Real Estate Tops Gold as Best Long-Term Investment

Real estate ranks ahead of gold, stocks, bonds, or savings accounts as the best long-term investment today, according to a nationwide poll by the Gallup organization. 

Thirty percent of Americans named real estate their best investment option in the poll, which was conducted earlier this month. Real estate has been rising steadily in Gallup’s annual investment polls since 2011, when only 19 percent of Americans viewed it favorably. 

Rising home prices and growing stability in real estate markets are credited for much of the change in perception. 

Gold was the No. 1 investment option in 2011, when 34 percent of poll respondents named it their favorite. Gold was at its highest market price at the time, but prices have dropped significantly since then. 

In the latest poll, gold and stocks tied for second place behind real estate, at 24 percent, followed by savings accounts (14 percent) and bonds (6 percent). 

Real estate has ranked first among investment options in previous years — 50 percent of poll respondents picked it as their top choice in 2002, as markets boomed — but it fell out of favor during the subprime mortgage crisis and recession. 

Real estate’s recovery has been underway for more than a year, with Bay Area markets at the national forefront. The San Jose and San Francisco metropolitan areas were recently identified as having the highest home equity levels in the nation, and another report named the metro areas the No. 1 and 2 best markets for home sellers. 

Pacific Union’s just-released Real Estate Report for the first quarter of 2014 provides detailed summaries of activity in each of our nine Northern California markets. In March, median single-family home prices reached yearly highs in most regions and topped $1 million in San Francisco and Marin County. Farther south in our Silicon Valley region, home prices surpassed the $2.5 million mark.  

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873   

(Image: Flickr/Micky Aldridge)

Martinez Street Eats

Martinez Marina, Martinez, California

Clear your palate and ready yourself for a food truck extravaganza, sure to entice even the most elite of food critics.  The Martinez Street Eats event is wheeling into town this Saturday and promises to be bigger and better than in years past.  This hugely popular food tasting event is highly revered by “foodies” of all varieties.  You and your family absolutely do not want to miss out on the opportunity to come out and see what the “Food Truck Mafia” hype, is all about.
 
The Martinez Street Eats festival will feature a barrage of gourmet foods, all provided by Bay Area eateries.  There will be entrée dishes, accompanied by decadent desserts.  Whether you fancy Mexican or Asian, Persian or Vietnamese, there will be something for everyone.  And the best thing of all is that you can have your order placed, cooked, and delivered in 5 minutes or less.
 
Back by popular demand, Food Truck Mafia is proud to be hosting the Street Eats event once again.  In recent years the popularity of food truck festivals has soared across the country.  But, the Bay Area tenders the ideal location to hold such an event, as it is a hotbed for some of the finest cuisine around.
 
As you enjoy your “street eats”, be sure to shop the many merchants that will be selling clothing, handbags, and other items.  Vendors will be sprinkled about the Marina exhibiting, and selling their one-of-a-kind, handmade goods.
 
So if this Saturday you are looking to introduce your taste buds to a diverse assortment of fine cuisine, be sure not to forego the Martinez Street Eats event.  From savory to sweet, there will be a dish, dessert, or entrée guaranteed to please even the pickiest of eaters!

Saturday April 26^th

11:00AM-3:00PM

For more information regarding the Martinez Street Eats event, please click here.  

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873   

Photo courtesy of offthegrid-garysoup/sfcczerowaste.org.

San Francisco Luxury Real Estate Prices Growing But Still a Relative Bargain

Last year brought robust growth to the San Francisco luxury real estate market, according to Christie’s International Real Estate’s just-released 2013 Luxury Defined report. But even with vigorous price and sales volume gains, our region remains a relative bargain when compared with other top international cities. 

Luxury property sales – which Christie’s defines as homes priced at more than $1 million – jumped a staggering 62 percent year over year in San Francisco, the largest gain of the 10 markets included in the report. And our region saw annual average price increases of 17.2 percent, the second-highest of the 10 regions.

The Christie’s report notes that while tech-industry executives flush with cash from the booming economy helped drive price appreciation and sales in San Francisco, move-up buyers also played a crucial role. 

“We are seeing the return of the ‘move-up’ buyer, which means competition is fierce in the $1 (million) to $3 million-plus price range,” Pacific Union CEO Mark A. McLaughlin said.

While growth in San Francisco’s luxury real estate market was impressive by any standard, the city still remains a more affordable place to buy a high-end home than other major global metro areas, including New York, Los Angeles, London, and Hong Kong. 

The Luxury Defined report includes data for homes above $1 million, but entry price points vary around the globe. For instance, while the entry price point for a luxury home in London was $6 million, the San Francisco benchmark came in at half that. Our region also has a lower entry point than both New York and Los Angeles, where $5 million was the baseline in 2013.

In terms of price per square foot, San Francisco buyers could get more home for their money than those in all but two of the markets analyzed in the report. 

Including single-family homes and condominiums, luxury buyers in the city of San Francisco paid an average of $829 per square foot in 2013. By contrast, buyers in Los Angeles — defined as areas from downtown west to Malibu — forked over $1,085 per square foot, while those in New York’s Manhattan shelled out $1,565 per square foot.

And when compared with price-per-square-foot numbers in other parts of the world, San Francisco enjoys an even more dramatic advantage. 

Luxury buyers in London paid an average of $4,683 per square foot, the highest of the markets included in the study and almost six times as much as those in San Francisco. In Hong Kong luxury buyers spent $2,578 per square foot, more than triple the local rate.

But prices per square foot in San Francisco could grow significantly higher by this time next year. That’s because overseas buyers and investors have already realized our region’s relative affordability on an international level. 

“Continued international investment adds demand to the marketplace and will drive price per square foot higher as San Francisco joins the world’s real estate stage,” McLaughlin said.

The Christie’s report notes that 60 percent of wealthy Chinese citizens are seeking to emigrate to the U.S., and San Francisco has become one of their top destinations.

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873   

(Image: Flickr/Joe Ross)