A quick perusal of some first quarter real estate sales here in San Francisco confirms the National Association of REALTORS’® most recent report on the national housing market. 

According to David Lereah, NAR’s chief economist, home sales should level-out while remaining historically high. 

“Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record,” he said. As for selling prices, NAR president Thomas M. Stevens believes they will cool, but not as much as in earlier projections. “The balance is still a bit more favorable for sellers,” he said. 

Their statements are reflected in the difference between 2005 and 2006 first-quarter home sales and selling prices. Based on sales reported to the San Francisco MLS, it appears that the market is somewhat balancing out. Home sales are down by about 5 percent and properties are spending an average of 9 more “Days on Market” (DOM) than last year at this time. On the other hand, selling prices remain steady, having increased 1 percent over 2005. 

All signs seem to be pointing to a normalizing market. However, this may take some time getting used to here in San Francisco where home owners have become accustomed to a market so hot, they could forego traditional marketing techniques and simply sit back to watch offers roll in. 

A look at 2005 and 2006 first-quarter listing prices indicates that for the most part, homeowners are still not pricing their properties realistically. Listing prices have gone up 7.8 percent over last year despite the slight decline in home sales and the very slight increase in selling prices. This may explain the increase of the median DOM from 25 in 2005 to 34 in 2006. Then again, the slight dip in sales could be attributed to an abnormally rainy spring, from which prospective home buyers are just beginning to emerge. 

The best strategy for selling a home quickly and with the best fiscal outcome is to set a strategic and competitive listing price. As a real estate professional, I’d be happy to assist you in determining the value of your home and showing you the best marketing strategies to optimize your sale.  

Getting your home in near model home condition can be a daunting task. It’s especially important this spring, however, as after a long and soggy winter, buyers are finally emerging from hibernation and finding themselves in a market inundated with listings. 

But spring cleaning needn’t be all bad. Setting your home apart by using green-friendly resources in your home beautification efforts can build appeal. Fortunately, in the Bay Area you can find loads of products that minimize damage to natural resources and create a healthy living environment. 

According to a recent survey conducted by the National Association of Home Builders, there has been a 20 percent increase since last year in builders dedicated to green building issues, and that number is expected to rise another 30 percent in 2007. 

The rise is attributed to a growing awareness about the financial and environmental benefits of using more efficient heating and cooling systems, energy efficient appliances and lighting, and low-flow faucets and toilets. 

Even if you’re just planning to tackle basic cleaning, painting and repair, investing in green resources can lead to a big payoff. In fact, the United States Green Building Council estimated in 2003 that “an upfront investment of 2 percent in green building design, on average, results in life cycle savings of 20 percent of the total construction costs - more than 10 times the initial investment.” 

The City offers an outstanding resource guide at www.sfenvironment.com, as well as a downloadable version of its “Home Remodeling Green Building Guidelines.” 

Remodeling Pays! A recent study by the Joint Center for Housing Studies of Harvard University found that San Francisco home owners recovered as much as 118 percent of their home improvement costs in 2002. They also discovered that paybacks depend on the type of improvements made. For instance, based on the national average, remodeling a bathroom could result in a return of 88 percent, while kitchen remodels only returned 67 percent of their cost.