Buying a Home in the Bay Area Is Still More Affordable Than Renting

Even with a sustained rise in home prices over the past year, buying a home is significantly cheaper than renting one in the Bay Area. 

On average, buying is 13 percent cheaper than renting a comparable home in the San Francisco metropolitan area, according to the latest Rent Vs. Buy Report from real estate listings syndicator Trulia. In the Oakland metro area, the savings total 24 percent. (The San Francisco metro area includes Marin, San Francisco and San Mateo counties; the Oakland metro area includes Alameda and Contra Costa counties.) 

Rising home prices and mortgage rates have narrowed the gap between buying and renting over the past year, but sky-high rental prices still give the edge to homebuyers. A year ago, buying was 19 percent cheaper in San Francisco and 40 percent cheaper in Oakland.

Nationwide, buying a home is 38 percent cheaper than renting, according to the survey of 100 U.S. cities, conducted in December and January. 

Trulia based its calculations on obtaining a 30-year, fixed-rate mortgage with a 4.5 percent interest rate; itemizing deductions at the 25 percent federal tax bracket; and staying in the home at least seven years. 

Will renting become cheaper than buying soon? According to Trulia’s methodology, buying will edge renting by only 2 percent in San Francisco and 15 percent in Oakland when mortgage rates reach 5.5 percent. Currently, 30-year, fixed-rate mortgages average 4.37 percent, according to Freddie Mac. 

Of course, comparing mortgage rates and rents is just one part of a potential homebuyer’s decision. Several months ago, a survey by the California Association of Realtors found that nearly 75 percent of renters rated homeownership “important.” Among renters who said they hope to own a home, 44 percent said they were renting only out of financial necessity. 

Renters mentioned a lack of building equity, the inability to make changes to their living environments, and unpredictable rate increases as the top three things they dislike about renting. 

Another report found that owning a home can make families healthier, happier, and more financially secure. 

The survey of Canadian families living in houses built by nonprofit Habitat for Humanity found that 89 percent said their lives had improved since they moved into their homes, and 86 percent said their happiness had increased since buying. 

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/InstitutoInovacao)

The Dinner Detective Interactive Murder Mystery Show

Waterfront Plaza Hotel, Oakland, California

The Dinner Detective Interactive Murder Mystery show is offering both dinner and a show this weekend.  For one price, you can indulge in a four course meal, accompanied by what has become the most popular interactive mystery show in the United States.

This Saturday night the Dinner Detective will be arriving in Oakland.  The Waterfront Plaza Hotel invites you to come out and participate in the Show.  Unlike many other murder mystery shows, the Dinner Detective is unscripted, avoids stifled dialogue, delivers improvisational acts, and takes pride in integrating the audience.  Although the show involves the unravelling of a murder mystery, the Hollywood, New York, and Chicago-trained performers incorporate comedy and laughter into every show.  At the same time, the suspense will have you on the edge of your seat.

Dressed like you and me, the actors blend in with the audience and do not reveal their identity.  Guests are left to speculate who is part of the show, and who is not.  Do you know who is seated next to you?  You may not even realize, until they die…the performers, that is!  But, who done it?  Figuring it out is your mission for the evening.  At the end of the night prizes will be awarded to the top detectives, who have been able to solve the crime.

This must-attend event costs only $74.95 per person.  It is highly advised that you purchase your tickets in advance, as these shows are known to sell out very quickly.  To choose your dinner entrée, and purchase your tickets online, please click here.

This weekend don’t go back and forth, deciding between going out to dinner, or attending a show.  The Dinner Detective Interactive Murder Mystery Show is neatly packaging both, into a one-stop event, for one price.  You absolutely do not want to miss out on the opportunity to partake in the Dinner Detective show that is sweeping the nation!

Saturday March 15^th 
6:15PM

For more information regarding this 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 Bryan Loar/flickr.com.

The Bay Area’s 10 Best Markets for Sellers

The most attractive homes in coveted Bay Area communities and neighborhoods are sure to draw the attention of multiple buyers, who then ignite bidding wars that often push the property’s price far above asking. 

If you’re shopping for a home in one of our region’s more popular towns or cities, you should prepare for competition — and get ready to plunk down more than asking price. On the other hand, homeowners on the brink of listing a property should see if local buyers are paying hefty premiums to secure the perfect place.

To find out which Bay Area communities currently favor sellers the most, we dug into MLS data as of March 5 to uncover the cities, towns, and districts where buyers pay the highest average percentage above original price for single-family homes. 

1. San Francisco District 1 – Sellers in San Francisco’s District 1 — which includes the Sea Cliff and Richmond neighborhoods — were sitting pretty in February, when their homes commanded an astonishing 121.1 percent of original price, the highest total in two years. Homes in District 1 have sold for less than asking price only once since February 2012. 

2. San Francisco District 9 – San Francisco’s District 9 placed No. 2 on our list, with buyers forking over an average of 115.5 percent of original price in February. The district, home to the booming South Beach and Inner Mission neighborhoods, has seen buyers pay more than asking price for 23 consecutive months. The median sales price for a single-family home in District 9 was $1.25 million, the second highest in two years. 

3. Woodside – Though only four homes sold in the small Silicon Valley town of Woodside in February, they netted sellers an average of 114.3 percent of list price. February marked an impressive increase in the sales-price-to-original-price ratio, a gain of about 28 percentage points from the previous month. 

4. San Francisco District 2 – As in neighboring District 1 to the north, buyers clamored for properties in San Francisco’s District 2, which includes the Sunset and Parkside neighborhoods. Sellers in the district enjoyed average sales prices of 113.4 percent of list in February, the largest premiums since last spring. The median sales price of $892,000 is the highest recorded in two years. 

5. Berkeley – Always a popular destination for local homebuyers, Berkeley saw its homes sell for 111.9 percent of asking price last month, the most in the East Bay or Contra Costa County. Over the past year, Berkeley sellers have received average home price premiums of between 6 and 18 percent. 

6. San Francisco District 4 – Successful single-family homebuyers in the city’s centrally located District 4 paid an average of 110.6 percent of list price in February, nearly identical to numbers recorded in January. A lack of inventory has likely driven buyers to pay above list price in every month since January 2013. In that time period, the months’ supply of inventory in the district has never risen above 1.9. 

7. Palo Alto – The median sales price for a home in Palo Alto reached a two-year high in February, and premiums nearly followed suit. Sellers in the Santa Clara County city pocketed an average of 109.9 percent above asking price, the second most in the past two years. The median sales price, meanwhile, climbed to $2.4 million. 

8.  Sausalito – Just two homes sold in Sausalito in February, but those who bought them still paid an average of 107.8 percent of original price. That said, hopeful buyers in the city were in better shape than in December, when sellers enjoyed holiday premiums of 18.6 percent. 

9. El Cerrito – In January El Cerrito buyers finally got a bit of relief, when the sales-price-to-original-price ratio dropped to below 100 percent for the first time since late 2012. But last month sellers regained their advantage, pulling in 107.7 percent of asking price. 

10. San Francisco District 5 – District 5, home to in-demand neighborhoods such as Noe Valley and Ashbury Heights, rounds out our list, with the average buyer paying 107.6 percent of list price in February. Sellers in this San Francisco district have been receiving premiums for their homes since April 2012.

If you are ready to buy a home, contact me today. I will be happy to help you determine how much house you can afford and help you find your dream home. 

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: Flickr/401(K)2012)

Live to Inspire Event in Oakland

American Steel Studios, Oakland, California

The American Red Cross and Red World Entertainment are pleased to announce the arrival of the 1^st Annual Live to Inspire event.  Coming to the American Steel Studios in Oakland, Live to Inspire will be featuring night-long entertainment for the entire family.
 
Cameron Wong, the Live to Inspire event organizer, realized that an annual event needed to be created, in benefitting the American Red Cross.  All proceeds from the event will aid victims of world-wide calamities.  The 2014 event profits will go to support the Philippines’ Typhoon Haiyan Victim Relief. 

An unforgettable evening of dance battles, games, food, beverages, special guest performances, comedy and more, all await your family this Saturday.  Cash prizes will be awarded to the winners of the all-style dance competitions, and those who come out on top of the various games being played.  Multiple stages will allow for multiple live entertainment venues.  Mix’d Ingredients, JZP and Minerva are just a few of the special guest musical performers, who will join the comedy routines of Diana Hong, Ray Molina, and Alfonso Portela. Guest DJ’s will include Melanie “DJ ThatGirl”, DJ Neil “NeoGeo”, and RJ “KoolRaul”.

There will be a variety of foods available, and 2 bars will be open, offering both alcoholic and non-alcoholic beverages.  The Live to Inspire event aims to be an opportunity for family, friends, colleagues, and the community to convene, indulging in an evening chalked full of live entertainment.
 
Admission to attend the 1^st Annual Live to Inspire event are $10.00 per ticket, if purchased in advance, or $15.00 at the door. To purchase your tickets online, please click here.
 
Dance, Music, Comedy, Food, Beverages, and Fun – all in one.  Bring the entire family out this Saturday to the American Steel Studios to partake in all of the before-mentioned, while benefitting a great cause!
 
Saturday March 8^th

6:00PM-1:00AM

For more information regarding the Live to Inspire 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 Patrick Feller/flickr.com.