February Real Estate Meetup to Feature Speaker: Howard Blum

The February Meetup will be on Tuesday, February 23rd at 6:30pm at 1500 Franklin Street (cross street is Bush)
Our speaker this month will be Howard Blum from The Financial News & Information Service (for bio, see below).
Please come join fellow real estate professional for an evening of education and networking.
About the Speaker
Howard Blum is the owner and founder of The Financial News and Information Service. The Financial News & Information Service produces newsletters on a daily, weekly, and monthly, read from CA to Washington, DC to Europe and Asia by members of the press in the print and broadcast mainstream media, bankers, lawyers, politicians, accountants, educators, members of the real estate community, mortgage loan originators, mortgage bankers and individual investors.
Howard has appeared on radio and television around the world offering his insights of what is driving the bond market, the economy and Federal Reserve monetary policy. His interest rate forecasting has brought his a great deal of recognition in the San Francisco Bay Area for almost two decades. He has "hands on" experience with the lending and real estate industries as a real estate investor, holder of a CA real estate license and he also spent a number of years as a Mortgage Banker and Mortgage Broker.
Howard Blum is also an award winning public speaker, speaking to audiences, large and small, about the relationship of the Federal Reserve and the economy, the 'Whys' behind Fed monetary policy and the direction of the economy and interest rates in plain English (without using 'Eono-Babble').

Large Downtown Corner Building

Very high identity building, also known as the "Big Red" building. Located on the corner of Franklin and Bush Street, great opportunity for signage (with traffic count of 40,000+ cars daily). Space is mostly open floor plan with a few private offices. Window lines on three sides of the building create an abundance of natural light. Additional basement/ conference space and kitchen on lower level. Building has been seismically upgraded and offers HVAC throughout. Two ADA elevators serving all floors.
Corner of Franklin St and Bush St, San Francisco.

Building is approximately 12,500 square feet.

Purchase price: $4,700,000

Third Floor of approx 3,511 square feet available for lease: $2/sf/month I.G.

For more information, please contact:

Oron Maher

415-378-5464

South Park Creative Space

Building: 181 South Park Street, San Francisco, CA (between 2nd and 3rd)
Space Available: 10,000 square feet (approximately)
Minimum Divisible: 5,000 square feet
Attractive rental rates on South Park. 181 S. Park Street was built in 2002 and has a prominent presence on the end of the block, near 3rd Street. Landlord will built to suit to reasonable office standards for right tenant. Ground Floor: ranging from $2.25-$2.50 sq ft. IG, built to suit.Second Floor: asking $2.00/sf IG, built to suit.This is chic and hip creative space that will work for a variety of users. Square footage quoted per owner.
For more information, please contact:
Oron Maher, Associate
Pacific Union Commercial Brokerage
(415) 378-5464

January Real Estate Meetup Featured Speaker Adiel Gorel

Our January meetup was a great success with over 40 investors gathered in one room to hear Adiel Gorel speak.

About the speaker:
About Adiel Gorel
PRESIDENT & CEO, ICG REAL ESTATE INVESTMENTS

Adiel Gorel is the CEO of ICG, a prominent real estate investment firm located in the San Francisco Bay Area.
Since 1983 he has successfully been assisting thousands of investors with purchasing U.S. properties.
Through ICG he has personally invested in hundreds of properties for his own portfolio and was involved in the purchase of over 5,500 properties for ICG’s investors in Phoenix, Las Vegas, Jacksonville, Orlando, Tampa, Dallas, Houston, San Antonio, Austin, Oklahoma City, Salt Lake City, to name just a few.
Mr. Gorel holds a master’s degree from Stanford University.
His professional experience includes Management and Director Positions in firms including Hewlett- Packard, Excel Telecommunications, and Biotechnology firms.
For more information about this event or to find out about our upcoming events, please contact:
Oron Maher
415-378-5464

Retail Commercial Condominium For Sale

Exclusive Listing Agent: Oron Maher

Asking Price: $1,800,000

Tremendous opportunity to purchase a pristine retial commercial condo, located on the ground floor of luxury residential bldg, on the heavy- traffic 2nd St corridor, across the street from the Courtyard Marriot and surrounded by heavy office usage, condo towers, and many restaurants. Current usage as as a spa/event center. The space is mostly open with one private office, 7 treatment rooms, 2 bathrooms (ADA), 2 showers/locker facilities. Space is clean and in pristine condition.The space is currently tenant occupied by a spa, but owner says that space can be delivered vacant at close of escrow, creating a unique purchase opportunity for an owner user. Tenants' lease expires May 31, 2012 with 5 year option to renew and base rent of $11,091.71 NNN+ annual CPI increases. Monthly assesments for this condo were $1,311.13 in 2008.Space is in pristine condition with high-ceilings, wood floors and many high-end finishes.
2nd between Folsom and Mission Streets on high-traffic retail/office/residential/hospitality corridor.

For more information: 415-834-3545

SOMA Concrete and Timber Office Building

Exclusive Listing Agent: Oron Maher

Asking Price: $4,175,000.

This 1927-built concrete and timber building was formerly the William Randolph Hearst Priting Plant, which totals approximately 13,808 sf on three floors, includin lower level. The ground floor is tenant-occupied on a lease which expires March 31, 2013. The base rent for the year 2009 is $9,012/month IG ($1.30/ft), which escalates yearly through year five. Tenant has the option to extend the lease by 5 years at maturity. This floor has very high-cielings.The third floor will be delivered vacant, BUT seller may lease-back. The office floors are elegant and have many high-end features including: concrete/hardwood floors and timber throughout (sand-blasted), large conference room, HVAC (third floor only), operable windows, custom hand-blown bathroom fixtures. All workstations are wired for phone and internet with multiple ports.The entire building is monitored by Sonitorl alarm and is hardwired with a smoke detector system, fully-wired CAT-5 wiring with phone and voicemail system throughout. The building has stairway access to all floors from Howard St and freight elevators to all floors from Moss St. The is also a loading dock with access from Moss St.
Excellent SOMA location on Howard St (between 6th and 7th) on the corner of Moss Street.

For more information: 415-834-3545

Pacific Heights Mixed-Use Buidling

Exclusive Listing Agent: Oron Maher

Asking Price: $2,300,000

Three unit building located on the corner of Sacramento and Scott. This building has one charming, large, residential unit above, with an approx. 700 sq ft. private patio, delivered VACANT. Potential possibility of developing additional residential sq ft. Ground floor has two commercial units,both open floor-plan office space, tenant occupied. Owner would consider negotiating a buy-out with commercial tenant in order to deliver a full or partially vacant building.Past drawings exist for development of approx. 1,000 sq ft. of residential space, giving an owner a residential dwelling unit in excess of 2,000 sq ft in A+ location. Ground floor tenant occupies both spaces and pays $4,050, with 5 year option to renew. Owner would consider negotiating a buy-out with commercial tenant.
Corner of Scott and Sacramento Street.

For more information: 415-834-3545

Days Inn Motel- Stockton, California

Exclusive Listing Agent: Oron Maher

Asking Price: $3,730,000.

The Days Inn-Stockton is a 70 room hotel located a half-block from the 5 Freeway exit. The property also has two ground floor commercial spaces, one of which is occupied by Quiznos. About 1/2 of the hotel rooms have been remodeled in the past year. The hotel sits on a large lot with ample parking, swimming pool area, and grand lobby enterance.

For more information: 415-834-3545

131 Frankin Street, San Francisco-SOLD $3,000,000 after only 2 Weeks on Market

Seller Can Carry Up To 70% With Flexible Terms For Approved Buyer. Charming brick and timber building on 4 levels. Ground floor reception area, and open floor plan. 2nd level has 3 private offices, kitchen/break room, and open area used for office purposes. 3rd level has 2 private offices, small kitchen and large executive meeting room. Lower has server room, storage space and is suitable for office usage. Cubicles throughout. Building is seismically upgraded, ADA compliant and spriklered.

Listing Agent:

Oron Maher, Pacific Union Commercial Brokerage

415-378-5464

June Real Estate Meetup with Bay Area Council

Event Details: Please join us for an exciting and educational evening at the Infinity Towers. The night will feature three keynote speakers, networking, and appetizers. Each speaker will give a brief presentation of timely issues as they pertain to their respective industries. The line-up will include:

· Jeff Heller-Jeffrey D. Heller, FAIA, an architect member of the Board since November 2002, practicing architect for 37 years, and is the founder and president of Heller Manus Architects in San Francisco. He currently serves as president of the AIA San Francisco. He also serves as an advisor and consultant to several San Francisco City planning and design projects including the San Francisco City Planning Department for Urban Design Guidelines. Heller earned his bachelor’s and master’s degrees from the Massachusetts Institute of Technology.

· Ray Carlisle, President Carlisle Companies, has over 35 years of experience in residential and commercial real estate valuation, management and development; with a primary focus on new and rehabilitation mixed-use and income rental and homeownership projects and strip commercial retail/office and urban area shopping centers. Ray is the chair of the Bridge Housing Projects Committee-the largest non-profit real estate developer in CA.

· Scott Zengel-Scott is Vice President of the Bay Area Family of Funds and oversees the management of $200 million in double bottom line private equity funds. The Family of Funds portfolio currently includes the Bay Area Smart Growth Fund I and II and the Bay Area Equity Fund. In addition to his fund responsibilities, Scott manages execution of the second bottom line programs throughout the Bay Area. The programs currently focus on education, double bottom line business development, and community capacity building.

Time and Location: Thursday June 11, 2009 from 6-8:00 P.M at The Infinity Towers, Community Room- 160 Folsom Street.

Cost: Free, but please RSVP in advance.

Additional Info: In addition to listening to great speakers, this will be a great opportunity to network with industry professionals, investors, developers and educators- bring your business cards. Appetizers will be served.

Contact: Oron Maher, Pacific Union Commercial Brokerage (415) 378-5464.

Civic Center Office Building for Lease and Sale

Property Description:

Built in 1917, this vacant commercial building has enterances on both Market and Fell streets (aka 33 Fell St). Totaling approx. 17,000 sq ft. on two floors, the building is proximate to City Hall and many other government agencies. Building is in good condition and is offered on an "as-is" basis. The ground floor is primarily open, with several large rooms. The second floor has private offices and large rooms.Taxes and operating expenses are estimated to be 40 cents/sf/mo. Term: short or long term. Floors may be leased independently.
Location Description:Prime Civic Center location- At the covergence of Market, Fell and Polk streets.

Rental Rate: $1.50/SF/Month
Zoning Description: C-3-G Downtown, General
Lot Size: 8,520 SF
• Building can also be sold for $5,000,000.
• Located in Enterprise Zone
• 320 ft. height limit creates tremendous opportunity
• reinforced concrete construction
• ADA compliant
•short or long term lease.

For more information please call Oron Maher (415) 378-5464

Geary Corridor 2 Unit Commerical Building For Sale- $2,800,000

Two Unit Commercial Building: Ground floor of approx. 3000 sq ft includes basement and mezzanine which will be vacant first quarter 2009 (also available for lease@ $7500/mo, currently gift store). Upper floor is owner occupied dental practice. Owner would like to lease-back upper level but will consider all offers. High foot and vehicle traffic commercial building along Geary corridor.

Call Oron Maher 415-378-5464 for more information.

January 2009 Meetup Group Featured Attorney Dee Ware of Cooper White and Cooper

For those have you who have not yet made it to our Real Estate Investment Meetup Group, please consider attending one of our 2009 meetings. Our January speaker was attorney Dee Ware.
Dee A. Ware is a partner at Cooper, White and Cooper, LLP, specializing in complex construction, real estate and commercial litigation. She is a founding member and co-chairperson of the firm's Green Practice Group. Ms. Ware was one of the first attorneys in the country to be certified as a Leadership in Energy and Environmental Design Accredited Professional (LEED AP) by the U.S. Green Building Council. She assists clients in all phases of the green building process, including rating system selection, navigation of the certification process and rapidly emerging government regulations, implementation of risk management strategies, and advocacy of client interests in the event that a dispute arises concerning design, construction, certification, operation or purchase and sale of a green project. Since 1991, Ms. Ware has represented some of California’s largest lenders, developers, design professionals and general contractors in all facets of residential and commercial construction litigation, including claims of defective construction, mechanic’s liens and contract disputes. In addition, she has counseled numerous property owners, real estate professionals and investment companies in connection with real estate disputes concerning development, zoning, financing, sale and acquisition and commercial leasing.
Ms. Ware graduated cum laude from Syracuse University in 1988, earning bachelor’s degrees in political science and public relations, and holds a juris doctor degree from the University of California, Hastings College of the Law. She is a member of the State Bar of California and has previously been appointed to its Committee on the Administration of Justice. She has also served on the California Association of Realtors’ Tort Advisory Committee, as a Judge Pro Tem for the Alameda County Superior Courts, and on steering committees and advisory boards for green building and sustainable business conferences and events.
Ms. Ware has received an AV® Peer Review Rating from LexisNexis Martindale-Hubbell, which is the highest rating awarded for legal ability and ethical standards.

For more information about our monthly meetings in San Francisco, please contact Oron Maher (415) 378-5464

Goldman Report

These are truly historic times. Last week, Barack Obama was elected as America’s first African-American president. I don’t envy his new job. He faces as great a challenge as FDR did in the 30’s. All of America, no matter whether you voted for him or not, is now dependent on what he does as he assumes the presidency on January 20th. I know all of us wish him well as he leads us out of our current economic crisis.

It is too early to tell what it will mean for the housing market. However, the declines on Wall Street and the focus on the election have slowed most segments of the local housing market over the last couple of weeks. Financial uncertainty, the fear created by a protracted recession and declining home values, has made buyers reluctant to move forward.

Believe it or not, there are bright spots. Although housing prices have declined, so too have inventories. In addition, the number of units closed over the last several months has increased over last year during the same period. These gains, however, have been in the lower price ranges. With the decline in median price first hitting in these same ranges beginning at the end of 2006, we are now seeing declines in areas that have been immune previously i.e. San Francisco.

The numbers from the month of October clearly demonstrate these trends. Where we have seen the most significant price declines year over year (the lower price ranges), we have also seen both the largest reduction in inventories and the greatest gains in homes sold year over year. Where there were few, if any, multiple offers in the lower price ranges last year, they currently represent the majority of multiple offers.

Both Contra Costa (-44%) and Solano (-37%) counties, which have some of lowest median prices, saw the greatest declines in price. They also had the largest increase in unit sales over last October---Solano (+242%) and Contra Costa (+185%). On the other end, the counties with the highest median sales prices have had the smallest declines in price---San Francisco (-10%), Marin (-25%) and San Mateo (-25%), but also had either a decline in units sold or much smaller increases in units sold over last October---San Francisco (-20%), Marin (+12%) and San Mateo (+17%). The rest of the counties were as follows (the first number is decline in price and the second is increase in units sold): Alameda (-35/+75%), Santa Clara (-33%/+35%), Napa (-32%/+58%) and Sonoma (-32%/+122%).

All but one county (San Francisco) declined in months supply of inventory over last year. The greatest percentage declines in supply occurred in those counties with the biggest declines in median price. The most dramatic decline was in Solano County, which has the lowest median price in the Bay Area. It went from a 22.4 months supply last year to a 5.4 months supply this year. The rest of the counties are as follows (the first number is October 2008 months supply of inventory and the second is October 2007): Sonoma (4.4/12.7), Contra Costa (4.7/15.1), Alameda (4.9/10.1), San Francisco (5.2/3.5), San Mateo (5.3/6.0), Solano (5.4/22.4), Marin (6.0/6.7), Santa Clara (6.4/9.0) and Napa (8.5/15.7).

The number of days on market has declined in counties with the lowest median prices, while they increased in the counties with the higher priced homes. The changes in percent in the number of days on the market are as follows: Napa (-27%), Solano (-20%), Sonoma (-20%), Contra Costa (-16%), Alameda (+15%), Marin (+17%), Santa Clara (+29%), San Mateo (+32%) and San Francisco (+44%).

The higher price counties remained healthy through most of last year while the lower priced counties took the brunt of the sub-prime fiasco. This year the higher price counties have not been immune. The worsening economy has now affected all income levels. What the lower end market experienced in the end of 2006 and all of 2007, the higher priced markets are experiencing now. We are beginning to see prices stabilize in some of our lower end markets. The recovery always starts at the bottom. The pace of the recovery will depend on many factors---most notably is how protracted a recession we will face. To be sure, the man who we elected President last Tuesday will have a profound effect on the housing market.

Just Listed- Edward II Inn and Suites-Hotel for Sale

Property Description:Own a historic corner of San Francisco, in the tourist heavy Marina District. The 3 story boutique hotel was originally constructed in 1914 to accommodate visitors to the Panama Pacific International Exposition of 1915. Licenced for 32 tourist units, the inn currently operates 29 rooms in the main building (fee simple), all with beautiful Edwardian detail; and 2 large suites on the northeast corner of Lombard (leasehold interest), which allows for prime signage on both northwest and southeast sides of the street. Ground floor has a charming corner lobby with high ceilings, licenced Bloomers Pub with bath , guest breakfast area, kitchen, 2 offices, 3 suites with jacuzzi baths. Second and third floor have 26 additional rooms, double glazed windows, stained glass. Five off-sight leased parking spaces may be delivered.This hotel has been operated as a bed and breakfast. It enjoys a prime corner location and 50' frontage on Lombard Street and a depth (on Scott Street) of 68.75 feet. Walk to restaurants and shops on Lombard and Chestnut streets. One of the closest hotels to the Golden Gate Bridge. Property history shows strong occupancy and great future room revenue potential.
Location Description:The subject site is located on the southwest corner of the intersection of Lombard and Scott Streets in the City of County of San Francisco, California. Its dual civic address is known as 3151-55 Scott Street and 2401-05 Lombard Street. The subject is identified as San Francisco County Assessor' s Parcel Number 937-001.The subject property is located in a neighborhood identified as the Marina District. The neighborhood may be more specifically identified as that area east of the Presidio, bordered to the north by the San Francisco Bay, to the west by Van Ness Avenue, and to the south by Union Street. The neighborhood can be generally characterized as one of the better quality residential areas in the city of San Francisco. Transportation through the neighborhood is considered good. Two main arteries run east/west through the neighborhood including Lombard Street and Marina Boulevard. Both these streets intersect with U.S. Highway 101 to the west, which provides access to the Golden Gate Bridge and north.

Asking Price: $6,000,000.

For more information please call: Oron Maher (415) 378-5464

October 22 Meeting will feature Bill Whalen of Wachovia

Meeting Location: Fort Mason, Room C230
Time: 6:30 - 8:30pm
Please join us for our next real estate meetup. While we are still in the process of confirming a second speaker- we are very pleased to have Bill Whalen address our group on October 22nd. Mr. Whalen, who is a Managing Director at Wachovia, will give us an inside analysis on real estate capital markets and an economic forecast for the coming year. Come learn from the industries best, and network with other like-minded real estate minds.
Mr. Whalen is a Managing Director and Regional Executive in the San Francisco office of Wachovia's Real Estate Division. Mr. Whalen manages Wachovia's real estate platform for the Northwest Region. Mr. Whalen is responsible for managing a team of real estate bankers who provide a full suite of capital solutions to institutional and middle market real estate investors. Mr. Whalen has closed over 6.0 billion in commercial real estate transactions since opening the San Francisco office for Wachovia Securities (First Union) in 1998.
Mr. Whalen has twenty years of corporate banking and commercial real estate finance experience and has worked in Wachovia's Real Estate platform for the past ten years. Prior to joining Wachovia, Mr. Whalen was a Vice President and Senior Underwriter at Wells Fargo Real Estate Capital Markets in San Francisco. At Wells Fargo he was responsible for underwriting and structuring commercial real estate mortgages intended for securitization. Prior to Wells Fargo, Mr. Whalen was Vice President at First Interstate Bank of California where he served in various capacities in its Real Estate Division. Mr. Whalen graduated with a B.A. in Economics and Political Science from the University of New Mexico.

For more information please call: Oron Maher (415) 378-5464.

Oron Maher Represents Unique Marina District Bed & Breakfast Inn

San Francisco, CA – October 7, 2008 – Romantics, celebrities, historians and San Francisco visitors alike love the European-style Edward II Inn and Suites. For nearly 100 years, this one-of-a-kind Marina District bed and breakfast inn and pub has successfully paired old world charm with 21st century amenities, earning the title as one of the three Best Romantic Hotels in San Francisco by City Search. The ideally located property at 3155 Scott Street (@ Lombard) is now on the market, represented by listing agent Oron Maher of Pacific Union GMAC Real Estate. Price is available upon request.

“This inn is a tremendous and hard to obtain piece of San Francisco history as well as a successful bed and breakfast and English pub which are offered for sale at a time when San Francisco tourism and occupancy rates are at an all time high,” said Maher, who works from Pacific Union’s Presidio headquarters. “It also contains star appeal. The movie Beaches with Bette Midler was partially filmed in the hotel.”

On a historic note, the exquisite three-story inn was originally constructed in 1914 to accommodate visitors of the Panama Pacific International Exposition in 1915 which was held at what is now the Marina Green. With 11,754 square feet, the Edward II Inn and Suites features 31 rooms, four suites, Bloomers Pub and charm galore. Ideally situated at the corner of Scott and Lombard streets, the Edward II is all about location. It is just minutes from many popular Marina District shops and restaurants, the Presidio and Fort Mason, and attractions like Fisherman’s Wharf and Ghirardelli Square.

Edward II Inn and Suites voted among top three Most Romantic Hotels in San Francisco

For more information about the hotel, or to request a showing, contact Oron Maher at 415.378-5464, realtylaw@gmail.com.

Pacific Sales Comes to San Francisco

Pacific Sales Comes to San Francisco
Kitchen and Bath Retailer Expands into Northern CA
Southern California-based Pacific Sales Kitchen, Bath & Electronics signed a 10-year lease for the entire building at 955-975 Bryant St. in San Francisco. The tenant will take the former Copenhagen Furniture space in January next year. The 30,000-square foot retail building was built in 1928 in the Showplace Square submarket. It received renovations in 2000. The lease is part of Pacific Sales' expansion into Northern California.

San Francisco Real Estate Meetup

Please join us for our next meetup group on Wednesday, September 24, 2008 at 6:30 pm at Pacific Unions office. To RSVP for this event, please call Oron Maher (415) 378-5464 or email: realtylaw@gmail.com. Our speaker is Jeremey Paul. Here is a little more information about Jeremy:
Jeremy Paul and his associates at Quickdraw Permit Consulting have been getting improbable projects approved in San Francisco for more than 19 years. The office specializes in difficult smaller projects; including change of use and occupancy, residential demolitions and alterations, legalization of odd units and strange uses in unlikely locations, unit mergers, entertainment permitting, new construction, and staring down unreasonable and capricious plan checkers. Quickdraw is noted for a uniquely creative and persistent approach to neighborhood conflict resolution and permitting of new and environmentally sensitive architecture. They are responsible for the first horizontal axis windpower generator installed in a residential neighborhood in any city in the country.Mr. Paul is a nearly weekly feature at the San Francisco Board of Appeals and Planning Commission where he is noted for well crafted powerpoint presentations laden with enough humor to awaken sleeping commissioners. San Franciscan's with far too much time on their hands often approach him in restaurants to ask if he's that guy they see all the time on the City Hall cable TV channel. Jeremy uniformly denies knowing what they're talking about . . . Mr. Paul will speak on the current atmosphere towards Real Estate development and alteration in San Francisco and hopes you will come with questions both specific and general about our Building and Planning codes.

The Goldman Report- Weekly Bay Area Marketing Report

The Bay Area forecast is loaded with microclimates. Meaning that as usual San Francisco is still bright and sunny, Marin, Alameda, and Contra Costa are cloudy with breaking sunshine, while Sonoma and Napa are still rather cloudy. Even within each county we find areas that continue with rain storms mixed with bright sun. You can even find a rainbow or two.

The overriding theme is plenty of buyers circling, with many still trying to figure out the long term weather pattern. The majority of homes open for the first time are attracting ample crowds of between 10-40 potential home owners. The best and most attractive listings are drawing numbers in the high double to triple digits, like the Piedmont 3 bedr./3 ba. home that was visited by 140 guests and the SF Noe Valley listing priced at $2.095 mil. that garnered over 200 buyers. Buyer traffic drops off significantly after the first open home as buyers are constantly looking for the newest eye-catching listing. Usually the only exception is when a property has a noteworthy price reduction.

Those that are jumping in are doing so with gusto. Nearly 30% of our transactions during this period were involved in multiple offers (29% to be exact). The majority of these transactions are drawing between 2-4 offers and selling at asking or 2-6% over list. There are exceptions such as the Noe Valley listing in SF priced at a bit under $ 1 mil that did go over by 10%. The upper end of the market is still healthy in San Francisco and appears to be coming back in Marin. As evidenced by the multiple offer on a $4 mil. home in Tiburon and another Marin listing at $3.9 mil. that also went into escrow. Contra Costa is also seeing resurgence in their upper end where a $2.075 mil. home in San Ramon sold. The Oakland/Berkeley area is seeing a different pattern where listings between $1 – 1.5 mil are selling, but those over that level are being more challenged. Napa and Sonoma are experiencing the bulk of their activity in the lowest and highest ends of their market. As you can see, the weather is quite variable.

The majority of buyers are still lacking a sense of urgency. However, buyers do know value and when they see it; do not hesitate to make their move. Volume of sales was well off last year comparing first quarter 2007 to first quarter 2008. The pattern changed in April, where in a number of counties open sales were actually up over 2008. This is a positive trend if it holds for May and June.

We will continue to see volatility in our market, just as we have seen in the stock market. Inventories continue to shrink and new home building has pretty much come to a standstill in the Bay Area. At the same time buyer demand is increasing. At some point the pressure will have to release itself. Although this time it should come in a measured release rather than with hurricane force as it did in 1999/2000 and again in 2004/2005.

I am attaching two articles that acknowledge that the worst is behind us and that the repair has begun. One is by a hedge fund manager, Cyril Moulle-Berteaux and the other by George Soros the billionaire investor. These articles are significant because they are the first national articles that are beginning to look at recovery rather than continuing to dwell on the rubble in the rear view mirror. We will still experience the on-going fall out from the sub-prime debacle, but like after shocks from an earthquake they do diminish over time.