In December, the San Bruno real estate market enjoyed its third straight month of growth in several key indicators. Of the 58 single family homes for sale on the market last month, 18 were sold, up 33 percent from the previous month and representing nearly one-third of the available single family housing market.

The price of a median home in San Bruno continues to fluctuate, and it fell significantly in December. The median home price dropped from $578,000 to $434,000, a 25 percent drop. This drop is attributed to a number of smaller starter homes and distressed properties that were sold in the city’s Huntington Park and San Bruno Park areas.

Distressed properties, such as foreclosure and short sales, are taking a smaller percentage of the market as well. Currently, the distressed property market represents 30 percent of the overall single family homes for sale. This number has been dropping slowly over the past few months and is a good sign that San Bruno is continuing toward support of a healthy housing market.

A micro-economic look at the effects of the Crestmoor disaster on the real estate market

I was asked earlier this month about what kind of impact the Sept. 9 fire had on purchase pricing in San Bruno. In terms of greater San Bruno, there has been little effect.

However, when I take a micro-economic look at Crestmoor Park 2, the area affected by the fire, there have been pretty strong consequences. In fact, there were no homes sold from October through December whereas two to three homes were selling each month during the same period last year.

The median price of a home in the Crestmoor 2 area in August was $598,000. Time will tell how that number is affected.

There are three homes for sale in that area currently, one being a distressed property and the other two falling under the PG&E Value Assurance Program, which is one the options the utility is offering to residents affected by the Crestmoor disaster under its buyout program. It will take some regular sales moving through to gauge the pricing impact. The new homes that will be built in that area may cause pricing fluctuations as well.

A couple of items about purchasing: Finding out information about previous events that might have taken place in a neighborhood would always be important if you're a potential buyer. Additionally, the real estate industry is working to introduce new disclosures regarding the location and history of PG&E pipelines.

The PG&E buyout program

PG&E has been tight-lipped about its Value Assurance Program, an option that allows the utility to pay the difference between the actual gross sale price and fair market value of a home if any resident in the neighborhood wishes to sell. And the utility refuses outright to provide any information without a pending claim (feel free to call the hotline at 877-545-7572). 

However, I’ve found many independent out-of-area Realtors openly promoting their newly acquired knowledge about the PG&E program for homes in the Crestmoor area.

Simply put, the Value Assurance Program is a program that allows PG&E the right of first refusal to buy any property for sale under the program. Once an offer is satisfactory to a seller, it must be approved by PG&E. Approval can take up to 10 business days and PG&E has the first right to purchase. Given the recent news that PG&E may be pooling properties to sell to a single developer, I would think that full disclosure to the general population is required.

I’m interested in seeing whether this discourages potential buyers of these properties.

Declining property tax revenue means more cuts to San Bruno's public schools

At a December meeting for the San Bruno PTA/PTO president's council, the San Bruno Park School District announced a loss of nearly $3 million to the budget due to shrinking property tax revenues.

It has been well understood that property values have been declining significantly for the past few years, bringing the county's property tax revenue along with it. Public schools are funded in large part by property tax revenues, and the school district—along with many other districts across California—is no different.

Distressed properties, such as short sales and foreclosures, have added significantly to an already dwindling tax base. These properties very often have a backlog of unpaid property taxes associated with them. While some may be paid at some point, many are written off at the time of sale or not paid at all.

Given that public school funding is tied directly to property taxes, it is no surprise that school districts everywhere are looking at further cuts to programs and services as a result of lost revenue from declining property taxes.

It is a well known fact that stronger schools result in higher desirability for homes in the area. Our property values have a close connection with the success—or failure—of the schools.

Joseph Capote is a local Realtor who runs the blog San Bruno Views. His real estate column appears monthly on Wednesdays.