In a historic event San Jose, CA became the first city where the median home price is over $1 Million. The NAR (National Association of Realtors) stats show that the national average is $240,700. That is an increase of 4.9% from 2015. In the Second quarter of 2016 home prices have gone up in 83% of all metropolitan areas throughout the U.S. That tells us that there is no slow down in the housing market.

Just living in the Bay Area has become a luxury. Growing up in San Francisco I am use to always living in an expensive city but this is just getting out of hand. San Jose has always been a cheaper alternative but that is no longer the case. On the flip side that tells us the economy here is the strongest it has ever been. More jobs and higher salaries are the reason for this housing rise. The Tech industry has been the biggest impact on the demand to own a home in the Bay Area. While blue collar workers struggle to pay rent and send their children to school.

I wish there was a simple solution to this growing problem. There is just a very low supply of affordable housing. What is considered affordable housing in the Bay Area? In San Francisco the BMR (Below Market Rate) homes for sale are still priced anywhere from $350,000-$450,000. That is still well above the national average.

Even with all of this going on in my hometown, I can’t imagine living anywhere else. The challenge of surviving in this crazy market drives me everyday to work hard and keep up with the pace.

The Annual Inman Connect Conference took place yesterday. It is an amazing event bringing together successful Realtors from all over the states. San Francisco will host this conference at 333 O’Farrell St. from August 2-5, 2016. This event is not free (nothing is free in life).

The Ballrooms will filled with eager realtors ready to listen and learn from the industry’s best. The day started off right before 9:00am for attendees to check-in. From there we found ourselves going into one of two grand ballrooms. One for agents and the other for brokers.

Climb was in full force with two agents and our co-founder as part of these panels. Kenny Truong, Todd Montgomery, and Mark Choey was asked to share their experiences being at the top of real estate world.

There was plenty of things to keep us busy through out the day. I found some very interesting new services that will help not just me but all realtors to improve on how they run their business. Ten-X is a start up who helps clients step by step understand and get through each transaction from start to finish. They are not looking to take away the services us realtors provide, they are just making our jobs a little but easier.

That was not the best part. SoFi and Sindeo hosted happy hour after the event was over. We decided to venture upstairs to the 45th floor in Tower One of the Hilton to see what Sofi had to offer. The views were amazing and the drinks were free. This was a really nice way to end the day.

Overall the Inman Connect will be something that I will find myself attending every year. This is a great way to stay relevant in a market that constantly evolves.

Every wonder what it would look like or how much it would cost to live in a ew development in one of the most expensive neighborhoods in San Francisco? Here is a little taste.

The Pacific located at 2121 Webster st located in the heart of Pacific Heights. This new development will consist of 76 units designed by Handel Architect. The entry level unit will start at a mere $1,495,000. Not bad for a 1,025 sq ft 1 bedroom and 1.5 bath condo. Prices can go all the up to $20,000,000.

The Pacific has been through some tough delays. First hoping to have the building finished in April 2016. They just started having their first tours this month in July and look to have the fist move-ins by the end of Summer.

Being inside a building like this is as unreal as it is posh. The view from those one-of-kind windows is remarkable, but the city and reality feel a million miles away. Hearing talks about making the building a part of the neighborhood, but in practice it feels like a world of its own.

Maybe that’s what The Pacific’s future residents want. Or maybe they’ll just bring their own ties to the city and neighborhood in with them. If so, it’s probably the only thing they’ll have to furnish themselves.

30-year fixed mortgages
The average 30-year fixed-rate mortgage is 3.42%

At the current average rate, you’ll pay about $445 per month in principal and interest for every $100,000 you borrow.

You can use our mortgage calculator in the buyers page of our website.

15-year fixed mortgages
The average 15-year fixed-rate mortgage is 2.69%

Keeping the length of your loan shorter will result in higher monthly payments. The trade off to this is: The higher payments goes towards the principle amount and less on the interest.

For example, monthly payments on a 2.69%, 15-year loan would cost around $676 for every $100,000 borrowed.

Over a 15-year term, the total interest payments would be around $21,639. That’s about $38,414 less than what you’d pay in interest with a 30-year loan at today’s rate.

5/1 adjustable-rate mortgages
The average 5/1 ARM is 2.96%, up 16 basis points from a week ago.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts.

Monthly payments on a 5/1 ARM at 2.96% would cost about $405 per month for the initial 5 years. With rate caps of 2/2/5, monthly payments could balloon to $712 per $100,000 at the final adjustment.