A new report from Paragon Real Estate looks at which San Francisco neighborhoods have had the most home-price appreciation since the market’s precrisis peak and postcrisis trough. Since the market bottomed in 2010-11, the neighborhoods with the biggest increases in home prices are Bayview (up 75 percent), the Mission District (63 percent), and Bernal Heights (up 57 percent).
However, prices in Bayview are still 12 percent below their precrash peak in 2006-08. The neighborhood with the biggest percentage gain since before the crash is the Mission, where prices are up 46 percent.
The report does not include all 80-plus neighborhoods shown on the San Francisco Association of Realtors’ map, only those that had enough sales to generate a representative sample, said Patrick Carlisle, Paragon’s chief market analyst.
However, Carlisle is confident that no neighborhoods had a bigger percentage gain in home prices since the trough than Bayview, the Mission and Bernal Heights. “The three areas at the top appreciated for different reasons,” Carlisle said in an interview. “The Inner Mission went wildly popular with high-tech wealth.” Bernal Heights became a cheaper alternative to neighboring Noe Valley.
“Bayview and that area in the south had huge appreciation because they were the epicenter of the subprime crisis,” Carlisle said. Subprime lending created a boom that was “twice as big” as other parts of the city. When that lending dried up, its housing market became dominated by distressed sales and prices fell much more, percentage wise, than in other neighborhoods. Prices got so cheap that the rebound there has also been dramatic, but not enough to recover bubble-era prices. He notes that Bayview and surrounding neighborhoods remain the most affordable in the city.
To generate this list, Carlisle looked at a combination of median home prices and average price per square foot. He compared each neighborhood’s current prices to its previous peak and trough.
Bayview and neighboring areas peaked first, in 2006, he said. Mid-price neighborhoods such as Bernal Heights peaked in 2007. High-priced neighborhoods peaked last, from mid-2007 to mid-2008.
Because most people think of appreciation in dollar (not percentage) terms, Carlisle also looked at the change in median prices in some of the city’s larger neighborhoods from the market bottom until now. Not surprisingly, the results look much different. If you wanted to buy a home in Presidio or Pacific Heights, you would pay $1.36 million more now than you would have at the trough. A home in the Excelsior would cost you “only” $199,000 more.
To see the full report, go to http://bit.ly/1rkENMz.
Fannie, Freddie limits: The maximum loan limits for mortgages backed by Fannie Mae and Freddie Mac will remain unchanged in most parts of the country next year, the Federal Housing Finance Agency announced Monday.
The basic conforming-loan limit for one-unit homes will remain at $417,000 except in high-cost areas, where loan limits are based on home values. In no cases can the one-unit limit exceed $625,500, which is already the maximum for most Bay Area counties.
The limits will go up next in 46 high-cost counties that were below the $625,500 max but had home price appreciation. In California, they include Napa, Monterey, San Diego and Ventura counties. In Napa, the maximum rises to $615,250 next year from $592,250.
To see 2015 limits for all counties, go to http://1.usa.gov/1HDBE51.
Source : SFGate.com