls into that category. Situated at 16th and Dolores amidst everything Mission Dolores, Eureka Valley and the Mission have to offer, this second-floor TIC is situated in a six-unit building. It’s being sold with fractional financing, which means you have your own loan (but are still on title with all the other owners). The building was renovated and sold as TICs several years ago. The space is decent, with mid-range finishes and good-sized bedrooms. Top-floor unit #6 sold recently for $600,000, so given that #3 is on the middle level, there should be some room to move on price.

Luxury Market on Solid Footing In 2013


Sellers of properties in the $1.5M+ range found plenty of buyers on hand throughout 2012. The luxury home market steadily picked up speed as the year progressed, culminating in some pretty impressive numbers.

A total of 454 single-family homes and 185 condos traded hands in 2012 for $1.5M or more. In 2011, only 328 houses and 105 condos in this price range sold. So high-end buyers clearly moved from the sidelines last year and entered the ranks of San Francisco homeowners. Interestingly, the average luxury home prices were roughly $2.7M for houses and $2.5M for condos.

Though a majority of single-family homes unsurprisingly sold in Pacific Heights, the Lake District, Sea Cliff, Marina, Cow Hollow, Presidio Heights, Cole Valley and Noe/Eureka Valleys, a few other neighborhoods also saw some luxury action. These included Glen Park, the Inner/Central Richmond, Potrero and Dogpatch. On the condo front, luxury buyers flocked to Russian Hill and South Beach.

The mother of them all was the sale at 2901 Broadway (above), which hit the market way back in April 2007 for $55M and finally closed on December 8, 2012 for $28,250,000. (Though 2011 had its own over-the-top sale in November of that year, when 2950 Broadway sold for $29,500,000 with an $18M loan involved.) Eight other single-family homes changed hands for $10M+ last year, as well.

The most expensive condo sold last year was a 3BR unit at the Millennium Tower, which sold for $7,850,000.

As noted last week, cash sales were more common in 2012, particularly in the luxury market. Eighty single-family homes and 51 condos sold for $1.5M or more, and these homes were scattered across the city.

Mortgage Debt Relief Act Extended Through 2013

For homeowners considering a short sale or loan modification in 2013, most of last year was a nail biter. That’s because many loan industry insiders believed there was a strong chance that the Mortgage Debt Relief Act of 2007 would simply expire on December 31, 2012. Would these homeowners then be on the hook for paying taxes on their forgiven debt in 2013?

Last summer, I blogged about the perils of the tax relief act expiring. I had been talking with a few individuals who were considering short sales, and there was a very real chance that they ultimately could be responsible for paying a very large tax bill in the process—one they couldn’t afford.

The good news is that the “fiscal cliff bill” passed by Congress last week included a provision for extending the tax relief through 2013.

Bottom line for sellers thinking about pursuing a short sale this year: It’s best to start that process as soon as possible. Short sales require key prep work and lenders take time to approve the sales. Additionally, buyers in contract on short sales sometimes walk away in the middle of the transaction, which can significantly lengthen and complicate the sale process.

Cash Sales Soared in 2012


Cash buyers hit the San Francisco market with fervor throughout 2012, across all price ranges, property types and neighborhoods. Foreign buyers seemed to also be very active, wiring in large sums of cash from South America, China, and Europe.

If you’re aiming to buy or sell a property this year, I think it’s helpful to have a sense for where the cash buyers will potentially be circulating. Here’s my 2012 breakdown by the numbers for each home type:

Single-Family Homes
2012: 473 sold (2011: 61)
Average price: $1,116,511
Up to $700,000: 229
$700,000 – $1M: 109
$1M – $1.5M: 31
$1.5M+ 80
$5M+ 13
$10M+ 4
The Backstory: Always the most popular property type in San Francisco, the single-family home market was cash buyers’ primary target last year. There were almost eight times as many cash sales last year vs 2011, particularly in the sub-$700,000 segment of the market. But not far behind was the “mid-market” of $700,000-$1M. And let’s not forget the most expensive sale at 2950 Pacific (above), which changed hands for $16M.
Most popular neighborhoods: Single-family home buyers with cash purchased their properties most frequently in the city’s southeastern areas such as Bayview and Excelsior, along with the Central Sunset and Parkside; Bernal Heights; Noe/Eureka Valleys.

Condos
2012: 570 sold (2011: 408)
Average price: $798,419
Up to $700,000: 318
$700,000 – $1M: 121
$1M – $1.5M: 85
$1.5M+ 51
The Backstory: Condo cash sales didn’t increase as dramatically, but they were still popular. The busiest price range was for properties up to $700,000. Luxury condos topped out at around $3.5M.
Most popular neighborhoods: Cash condo buyers were most prolific in Lower Pacific Heights; Pacific Heights; Marina; Downtown; Van Ness corridor; South of Market; South Beach and Mission Bay.

TICs
2012: 78 sold (2011: 68)
Average price: $648,244
$1M+ 10
The Backstory: The TIC market experienced a moderate increase in cash sales. Most sales were in the $400,000-$700,000 range.
Most popular neighborhoods: TIC buyers with cash were most commonly spotted in Russian Hill and the Mission.

2-4 Units
2012: 128 sold (2011: 89)
Average price: $1,107,348
$1.5M+ 23 sold
The Backstory: There aren’t typically a lot of lower-priced multi-unit buildings in San Francisco, so the activity in this market was all about the $1M+ range.
Most popular neighborhoods: Multi-unit purchasers frequented Noe Valley, the Mission, and the Hayes Valley area.

[Data courtesy of reported sales in the San Francisco Multiple Listing Service (MLS).]

SF Market Will Get Hotter in 2013

The San Francisco real estate market hit new highs in 2012. Activity significantly picked up over the summer, when serious multiple-offer scenarios and buyer overbidding proliferated. And I’m expecting this robust activity to continue in the coming year.

The S&P/Case-Shiller index of property values in 20 cities increased 4.3 percent from Oct 2011, the biggest 12-month advance since May 2010. It was the fifth straight month of year-over-year gains. In San Francisco, the year-over-year increase was 6.04 percent.

Indeed, home value averages were impressively high in the last quarter of 2012. A total of 672 single-family homes sold with an average price of $1,272,509 (propped up by 15 homes sold in the $5M-$28M range). Additionally, 598 condos sold at an average price of $914,198, with 23 such properties selling in the $2M-$8M range.

This year was also one during which many all-cash transactions took place, particularly in higher price ranges. For example, there were 114 single-family homes and 123 condos that sold in the last quarter for cash. As a result, it was sometimes challenging for buyers with loans to compete.

Buyers in our currently low-inventory market will welcome the return of new construction in the city, which is expected to increase in 2013-2014. As of October 2012, there were 4,200 new housing units under construction in San Francisco. Building permits for another 1,450 units have been approved, and permits for another 2,610 units have been requested. These predominantly include residential developments downtown, along the Market Street corridor in Eureka/Hayes Valleys, SoMa and South Beach.

Historically low loan interest rates, along with a growing tech sector and overall Bay Area population increase will continue to fuel demand for home purchases in 2013.

Hot San Francisco Market To Get Hotter In 2013

The San Francisco real estate market hit new highs in 2012. Activity significantly picked up over the summer, when serious multiple-offer scenarios and buyer overbidding proliferated. And I’m expecting this level of activity to continue in the coming year.

The S&P/Case-Shiller index of property values in 20 cities increased 4.3 percent from Oct 2011, the biggest 12-month advance since May 2010. It was the fifth straight month of year-over-year gains. In San Francisco, the year-over-year increase was 6.04 percent.

Indeed, home value averages were impressively high in the last quarter of 2012. A total of 672 single-family homes sold with an average price of $1,272,509 (propped up by 15 homes sold in the $5M-$28M range). Additionally, 598 condos sold at an average price of $914,198, with 23 such properties selling in the $2M-$8M range.

This year was also one during which many all-cash transactions took place, particularly in higher price ranges. For example, there were 114 single-family homes and 123 condos that sold in the last quarter for cash. As a result, it was sometimes challenging for buyers with loans to compete.

Buyers will welcome the return of new construction in the city, which will vastly increase in 2013-2014. As of October 2012, there were 4,200 new housing units under construction in San Francisco. Building permits for another 1,450 units have been approved, and permits for another 2,610 units have been requested. These predominantly include residential developments downtown, along the Market Street corridor in Eureka/Hayes Valleys, SoMa and South Beach.

Historically low loan interest rates, along with a growing tech sector and overall Bay Area population increase will continue to fuel demand for home purchases in 2013.