New Construction: Myths & Legends

The Hayes....The Millennium....Blu...and on and on and on...

What does this mean to you?!?

Here are a few facts that all buyers (and sellers) in San Francisco should know.

(1) ALL of these projects are beautiful, each with a distinct micro-brand targeted to various niche segments of home buyers. They have basic units for the first time home buyer and they also have units with luxury that would rival the most famous hotels in the world...and everything in between.

(2) ALL of the new developments were conceived when business was booming and real estate was a fashionable investment.

(3) The new market has opportunity written all over it! Here's why...

We are not going to see new development, at least on the scale that we see now, for at least 10 years. The carrying costs for these large buildings will prohibit new growth in this sector. There have been many rumors that the current projects that have been approved will not be building including the second tower of One Rincon!

The current inventory has sat on the market for months and months and months and it hasn't sold. The developers are burning through their carrying costs and the prices keep ticking downward.

So we have a limited supply because no more large complexes are going to be built and they are selling them cheaper and cheaper.

BUY NEW CONSTRUCTION!

Of course, it isn't as easy as all that however I have advised my clients to explore this market as a serious option. You should always use a buyers agent. (Remember that in California, the seller pays for the buyers agent and the buyers agent has a fiduciary duty to you!) You should also talk with your real estate agent and mortgage broker about new financing options.

Please contact me for more information!

James Testa
Paragon Real Estate Group
415.515.6097
jtesta@paragon-re.com