Wondering what to expect in NYC real estate in 2013?

A dozen agents, lawyers, mortgage brokers, property managers, and appraisers tell us what they think the year will bring. 

Here's what you need to know to swim with the sharks without becoming lunch:

1. Tight-fisted lenders, shrinking inventory, buckets of cash to send co-op, condo prices up

• Tight inventory will drive prices higher: “The challenges in getting a mortgage will continue to play out in 2013, keeping housing inventory very low as sellers with low or negative equity will opt to do nothing," says real estate appraiser Jonathan Miller of Miller Samuel. Construction lending remains tight. Low inventory (supply) is likely to press housing prices higher in 2013, bolstered by record low mortgage rates and improving employment rates (demand). "Renting or buying," says Miller, "the outlook is likely to be expensive.”
• The biggest year for all-cash deals EVER: A well-regarded mortgage broker who asked to remain anonymous says he has never before seen so many cash buyers. He expects the trend to continue and predicts that cash buyers will make up even more than the current 25 to 35 percent of the market.  He also predicts that it's the $3 million and up segment that will thrive in 2013. 
• A drought of starter apartments, and gradually climbing prices:“Prices will continue to rise gradually, possibly in the five to 10 percent range but there won't be any huge upswing," predicts real estate broker Ari Harkov of Halstead Property. “Foreign money will continue to flow in via cash deals and the entry level segment--$500k to $1 million--will continue to have extremely low inventory, with renters looking to buy and avoid paying increasingly high rents.”
• Aggressive buyers = higher prices: “We are heading for a very strong spring residential market," says  Doug Perlson, CEO of web-focused real estate firm RealDirect. "A lot of buyers missed out on properties due to competitive bidding and low inventory [this year] so we'll see much more aggressive buyers coming up in 2013. More aggressive buyers means higher average prices across the board....”
• Effects of higher tax increases for the wealthy: Federal capital gains taxes (what you pay when you sell an investment) are expected to increase at the top rate from 15 percent to at least 23.8 percent. This might result in wealthy buyers holding off selling their properties (out of shock), or even increases in ticket prices for those high-end units.
• International influx, and post-Sandy bargains downtown:“We expect strong interest from abroad, especially considering the political uncertainty in Italy and changes in real estate tax in the U.K.," says Victoria Vinokur of Halstead.   But she expects sales prices in certain downtown buildings to go down as much as 15 or 20 percent  post Sandy. 

2. Don't expect a break in rents just yet

“We may be near the top of the rental market price boom but I don't think there'll be much of a reprieve in prices," says Miller, the appraiser and market analyst. "Credit will remain tight, keeping many would-be buyers from taking advantage of low mortgage rates and keeping them in the rental pool. We'll also see a continued improvement in employment numbers in NYC which is another key driver in the rental market.”

Because there is a lot of money to be made in the rental market, buildings that were once meant to be condos are converting to rentals.

Andrew Barrocas, CEO of real estate brokerage MNS, cites 142 North Sixth in Williamsburg as an example.

“Some developers find that their building is worth more if it's sold as a rental building so they convert to rental and sell the building," he says. "And just about every new building coming on the market that's over 100 units is going to be rental.”  

3. The action tilts toward Brooklyn and Queens

What neighborhoods will join the popular club in 2013? Lots, according to our sources.

Barrocas is bullish on Brooklyn, particularly Greenpoint along the waterfront and all along the L train route in Bushwick for rentals. 

In Manhattan, says real estate agent Sharon McIntosh of the McIntosh Company, “TriBeCa sales will slow down because of super storm Sandy [but] continue to be a place for Wall Street singles and young couples. A neighborhood that will benefit from TriBeCa's slowdown is the East Village. Lots of new construction and the kinds of funky shops and restaurants that are quickly disappearing from Manhattan.”

Gary Malin, president of real estate brokerage Citi Habitats, sees a brighter picture for the so-called SoPo (South of Power) 'hoods.

"All downtown Manhattan neighborhoods will remain hot, especially the ones on the west side along the High Line," says Malin. At the same time, some sticker-shocked buyers will head "to the outer boroughs that are an easy commute....Astoria, Long Island City and Sunnyside in Queens are all poised for serious growth in 2013.”

In their latest blog entry entitled "Top NYC Neighborhoods for 2013 Real Estate Investment," the brokers at RealDirect offered many opinions including one linked to a hipster baby-boom.

“Greenpoint is ripe for massive growth as Williamsburg residents are starting to have children," says Perlson.  

RealDirect broker Kumar Laidley pegs Roosevelt Island as the next hot 'hood.

“With the announcement that Cornell is planning to turn the island into a state-of-the-art tech campus, Roosevelt Island went from sleepy bedroom community to the heart of NY's tech hub," says Laidley. "Brand new Four Freedoms Park has transformed a once neglected area into a breathtaking open space.” 

Another RealDirect broker, Leia Furer, made up a name for the neighborhood she thinks is hot: West TriSoHo-- “the lovely micro- neighborhood that runs from Spring Street to Vestry along Hudson Steet all the way to Hudson River Park..” She likes its cobblestone streets, cast iron buildings, proximity to the riverfront and the new shops and restaurants.

4. Mortgage rates low--and lenders lying lower

Interest rates will stay historically low, not increasing until unemployment rate falls to 6.5 percent, according to Federal Reserve Chairman Ben Bernanke. (It is currently at 7.7 percent.) However, getting financing will continue to be a major challenge for buyers.

One mortgage insider predicts that the amount of money lent out to buyers in 2013 will be the lowest of all time. People are dropping out of the mortgage business quickly but that means “the survivors are the best qualified. Now the right brokers are giving mortgages to the right buyers.”

5. Co-op and condos focus on keeping up with the Jonses--and off AirBnB

With a new crop of spanking new residential developments getting set to hit the market in 2013--resetting buyers' expectations yet again--co-op and condo boards may have to consider improvements to their buildings--and leveling assessments to do so--in order to remain competitive among buyers, says Malin. 

Staying competitive will also mean answering tough questions about disaster preparedness,  says closing attorney Adam Stone of Regosin, Edwards, Stone and Feder. 

“Purchasers will be asking questions about how the building handled the storm, whether mechanical equipment is housed at lobby level or below... how responsive the building was to its owners after super storm Sandy," says Stone.

Co-op and condo attorney Dean Roberts of Norris, McLaughlin & Marcus thinks that the prime issue for board members will be their personal vulnerability to lawsuits. 

“The Dakota case has created a new awareness of the potential liability that may go along with board membership," says Roberts. "Members must understand that standard Directors and Officers (D&O) policies do not cover all situations. I recommend having a managing agent or broker invite an expert in to explain to the board the limits, deductions and exceptions of their D and O.”

Robert Braverman, a co-op and condo attorney at Braverman Greenspun thinks personal safety concerns around short-term rentals are going to be the big issue.

“Condominium boards are going to become even more vigilant in pursuing illegal transient occupancy which has, unfortunately, reached epidemic levels with the increasing popularity of web-based rental services," says Braverman.

6. New construction projects get smaller, but the apartments get bigger, while concessions shrink

The condos that are being built now are “boutique condos”--smaller than what has gone before, according to Barrocas.

He cites several reasons.

There is a shortage of land to build on, it is challenging to get financing for the over-$100m you'd need for a large condo development, and the boom in the rental market makes rental projects extremely attractive, he says.

Stephen G. Kliegerman of Terra Development Marketing, agrees that “the majority of new product will be higher-end larger homes starting in the $2,000 per-square-foot range and climbing to well over $5,000. The focus will be on two-, three- and four bedroom residences of 1,500 to 4,000 square feet. The buyers will be New Yorkers who have weathered the recession...as well as foreigners searching for a safe haven for equity.”

Buyer resistance to paying the typical closing costs will continue, predicts Stone, in part because “the pre-2008 days of almost automatic instant equity gains are over…. At most buildings sponsors will continue to pay closing costs and include extras that were unheard of pre-2008.”

Still, Kliegerman says developers will be thriftier overall when it comes to concessions.

"I do not see developers offering any concessions in 2013," he says. "With inventories at such low levels and the demand for new development product incredibly high, developers have little reason to offer concessions in the current market.  Buyers should be more focused on securing the residence they most desire before prices rise as inventories for the next 24 months will remain low."

Real estate broker Mike Akerly of Akerly Real Estate, which represents a number of new Brooklyn developments, says the pent-up demand for new construction there shows no signs of easing.

"Our team has seen an incredible response to new condo launches," he says. At one Prospect Heights project his fall, "seventy-five percent sold in three weeks. At a new condo at 268 St. Marks Avenue in Prospect Heights  where we haven't yet launched sales, we have a list of dozens of buyers who have requested showings even before the drywall is up.”

A sizzling rental market will put more pressure on new construction supply.

"With the booming rental market, many sponsors are forgoing their condo declaration plans and moving forward with lease plans for their new buildings," says Akerly.

7. Fading tax abatements and smaller buildings extract big price in amenities

Since many of the new projects that are coming on line in 2013 have fewer than 100 units, these buildings won't have the footprint to support more lavish amenities.  Yet fitness centers, roof decks/outdoor space and extra storage room will remain popular. 

“Developers want to create a lifestyle and sense of community in their buildings, using the shared spaces to accomplish that. In individual apartments, washers and dryers have become de rigeur, even in rentals,” says Malin.

Bicycle storage is important in an increasingly bike friendly city. Gyms with a focus on core training, spinning and low impact aerobic training are here to stay and you'll see “an increase in the use of remote doorman systems as real estate tax abatements fade and developers and boards look for ways to reduce expenditures,” Kliegerman predicts.

8. Must-have contract provisions: Inspection rights, bed bug history and financing contingencies

Even if you are a highly qualified buyer, you still need a mortgage contingency in your contract allowing you to walk away with your deposit if you can't obtain a mortgage commitment.

Your lawyer should also negotiate a funding contingency which protects you after the commitment letter if the bank fails to issue you a mortgage for any reason that's not your fault, says Stone, the closing attorney.

"Lenders are taking hard looks at buildings' financials," says Stone. "We've had instances where the bank keeps sending the loan back for underwriting clearance on many issues that are beyond the control of the borrower and ultimately refuses to fund the loan."

Malin advises having a right to a thorough professional home inspection built into all contracts. 

In addition, bed bugs will still be something to be concerned about, notes Stone, so your attorney should include a contract representation as to no bedbugs or other vermin in the apartment or adjacent units.

9. More smokers will get smoked out

Second-hand smoke, drifting through vents and under doors, will be the new hot button issue this year.

According to Malin, Mayor Bloomberg's announcement of a new initiative that awards a $10,000 grant to community groups who  “convince residential buildings in their neighborhood to go completely smoke-free, will keep this controversial issue in the headlines in 2013."

SEE ALSO: 9 renovations you can make right under your landlord's nose >

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With many of China’s wealthy elite turning away from public displays of wealth and enjoying high-priced toys within the privacy of their own homes, new status symbols like antique cars and grand pianos are joining the ranks of popular stealth buys.

Joining other collector segments that have gained popularity in China over the past decade — among them wine, art, cigars and watches — as China Daily notes this week, interest in the Mainland is steadily rising for rare automobiles, following similar trends in Europe, the US, and Hong Kong. Via China Daily:

“In my view, a resurgence in antique car collecting is in the making among Chinese car enthusiasts and the newly rich. Some mainland collectors have become interested in antique cars, influenced by their friends from Europe, the United States and Hong Kong,” said [businessman Ian] Wade.

More importantly, “during a global economic downturn, there is still enough capital among car collectors and rich investors on the Chinese mainland,” he added.

Though collectors like Wade obviously have a vested interest in seeing the popularity of high-end car collecting gaining traction in China, other recent happenings have shown that interest in antique cars isn’t limited only to a handful of niche enthusiasts. Last month, in an effort to promote antique car collecting, China’s State Administration of Culture Heritage held its first-ever seminar on the topic at the Shanghai Auto Museum, bringing together experts and potential buyers.

Over the course of 2012, automakers themselves also promoted heritage models to Chinese gearheads, with Volkswagen holding an antique auto rally from Beijing to Shanghai in October that featured a 1930 8-liter Bentley, a Lamborghini 400 GT, a 1975 2.7-liter Porsche 911, a 1956 Volkswagen Beetle Miglia Mile and a 1972 Beetle Salzburg Kfer shipped from Europe. Last April, Cadillac sent classic models ranging from a Harley Earl-designed LaSalle (1927-1940) to Salvador Dali’s beloved Fleetwood Sixty, a classic Eldorado, and a one-of-a-kind Model M to China to take part in its “Dramatic Journey” exhibition in Beijing.

Efforts to promote classic and antique car collecting in China haven’t been limited to auto brands and cultural departments, however. In 2011, Chinese auction house Beijing Poly sold five antique autos at its spring auctions for the first time ever. As Ian Wade told China Daily, it’s likely we’ll see more Chinese enthusiasts scouring the world for classic motors, but the high price of importing overseas buys and a dearth of trained maintenance professionals means it’ll remain a very expensive hobby for quite some time.

In addition to antique cars, high-priced grand pianos are also becoming a must-have status symbol for China’s newly wealthy. As with any segment of China’s luxury market, however, buyers aren’t homing in on just any old brand, a fact that has benefited prominent manufacturers like Steinway & Sons. With the country’s cashed-up consumers spending heavily on music lessons for their “little emperors,” a grand piano has become a household must-have to connote sophistication and cultivation, and with the European market shrinking for top-tier piano producers, the timing is just right for leading brands. Via Worldcrunch:

“In the past few months, demand [in Europe, for grand pianos] has fallen 10 to 12%,” [Werner Husmann, managing director of Steinway & Sons in Europe and Asia] says, adding that the pinch is being felt far more by cheaper brands like Schimmel and Bechstein than it is by Steinway.

In China, private buyers comprise up to 65% of Steinway’s market, but in Europe only 40% of Steinway buyers are amateur musicians. Most European customers are professionals – music teachers, soloists.

“And a lot of people in Europe already have a piano,” Husmann points out, so on the old continent the company is pursuing a strategy of keeping its sales stable.

Another major growth market is the Arab Emirates [...] In the Emirates, as it is in China, a Steinway grand piano is more a symbol of an up-market lifestyle than it is something to aspire playing. So here too “we’re competing with other luxury goods for the favor of wealthy customers,” says Husmann.

While grand pianos haven’t quite joined the luxury car, the Rolex or Patek, the antique ink-and-paper painting and logo-festooned handbag among the crucial “first buys” of China’s nouveau riche, wealthy consumers who want to keep their pricey items behind closed doors are certainly shelling out. Last year, China became Steinway’s leading market, demoting long-time top market Europe into second place, and back in June 2011, the piano maker’s BMW Individual 7 Series Steinway & Sons edition got the red-carpet treatment during its China debut.

SEE ALSO: Chinese Pirates Are Building A Knock-Off Version Of Zaha Hadid's New Beijing Complex

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2013 looks set to be a fantastic year for new cars.

Here are 10 exciting models due in showrooms this year.

Alfa Romeo 4C

The beautiful 4C will be powered by a mid-mounted, 1.8-litre turbocharged petrol engine.

With a kerb weight of less than 1,000kg thanks to the use of carbon-fibre in its construction, performance should be excellent.

Price: Approx £45,000

Launch date: Autumn

Porsche 918 Spyder

By combining a race-bred 4.6-litre V8 petrol engine with pair of electric motors, Porsche has created a supercar that can travel from 0-62mph in 3.2sec and yet still return 94mpg in EU Combined tests.

Other astonishing figures include a 199mph top speed and CO2 emissions (again on the EU Combined cycle) of 70g/km.

Price: £624,000

Launch date: September

Renaultsport Clio

A five-door body housing a 1.6-litre turbocharged petrol engine and paddleshift gearbox mark a new era of Clio hot hatches.

You can also expect a launch control system and handling tuned by Renaultsport's experts, who have an excellent track record.

Price: Approx £18,000

Launch date: May

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Hotel minibars have a bit of a naughty reputation. After all, they tempt and tease world-weary travelers with salty-sweet goodness at all hours of the day, and then come with a double-digit price tag to boot.

But sometimes, the items up for grabs can at least provide guests with a moment of amusement. Some hotels feature rather surprising minibar offerings — we’re talking walking sticks and 24-karat gold vibrators. It’s enough to make guests pause in their perusal of the candy selection and say, “Wait, what?”

We’ve come across some of the wackiest minibar items during our travels; here are some of our favorites.

Alexander Wang-Designed Condoms at the Thompson Beverly Hills

At the flashy Thompson Beverly Hills, spending the night with that special someone just got more fashionable. Designer Alexander Wang created special packaging for PROPER ATTIRE condoms, which are for sale at all Thompson properties, as well as on the brand’s website. Couples pay $5.99 for a pack of three assorted (which include extra large, ultra-thin, and studded — oh my!) and proceeds benefit Planned Parenthood. 

Detoxifying Spray at Fifteen Beacon, Boston

This exquisite boutique in Boston never lacks for service, so it should come as no surprise that the health of its guests is of utmost importance to management — especially its hungover guests. Minibars at Fifteen Beacon include an off-beat, all-natural sleep enhancer, City Life Detoxer from Sprayology, for $24. Said to flush away urban toxins, this homeopathic, FDA-approved oral spray is supposed to ease breathing difficulties, coughing, sluggishness, and lung and liver toxicity. All we have to say is, another round, please?

3D Glasses and Walking Sticks at the Ace Hotel — Portland

This hipster haven hotel is both stylish and eco-friendly, featuring unique amenities that spill out of the minibar and into the living space as interesting design elements. The Ace Hotel — Portland is certainly the case for the walking sticks the hotel offers guests. The 3D glasses are a bit more circumspectly presented, but their inclusion does not go without notice.

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In America, teenagers think that braces are awkward, dorky and annoying. But in Asia, braces are cool. They're so cool in fact, that teens in Thailand, Indonesia and China are even wearing fake braces to make a fashion statement, Vice Magazine reported. The trend is catching on because braces are considered a sign of wealth and status.

The problem? Fake braces are also dangerous. Fake braces have been linked to the deaths of two Thai teens so far, Vice reported, leading the Thai government to ban fashion braces. Officials say that some of the illegal braces that were seized contained lead. 

The trend has being going on for at least four years, and Indonesian star Andika Kangen recently started wearing pink-and-green fake braces, the AFP reported.Teens are paying around $100 for black market braces.

YouTube tutorials tell teens how to wear fake braces, and various blogs continue to promote the look.

It's not the first time the trend has drawn international attention--and government concern. "Some people put the fashion (braces) on by themselves, which is dangerous because they could come loose and slip into the throat," the secretary-general of the Consumer Protection Board in Thailand told CBS in 2009.

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From the Wall Street Journal, Gap Inc. is buying luxury retailer Intermix. For Gap, this is just the beginning of its growth and I wouldn’t be surprised if the company buys more businesses in the coming year. In the meantime, what do you think about this news? Do you shop at Intermix and Gap? What was the last thing you bought?

Gap Inc. is buying women’s fashion boutique Intermix Inc. for $130 million, a deal that will give the mostly casual-clothes retailer an opening to the all-important luxury market. Intermix doesn’t produce its own clothes and only has around 30 stores in the U.S. and Canada. But the chain has relationships with designers, including Herve Leger, Yves Saint Laurent and Rag & Bone, from which Gap could benefit. Intermix could also expand more quickly with the help of Gap’s bigger balance sheet. Gap plans to double Intermix’s store count, then look for opportunities to expand the chain overseas, said Art Peck, president in charge of new brands at Gap. – read more via WSJ

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Gucci has teamed up with Japanese manga artist Hirohiko Araki to unveil an exclusive window installation. Taking inspiration from the brand’s cruise collection by Gucci creative director Frida Giannini, Araki has created a manga, called “Jolyne, Fly High With Gucci,” which will be shown in more than 70 of the company’s stores around the world from today to mid-February.

“Frida’s beautiful Cruise collection with its strong colors and graphic designs set my mind racing the moment she showed it to me. From there the characters and storyline came into being so naturally. It was very stimulating to work together on this project,” said Araki of the collaboration.

In addition to the colorful windows, Gucci will be launching a multimedia campaign, including videos that will be broadcasted in-store and virally, as well as a full publication of Araki’s Manga story in the Japanese publication Spur and on Gucci’s Facebook page.

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The minimalist approach to furniture and decor is one I come back to time and time again.

See the designs >

Whether or not you actually intend to live with the concept, I think most of us are drawn to the clean lines and quiet yet strong presence that minimalist pieces deliver without fuss—as the saying goes, "Clear space, clear mind."

But don't be fooled by the simplicity of minimalism: The most uncomplicated-looking designs usually have the most thought behind them.

— Denise from The Swelle Life

Large Cube Planter: $130

This is such a minimalist piece, but it has so much going on. This glass cube planter sits on one flat edge to appear as if it's floating, and the askew design forces you to think carefully about the composition of your living arrangement. Or you can just leave it empty and call it art.

Check It Out >

Curve Pet Bed: $200

For those who insist their pets don't mess with the sleek lines of their minimalist abodes, there is an alternative to the fluffy, furry bed that lies on the floor.

This version mounts on the wall, and while I'm not sure how your cat or dog gets up there (unless it's close to the floor), don't you think your little guy would make a neat wall hanging?

This is also a great way to get texture into your space, unless you've got a Mexican hairless.

Check It Out >

Box Sofa Compact, Oak: $6,775

On profile, a sofa doesn't get much more minimalist than this one fashioned from a solid wooden box. However, the combination of the wood grain and fabric in a sleek rectangular form make it a standout piece that will pop with a few thoughtfully chosen pieces.

Check It Out >

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Meet the most expensive hot dog. Ever. The $100 foot-long Dragon Dog is infused with century-old $2,000-a-bottle of Louis XIII cognac, topped with fresh lobster and Kobe beef seared in truffle and olive oil, and served with a secret picante sauce. You might not expect fine dining at a restaurant named DougiDog Hot Dogs, but visit the Vancouver sausage joint to order the luxe Dragon Dog. However, call in advance. Before you run down to DougieDog, you must give them a twelve-hour notice to create the ultra-lux dog.

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Meet the Wiggle Side Chair created by Frank Gehry in 1972. Frank Gehry is well known for his use of unusual materials. With his “Easy Edges” furniture series for Vitra, he succeeded in giving a new aesthetic dimension to cardboard, an unassuming everyday material. Although they look surprisingly simple, the “Easy Edges” pieces have been constructed with an architect’s skill and are exceedingly robust and stable. Materials: corrugated cardboard, edges made of hardboard, natural or lacquered. Costs $985.00 – official site.

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Here’s Ryan Burns previewing the Ermenegildo Zegna Spring/Summer 2013 collection.

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First look of Chanel’s Spring Summer 2013 advertisement, lensed by Karl Lagerfeld, starring supermodel Stella Tennant joined by Ondria Hardin, and Yumi Lambert.

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Italian label Siviglia enlists Tobias Sørensen and Frida Gustavsson for its Spring/Summer 2013 campaign, inspired by Hitchcock’s To Catch a Thief.

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“Kitchens are best driven by personality,” says Mick de Giulio, whose sophisticated, exquisitely crafted kitchen designs aim to embrace every layer. Since founding the Chicago-based de Giulio kitchen design in 1984, De Giulio has been creating kitchens for distinctive residences throughout the United States and abroad. “Clients are always asking what’s the next new thing in kitchens. Truth is, the most unique spaces come from rethinking how to use traditional forms and materials.”

http://www.degiuliodesign.com/

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Jeff Paster, a developer of luxury homes in California’s Marin County, couldn’t find a buyer for the brand-new waterfront mansion he listed in January for $45 million.

He’s expecting that one will turn up at an auction this weekend, with a starting bid set at $25 million.

“People at this income level always have money,” Paster said in an interview at the 15,000-square-foot (1,400-square- meter) residence on Belvedere Island, a tony enclave north of San Francisco that’s known for views of the downtown skyline and Golden Gate Bridge.

“We had qualified buyers circling for months, but with no sense of urgency. This sets a deadline.”

Technology executives paying discounts to listed prices have been active buyers of luxury properties this year in the San Francisco Bay area, where the growth of social-media and Internet firms including Twitter Inc. and Yammer Inc. has created a new wave of millionaires.

Some older homes sat unsold for years before finding buyers, said Rick Turley, president of Coldwell Banker Residential Brokerage of Northern California.

In 2012, there have been 13 publicly recorded transactions for more than $10 million in exclusive San Francisco neighborhoods such as Pacific Heights, Presidio Heights and Sea Cliff, according to DataQuick, a research firm. That’s up from six sales last year and a dozen in 2007, the previous high mark. The numbers don’t include deals in expensive areas outside the city, such as Belvedere or Tiburon, in Marin County; Atherton in San Mateo County; or Palo Alto in Santa Clara County.

Home Demand

“Over a long listing period, it’s hard to say what will happen, because obviously the market is constantly changing,” Turley said. “The success of tech and social media means people are looking very generally at San Francisco and the Silicon Valley as places to live because these businesses are sourced here. It’s highest on their radar.”

Initial public offerings in 2012 by Bay-area companies raised a record $17.5 billion in public equities markets, including sales by Menlo Park-based Facebook Inc., Yelp Inc. in San Francisco and Workday Inc. of Pleasanton, according to data compiled by Bloomberg. The total is more than double the $8.3 billion reached in 1999, the height of the dot-com boom.

This year’s Bay area IPOs generated $9.4 billion in cash for selling shareholders. Other investors have been able to generate money before initial stock sales through the rise of secondary-share markets such as SharesPost Inc.

Yammer Founder

Yammer founder David Sacks, who sold the social-media company to Microsoft Corp. in June for $1.2 billion, earlier this year bought an unfinished home in Pacific Heights that had been listed for $38.5 million. The transfer tax indicated a $20 million sale.

Sacks’s new residence, built in the style of a French chateau, was last purchased by John Sperling, founder of the University of Phoenix, who paid $32 million in 2002, said David Barrett of listing brokerage Warwick Properties Group.

“It’s built to be the finest residence in San Francisco, from limestone quarried in France and with the same glaziers who worked on the Eiffel Tower renovation,” Barrett said.

This month, Jay Paul, the San Francisco-based developer of 6 million square feet of Silicon Valley offices, including Google Inc.’s four-building complex in Sunnyvale, completed a purchase in the same neighborhood, said a person with knowledge of the transaction who asked not to be named because it hasn’t been made public. The house sold for $28.25 million, said Dona Crowder of TRI Coldwell Banker, a co-listing broker on the home. She declined to comment on the buyer.

Seller Deals

The deal was at a 48 percent discount to the asking price in 2007, around the time U.S. housing prices peaked. The seller had most recently sought $34 million, Crowder said.

Paul didn’t return a telephone message seeking comment.

In some cases, luxury discounts this year in San Francisco and the Silicon Valley are a reflection of aged homes built decades ago that needed extensive renovations, Crowder said. Sellers were also motivated by the prospect of higher capital gains taxes in 2013, she said. Her listing on Broadway in Pacific Heights received higher bids in the past, including one earlier this year, which were rejected by the seller, she said.

“The generations are turning over in this neighborhood,” Crowder said in a phone interview. “If it were understood back then that record prices were being offered, it would have been wise to sell” in 2007.

Dorsey, Benioff

Jack Dorsey, a Twitter co-founder, paid $9.9 million in February for a “humble” two-bedroom house in Sea Cliff that had been listed for $12.5 million, said Olivia Hsu Decker, owner of Tiburon-based Decker Bullock Sotheby’s International Realty and Dorsey’s agent on the deal. Salesforce.com Inc. Chief Executive Officer Marc Benioff bought a nearby house in 2009, Decker said.

The Sea Cliff neighborhood is named for its location high above the Pacific Ocean, west of the Golden Gate. In May, Dorsey, who is known to take public buses to work, tweeted a quote from the Chilean poet Pablo Neruda, “I need the sea because it teaches me,” Decker said in an e-mail.

Other multimillion-dollar homebuyers this year include Mark Pincus, founder of online game maker Zynga Inc. He purchased a Pacific Heights house in July for $16 million after a $500,000 price cut, said Decker, who represented him in the past and also is the listing agent for the Belvedere home.

Rising Prices

The region’s broader housing market is also showing strong demand, bolstered by the addition of 32,400 new jobs in the San Francisco metropolitan area in the year through November. House and condominium prices in the nine-county Bay area last month rose almost 21 percent from a year earlier to a median $438,000, the highest since August 2008, according to San Diego-based DataQuick.

Paster has been developing the Belvedere estate since 2008, when he acquired two adjacent lots for $9.3 million, and put the property up for auction in November after two price reductions, the most recent to $35.9 million. The decision was made with the aim of “causing those interested to act,” he said. There is an undisclosed reserve beyond $25 million.

“This is one-of-a-kind property,” he said in an interview at the home earlier this month, seated behind a French antique desk in the library, the town of Sausalito visible through floor-to-ceiling windows behind him. “It’s like a Picasso. How much is that worth?”

The 1.14-acre (0.46-hectare) site hugs the shore, with the house laid out in two wings on three levels. The seven bedrooms and living areas have mahogany flooring, and the nine bedrooms are tiled with marble and limestone. Terraces paved with fossil stone from India are accessible from most rooms on the main floor through oversized folding doors.

‘Beautiful Spot’

Belvedere, about 17 miles (28 kilometers) north of San Francisco by car and less than a square mile in size, became a favored spot to build summer homes at the end of the 19th century, said Dave Gotz, archivist of the Belvedere-Tiburon Landmarks Society. The community, connected to Tiburon by a natural causeway so not technically an island, had the virtues of a warmer climate compared with the windy city.

“It’s a beautiful spot, with small streets and steep hillsides coming down on the west side,” said Mike Fuson, Belvedere’s interim city manager. “The housing stock is expensive.”

--With assistance from Ari Levy in San Francisco and Lee Spears in New York. Editors: Christine Maurus, Kara Wetzel

To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

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Matador Ambassador Henry Munter Recently spent 22 days in November rafting and kayaking through the Grand Canyon and brought back this gallery to give us a glimpse of the majestic canyon on the edge of winter.

1. Self portraits

Floating, Running our raft through Horn Rapid, Charging my gps on a hike to the Tabernacle with the Goal Zero, and Kayaking Lava Falls, the river’s trademark rapid.

2. Navajo bridge

On the first day of a 22-day trip, we float under the last bridge to cross the Colorado River for over 300 miles, as it descends into Grand Canyon.

3. Marble canyon

Morning light rarely reaches the river during fall trips in Grand Canyon, but we settle for the light reflecting off the water from the canyon walls.

4. Redwall cavern

About the size of a football field, the beach extending back into a layer of Redwall limestone here tells the story of the Colorado that is constantly eroding its way deeper into the canyon.

5. Afternoon float

It’s not winter yet, but it’s getting colder, and the last rays of sunshine for the day are a precious luxury.

 

6. Nankoweap Granaries

Anasazi ruins at Nankoweep overlook the once-fertile floodplains of the Colorado river.

7. Little Colorado River

During the fall, with the summer rains over, the Little Colorado River runs a turquoise-blue from minerals it carries from eroding limestone.

8. Afternoon

In exchange for the November cold, the afternoons see the canyon fill with soft, golden light.

9. Big horn sheep

A Ram escapes uphill after we surprised it at the riverside.

10. Hiking

Although the Colorado River is famous for its whitewater, a few days during our trip we dedicated to exploring the canyon on foot.

11. Hermit rapid

Eric and Alex take a big hit in Hermit.

12. Rain and wind

Two rare things in the Grand Canyon, rain and downstream wind, combine for an afternoon of easy rowing.

13. Trash management

On a 22 day trip, keeping trash space to a minimum is important work. Here I’m using my Gerber E-Z rescue knife to shred some plastic bottles.

14. Bluegrass

Aaron McCloskey, Donny Chavez, and Alex Johnstone treat us to a concert in Blacktail Canyon. Slot-canyon acoustics are a marvel that are hard to describe.

15. Sandstone

Day 12, we can track the layers of Geologic time as well as our float, through the rock strata of the canyon walls.

16. Great blue heron

With a wingspan of around 2 meters, the sound of heron wings flying reverberate in the canyon on quiet mornings.

17. Deer creek narrows

One of the most dramatic of the slot canyons to enter the river, Deer Creek carves its way into the canyon walls before plummeting to the river.

18. Old-school kayak

Canyon walls reflect on my trusty, old-school kayak. I keep this old guy around for surfing the big glassy waves on this kind of river.

19. Havasu creek

Eric climbs through a limestone cave up Havasu Creek.

20. National canyon

This summer, heavy monsoons caused flash floods that redefined many familiar places in the canyon, leaving behind the well sorted gravel that will slowly erode away until it happens again.

21. Booties

It's not over until it's over. Although our group managed to keep the rafts upright in all of the named rapids, mile 231 rapid got the best of Tiff. Here the crew is appeasing the river gods by drinking a beer from a river shoe.

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The Missoni company has released the below statement, confirming that Vittorio Missoni, CEO of Italy’s iconic Missoni fashion house, and Maurizia Castiglioni, his wife, are missing in Venezuela:

“The Missoni company today confirms that Vittorio Missoni and his wife are missing in Venezuela. The small plane they were travelling on has disappeared. This is all the information currently available. We are relying on the work of the Italian Ministry of Foreign Affairs and all the institutions involved, to whom we are gratetful for the prompt activities in the research. As more information becomes available the company will issue further statements. The company asks the press to kindly respect the family’s privacy at this time.”

A small plane carrying Missoni, along with his wife, friends, and a small crew, went missing in Venezuela on Saturday. The plane, only chartered for a 95-mile flight, went missing not long after takeoff. No wreckage has been found.

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With interior photographs by Jonathan Becker, tour the inside of ultra-exclusive London nightspot Loulou’s at 5 Hertford Street, London. For any expat traversing the London nightlife scene, Loulou’s may be the equivalent of walking Downing Street and believing that you can somehow talk your way inside. Loulou’s is located inside Robin Birley’s 5 Hertford Street membership club — within a rougey maisonette along Mayfair’s Shepherd’s Market. Interiors were done-up in a modern day Mad Ludwig’s townhouse with node sof African Queen and Truman Capote lent by designer Rifat Ozbek who orchestrates a series of lounges, drawing room, Loulou’s nightclub and signature restaurant that’s currently London it-club to be.

With 5 Hertford Street in Mayfair Robin Birley has updated the classic London club for a new generation. This brand new London members’ club opened on the 11th of July 2012 in Shepherd Market in an amazing Bordeaux-coloured 23,000 sqft 18th century townhouse.

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Most of us spent New Year's Eve popping bottles of (cheap) champagne, passing cheese platters, or ordering in MSG-loaded Chinese food.

Regardless of which indulgence you chose, there’s definitely at least a tinge of holiday hangover still – alcoholic or otherwise.

Start the year off right by heading to one of these super-sleek spas in a city near you to detox 2012 away.

The Spa at the Beverly Hills Wilshire, Los Angeles

The Detox Treatment: The Detox Massage ($180 for 60 minutes)

The Deal: As if complimentary use of the 8,000-square-foot spa’s saunas, steam rooms, and experience showers (which feature the likes of colored lighting and variable pressure) wasn’t rejuvenating enough, every treatment at the Beverly Hills Wilshire is top-notch, which is why we’d head straight for a Detox Massage. Therapists at the Rodeo Spa use specific massage techniques to flush out kidney, liver, and other bodily toxins that will relax your mind, too.

Spa at the Ritz-Carlton Chicago

The Detox Treatment: Organic Skin Renewal Wrap ($150 for 50 minutes)

The Deal: If you’re sensitive to the touch, give a luxe body wrap a try at the Ritz-Carlton Chicago— you’re literally enveloping yourself in a warm blanket. (Warning: Don’t do this if you’re claustrophobic!) Kick off the year with renewed, glowing skin thanks to varying antioxidants, jojoba oils, and butterfly-bush extract.

Spa Vitale at Hotel Vitale, San Francisco

The Detox Treatment: The Bathing Ritual ($60 for 25 minutes)

The Deal:Who wouldn’t want to simply luxuriate outdoors amidst a rooftop bamboo garden? An esthetician will draw you a private whirlpool tub at Hotel Vitale's spa with seasonally-sourced ingredients while you sip on fruit-infused water (lemon aides in the body’s natural detox process). Bonus? Your bloodshot peepers will be soothed thanks to a cucumber eye wash.

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