;

March/April 2013

 

Unemployment

The unemployment rate in San Francisco decreased to 6.3 percent during February from its January rate of 6.9 percent. This is the lowest unemployment rate that San Francisco has seen since January 2011. Marin County continues to lead the state for lowest countywide unemployment rates, followed closely by (#2) San Mateo and (#3) San Francisco. A sampling of other California counties include: Los Angeles at 10.3 percent, Orange at        6.5 percent, San Diego at 8.0 percent and Sacramento at 9.5 percent.

The State of California experienced a downturn in the unemployment rate year-over-year from 10.8 percent in February 2012 to 9.6 percent in February 2013, and similarly, the United States experienced a downturn from 8.3 percent in February 2012 to 7.7 percent in February 2013.   

 

 

Bay Area Unadjusted Unemployment Rates, Jan - Feb 2013

 

County

Feb-13

Jan-13

Dec-12

Alameda

8.0%

8.6%

9.5%

Contra Costa

8.1%

8.6%

9.6%

Marin*

5.4%

5.8%

6.6%

Napa

7.0%

8.0%

9.2%

San Francisco

6.3%

6.8%

8.1%

San Mateo

5.9%

6.3%

7.2%

Santa Clara

7.4%

7.9%

8.8%

Solano

9.3%

10.0%

10.8%

Sonoma

7.6%

8.3%

9.2%
*Lowest in state. Source: CA-EDD
 

 

Historical Unemployment – San Francisco – February 2013

Source: EDD & FRED, NSA, Monthly

 

Housing

Bay Area home sales started to ease back in the beginning of 2013 in the face of tight supply. Prices continue to show an upward trend which, according to DataQuick, is the result of slow rebalancing in a market environment of constrained supply and fastidious mortgage lending.

A total of 5,404 new and resale houses and condos were sold in the Bay Area in February 2013. This was down 1.8 percent from 5,501 in January, and down 6.1 percent from 5,753 in February 2012.

The median price paid for a home in the nine-county Bay Area last month was $405,000, which is down 2.4 percent from $415,000 in January and up 24.6 percent from $325,000 in February 2012.

“With a recovering economy, prices still closer to the bottom than to the top, ultra-low mortgage interest rates and tight supply, the stage is set for price gains. This spring is going to be interesting,” said John Walsh, DataQuick president.

Indicators of market distress continue to decline and foreclosure activity in early 2013 is well below peak levels reached in the last few years. The statewide number of homeowners pushed into the foreclosure process fell last quarter to the lowest level in six years—a result of rising home values and an improving economy. Presently, financing with multiple mortgages is low, and down payment sizes are stable.

Bay Area Home Sales: Volume and Median Price

 

  All homes

Sales Volume

Median Price

Feb-12

Feb-13

%Chng

Feb-12

Feb-13

%Chng

Alameda

1,183

1,144

-3.3%

$295,000

$372,000

26.1%

Contra Costa   

1,168

1,148

-1.7%

$235,000

$311,000

32.3%

Marin          

203

201

-1.0%

$535,500

$650,750

21.4%

Napa            

103

91

-11.7%

$320,000

$415,000

29.7%

Santa Clara     

1,281

1,159

-9.5%

$432,000

$544,500

23.8%

San Francisco

409

356

-13.0%

$624,000

$700,500

12.3%

San Mateo       

496

414

-16.5%

$492,500

$635,000

28.9%

Solano         

532

488

-8.3%

$172,000

$214,250

24.6%

Sonoma          

378

403

6.6%

$295,000

$345,000

16.9%

Bay Area       

5,753

5,404

-6.1%

$325,000

$405,000

24.6%

Source: DataQuick, www.DQNews.com

 

Notices of Default (Houses and Condos)

 

 

Q4 2011

Q4 2012

Change Yr/Yr

San Francisco

409

  236

-42.3%

Alameda

  2,117

      1,194

     -43.6%

Contra Costa

  2,398

      1,342

     -44.0%

Santa Clara             

  1,847

867

     -53.1%

San Mateo       

    712

        346

     -51.4%

Marin

263

        149

     -43.3%

Solano         

  1,245

696

     -44.1%

Sonoma

815

452

     -44.5%

Napa

206

        117

     -43.2%

Bay Area       

10,012

      5,399

     -46.1%

Source: DataQuick, www.DQNews.com

 

Commercial Real Estate

Available office space in San Francisco is continuing to decline. There are currently 891 blocks of available Class A and B space on the market, according to Colliers International. Of those blocks, 82 have been introduced to the market in the past 30 days. Average time on the market for direct availabilities (A&B) is currently 26 months. There are only 11 contiguous spaces over 100,000 square feet available—the lowest in 3 years.

In addition there are 170 listings for sublease office space, totaling 1.33 million square feet in the market. The average size of sublease space is 7,871 square feet and the average term is 37 months.

Technology companies accounted for 70 percent of the transaction volume in the beginning of 2013. Average Class A rents in the Financial District (North and South) were $53.44 in the first half of the first quarter and, despite decreasing availability, the average transaction size was above historical averages.

Tenant activity is at an 18 month high: currently there are 166 tenants in the market with 4.4 million square feet of office space requirements. The average tenant requirement is 26,844 square feet. There are 17 tenants from “out of town” touring the San Francisco office market, representing 350,000 square feet of potential growth.



 

San Francisco Fashion Incubator

The inaugural class of the Fashion Incubator of San Francisco officially presented their work at the 87th annual Junior League fashion fundraiser held at Fort Mason on March 1. It was the first time the league has included new designers in the lineup.

The five designers created both spring and fall collections in the year they spent at the incubator program, sponsored by Macy's San Francisco and supported by the  San Francisco Center for Economic Development. The upcoming designers will also present their fall collections at the Conservatory of Flowers at the end of April.

Visit SFGate for pictures of the show.

 

San Francisco International Airport (SFO)

SFO set an all-time record for passenger traffic in 2012, with a total of 44.5 million passengers traveling through. This surpasses the previous record of 41 million passengers in 2011, and represents an 8.5 percent increase in traffic year-over-year. Furthermore the airport generated a total of 29,555 direct jobs and $1.7 billion in personal income.
Source: FlySFO.com

New Connections

Scandinavian Airlines (SAS) announced the first ever non-stop service to Copenhagen, Denmark on April 8, 2013. This daily flight will connect SFO and the Bay Area to Scandinavia, Finland, Russia, the Baltic, Poland and Germany. According to San Francisco Mayor Edwin M. Lee, the new service further strengthens the Bay Area’s growing connection with Europe. 

On April 26, China Eastern Airlines will commence non-stop service from SFO to Shanghai (PVG).

 

Biggest Carriers at SFO

1. United Airlines (+13.08% change in passengers from 2011)
2. Virgin America (+25.75%)
3. Delta Airlines (+2.20%)
4. American Airlines (+0.12%)
5.  Southwest Airlines Co (+1.68%)

 

QuickFacts is produced by the San Francisco Center for Economic Development (www.sfced.org). For more information please contact:

Dennis Conaghan
Executive Director
415.352.8819
Email: dconaghan@sfced.org

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