Weekly Market Watch
Week of October 28, 2007
These are actual news headlines culled from various sources over the past two weeks: “Does the Drop in Housing Prices Mean It’s Time to Buy?”, “Buying a House Now isn’t a Bad Choice for Everyone,” “Housing Economists Expect Market Turnaround to Begin in 2008,” “Investors Find Silver Lining in Real Estate Market,” and my personal favorite from the San Jose Mercury News Real Estate Blog, “For Avid House Hunters, the Season Starts Today.”
Getting our Reality Check message communicated to the populace of Northern California seems to be having an impact and even the media is beginning to find those silver linings in our housing micro-markets. Our Reality Check campaign team, under the leadership of Anne Treacy and with outstanding daily focused research and production from Matt Geiser and Kacie Ricker, is not leaving anything to chance. Besides the positive messages they are helping us create, they have been issuing Press Releases on the campaign, and evidenced by the headlines in the paragraph above, it’s working.
Motivated buyers are buying and motivated sellers are selling. And all before the Feds made their rate cut on Halloween! Attractive Berkeley and Oakland Hills properties are still getting multiple offers. A $900,000+ listing on the Alamo/Walnut Creek border sold in one day. A San Ramon listing priced at $1,425,000 sold in less than one week. Greenbrae is reporting solid activity, some multiple offer situations and steady movement of higher end properties. Pending sales are on the increase in Pleasanton and well-priced Santa Rosa homes are seeing multiple offer situations.
Burlingame, Half Moon Bay and Menlo Park are reporting exceptional open house activity. Burlingame noted that homes in solid middle price points were experiencing anywhere from 20 to 75 groups of visitors. Palo Alto is noting an “all time low of – 29 listings on MLS in Palo Alto.” San Francisco reports that supply and demand are “quite balanced.” It’s important for our hesitant buyers to be reminded that the upper end of the market remains strong. This week alone, our City offices reported a home closed at over $15M, and two new sales at $5M, while the Woodside office reported a new sale at $7+M.
More than 565 homes were held open last week, and sales activity was reportedly increasing or steady by a vast majority of the offices.
It’s getting busy out there! Our patchwork quilt of a real estate market continues to be sewn together from dozens of micro-markets, but many of them are seeing marked improvement in what is a traditionally slower time of year. Even the headlines are beginning to agree that buyers are well-advised to lock in a lower home price now while the variety remains, grab a low mortgage interest rate from a reputable lender such as Princeton Capital, and establish roots in their neighborhood of choice. Now may be the best time to buy.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Tuesday, November 6, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of October 21, 2007
The scope of the tragedy engulfing our Southern California neighbors is staggering. Nearly 2,000 homes have been destroyed by the fires rampaging through San Diego, Orange, Riverside and Los Angeles counties, and tens of thousands of people remain displaced. Let us all take a moment to offer our heartfelt prayers and best wishes to the victims of these fires. You may have heard that our colleague Brian Buffini and his family lost their home entirely - without the opportunity to go in and retrieve any items whatsoever. And there are many more victims without the financial resources of someone like Brian who face the unbelievable burden of recovering from this. I encourage those of you who choose to assist in the aid and relief of our Southern California colleagues, friends, and family members to make a donation through the Realogy Charitable Foundation – the details are at the bottom of this week’s Weekly Market Watch.
In the San Francisco Bay Area, buyers are starting to realize that selling prices are just not going to drop precipitously from where they are now in most of the Bay Area. If a deal is to be had, now is the time to negotiate it, and it seems the negotiating has begun. Offices in all areas reported increased sales activity and buyer interest, and our more than 600 homes held open were overwhelmingly well attended. Sales activity and buyer activity is reportedly increasing in practically every area.
Oakland reports plenty of buyers and multiple offers on the better available listings. There’s a “buzz” in Lamorinda’s steady market. Buyers are writing offers in Santa Rosa. The high end homes continue to sell quickly in Southern Marin while Walnut Creek is seeing sales in all price points and in every corner of that market.
Inventory still remains tight on much of the Peninsula. Palo Alto and West Menlo are starved for fresh, well-priced inventory. A San Mateo Park home sold for $3.8 million without ever being exposed to the market. There was an all cash sale in Woodside for $3.1 million. A Palo Alto property sold for $250,000 over list price in a multiple offer situation. Eight offers are on the table for a $2.7 million “tear down” in Atherton. San Francisco continues to see good activity in all price ranges with the properties over $1.5 million remaining the most desirable.
We are still seeing year-over-year median-price gains in Santa Clara, Marin, San Francisco, and Contra Costa counties. Bay Area housing remains a solid long term investment. It makes good sense to get into the market when there is still a good selection of available housing at multiple price points and while interest rates remain low.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of October 21, 2007
The scope of the tragedy engulfing our Southern California neighbors is staggering. Nearly 2,000 homes have been destroyed by the fires rampaging through San Diego, Orange, Riverside and Los Angeles counties, and tens of thousands of people remain displaced. Let us all take a moment to offer our heartfelt prayers and best wishes to the victims of these fires. You may have heard that our colleague Brian Buffini and his family lost their home entirely - without the opportunity to go in and retrieve any items whatsoever. And there are many more victims without the financial resources of someone like Brian who face the unbelievable burden of recovering from this. I encourage those of you who choose to assist in the aid and relief of our Southern California colleagues, friends, and family members to make a donation through the Realogy Charitable Foundation – the details are at the bottom of this week’s Weekly Market Watch.
In the San Francisco Bay Area, buyers are starting to realize that selling prices are just not going to drop precipitously from where they are now in most of the Bay Area. If a deal is to be had, now is the time to negotiate it, and it seems the negotiating has begun. Offices in all areas reported increased sales activity and buyer interest, and our more than 600 homes held open were overwhelmingly well attended. Sales activity and buyer activity is reportedly increasing in practically every area.
Oakland reports plenty of buyers and multiple offers on the better available listings. There’s a “buzz” in Lamorinda’s steady market. Buyers are writing offers in Santa Rosa. The high end homes continue to sell quickly in Southern Marin while Walnut Creek is seeing sales in all price points and in every corner of that market.
Inventory still remains tight on much of the Peninsula. Palo Alto and West Menlo are starved for fresh, well-priced inventory. A San Mateo Park home sold for $3.8 million without ever being exposed to the market. There was an all cash sale in Woodside for $3.1 million. A Palo Alto property sold for $250,000 over list price in a multiple offer situation. Eight offers are on the table for a $2.7 million “tear down” in Atherton. San Francisco continues to see good activity in all price ranges with the properties over $1.5 million remaining the most desirable.
We are still seeing year-over-year median-price gains in Santa Clara, Marin, San Francisco, and Contra Costa counties. Bay Area housing remains a solid long term investment. It makes good sense to get into the market when there is still a good selection of available housing at multiple price points and while interest rates remain low.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Weekly Market Watch
Week of October 14, 2007
Offices throughout the San Francisco Bay Area reported increased sales, increased activity and optimistic sales associates. Of our more than 560 homes held open, the majority of areas reported moderate to heavy attendance and many reported an influx of new buyers who aren’t letting the barrage of mixed messages about the real estate market frighten them away. We are also hearing of newly invigorated buyers who have finally realized that this really is the time to buy.
In remembering that real estate markets are local in nature, let’s take a snapshot of some of the markets in the Bay Area this past week. From the North, reports indicate that new listings in Santa Rosa were seeing a good turnout of qualified buyers. Sales activity is increasing in Southern Marin and Greenbrae areas, and higher-end home sales continue to be strong. For the first time in 12 months, the sfh and condo combined inventory in San Francisco reached over 4 months supply in September. This is recognized as being just on the cusp between a seller’s market and a balanced market. All year the City has seen between a 2.1 and 3 month’s supply. Be sure to note, however – the median sold price keeps growing, not necessarily what you would expect with growing inventory. From the Peninsula, Burlingame reports that sales in upper-end communities continue to be very strong, and that many agents report meeting new savvy buyers at busy opens in a variety of price points. Menlo Park noted increased sales activity and very busy open homes. Palo Alto simply states, “Low, low inventory. High, high multiple offers.” In the East, it is reported that the inventory of active listings in the Livermore/Tri-Valley area is declining. Homes under the $1 million price point in Lafayette and Orinda are selling with multiple offers. The hills of Oakland are swarming with buyers who are willing to go into multiple offer situations on the right properties.
We can’t repeat the message often enough – now is the time to buy! Let’s have a quick reality check: Inventory levels in most areas are starting to decline. The median price for homes in the San Francisco Bay Area rose almost 1% in September. Rents are soaring. There is still a wide, but declining, selection of homes for sale in many areas and there are bargains to be had. It’s time to make that long term investment – now.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of October 14, 2007
Offices throughout the San Francisco Bay Area reported increased sales, increased activity and optimistic sales associates. Of our more than 560 homes held open, the majority of areas reported moderate to heavy attendance and many reported an influx of new buyers who aren’t letting the barrage of mixed messages about the real estate market frighten them away. We are also hearing of newly invigorated buyers who have finally realized that this really is the time to buy.
In remembering that real estate markets are local in nature, let’s take a snapshot of some of the markets in the Bay Area this past week. From the North, reports indicate that new listings in Santa Rosa were seeing a good turnout of qualified buyers. Sales activity is increasing in Southern Marin and Greenbrae areas, and higher-end home sales continue to be strong. For the first time in 12 months, the sfh and condo combined inventory in San Francisco reached over 4 months supply in September. This is recognized as being just on the cusp between a seller’s market and a balanced market. All year the City has seen between a 2.1 and 3 month’s supply. Be sure to note, however – the median sold price keeps growing, not necessarily what you would expect with growing inventory. From the Peninsula, Burlingame reports that sales in upper-end communities continue to be very strong, and that many agents report meeting new savvy buyers at busy opens in a variety of price points. Menlo Park noted increased sales activity and very busy open homes. Palo Alto simply states, “Low, low inventory. High, high multiple offers.” In the East, it is reported that the inventory of active listings in the Livermore/Tri-Valley area is declining. Homes under the $1 million price point in Lafayette and Orinda are selling with multiple offers. The hills of Oakland are swarming with buyers who are willing to go into multiple offer situations on the right properties.
We can’t repeat the message often enough – now is the time to buy! Let’s have a quick reality check: Inventory levels in most areas are starting to decline. The median price for homes in the San Francisco Bay Area rose almost 1% in September. Rents are soaring. There is still a wide, but declining, selection of homes for sale in many areas and there are bargains to be had. It’s time to make that long term investment – now.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Weekly Market Watch
Week of October 7, 2007
Our Coldwell Banker Residential Brokerage agents are brimming with enthusiasm. Reports this week indicate that, in many areas, our more than 560 open houses were seeing steady streams of visitors, and buyer interest is up. There are slower spots around the Bay Area to be sure, but for every slow spot, there is another that is seeing exceptional activity. As I keep saying, real estate is a very local industry. The trends, numbers, statistics and “facts” we read about tell a regional story, but that story isn’t indicative of market conditions in specific locations, neighborhoods and communities. There are cold spots with high inventory levels, and there are hot spots where competition to buy a home is fierce.
The reality is this – the increased median prices that are reported in most areas are affected by the fact that, in those hotter markets, the prices have barely dropped, if at all. In addition, homes in the $2 million plus range are selling quickly and often over asking price. There is a wide variety of homes available in several areas of the East and North Bays at bargain prices waiting to be snapped up. In San Francisco and the Peninsula, sales activity is down largely because inventory is down – however offices in both the Peninsula and the City noted activity and sales were more brisk at particular price points. I am aware of at least two high-end sales our offices ratified this week, and the lower of the two was over $14M. SF Lombard noted a sale going $200K over list – and a $900K price reduction all in the same day. One of our Menlo Park offices stated the market seems stalled under $1M, but $1.5 to $2.5 very brisk. In North San Mateo Co, including Daly City, Brisbane, So City – there are currently 321 Active SF Homes, with an average list price of $754K, 3bd, 2ba 1540 sq ft, and the average Days on Market is 67. Looks like Buyer opportunity time in that market.
It is nice to see that both buyers and sellers are starting to change their perceptions and recognize the localness of our real estate industry. Today’s consumer is best-served by being an educated consumer. Those interested in learning more about how to navigate current real estate conditions – and how to take advantage of the buyer’s market and historically low interest rates – should start that education with a LOCAL real estate professional instead of relying solely on the area newspaper or real estate blog. There are bargains to be had and now is the time to take advantage of them.
Refreshing, isn’t it, to note that listing inventory reported by our offices is steady almost across the board? Sales activity is also reported as being overwhelmingly steady. Keep in mind that when the combination of price, location and condition are in alignment-presto, a house sells.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of October 7, 2007
Our Coldwell Banker Residential Brokerage agents are brimming with enthusiasm. Reports this week indicate that, in many areas, our more than 560 open houses were seeing steady streams of visitors, and buyer interest is up. There are slower spots around the Bay Area to be sure, but for every slow spot, there is another that is seeing exceptional activity. As I keep saying, real estate is a very local industry. The trends, numbers, statistics and “facts” we read about tell a regional story, but that story isn’t indicative of market conditions in specific locations, neighborhoods and communities. There are cold spots with high inventory levels, and there are hot spots where competition to buy a home is fierce.
The reality is this – the increased median prices that are reported in most areas are affected by the fact that, in those hotter markets, the prices have barely dropped, if at all. In addition, homes in the $2 million plus range are selling quickly and often over asking price. There is a wide variety of homes available in several areas of the East and North Bays at bargain prices waiting to be snapped up. In San Francisco and the Peninsula, sales activity is down largely because inventory is down – however offices in both the Peninsula and the City noted activity and sales were more brisk at particular price points. I am aware of at least two high-end sales our offices ratified this week, and the lower of the two was over $14M. SF Lombard noted a sale going $200K over list – and a $900K price reduction all in the same day. One of our Menlo Park offices stated the market seems stalled under $1M, but $1.5 to $2.5 very brisk. In North San Mateo Co, including Daly City, Brisbane, So City – there are currently 321 Active SF Homes, with an average list price of $754K, 3bd, 2ba 1540 sq ft, and the average Days on Market is 67. Looks like Buyer opportunity time in that market.
It is nice to see that both buyers and sellers are starting to change their perceptions and recognize the localness of our real estate industry. Today’s consumer is best-served by being an educated consumer. Those interested in learning more about how to navigate current real estate conditions – and how to take advantage of the buyer’s market and historically low interest rates – should start that education with a LOCAL real estate professional instead of relying solely on the area newspaper or real estate blog. There are bargains to be had and now is the time to take advantage of them.
Refreshing, isn’t it, to note that listing inventory reported by our offices is steady almost across the board? Sales activity is also reported as being overwhelmingly steady. Keep in mind that when the combination of price, location and condition are in alignment-presto, a house sells.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Tuesday, October 9, 2007
Weekly Market Report
Coldwell Banker Weekly Market Watch
Week of September 30, 2007
A home in a coveted neighborhood of Castro Valley sold within a week for $1,020,000 without even having a sign in the yard. Two Danville listings went pending in less than a week – one priced in the $680,000 range and the other at $1,179,000. Oakland-Piedmont sold a $2.5 million home preemptively, and then there were two they didn’t get in multiple offer situations. Two Pleasanton properties sold in fewer than ten days at full price. Southern Marin/Belvedere saw a $3,450,000 listing go pending in one week. Palo Alto and Menlo Park saw preemptive sales and multiple offers on approximately on half of their week’s transactions. San Francisco continues to see its high-end properties in short supply and high demand, and pretty much a well-balanced market in most other price points. Several $2M+ properties in San Francisco had as many as a half dozen disappointed buyers who lost in multiple situations this week. Cole Valley was one, another $1.8M in Corona Heights didn’t make it to the market as someone just had to have it for several hundred thousand more before the seller put it on.
It’s the triptych of real estate truth that we must continue to preach. Everyone – repeat after me, “price, condition, location.” Homes are selling – but buyers must perceive the value. Buyers perceive value when that triad is balanced in proportion to the needs of those buyers. While sellers cannot do anything about the location of their home, they can certainly invest in making the changes and upgrades to the property that are necessary to create value in its condition. In addition, when they are realistic about their price expectations, they can expect to sell in a reasonable amount of time.
We are also seeing decreases in market inventory in many areas – indicative of the fact that sellers in these areas are starting to take their homes back off of the market. The other side of the Buyers’ Perceived Value coin is – as we mentioned last week – that now is not the time to sit on the fence if one wants to buy a home. It’s the best possible time to make that purchase before the seller decides they aren’t going to make any price reductions and pulls that home off of the market. Believe me – when that property goes back on the market next year, it won’t be at its current price.
The vast majority of our offices indicate that listing inventory is steady or decreasing while sales activity is reported as being steady in the majority of our offices. True values are out there and ripe for the picking.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 30, 2007
A home in a coveted neighborhood of Castro Valley sold within a week for $1,020,000 without even having a sign in the yard. Two Danville listings went pending in less than a week – one priced in the $680,000 range and the other at $1,179,000. Oakland-Piedmont sold a $2.5 million home preemptively, and then there were two they didn’t get in multiple offer situations. Two Pleasanton properties sold in fewer than ten days at full price. Southern Marin/Belvedere saw a $3,450,000 listing go pending in one week. Palo Alto and Menlo Park saw preemptive sales and multiple offers on approximately on half of their week’s transactions. San Francisco continues to see its high-end properties in short supply and high demand, and pretty much a well-balanced market in most other price points. Several $2M+ properties in San Francisco had as many as a half dozen disappointed buyers who lost in multiple situations this week. Cole Valley was one, another $1.8M in Corona Heights didn’t make it to the market as someone just had to have it for several hundred thousand more before the seller put it on.
It’s the triptych of real estate truth that we must continue to preach. Everyone – repeat after me, “price, condition, location.” Homes are selling – but buyers must perceive the value. Buyers perceive value when that triad is balanced in proportion to the needs of those buyers. While sellers cannot do anything about the location of their home, they can certainly invest in making the changes and upgrades to the property that are necessary to create value in its condition. In addition, when they are realistic about their price expectations, they can expect to sell in a reasonable amount of time.
We are also seeing decreases in market inventory in many areas – indicative of the fact that sellers in these areas are starting to take their homes back off of the market. The other side of the Buyers’ Perceived Value coin is – as we mentioned last week – that now is not the time to sit on the fence if one wants to buy a home. It’s the best possible time to make that purchase before the seller decides they aren’t going to make any price reductions and pulls that home off of the market. Believe me – when that property goes back on the market next year, it won’t be at its current price.
The vast majority of our offices indicate that listing inventory is steady or decreasing while sales activity is reported as being steady in the majority of our offices. True values are out there and ripe for the picking.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Monday, October 1, 2007
Local Real Estate Inventory
I hope you will find the following snapshot of local Real Estate inventory interesting. This information represents aggregated values based on MLS data for the specified date.
Housing Inventory Snapshot
September 30, 07
Average List Price
Median List Price
Average Days On Market
Santa Clara County, CA
Single Family under $1M
$687,065
$669,000
67
Single Family over $1M
$2,016,007
$1,495,000
70
Condo/Townhome under $600K
$435,352
$428,000
67
Condo/Townhome over $600K
$739,136
$695,880
54
San Mateo County, CA
Single Family under $1M
$728,557
$719,988
62
Single Family over $1M
$2,418,165
$1,599,999
65
Condo/Townhome under $600K
$457,509
$469,888
67
Condo/Townhome over $600K
$944,482
$775,000
88
Santa Cruz County, CA
Single Family under $1M
$661,469
$649,900
88
Single Family over $1M
$1,907,303
$1,495,000
93
Condo/Townhome under $600K
$454,850
$474,999
88
Condo/Townhome over $600K
$890,470
$750,000
93
Monterey County, CA
Single Family under $1M
$575,060
$549,000
103
Single Family over $1M
$2,436,917
$1,695,000
126
Condo/Townhome under $600K
$390,812
$365,000
118
Condo/Townhome over $600K
$1,031,055
$809,000
119
San Benito County, CA
Single Family under $1M
$573,548
$549,900
89
Single Family over $1M
$1,498,519
$1,275,000
134
Condo/Townhome under $300K
N/A
N/A
N/A
Condo/Townhome over $300K
$418,787
$409,999
128
Alameda County, CA
Single Family under $1M
$576,129
$555,000
63
Single Family over $1M
$1,648,913
$1,389,000
68
Condo/Townhome under $600K
$414,846
$405,000
66
Condo/Townhome over $600K
$719,317
$679,800
56
Contra Costa County, CA
Single Family under $1M
$521,681
$489,000
76
Single Family over $1M
$1,712,851
$1,399,000
79
Condo/Townhome under $600K
$359,500
$348,828
79
Condo/Townhome over $600K
$707,716
$680,600
70
MORTGAGE. National Averages (September 30, 07)*
30-year fixed
Rate - 6.06%
APR - 6.23%
15-year fixed
Rate - 5.69%
APR - 5.96%
5/1 ARM
Rate - 5.85%
APR - 6.78%* Mortgage rates were collected from publicly available sources (yahoo.com) on the date stated. The accuracy of the information and the availability of these rates are not guaranteed by the publisher. Rates are provided for informational purposes only and are subject to change without notice. Actual market interest rates may vary.
If you know someone who is considering buying or selling a home, please give me a call. I will provide professional & courteous service along with knowledgeable guidance through the process.
Housing Inventory Snapshot
September 30, 07
Average List Price
Median List Price
Average Days On Market
Santa Clara County, CA
Single Family under $1M
$687,065
$669,000
67
Single Family over $1M
$2,016,007
$1,495,000
70
Condo/Townhome under $600K
$435,352
$428,000
67
Condo/Townhome over $600K
$739,136
$695,880
54
San Mateo County, CA
Single Family under $1M
$728,557
$719,988
62
Single Family over $1M
$2,418,165
$1,599,999
65
Condo/Townhome under $600K
$457,509
$469,888
67
Condo/Townhome over $600K
$944,482
$775,000
88
Santa Cruz County, CA
Single Family under $1M
$661,469
$649,900
88
Single Family over $1M
$1,907,303
$1,495,000
93
Condo/Townhome under $600K
$454,850
$474,999
88
Condo/Townhome over $600K
$890,470
$750,000
93
Monterey County, CA
Single Family under $1M
$575,060
$549,000
103
Single Family over $1M
$2,436,917
$1,695,000
126
Condo/Townhome under $600K
$390,812
$365,000
118
Condo/Townhome over $600K
$1,031,055
$809,000
119
San Benito County, CA
Single Family under $1M
$573,548
$549,900
89
Single Family over $1M
$1,498,519
$1,275,000
134
Condo/Townhome under $300K
N/A
N/A
N/A
Condo/Townhome over $300K
$418,787
$409,999
128
Alameda County, CA
Single Family under $1M
$576,129
$555,000
63
Single Family over $1M
$1,648,913
$1,389,000
68
Condo/Townhome under $600K
$414,846
$405,000
66
Condo/Townhome over $600K
$719,317
$679,800
56
Contra Costa County, CA
Single Family under $1M
$521,681
$489,000
76
Single Family over $1M
$1,712,851
$1,399,000
79
Condo/Townhome under $600K
$359,500
$348,828
79
Condo/Townhome over $600K
$707,716
$680,600
70
MORTGAGE. National Averages (September 30, 07)*
30-year fixed
Rate - 6.06%
APR - 6.23%
15-year fixed
Rate - 5.69%
APR - 5.96%
5/1 ARM
Rate - 5.85%
APR - 6.78%* Mortgage rates were collected from publicly available sources (yahoo.com) on the date stated. The accuracy of the information and the availability of these rates are not guaranteed by the publisher. Rates are provided for informational purposes only and are subject to change without notice. Actual market interest rates may vary.
If you know someone who is considering buying or selling a home, please give me a call. I will provide professional & courteous service along with knowledgeable guidance through the process.
Weekly Market Watch
WEEKLY MARKET WATCH
Week of September 23rd
It is perplexing and frustrating to continue to see news reports with people who could be considered little more than “real estate pundits” talk about only one side of the current real estate story. This week, the controversial stock market analyst Jim Cramer of Mad Money told viewers of The Today Show that “If you buy a home now, you will lose money." He went on to add "there is no money and no programs for first time home buyers. Down payment money is the biggest issue in the market, because young people don't have any." Housing is a good long-term investment – it’s not a day-trading activity. As we witness the steep increase in foreclosures among housing boom “flippers” who secured sub-prime, adjustable rate loans with no money down, we see the folly of playing the housing market like the stock market.
Homes are not stocks. Most people stay in their home for about 6 years – they buy for the long haul to create a home for their family, not to buy, then turn around and sell six months later. Owning a home isn’t just about investment, although that’s certainly important. It’s also about building community, a place of your own, and having a part of the American Dream. For people who want to buy a home to live in, this is truly a great time to buy a home. In some areas there may be more to choose from, mortgage rates are historically low and the economy is strong. There are some investor opportunities out there as well, but it’s important to remember that the criteria regarding these buying decisions are different between the investor and the homeowner.
In our area we have seen steady appreciation in home values over the last 30 years. Regarding the median prices in many parts of the Bay Area and Silicon Valley, most specifically in San Francisco and the Peninsula, properties are not only holding steady, but actually increasing. The case could easily be made that waiting for prices to drop may make the realization of home ownership steadily more difficult. Signs aren’t pointing to bargain basement pricing ever becoming the norm in our markets, though price is now, as always, an important consideration. Smart buyers are buying. Smart sellers are selling.
Witness the number of buyers visiting our more than 600 homes held open last week. A Berkley listing was seen by almost 100 visitors. A Walnut Creek listing received four offers and sold for three percent over the current asking price. In San Mateo Park, a home received five offers and the lowest down payment among them was 50 percent. Palo Alto continues to report 100 percent multiple offers. One San Francisco office notes that the $2 million-plus market is “on fire.” The upper end markets are clearly not sending a negative message – in fact, quite the opposite. Last week San Francisco Van Ness closed both sides of a $7M property in a two week long escrow, and in the same week Woodside opened a new sale for $12M, sold by a fellow CB Menlo Park-El Camino agent, and the following day Woodside opened another $13M sale. Again, the message is quite the opposite of the doom and gloom which make headlines.
I encourage people to get the facts from an experienced real estate professional, the person most qualified to discuss the merits of home ownership. Not from a stock broker on television. Now more than ever, there is immense value in working with a real estate agent affiliated with a full-service brokerage, the professional who can guide clients through the financial elements of the real estate transaction from negotiating price to serving as a guide to the mortgage market. At Coldwell Banker Residential Brokerage, we also have a strong, in-house mortgage partner in Princeton Capital who can identify appropriate financing options for customers.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 23rd
It is perplexing and frustrating to continue to see news reports with people who could be considered little more than “real estate pundits” talk about only one side of the current real estate story. This week, the controversial stock market analyst Jim Cramer of Mad Money told viewers of The Today Show that “If you buy a home now, you will lose money." He went on to add "there is no money and no programs for first time home buyers. Down payment money is the biggest issue in the market, because young people don't have any." Housing is a good long-term investment – it’s not a day-trading activity. As we witness the steep increase in foreclosures among housing boom “flippers” who secured sub-prime, adjustable rate loans with no money down, we see the folly of playing the housing market like the stock market.
Homes are not stocks. Most people stay in their home for about 6 years – they buy for the long haul to create a home for their family, not to buy, then turn around and sell six months later. Owning a home isn’t just about investment, although that’s certainly important. It’s also about building community, a place of your own, and having a part of the American Dream. For people who want to buy a home to live in, this is truly a great time to buy a home. In some areas there may be more to choose from, mortgage rates are historically low and the economy is strong. There are some investor opportunities out there as well, but it’s important to remember that the criteria regarding these buying decisions are different between the investor and the homeowner.
In our area we have seen steady appreciation in home values over the last 30 years. Regarding the median prices in many parts of the Bay Area and Silicon Valley, most specifically in San Francisco and the Peninsula, properties are not only holding steady, but actually increasing. The case could easily be made that waiting for prices to drop may make the realization of home ownership steadily more difficult. Signs aren’t pointing to bargain basement pricing ever becoming the norm in our markets, though price is now, as always, an important consideration. Smart buyers are buying. Smart sellers are selling.
Witness the number of buyers visiting our more than 600 homes held open last week. A Berkley listing was seen by almost 100 visitors. A Walnut Creek listing received four offers and sold for three percent over the current asking price. In San Mateo Park, a home received five offers and the lowest down payment among them was 50 percent. Palo Alto continues to report 100 percent multiple offers. One San Francisco office notes that the $2 million-plus market is “on fire.” The upper end markets are clearly not sending a negative message – in fact, quite the opposite. Last week San Francisco Van Ness closed both sides of a $7M property in a two week long escrow, and in the same week Woodside opened a new sale for $12M, sold by a fellow CB Menlo Park-El Camino agent, and the following day Woodside opened another $13M sale. Again, the message is quite the opposite of the doom and gloom which make headlines.
I encourage people to get the facts from an experienced real estate professional, the person most qualified to discuss the merits of home ownership. Not from a stock broker on television. Now more than ever, there is immense value in working with a real estate agent affiliated with a full-service brokerage, the professional who can guide clients through the financial elements of the real estate transaction from negotiating price to serving as a guide to the mortgage market. At Coldwell Banker Residential Brokerage, we also have a strong, in-house mortgage partner in Princeton Capital who can identify appropriate financing options for customers.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of September 16, 2007
Though the Fed may have assisted the mortgage crisis a bit with its rate lowering and some policy changes, there haven’t been any significant changes in the San Francisco Bay Area market this past week that can be attributed to anything happening in the latest news. Perception is driving the market. The chasm between buyers and sellers seems to be closing a bit – but not quite enough in some communities.
Buyers are starting to realize that selling prices are not going to drop precipitously from where they are. Sellers, on the other hand, are starting to make the adjustments in condition and price that are necessary to remain competitive. Still, there are some sellers that refuse to lower prices to saleable levels, and buyers who are convinced they’ll be able to get an even better deal by waiting. We are seeing some sellers who don’t need to sell taking their properties off the market – if a deal is to be had, now is the time to negotiate it.
More than 640 homes were held open during the week. Attendance was spotty in some areas, while Half Moon Bay and other enclaves saw booming activity. High end properties continue to drive in the fast lane in our markets with exceptional open house activity, and multiple offer situations being reported. Palo Alto continues to report 100% of listings received multiple offers, however that enduring lack of inventory on the Peninsula continues to compel competition among buyers in the area. San Francisco and Marin also have booming high end markets. There are fewer multiple offer situations in the City, and a lower number of multiple offers when they occur, but a week does not go by when several agents in each of our San Francisco offices is involved on one side of a multiple offer situation.
Although the number of sales in San Francisco and the Peninsula is lower than YTD 2006, the median sales price continues to grow.
For the majority of the micro-markets within our San Francisco/Peninsula region, affordability at the entry level and available inventory at the higher end are our biggest concerns. Home Buyers and Sellers are not hearing this message from the media. Now, more than ever, it's critical to know your market, and know just how local real estate really is.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 16, 2007
Though the Fed may have assisted the mortgage crisis a bit with its rate lowering and some policy changes, there haven’t been any significant changes in the San Francisco Bay Area market this past week that can be attributed to anything happening in the latest news. Perception is driving the market. The chasm between buyers and sellers seems to be closing a bit – but not quite enough in some communities.
Buyers are starting to realize that selling prices are not going to drop precipitously from where they are. Sellers, on the other hand, are starting to make the adjustments in condition and price that are necessary to remain competitive. Still, there are some sellers that refuse to lower prices to saleable levels, and buyers who are convinced they’ll be able to get an even better deal by waiting. We are seeing some sellers who don’t need to sell taking their properties off the market – if a deal is to be had, now is the time to negotiate it.
More than 640 homes were held open during the week. Attendance was spotty in some areas, while Half Moon Bay and other enclaves saw booming activity. High end properties continue to drive in the fast lane in our markets with exceptional open house activity, and multiple offer situations being reported. Palo Alto continues to report 100% of listings received multiple offers, however that enduring lack of inventory on the Peninsula continues to compel competition among buyers in the area. San Francisco and Marin also have booming high end markets. There are fewer multiple offer situations in the City, and a lower number of multiple offers when they occur, but a week does not go by when several agents in each of our San Francisco offices is involved on one side of a multiple offer situation.
Although the number of sales in San Francisco and the Peninsula is lower than YTD 2006, the median sales price continues to grow.
For the majority of the micro-markets within our San Francisco/Peninsula region, affordability at the entry level and available inventory at the higher end are our biggest concerns. Home Buyers and Sellers are not hearing this message from the media. Now, more than ever, it's critical to know your market, and know just how local real estate really is.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of September 9, 2007
The consensus seems to be that there are plenty of buyers out there, and that they are serious, qualified and eager to purchase. However, these same buyers are listening to media reports about the housing market and some are hesitant to commit to buying a home due to an erroneous thought that housing prices will plummet.
The reality is that in most Bay Area communities, housing prices are remaining steady, or seeing increases. In fact, DataQuick, a company that compiles data and reports on real estate trends each month, indicated this week that while median selling prices in Napa, Solano and Sonoma counties have seen moderate declines, every other county in the greater Bay Area saw an increase in median prices ranging from 4 to 12.4%. This is not the time to sit on the fence. It is the time to commit, as our Walnut Creek manager eloquently stated, “to buying homes as opposed to houses.” Price and condition are always important deciding factors, but the deals are out there right now, so now is the time to decide! And there may be even greater opportunity when we find out what happens after the Fed meet next week.
The upper tier market continues to hold strong in our region with most areas reporting exceptional activity. A $2 million home in Larkspur had a huge crowd for its open house and received three offers in one day. The inventory levels in the city and parts of the Peninsula are loosening up a bit and helping to spur activity. A condo in San Francisco received 11 offers, and a cosmetic fixer in the city’s Richmond district received 22 offers. Open houses were reported to be busy in most areas where our more than 600 homes were open for viewing. Listing inventory and sales activity were both reported as being steady among most offices.
Everyone wants to know the real story. It will be told, and powerfully so, next week when Southern California Economist Gary Watts presents “The Real State of Real Estate…What the Media Isn’t Telling You” on Thursday, September 20th and Friday September 21st. Gary’s presentation is extremely timely, and dead-on. It will give you excellent facts and talking points with your customers. He will be conducting three sessions - in San Francisco, Santa Clara, and in San Ramon. Don’t miss this opportunity to be truly informed. I have attached the details, and I strongly encourage each of you to attend one of these sessions.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 9, 2007
The consensus seems to be that there are plenty of buyers out there, and that they are serious, qualified and eager to purchase. However, these same buyers are listening to media reports about the housing market and some are hesitant to commit to buying a home due to an erroneous thought that housing prices will plummet.
The reality is that in most Bay Area communities, housing prices are remaining steady, or seeing increases. In fact, DataQuick, a company that compiles data and reports on real estate trends each month, indicated this week that while median selling prices in Napa, Solano and Sonoma counties have seen moderate declines, every other county in the greater Bay Area saw an increase in median prices ranging from 4 to 12.4%. This is not the time to sit on the fence. It is the time to commit, as our Walnut Creek manager eloquently stated, “to buying homes as opposed to houses.” Price and condition are always important deciding factors, but the deals are out there right now, so now is the time to decide! And there may be even greater opportunity when we find out what happens after the Fed meet next week.
The upper tier market continues to hold strong in our region with most areas reporting exceptional activity. A $2 million home in Larkspur had a huge crowd for its open house and received three offers in one day. The inventory levels in the city and parts of the Peninsula are loosening up a bit and helping to spur activity. A condo in San Francisco received 11 offers, and a cosmetic fixer in the city’s Richmond district received 22 offers. Open houses were reported to be busy in most areas where our more than 600 homes were open for viewing. Listing inventory and sales activity were both reported as being steady among most offices.
Everyone wants to know the real story. It will be told, and powerfully so, next week when Southern California Economist Gary Watts presents “The Real State of Real Estate…What the Media Isn’t Telling You” on Thursday, September 20th and Friday September 21st. Gary’s presentation is extremely timely, and dead-on. It will give you excellent facts and talking points with your customers. He will be conducting three sessions - in San Francisco, Santa Clara, and in San Ramon. Don’t miss this opportunity to be truly informed. I have attached the details, and I strongly encourage each of you to attend one of these sessions.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Tuesday, September 11, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of September 2, 2007
More than 250 homes were held open during the Labor Day holiday weekend and though many buyers were taking a home-hunting break to enjoy the fine weather, there was plenty of serious activity in most areas. Listing inventory and sales activity were both reported as being overwhelmingly steady in most areas. Offices are buzzing in anticipation of a busy September. There is pent-up demand for the new listings coming to the market this week.
As agents, buyers and sellers alike settle into the school year after refreshing vacations, let’s set the record straight as we move into Fall by rewriting the headlines from a new perspective. “99.2% of Mortgages are Not in Foreclosure.” “Economy is Extremely Strong, with Many Business Sectors Reporting Huge Profits.” “The Global Economy is Exploding!” “People Are Buying Houses.” Sadly, our media continues to focus on the negative and to create misconceptions in the minds of consumers about the housing market.
During our Coldwell Banker California Previews International Retreat in Monterey during the last week of August, more than 200 agents were treated to a speech by the renowned real estate economist Gary Watts. He handily dispelled the misconceptions and myths propagated about the current state of the real estate business, and made an excellent case for forecasting continued strength in the California housing market and the lending markets. Watts was so impressive that we have invited him to speak in all four of our regions in order to enlighten and energize you with a dynamic and informative presentation. Here are some excerpts:
“California is home to 36.5 million residents with a population growing over 800,000 last year. However, by 2025 our population will explode (nearly doubling) to 60 million people. With our large diversified economy, California will continue to prosper, the demand for housing will remain strong and as this housing downturn comes to an end, we will once again do very well!”
“The media will still report about massive delinquencies and huge foreclosures in the sub-prime market, but those reports will not be accurate because they don’t explain the difference between a delinquent payment, a notice of default or a foreclosure.”
“All you read and hear is that real estate is going down, yet last month, prices in the U.S. rose 3.4% from a year ago and California is up almost 1%. The Bay Area prices have gained 4.1% over last year and southern California median price is up 3.7%.”
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 2, 2007
More than 250 homes were held open during the Labor Day holiday weekend and though many buyers were taking a home-hunting break to enjoy the fine weather, there was plenty of serious activity in most areas. Listing inventory and sales activity were both reported as being overwhelmingly steady in most areas. Offices are buzzing in anticipation of a busy September. There is pent-up demand for the new listings coming to the market this week.
As agents, buyers and sellers alike settle into the school year after refreshing vacations, let’s set the record straight as we move into Fall by rewriting the headlines from a new perspective. “99.2% of Mortgages are Not in Foreclosure.” “Economy is Extremely Strong, with Many Business Sectors Reporting Huge Profits.” “The Global Economy is Exploding!” “People Are Buying Houses.” Sadly, our media continues to focus on the negative and to create misconceptions in the minds of consumers about the housing market.
During our Coldwell Banker California Previews International Retreat in Monterey during the last week of August, more than 200 agents were treated to a speech by the renowned real estate economist Gary Watts. He handily dispelled the misconceptions and myths propagated about the current state of the real estate business, and made an excellent case for forecasting continued strength in the California housing market and the lending markets. Watts was so impressive that we have invited him to speak in all four of our regions in order to enlighten and energize you with a dynamic and informative presentation. Here are some excerpts:
“California is home to 36.5 million residents with a population growing over 800,000 last year. However, by 2025 our population will explode (nearly doubling) to 60 million people. With our large diversified economy, California will continue to prosper, the demand for housing will remain strong and as this housing downturn comes to an end, we will once again do very well!”
“The media will still report about massive delinquencies and huge foreclosures in the sub-prime market, but those reports will not be accurate because they don’t explain the difference between a delinquent payment, a notice of default or a foreclosure.”
“All you read and hear is that real estate is going down, yet last month, prices in the U.S. rose 3.4% from a year ago and California is up almost 1%. The Bay Area prices have gained 4.1% over last year and southern California median price is up 3.7%.”
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of August 19, 2007
Media reports regarding the condition of the mortgage industry continue to have a perplexing effect on buyers. Some potential buyers aren’t even attempting to qualify for loans for fear of rejection, and others are simply confused by what the media is reporting and think that reasonable loans don’t exist any more. The reality is that credit tightening has only affected a very, very small percentage of buyers. The fact is that they could be missing a good buying opportunity by waiting, or not trying to qualify.
Our partner Princeton Capital is a well-capitalized, multi-source lender, and is guiding many of our customers through some of the confusion, and assisting them through successful purchase transactions. This remains a great time to buy a home, and a chance to leverage the many opportunities now available. In areas of the East Bay and North Bay, sellers are beginning to lower their listing prices; meaning there are bargains to be had. In other areas, multiple offer situations and tighter inventory render it absolutely crucial for buyers to be working with a strong, solid lender.
Traditionally, this is vacation time. The kids are getting ready to go back to school, and things slow down a bit in the housing market. While our offices witnessed a slight dip in activity overall, many were surprised to see that our more than 500 open homes were well attended by potential buyers. San Francisco and much of the Peninsula continue to enjoy some multiple offer situations, and in certain situations homes are selling for as much as 20+ percent over asking. The upper end in Silicon Valley is experiencing the same patterns – higher priced areas fairing better than the median price neighborhoods. An influx of fresh homes after the Labor Day weekend should help mitigate the tight inventory situation in our upper-end markets.
Our SF/Pen combined median sales price hit an all-time high of $1.230M in May, and has dropped each month since, to $1.059 in July. While this is not necessarily a trend, it is indicative of more activity in the tough $800K to $1.3M range which has been needed. Of the offices reporting, listing inventory increased for four offices, decreased for six offices and remained steady for 17. Sales activity decreased for seven offices, but remained steady for 17 and increased for 3.
Buyers have more leverage right now than they have in years. Armed with good credit, a Coldwell Banker sales associate, and an expert multi-source lender like Princeton Capital, right now is the ideal time to consult with the experts, and buy that dream home.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of August 19, 2007
Media reports regarding the condition of the mortgage industry continue to have a perplexing effect on buyers. Some potential buyers aren’t even attempting to qualify for loans for fear of rejection, and others are simply confused by what the media is reporting and think that reasonable loans don’t exist any more. The reality is that credit tightening has only affected a very, very small percentage of buyers. The fact is that they could be missing a good buying opportunity by waiting, or not trying to qualify.
Our partner Princeton Capital is a well-capitalized, multi-source lender, and is guiding many of our customers through some of the confusion, and assisting them through successful purchase transactions. This remains a great time to buy a home, and a chance to leverage the many opportunities now available. In areas of the East Bay and North Bay, sellers are beginning to lower their listing prices; meaning there are bargains to be had. In other areas, multiple offer situations and tighter inventory render it absolutely crucial for buyers to be working with a strong, solid lender.
Traditionally, this is vacation time. The kids are getting ready to go back to school, and things slow down a bit in the housing market. While our offices witnessed a slight dip in activity overall, many were surprised to see that our more than 500 open homes were well attended by potential buyers. San Francisco and much of the Peninsula continue to enjoy some multiple offer situations, and in certain situations homes are selling for as much as 20+ percent over asking. The upper end in Silicon Valley is experiencing the same patterns – higher priced areas fairing better than the median price neighborhoods. An influx of fresh homes after the Labor Day weekend should help mitigate the tight inventory situation in our upper-end markets.
Our SF/Pen combined median sales price hit an all-time high of $1.230M in May, and has dropped each month since, to $1.059 in July. While this is not necessarily a trend, it is indicative of more activity in the tough $800K to $1.3M range which has been needed. Of the offices reporting, listing inventory increased for four offices, decreased for six offices and remained steady for 17. Sales activity decreased for seven offices, but remained steady for 17 and increased for 3.
Buyers have more leverage right now than they have in years. Armed with good credit, a Coldwell Banker sales associate, and an expert multi-source lender like Princeton Capital, right now is the ideal time to consult with the experts, and buy that dream home.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Week of August 12, 2007
.
There has been a flood of commentary on the credit crunch this week. Both facts and speculations have dominated the headlines. To truly understand the local impact we're experiencing, it's best to listen to the actual comments from out in the field. So this week, I am simply compiling the feedback from our agents and managers in our Bay Area offices. You be the judge as to what is really going on.
Comments from East and North Bay offices:
"Agents dealing in highly sought after areas are less concerned about the buyer’s mortgages since a really competitive offer would need 20% down as a minimum……The media is saturated with news of doom and gloom and it is intimidating our Buyers out here. Otherwise, we are seeing increased activity this week…… We have sold some of our older inventory this week….. Price reductions are seeing action…… The mortgage crisis has given us all the jitters, but as each day passes, we realize that life goes on and so does real estate. Many of our buyers are unphased at this point, though we are seeing drop in activity…….
Agents are busy; we have only had one escrow/loan negatively impacted by the mortgage crunch…….. This past weekend our floor duty was very busy. We had two “walk-ins” – one in the $3 million range and one set of buyers looking for $1.5-2 million. Also, we experienced about 7 really good floor calls. Many agents experienced 30-40 groups through their listings...... Great attendance at open houses that are new on the market……..Last week sales picked up……."
Our office comments on the Peninsula and in the City:
"While many agents are concerned about the “summer slowdown”, others are choosing to simply ignore it and stepping up their activity. One of our agents received a floor call and just ratified an all-cash sale at $4 million, with another sale to come from the same buyer. Thanks to all the great info coming to us from Coldwell Banker with regard to the lender/mortgage problems, our agents are so much better equipped to answer questions from their clients. We talked at our meeting today about the article in the Chronicle this weekend which discussed the fact that our peninsula is sought after by “zip codes” in many cases….
Very quiet here – but it is seasonal. Financial markets are not the cause of our slowdown, I believe. Some folks are being cautious, but the buyers are still serious shoppers if they are not out of town…… Typical summer slow down prior to school starting back up. Many agents are enjoying family vacations; those that are here and working are seeing good activity at open houses…... We still need good quality inventory....... Inventory is short. We anticipate an influx of listings right after the holiday – approx. a week after. Multiple offers nearly 100% in Palo Alto. Short inventory = small volume….. August is slow – loan problems seem to be limited somewhat, but no doubt that some buyers are holding back….. Lots of talk about the subprime market and Wall Street jitters, but lots of buyers out there at Open Houses....
More active last week for both listings and sales. Not many multiples and we had two deals fall out due to funding. City inventory still remains fairly low…….. Sellers are bringing their homes to the market sooner than planned due to the uncertainty of the mortgage situation. There are a lot of well-qualified buyers out there looking for the right property to call home. 40% of the ratified offers for the week were properties sold in 2 weeks or less. 10 of the 16 sales for the week were in multiples. Good activity this week despite mortgage woes. Larger down payments help win in multiple offers. One $1m-range condo had 7 offers and almost 20% over."
My take is that seasonal slowdown, vacations, and low inventory outweigh challenges from the mortgage industry as potential headlines for San Francisco/Peninsula real estate news stories. Thankfully our partner Princeton Capital has kept us informed and offered great solutions when we have encountered some mortgage challenges. Keep in mind - the last time there was a statewide/national real estate downturn, we did not have single-digit interest rates, and our employment numbers were very unfavorable. Locally, desirability seems to be near an all-time high in many of our communities. That simply leaves us with the laws of supply and demand.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
.
There has been a flood of commentary on the credit crunch this week. Both facts and speculations have dominated the headlines. To truly understand the local impact we're experiencing, it's best to listen to the actual comments from out in the field. So this week, I am simply compiling the feedback from our agents and managers in our Bay Area offices. You be the judge as to what is really going on.
Comments from East and North Bay offices:
"Agents dealing in highly sought after areas are less concerned about the buyer’s mortgages since a really competitive offer would need 20% down as a minimum……The media is saturated with news of doom and gloom and it is intimidating our Buyers out here. Otherwise, we are seeing increased activity this week…… We have sold some of our older inventory this week….. Price reductions are seeing action…… The mortgage crisis has given us all the jitters, but as each day passes, we realize that life goes on and so does real estate. Many of our buyers are unphased at this point, though we are seeing drop in activity…….
Agents are busy; we have only had one escrow/loan negatively impacted by the mortgage crunch…….. This past weekend our floor duty was very busy. We had two “walk-ins” – one in the $3 million range and one set of buyers looking for $1.5-2 million. Also, we experienced about 7 really good floor calls. Many agents experienced 30-40 groups through their listings...... Great attendance at open houses that are new on the market……..Last week sales picked up……."
Our office comments on the Peninsula and in the City:
"While many agents are concerned about the “summer slowdown”, others are choosing to simply ignore it and stepping up their activity. One of our agents received a floor call and just ratified an all-cash sale at $4 million, with another sale to come from the same buyer. Thanks to all the great info coming to us from Coldwell Banker with regard to the lender/mortgage problems, our agents are so much better equipped to answer questions from their clients. We talked at our meeting today about the article in the Chronicle this weekend which discussed the fact that our peninsula is sought after by “zip codes” in many cases….
Very quiet here – but it is seasonal. Financial markets are not the cause of our slowdown, I believe. Some folks are being cautious, but the buyers are still serious shoppers if they are not out of town…… Typical summer slow down prior to school starting back up. Many agents are enjoying family vacations; those that are here and working are seeing good activity at open houses…... We still need good quality inventory....... Inventory is short. We anticipate an influx of listings right after the holiday – approx. a week after. Multiple offers nearly 100% in Palo Alto. Short inventory = small volume….. August is slow – loan problems seem to be limited somewhat, but no doubt that some buyers are holding back….. Lots of talk about the subprime market and Wall Street jitters, but lots of buyers out there at Open Houses....
More active last week for both listings and sales. Not many multiples and we had two deals fall out due to funding. City inventory still remains fairly low…….. Sellers are bringing their homes to the market sooner than planned due to the uncertainty of the mortgage situation. There are a lot of well-qualified buyers out there looking for the right property to call home. 40% of the ratified offers for the week were properties sold in 2 weeks or less. 10 of the 16 sales for the week were in multiples. Good activity this week despite mortgage woes. Larger down payments help win in multiple offers. One $1m-range condo had 7 offers and almost 20% over."
My take is that seasonal slowdown, vacations, and low inventory outweigh challenges from the mortgage industry as potential headlines for San Francisco/Peninsula real estate news stories. Thankfully our partner Princeton Capital has kept us informed and offered great solutions when we have encountered some mortgage challenges. Keep in mind - the last time there was a statewide/national real estate downturn, we did not have single-digit interest rates, and our employment numbers were very unfavorable. Locally, desirability seems to be near an all-time high in many of our communities. That simply leaves us with the laws of supply and demand.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly market Watch
Coldwell Banker Weekly Market Watch
Week of August 5, 2007
It has been an interesting week. The financial markets reacted severely to the tightening of credit in the mortgage industry. Institutional second loans for purchase (ex: 80/10/10) are predominately gone, and practically overnight. On a national scale, the Fannie, Freddie conforming loans, and FHA, VA remained relatively unchanged, but that doesn’t help us much here where the lay of the land is mainly a jumbo loan arena. To balance the perceived risk from investors who purchase these loans, most interest rates on jumbo loans have increased a full percent or more. Therefore, it is imperative to thoroughly review and understand the financing qualifications and terms for each potential home buyer. In order for any transaction to be closed successfully, buyers will require a real estate professional that is fully informed, knowledgeable and able to provide expert guidance as it relates to the financing aspects of the transaction. It is also important to ensure that buyers are working with a well-capitalized, established lender such as our partner, Princeton Capital. Our Sellers also need to take advantage of our in-house loan professionals who are prepared to help Listing Agents scrutinize offers coming in on their properties.
In the Bay Area, the start of August shows numerous bright spots in what is traditionally a slower month for real estate sales. Many areas have seen an increase in activity as sellers have adjusted their pricing, and for qualified buyers this remains an excellent opportunity to invest in some great real estate deals. Working with an experienced Realtor® remains the savviest means for buyers and sellers to navigate the muddy mortgage waters. As one Sebastopol agent succinctly put it, “they need us more than ever.”
More than 525 homes were held open during the week and many enjoyed a higher-than-anticipated number of potential buyers in most areas. Of the offices reporting, listing inventory was declared as being steady for 13 offices, decreasing for 10 offices and increasing for four. Sales activity continues to be solid for Coldwell Banker Residential Brokerage offices with 17 reporting steady activity and three seeing an increase. Sales activity decreased for seven offices.
A few transactions had loan setbacks which delayed or cancelled an escrow. You can expect some uncertainty with your current Buyers, and staying informed on the credit crunch is imperative. I’ve had several conversations with a number of our Princeton loan officers the past three days on solutions to current issues, and I’m truly pleased with the caliber of our partners. I’ve learned of some really forward-thinking actions already being implemented with several of our Buyers initiated by their Princeton loan rep. Cool heads will prevail in this – there are Buyers who need to buy, and Sellers who need to sell, and many opportunities exist.
Here is a link to an informative AP story Friday which will help you understand more clearly what the Fed did to increase liquidity in the market – accepting roughly $35 billion in mortgage backed securities.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/08/10/financial/f092914D27.DTL&hw=friday+august+10&sn=004&sc=458
(you may need to cut and paste the above into your browser)
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of August 5, 2007
It has been an interesting week. The financial markets reacted severely to the tightening of credit in the mortgage industry. Institutional second loans for purchase (ex: 80/10/10) are predominately gone, and practically overnight. On a national scale, the Fannie, Freddie conforming loans, and FHA, VA remained relatively unchanged, but that doesn’t help us much here where the lay of the land is mainly a jumbo loan arena. To balance the perceived risk from investors who purchase these loans, most interest rates on jumbo loans have increased a full percent or more. Therefore, it is imperative to thoroughly review and understand the financing qualifications and terms for each potential home buyer. In order for any transaction to be closed successfully, buyers will require a real estate professional that is fully informed, knowledgeable and able to provide expert guidance as it relates to the financing aspects of the transaction. It is also important to ensure that buyers are working with a well-capitalized, established lender such as our partner, Princeton Capital. Our Sellers also need to take advantage of our in-house loan professionals who are prepared to help Listing Agents scrutinize offers coming in on their properties.
In the Bay Area, the start of August shows numerous bright spots in what is traditionally a slower month for real estate sales. Many areas have seen an increase in activity as sellers have adjusted their pricing, and for qualified buyers this remains an excellent opportunity to invest in some great real estate deals. Working with an experienced Realtor® remains the savviest means for buyers and sellers to navigate the muddy mortgage waters. As one Sebastopol agent succinctly put it, “they need us more than ever.”
More than 525 homes were held open during the week and many enjoyed a higher-than-anticipated number of potential buyers in most areas. Of the offices reporting, listing inventory was declared as being steady for 13 offices, decreasing for 10 offices and increasing for four. Sales activity continues to be solid for Coldwell Banker Residential Brokerage offices with 17 reporting steady activity and three seeing an increase. Sales activity decreased for seven offices.
A few transactions had loan setbacks which delayed or cancelled an escrow. You can expect some uncertainty with your current Buyers, and staying informed on the credit crunch is imperative. I’ve had several conversations with a number of our Princeton loan officers the past three days on solutions to current issues, and I’m truly pleased with the caliber of our partners. I’ve learned of some really forward-thinking actions already being implemented with several of our Buyers initiated by their Princeton loan rep. Cool heads will prevail in this – there are Buyers who need to buy, and Sellers who need to sell, and many opportunities exist.
Here is a link to an informative AP story Friday which will help you understand more clearly what the Fed did to increase liquidity in the market – accepting roughly $35 billion in mortgage backed securities.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/08/10/financial/f092914D27.DTL&hw=friday+august+10&sn=004&sc=458
(you may need to cut and paste the above into your browser)
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
July 29, 2007
An island of good news appeared this week in a sea of negative media regarding weakness in the housing market. The National Association of Realtors' pending home sales index jumped five percent to 102.4 in June.
The index was created to be a more forward-looking snapshot on home sales than NAR's existing home sales report, which charts sales at the time of closing. The pending home sales index tracks when a sales agreement is signed, generally a month or more ahead of closing. The nationwide report is good news in that it indicates that home sales could see an increase in coming months. Now we need a few more media sources to pick up reports such as this, and we’re working on that. The important message to a Buyer in one of our micro markets where sales activity is slower is that historically as soon as media picks up that sales activity is stronger – Sellers quickly become less negotiable.
We’ve been regularly referring to distinct micro-markets within the Bay Area. San Francisco and the Peninsula continue to experience even more distinction within these two counties when comparing inventory and activity. Several SF offices reported fewer than usual multiples, and a little slower activity – while other spots in the City seemed hot. In San Francisco, a home in the West Portal area listed for $999,000 and received 8 offers. An agent’s Buyer had a win on a Mountain View property with 26 offers, the same agent reported a different buyer lost on a 14 offer presentation in Palo Alto, both in the same week. Their office also closed a $16 million sale this week – a walk-in which opened escrow Monday and closed Friday! Menlo Park reported 70% of open sales were in multiples for the week. Half Moon Bay reports that coastal inventory is dramatically up, but just now to normal season levels.
Listing inventory remained healthy for the week with 17 of our offices reporting steady inventory. Six offices reported increasing listing inventory and only four reported a decrease. In addition, 16 offices reported steady sales activity. Five offices saw increased sales activity, and only six reported a decrease.
Buyers and Sellers are depending on your expertise even more now. Sites like Zillow can offer some interesting generic info to the public, considered to be largely entertainment value. Business models like Redfin can offer money back to Buyers from agents who may be at a computer several counties away and haven’t seen the property. You are continuing to demonstrate priceless value to your customers each and every day.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
July 29, 2007
An island of good news appeared this week in a sea of negative media regarding weakness in the housing market. The National Association of Realtors' pending home sales index jumped five percent to 102.4 in June.
The index was created to be a more forward-looking snapshot on home sales than NAR's existing home sales report, which charts sales at the time of closing. The pending home sales index tracks when a sales agreement is signed, generally a month or more ahead of closing. The nationwide report is good news in that it indicates that home sales could see an increase in coming months. Now we need a few more media sources to pick up reports such as this, and we’re working on that. The important message to a Buyer in one of our micro markets where sales activity is slower is that historically as soon as media picks up that sales activity is stronger – Sellers quickly become less negotiable.
We’ve been regularly referring to distinct micro-markets within the Bay Area. San Francisco and the Peninsula continue to experience even more distinction within these two counties when comparing inventory and activity. Several SF offices reported fewer than usual multiples, and a little slower activity – while other spots in the City seemed hot. In San Francisco, a home in the West Portal area listed for $999,000 and received 8 offers. An agent’s Buyer had a win on a Mountain View property with 26 offers, the same agent reported a different buyer lost on a 14 offer presentation in Palo Alto, both in the same week. Their office also closed a $16 million sale this week – a walk-in which opened escrow Monday and closed Friday! Menlo Park reported 70% of open sales were in multiples for the week. Half Moon Bay reports that coastal inventory is dramatically up, but just now to normal season levels.
Listing inventory remained healthy for the week with 17 of our offices reporting steady inventory. Six offices reported increasing listing inventory and only four reported a decrease. In addition, 16 offices reported steady sales activity. Five offices saw increased sales activity, and only six reported a decrease.
Buyers and Sellers are depending on your expertise even more now. Sites like Zillow can offer some interesting generic info to the public, considered to be largely entertainment value. Business models like Redfin can offer money back to Buyers from agents who may be at a computer several counties away and haven’t seen the property. You are continuing to demonstrate priceless value to your customers each and every day.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of July 22, 2007
The media enjoyed a field day with the real estate industry this week in attempting to analyze major reports issued by N.A.R. and the Commerce Department regarding the nationwide housing market. Combined with subprime lending issues and Wall Street’s wobbly performance, most reporters took the easy route of predicting doom and gloom, and a longer downturn for real estate on a national front.
The media forgot, however, to mention a few key points which indicate that this is an excellent time to buy real estate, and savvy sellers are reaping the rewards. Regarding issues with lending, the simple fact is that lenders are more than happy to lend money to people who can afford to borrow it. Standards for documented income, assets and cash flow have become stricter, but rates remain relatively low. Additionally, when Wall Street suffers from volatility, people tend to cash out of the stock market and reinvest in real estate.
Median home sales prices in the Bay Area have remained steady, or increased in most areas, and our luxury market continues to thrive. However some buyers are unfortunately being influenced by negative media reports and seem to be waiting for prices to drop precipitously. In the Bay Area overall however, prices on solid homes in desirable neighborhoods will only continue to rise. Where inventory is low such as in the City and on the Peninsula, the competition among buyers is still pretty fierce. Sellers in almost all Bay Area communities who price their homes at, or slightly below, market price and are properly preparing their homes for showing are selling competitively and at a steady pace.
The proof is in the numbers. Of the offices reporting, listing inventory remained steady for 15. It increased for four offices and decreased for seven, showing that inventory is steady or dropping in more than three-quarters of our offices. Sales activity remained steady for 13 offices, increased for seven and decreased in only six.
A Palo Alto property received 13 offers. In many of San Francisco’s ratified sales for the week, multiple offers of 3 to 4 per listing were still common. Our Menlo Park/ El Camino Avenue office reports that every one of their sales for the week were in multiple offer situations. Our offices combined reported more than 70 listings receiving multiple offers for the week.
The higher-end homes are in short supply in most areas. The Walnut Creek office alone sold five homes last week that were each priced in excess of $1.2 million. In San Francisco and the Peninsula, we’ve been saying for quite some time that “Two Million is the new One Million”. Now it appears that may be said additionally in the East Bay and other greater Bay Area markets.
When reading front-page reports of the National housing outlook, our Buyers need to be reminded that real estate is local. Media-influenced buyer resistance is an unfortunate result from the reporting of national economic data. In most parts of the Bay Area real estate market, waiting for prices to drop isn’t the smartest thing to do. Investing during a lull in interest rate hikes and pricing is.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of July 22, 2007
The media enjoyed a field day with the real estate industry this week in attempting to analyze major reports issued by N.A.R. and the Commerce Department regarding the nationwide housing market. Combined with subprime lending issues and Wall Street’s wobbly performance, most reporters took the easy route of predicting doom and gloom, and a longer downturn for real estate on a national front.
The media forgot, however, to mention a few key points which indicate that this is an excellent time to buy real estate, and savvy sellers are reaping the rewards. Regarding issues with lending, the simple fact is that lenders are more than happy to lend money to people who can afford to borrow it. Standards for documented income, assets and cash flow have become stricter, but rates remain relatively low. Additionally, when Wall Street suffers from volatility, people tend to cash out of the stock market and reinvest in real estate.
Median home sales prices in the Bay Area have remained steady, or increased in most areas, and our luxury market continues to thrive. However some buyers are unfortunately being influenced by negative media reports and seem to be waiting for prices to drop precipitously. In the Bay Area overall however, prices on solid homes in desirable neighborhoods will only continue to rise. Where inventory is low such as in the City and on the Peninsula, the competition among buyers is still pretty fierce. Sellers in almost all Bay Area communities who price their homes at, or slightly below, market price and are properly preparing their homes for showing are selling competitively and at a steady pace.
The proof is in the numbers. Of the offices reporting, listing inventory remained steady for 15. It increased for four offices and decreased for seven, showing that inventory is steady or dropping in more than three-quarters of our offices. Sales activity remained steady for 13 offices, increased for seven and decreased in only six.
A Palo Alto property received 13 offers. In many of San Francisco’s ratified sales for the week, multiple offers of 3 to 4 per listing were still common. Our Menlo Park/ El Camino Avenue office reports that every one of their sales for the week were in multiple offer situations. Our offices combined reported more than 70 listings receiving multiple offers for the week.
The higher-end homes are in short supply in most areas. The Walnut Creek office alone sold five homes last week that were each priced in excess of $1.2 million. In San Francisco and the Peninsula, we’ve been saying for quite some time that “Two Million is the new One Million”. Now it appears that may be said additionally in the East Bay and other greater Bay Area markets.
When reading front-page reports of the National housing outlook, our Buyers need to be reminded that real estate is local. Media-influenced buyer resistance is an unfortunate result from the reporting of national economic data. In most parts of the Bay Area real estate market, waiting for prices to drop isn’t the smartest thing to do. Investing during a lull in interest rate hikes and pricing is.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of July 15, 2007
This week DataQuick, the real estate information firm relied on by the local media, released its report on the condition of the Bay Area real estate market for the month of June. The report is a solid reflection of what we’re seeing in July as well, and what we’ve been identifying in the Weekly Market Watch for months now – some areas are witnessing high activity and others are struggling. The report indicates that median sales prices have increased, but that sales of homes are down over all in most areas. For a change, however, the report has identified the booming luxury homes market as being not only strong but also largely responsible for elevating that median sale price. Buyers in lower priced markets are adopting a “wait and see” attitude.
Listing inventory is increasing in most every area reporting, however not in all price categories. As we have been seeing, a lack of inventory in the high-end does keep sales activity buoyant, but a fresh crop of homes to sell would provide more variety to eager buyers. Multiple offer situations have slowed down in most areas as inventory ticks upward. A $2,495,000 Menlo Park listing received five offers. One San Francisco office reported that of nine properties that received multiple offers, six of them received those multiple offers pre-emptively. More than 60 of our listings received multiple offers during the week overall.
Most of our more than 600 homes held open last week saw steady, if not excessively busy, streams of visitors. A $1,350,000 listing in Belmont had over 100 people go through and, evidently, this property was on a hill and had little available parking! Woodside/Portola Valley reports “incredibly busy” open homes.
Listing inventory remained steady for 11 offices, increased for 11 offices and decreased in only six offices. 17 offices held their own by reporting sales activity as having been steady. Four offices reported increased sales activity, and activity decreased for seven.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of July 15, 2007
This week DataQuick, the real estate information firm relied on by the local media, released its report on the condition of the Bay Area real estate market for the month of June. The report is a solid reflection of what we’re seeing in July as well, and what we’ve been identifying in the Weekly Market Watch for months now – some areas are witnessing high activity and others are struggling. The report indicates that median sales prices have increased, but that sales of homes are down over all in most areas. For a change, however, the report has identified the booming luxury homes market as being not only strong but also largely responsible for elevating that median sale price. Buyers in lower priced markets are adopting a “wait and see” attitude.
Listing inventory is increasing in most every area reporting, however not in all price categories. As we have been seeing, a lack of inventory in the high-end does keep sales activity buoyant, but a fresh crop of homes to sell would provide more variety to eager buyers. Multiple offer situations have slowed down in most areas as inventory ticks upward. A $2,495,000 Menlo Park listing received five offers. One San Francisco office reported that of nine properties that received multiple offers, six of them received those multiple offers pre-emptively. More than 60 of our listings received multiple offers during the week overall.
Most of our more than 600 homes held open last week saw steady, if not excessively busy, streams of visitors. A $1,350,000 listing in Belmont had over 100 people go through and, evidently, this property was on a hill and had little available parking! Woodside/Portola Valley reports “incredibly busy” open homes.
Listing inventory remained steady for 11 offices, increased for 11 offices and decreased in only six offices. 17 offices held their own by reporting sales activity as having been steady. Four offices reported increased sales activity, and activity decreased for seven.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of July 8, 2007
With the Fourth of July holiday falling right in the middle of the week, another quiet week was anticipated, but it was actually pretty busy out there. In the outlying areas, Buyers are still more interested in looking than in writing offers. In all areas, including the Peninsula and the City, Buyers are becoming more sensitive to condition and price. With an influx of new inventory hitting the market in many areas, those Buyers will be more likely to find what they’ve been searching for. Several months ago, it seemed the Peninsula was anxious to see new listings in all areas, now some communities are seeing some fresh inventory begin to stack up. In some northern Peninsula markets, the new inventory is definitely not selling as quickly as it did in April. Below are some fast facts on inventory in our markets in the City and Peninsula:
San Francisco has been holding steady all year with approx. 2.3 months supply inventory – June this year at 2.3 months is down from June ’06 when there was 2.7 months supply. In the over $2.5M market however, the City saw a jump which nearly doubled the May rate, now up to 5.5 months supply. This is likely a combination of new June inventory over $2.5M, as well as some existing listings that did not move in June. We’ll watch this one over the next several months to see if the upper end homes will continue a slower rate of absorption.
The Peninsula also remains relatively unchanged this year for all price points combined, at 3.2 months supply. June represents an increase from the 2.6 months supply we saw in June ’06. The upper end, over $2.5M has gone the opposite direction of the City, at least for the month of June, where it decreased from May’s 7.4 months to 4.8 in June. Again, we’ll watch to see where this goes, it takes more than a few months to spot a pattern. Santa Clara County has seen an increase of MSI nearly every month this year, now up to 4.1 months supply, and up from 3.1 months June ’06. Santa Clara’s upper end over 2.5M doubled over the previous month, now at 11 months supply.
No matter the direction the upper end month's supply inventory headed in June, we were fortunate to have a phenomenal 40+ sides close escrow over $5M for May and June - this is strictly our CB offices - a testament to the healthy upper end market, and the talented Coldwell Banker agents working it.
More than 490 homes were held open during the week, and most areas were surprised by the high level of activity. Multiple offer situations increased in some areas with more than 80 occurring during the week. Listing inventory increased for seven offices, remained steady for 12 offices, and decreased in 10. Sales activity remained steady for 15 offices, increased for six and decreased in only eight offices.
Overall, fresh inventory sparks fresh interest from buyers and may push sellers into pricing their homes effectively. Condition, price, and strategic staging will remain key factors all summer in keeping the new inventory moving.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of July 8, 2007
With the Fourth of July holiday falling right in the middle of the week, another quiet week was anticipated, but it was actually pretty busy out there. In the outlying areas, Buyers are still more interested in looking than in writing offers. In all areas, including the Peninsula and the City, Buyers are becoming more sensitive to condition and price. With an influx of new inventory hitting the market in many areas, those Buyers will be more likely to find what they’ve been searching for. Several months ago, it seemed the Peninsula was anxious to see new listings in all areas, now some communities are seeing some fresh inventory begin to stack up. In some northern Peninsula markets, the new inventory is definitely not selling as quickly as it did in April. Below are some fast facts on inventory in our markets in the City and Peninsula:
San Francisco has been holding steady all year with approx. 2.3 months supply inventory – June this year at 2.3 months is down from June ’06 when there was 2.7 months supply. In the over $2.5M market however, the City saw a jump which nearly doubled the May rate, now up to 5.5 months supply. This is likely a combination of new June inventory over $2.5M, as well as some existing listings that did not move in June. We’ll watch this one over the next several months to see if the upper end homes will continue a slower rate of absorption.
The Peninsula also remains relatively unchanged this year for all price points combined, at 3.2 months supply. June represents an increase from the 2.6 months supply we saw in June ’06. The upper end, over $2.5M has gone the opposite direction of the City, at least for the month of June, where it decreased from May’s 7.4 months to 4.8 in June. Again, we’ll watch to see where this goes, it takes more than a few months to spot a pattern. Santa Clara County has seen an increase of MSI nearly every month this year, now up to 4.1 months supply, and up from 3.1 months June ’06. Santa Clara’s upper end over 2.5M doubled over the previous month, now at 11 months supply.
No matter the direction the upper end month's supply inventory headed in June, we were fortunate to have a phenomenal 40+ sides close escrow over $5M for May and June - this is strictly our CB offices - a testament to the healthy upper end market, and the talented Coldwell Banker agents working it.
More than 490 homes were held open during the week, and most areas were surprised by the high level of activity. Multiple offer situations increased in some areas with more than 80 occurring during the week. Listing inventory increased for seven offices, remained steady for 12 offices, and decreased in 10. Sales activity remained steady for 15 offices, increased for six and decreased in only eight offices.
Overall, fresh inventory sparks fresh interest from buyers and may push sellers into pricing their homes effectively. Condition, price, and strategic staging will remain key factors all summer in keeping the new inventory moving.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of July 1, 2007
The markets have moved into the anticipated summertime holding pattern. With the mid-week Independence Day holiday looming and temperatures beginning to soar, buyers and sellers alike seemed to need a week to just relax and breathe.
Still, for upper-tier homes, cash customers continue to keep certain markets hot, such as in San Francisco and many parts of the Peninsula. Both areas are still struggling with low inventory levels. Burlingame is witnessing multiple offers on properties in the $2.5 to $4 million range. In San Francisco, frenzy continues for attractive properties (there were seven offers on a vacant investment property) but good inventory is hard to find.
Other areas, such as Danville and Redwood City/San Carlos, are seeing increased inventory overall, but a shortage of inventory that buyers want to buy! Pleasanton reports a healthy market atmosphere - neither too slow nor too fast - with homes generally selling within 60 to 90 days on the market, and at close to asking price.
Our more than 450 homes held open during the week received reasonable attendance considering the seasonal lull. Listing inventory was reported as having decreased by eight offices. It increased for six offices and remained steady for 10. Sales activity decreased for nine of the offices reporting, however it remained steady for eight offices, and increased for seven. Getting back to "normal" next week will hopefully bring some fresh inventory for the City and Peninsula offices.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of July 1, 2007
The markets have moved into the anticipated summertime holding pattern. With the mid-week Independence Day holiday looming and temperatures beginning to soar, buyers and sellers alike seemed to need a week to just relax and breathe.
Still, for upper-tier homes, cash customers continue to keep certain markets hot, such as in San Francisco and many parts of the Peninsula. Both areas are still struggling with low inventory levels. Burlingame is witnessing multiple offers on properties in the $2.5 to $4 million range. In San Francisco, frenzy continues for attractive properties (there were seven offers on a vacant investment property) but good inventory is hard to find.
Other areas, such as Danville and Redwood City/San Carlos, are seeing increased inventory overall, but a shortage of inventory that buyers want to buy! Pleasanton reports a healthy market atmosphere - neither too slow nor too fast - with homes generally selling within 60 to 90 days on the market, and at close to asking price.
Our more than 450 homes held open during the week received reasonable attendance considering the seasonal lull. Listing inventory was reported as having decreased by eight offices. It increased for six offices and remained steady for 10. Sales activity decreased for nine of the offices reporting, however it remained steady for eight offices, and increased for seven. Getting back to "normal" next week will hopefully bring some fresh inventory for the City and Peninsula offices.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of June 24, 2007
Buyers are not sitting on the fence when it comes to making offers on homes that are well-priced, in good condition and in desirable neighborhoods.
Our more that 60 multiple offer situations bear testament to that fact – and the homes that received multiple offers were spread throughout the Bay Area. An Albany listing received eight offers and two lower-priced Berkeley homes received four and seven offers each. One remodeled Eichler property in the San Mateo Highlands neighborhood was listed at $1,995,000 and sold with multiple offers over the asking price. A loft in the South of Market Area of San Francisco – a market which has been languishing of late - received four offers, all over asking, and sold with a short contingency period and a 14 day close. Buyers are making emotional investments as well as financial ones, and are willing to go the distance in order to get that dream home – but they are not jumping at just anything at any price. The Danville office manager makes an excellent point in saying that, “managing expectations of buyers and sellers is critical.”
As mentioned last week, there is a traditional wane in real estate activity as summer settles in, however our more than 600 open homes had decent activity in the majority of areas. As expected, the newer listings received the greatest number of visitors. Even though inventory is low, Sellers still have only one chance at that optimal first impression when they hit the market, and the best opportunity to see multiple offer bidding.
The sale of upper-tier homes still remains the most active. This may be attributable to buyers who are less sensitive to recent rate increases, and the fact that there are fewer of those homes on the market overall. A $1 million listing in Kentfield received seven offers and sold for well over the asking price. Woodside/Portola Valley, Menlo Park, and San Francisco Van Ness offices each had several closings this week on properties over $5M. In Woodside/Portola Valley, an expired listing with a creative agent sold for $7 million.
For the Peninsula and City offices, activity seems to be in check simply by the limitation of new listings. 16 offices are reporting that sales activity remains steady. Eight offices reported increased sales activity, and only four reported a decrease. Listing inventory was reported as being steady by 17 of the offices reporting, while it increased for six offices and decreased for five.
Have a great week – and a safe and Happy 4th of July!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of June 24, 2007
Buyers are not sitting on the fence when it comes to making offers on homes that are well-priced, in good condition and in desirable neighborhoods.
Our more that 60 multiple offer situations bear testament to that fact – and the homes that received multiple offers were spread throughout the Bay Area. An Albany listing received eight offers and two lower-priced Berkeley homes received four and seven offers each. One remodeled Eichler property in the San Mateo Highlands neighborhood was listed at $1,995,000 and sold with multiple offers over the asking price. A loft in the South of Market Area of San Francisco – a market which has been languishing of late - received four offers, all over asking, and sold with a short contingency period and a 14 day close. Buyers are making emotional investments as well as financial ones, and are willing to go the distance in order to get that dream home – but they are not jumping at just anything at any price. The Danville office manager makes an excellent point in saying that, “managing expectations of buyers and sellers is critical.”
As mentioned last week, there is a traditional wane in real estate activity as summer settles in, however our more than 600 open homes had decent activity in the majority of areas. As expected, the newer listings received the greatest number of visitors. Even though inventory is low, Sellers still have only one chance at that optimal first impression when they hit the market, and the best opportunity to see multiple offer bidding.
The sale of upper-tier homes still remains the most active. This may be attributable to buyers who are less sensitive to recent rate increases, and the fact that there are fewer of those homes on the market overall. A $1 million listing in Kentfield received seven offers and sold for well over the asking price. Woodside/Portola Valley, Menlo Park, and San Francisco Van Ness offices each had several closings this week on properties over $5M. In Woodside/Portola Valley, an expired listing with a creative agent sold for $7 million.
For the Peninsula and City offices, activity seems to be in check simply by the limitation of new listings. 16 offices are reporting that sales activity remains steady. Eight offices reported increased sales activity, and only four reported a decrease. Listing inventory was reported as being steady by 17 of the offices reporting, while it increased for six offices and decreased for five.
Have a great week – and a safe and Happy 4th of July!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of June 17, 2007
Despite last Sunday being Father’s Day, the more than 540 open houses held last weekend were mostly well attended. Typically, the summer months see a slowing of the market as it competes with graduations and vacations. We have yet to see that typical slowdown in most areas. Though some areas are reporting lighter activity, others are seeing sales pick up. Once again, the standard patterns of real estate in the Bay Area continue to elude definition. Our reports reflect the week’s activity in each particular branch office, and it appears that “busy” sales weeks directly follow an influx of newer listing inventory in that office’s market. In the City and the Peninsula, we are not seeing increases of inventory followed by slower sales activity. In most offices, it’s quite the opposite.
A $2,795,000 listing in the Liberty Hill/Noe area of San Francisco received four offers. A San Francisco Parkside area home received 21 offers significantly over the list price, however several other properties in the City were lucky to receive one offer. On the Peninsula, inventory is sporadically feast or famine depending on the location. Woodside/Portola Valley, Foster City, Redwood Shores and the most desirable San Mateo area neighborhoods all suffer from low inventory. Menlo Park is seeing a steady, healthy market; listings are picking up, and are selling just as quickly. The past two weeks have seen a few more $5M+ sales on the Peninsula. Buyer confidence is strong; the Dow and NASDAQ have made some local residents more flush which helps fuel the positive activity.
The rest of the Bay Area reports a similar mix of ups and downs. Castro Valley, Livermore and Pleasanton are all reporting that “things are picking up” with their sales activity. New, attractive listings in the core areas of the Berkeley market remain hot commodities. Many markets in the North Bay remain hot, especially in Marin County. Sonoma continues to be haunted by a glut of inventory, however this may bode well in the near future as frustrated buyers from other areas start reconsidering Sonoma as a viable place to settle with a wide selection of well-priced homes. And then we get the reminder we need to hear from time to time; an East Bay office reports that three separate deals each died a day after ratification last week. In a more “normal” market, the hard work and the majority of negotiations simply begin once the property sells.
Listing Activity was reported as steady by the majority - 20 offices. It increased for seven offices, and only decreased for two offices. Even with the seasonal slowing in the market, sales activity for our offices were reported as being steady by 16 offices, increasing for six, and decreasing for seven offices.
In an unpredictable market, an overwhelming “steady” report well into the month of June certainly says a lot about the power and expertise of Coldwell Banker Sales Associates.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of June 17, 2007
Despite last Sunday being Father’s Day, the more than 540 open houses held last weekend were mostly well attended. Typically, the summer months see a slowing of the market as it competes with graduations and vacations. We have yet to see that typical slowdown in most areas. Though some areas are reporting lighter activity, others are seeing sales pick up. Once again, the standard patterns of real estate in the Bay Area continue to elude definition. Our reports reflect the week’s activity in each particular branch office, and it appears that “busy” sales weeks directly follow an influx of newer listing inventory in that office’s market. In the City and the Peninsula, we are not seeing increases of inventory followed by slower sales activity. In most offices, it’s quite the opposite.
A $2,795,000 listing in the Liberty Hill/Noe area of San Francisco received four offers. A San Francisco Parkside area home received 21 offers significantly over the list price, however several other properties in the City were lucky to receive one offer. On the Peninsula, inventory is sporadically feast or famine depending on the location. Woodside/Portola Valley, Foster City, Redwood Shores and the most desirable San Mateo area neighborhoods all suffer from low inventory. Menlo Park is seeing a steady, healthy market; listings are picking up, and are selling just as quickly. The past two weeks have seen a few more $5M+ sales on the Peninsula. Buyer confidence is strong; the Dow and NASDAQ have made some local residents more flush which helps fuel the positive activity.
The rest of the Bay Area reports a similar mix of ups and downs. Castro Valley, Livermore and Pleasanton are all reporting that “things are picking up” with their sales activity. New, attractive listings in the core areas of the Berkeley market remain hot commodities. Many markets in the North Bay remain hot, especially in Marin County. Sonoma continues to be haunted by a glut of inventory, however this may bode well in the near future as frustrated buyers from other areas start reconsidering Sonoma as a viable place to settle with a wide selection of well-priced homes. And then we get the reminder we need to hear from time to time; an East Bay office reports that three separate deals each died a day after ratification last week. In a more “normal” market, the hard work and the majority of negotiations simply begin once the property sells.
Listing Activity was reported as steady by the majority - 20 offices. It increased for seven offices, and only decreased for two offices. Even with the seasonal slowing in the market, sales activity for our offices were reported as being steady by 16 offices, increasing for six, and decreasing for seven offices.
In an unpredictable market, an overwhelming “steady” report well into the month of June certainly says a lot about the power and expertise of Coldwell Banker Sales Associates.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of June 3, 2007
Some subtle changes were noted in our Bay Area market this week. The East Bay offices report ratified offers on well priced properties, and positive response from price reductions on some older inventory. With only a few exceptions (Orinda and Berkeley), the majority of East Bay offices reported no multiple offers. North Bay offices speak of slower activity, with Marin reporting the upper-end properties are still scarce and hot. San Francisco and the Peninsula reflect the same as Marin – it seems the higher the price, the better the opportunity for a quick sale. That should not be taken as advice for Sellers to raise their price from the current market analysis. It simply points to a greater demand for new inventory in the $2M+ range in the City and Peninsula markets.
For the City, there was a decline in the number of multiple offers, but very strong activity. I checked a 24 hour Market Watch in the SF MLS, and during one 24 hour period last week, MLS reported 42 new listings, and 45 new pending sales for the same time period. At first glance, we’re selling more than is coming to the market. The Peninsula, from Burlingame to Palo Alto continues the highest rate of multiple offer activity, with more than 50% of reported sales in multiple offers, the exception is Half Moon Bay.
The recent declines in the stock market have moved the bond yield up, and we are already experiencing the upward pressure on interest rates. As SF Lombard noted, we should be aware that the combination of a fatigued Buyer and rising interest rates could slow us down this summer. For the immediate future, fresh inventory remains to be the key. I would encourage every potential Seller to finish their projects and get their property on the market. In most years past, we’ve said a Seller may have missed the best opportunity by waiting until June – not the case this year.
Buyers are out in full force with most areas reporting strong attendance at the nearly 600 homes held open during the week. More than 100 groups came through a Berkeley Hills listing. A home in Millbrae had over 200 attendees, and it wasn’t even its first open. The Internet and emerging technologies continue to play an increasingly important role in bringing buyers and sellers together, and increasing foot traffic at open homes. A Woodside/Portola Valley sales associate posted her listing to a Blog and had a huge turnout at her open home. The sales associate noticed that every buyer for this starter home had come as a result of Internet searches as opposed to looking in the newspaper.
Listing inventory remained steady for 13 offices, increased for 12 offices and decreased in only four. Sales activity was reported as being steady for 19 offices. It increased for seven offices and just three offices saw a decrease.
Make it a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of June 3, 2007
Some subtle changes were noted in our Bay Area market this week. The East Bay offices report ratified offers on well priced properties, and positive response from price reductions on some older inventory. With only a few exceptions (Orinda and Berkeley), the majority of East Bay offices reported no multiple offers. North Bay offices speak of slower activity, with Marin reporting the upper-end properties are still scarce and hot. San Francisco and the Peninsula reflect the same as Marin – it seems the higher the price, the better the opportunity for a quick sale. That should not be taken as advice for Sellers to raise their price from the current market analysis. It simply points to a greater demand for new inventory in the $2M+ range in the City and Peninsula markets.
For the City, there was a decline in the number of multiple offers, but very strong activity. I checked a 24 hour Market Watch in the SF MLS, and during one 24 hour period last week, MLS reported 42 new listings, and 45 new pending sales for the same time period. At first glance, we’re selling more than is coming to the market. The Peninsula, from Burlingame to Palo Alto continues the highest rate of multiple offer activity, with more than 50% of reported sales in multiple offers, the exception is Half Moon Bay.
The recent declines in the stock market have moved the bond yield up, and we are already experiencing the upward pressure on interest rates. As SF Lombard noted, we should be aware that the combination of a fatigued Buyer and rising interest rates could slow us down this summer. For the immediate future, fresh inventory remains to be the key. I would encourage every potential Seller to finish their projects and get their property on the market. In most years past, we’ve said a Seller may have missed the best opportunity by waiting until June – not the case this year.
Buyers are out in full force with most areas reporting strong attendance at the nearly 600 homes held open during the week. More than 100 groups came through a Berkeley Hills listing. A home in Millbrae had over 200 attendees, and it wasn’t even its first open. The Internet and emerging technologies continue to play an increasingly important role in bringing buyers and sellers together, and increasing foot traffic at open homes. A Woodside/Portola Valley sales associate posted her listing to a Blog and had a huge turnout at her open home. The sales associate noticed that every buyer for this starter home had come as a result of Internet searches as opposed to looking in the newspaper.
Listing inventory remained steady for 13 offices, increased for 12 offices and decreased in only four. Sales activity was reported as being steady for 19 offices. It increased for seven offices and just three offices saw a decrease.
Make it a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of May 27, 2007
The long Memorial Day weekend gave Buyers, Sellers, and Agents a bit of a break. Some offices reported a quiet week, but the activity which did occur was mainly tied to sales - consuming more of our already depleted inventory, rather than listing new properties. Menlo Park/El Camino was the exception, reporting that quite a few new properties were introduced at the sales meeting this week. MP also commented on seeing a healthier listing/sales ratio in their marketplace. Dare we look for a balanced market this summer in the Peninsula??? Throughout all of Santa Clara county, there are 40% more properties currently available compared to the same week last year. But looking more closely at our Palo Alto, Menlo Park, Los Altos and Mountain View markets, there are 18% fewer properties available this year over last, holding true to the fact that higher priced communities are selling much more rapidly than the vast suburbs. San Francisco Van Ness reports their new sales outnumbered their new listings 3 to 1, but are looking for more listings coming in now that the holiday weekend is past.
We held almost 400 homes open during the week, and the lower-than-normal Memorial holiday attendance level was anticipated. The coast at Half Moon Bay was quiet largely due to both agents and clients vacationing.
The Bay Area market continues to be predictably unpredictable. In most areas, it is specific neighborhoods, schools, locations and streets that are generating the interest and buyer activity more so than the actual homes themselves. Berkeley, Oakland and El Cerrito saw multiple offers on homes in all price points. In Kentwood, a $3.95 million listing closed for $5 million after having received nine offers. In San Francisco, two properties in the Sunset district received 11 and 22 offers respectively. More frequently the numbers of multiple offers received in the City are closer to 4-6 competitors per multiple-offer sale. A listing of a SFR in the Inner Mission of San Francisco at just over $1M was all set for waiting through a Broker’s Open and the weekend of open homes before seeing offers. Plans changed when a buyer walked into the home unescorted while a painter was there working. They then got their agent involved in making a strong pre-emptive. Of course, that prompted another agent to submit on behalf of their client who had been waiting patiently as told to do. Ultimately the Seller decided to review the pre-emptive offers, issued multiple counters, and accepted a very strong deal before the first open house could be held. As Tim Curran would say: “What a country!”
Of the offices reporting, listing inventory remained steady for 16, increased for five and decreased for eight. Sales activity remained steady for 9 offices. It increased for 13 offices, and decreased in only seven.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of May 27, 2007
The long Memorial Day weekend gave Buyers, Sellers, and Agents a bit of a break. Some offices reported a quiet week, but the activity which did occur was mainly tied to sales - consuming more of our already depleted inventory, rather than listing new properties. Menlo Park/El Camino was the exception, reporting that quite a few new properties were introduced at the sales meeting this week. MP also commented on seeing a healthier listing/sales ratio in their marketplace. Dare we look for a balanced market this summer in the Peninsula??? Throughout all of Santa Clara county, there are 40% more properties currently available compared to the same week last year. But looking more closely at our Palo Alto, Menlo Park, Los Altos and Mountain View markets, there are 18% fewer properties available this year over last, holding true to the fact that higher priced communities are selling much more rapidly than the vast suburbs. San Francisco Van Ness reports their new sales outnumbered their new listings 3 to 1, but are looking for more listings coming in now that the holiday weekend is past.
We held almost 400 homes open during the week, and the lower-than-normal Memorial holiday attendance level was anticipated. The coast at Half Moon Bay was quiet largely due to both agents and clients vacationing.
The Bay Area market continues to be predictably unpredictable. In most areas, it is specific neighborhoods, schools, locations and streets that are generating the interest and buyer activity more so than the actual homes themselves. Berkeley, Oakland and El Cerrito saw multiple offers on homes in all price points. In Kentwood, a $3.95 million listing closed for $5 million after having received nine offers. In San Francisco, two properties in the Sunset district received 11 and 22 offers respectively. More frequently the numbers of multiple offers received in the City are closer to 4-6 competitors per multiple-offer sale. A listing of a SFR in the Inner Mission of San Francisco at just over $1M was all set for waiting through a Broker’s Open and the weekend of open homes before seeing offers. Plans changed when a buyer walked into the home unescorted while a painter was there working. They then got their agent involved in making a strong pre-emptive. Of course, that prompted another agent to submit on behalf of their client who had been waiting patiently as told to do. Ultimately the Seller decided to review the pre-emptive offers, issued multiple counters, and accepted a very strong deal before the first open house could be held. As Tim Curran would say: “What a country!”
Of the offices reporting, listing inventory remained steady for 16, increased for five and decreased for eight. Sales activity remained steady for 9 offices. It increased for 13 offices, and decreased in only seven.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of May 20, 2007
Almost 700 homes were held open in celebration of our Great American Open Home Event, and most all areas reported excellent attendance. The event provided us the opportunity to showcase a wide variety of listings throughout our communities, and the potential buyers were out in full force. One Half Moon Bay property saw a surprising 80 visitors, and a Millbrae home drew over 130 potential buyers. In the City, it was the typical “double-park Sunday-scramble” as Buyers attempted to get in as many Opens as time permitted.
The upper-tier properties are still seeing strong activity in most areas, but in areas where inventory is higher, buyers are better referred to as “window shoppers.” More prevalent in our outer East and North Bay offices, these Buyers are looking at everything available, but are difficult to pin down when it comes time to write an offer. In areas where inventory is tighter, pre-emptive and multiple offer situations are happening in more than half of the reported sales. There were 5 offers on a San Mateo property that went for substantially more than the $2.5 million list price. Menlo Park reports a pre-emptive property that went for 20% over asking. The Lombard office in the City reported every sale this week either in multiple or pre-emptive offers. Market Street and SF Lakeside reported 16 out of 26 were in multiple offers. SF Noriega offices states a fixer in Inner Richmond district had 17 offers and went more than $100,000 over asking. From Burlingame to San Mateo, the past week’s more than 50 closings in MLS were showing roughly 85% sold at list price or greater.
The past two week’s office reports have included more comments regarding transactions being re-negotiated prior to the closing, and some occurrences of deals falling through. Back-up offers can be key for Sellers in many of these situations. In some cases, a Buyer is simply looking for a small consideration prior to close, in others it may be a full-blown case of Buyer’s remorse. Strong listing and selling Agents are helping their customers stay focused on the main objectives in Buying or Selling.
Of the offices reporting, listing inventory remained steady for 12, increased for eight and decreased for six. Sales activity remained comfortably steady for a whopping 16 offices. It increased for eight offices, and decreased in only two.
Hope you had a wonderful Memorial Day weekend!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of May 20, 2007
Almost 700 homes were held open in celebration of our Great American Open Home Event, and most all areas reported excellent attendance. The event provided us the opportunity to showcase a wide variety of listings throughout our communities, and the potential buyers were out in full force. One Half Moon Bay property saw a surprising 80 visitors, and a Millbrae home drew over 130 potential buyers. In the City, it was the typical “double-park Sunday-scramble” as Buyers attempted to get in as many Opens as time permitted.
The upper-tier properties are still seeing strong activity in most areas, but in areas where inventory is higher, buyers are better referred to as “window shoppers.” More prevalent in our outer East and North Bay offices, these Buyers are looking at everything available, but are difficult to pin down when it comes time to write an offer. In areas where inventory is tighter, pre-emptive and multiple offer situations are happening in more than half of the reported sales. There were 5 offers on a San Mateo property that went for substantially more than the $2.5 million list price. Menlo Park reports a pre-emptive property that went for 20% over asking. The Lombard office in the City reported every sale this week either in multiple or pre-emptive offers. Market Street and SF Lakeside reported 16 out of 26 were in multiple offers. SF Noriega offices states a fixer in Inner Richmond district had 17 offers and went more than $100,000 over asking. From Burlingame to San Mateo, the past week’s more than 50 closings in MLS were showing roughly 85% sold at list price or greater.
The past two week’s office reports have included more comments regarding transactions being re-negotiated prior to the closing, and some occurrences of deals falling through. Back-up offers can be key for Sellers in many of these situations. In some cases, a Buyer is simply looking for a small consideration prior to close, in others it may be a full-blown case of Buyer’s remorse. Strong listing and selling Agents are helping their customers stay focused on the main objectives in Buying or Selling.
Of the offices reporting, listing inventory remained steady for 12, increased for eight and decreased for six. Sales activity remained comfortably steady for a whopping 16 offices. It increased for eight offices, and decreased in only two.
Hope you had a wonderful Memorial Day weekend!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of May 13, 2007
DataQuick numbers were released this past week and the media swarmed to extract a pattern of doom for the housing market from the report. DataQuick reported a slowdown in sales and an increase in median prices and attributed the results to a “continued buyer-seller standoff.” However, the only true pattern emerging in Bay Area real estate over the week is one we’ve already identified before – pricing and condition are crucial to a reasonably quick sale. And as DataQuick pointed out, when interested-but-wary buyers meet sellers who are reluctant to negotiate, a no-sale situation is the result. For our City and Peninsula offices, no-to-low inventory is still the main story.
Multiple offers are up again, and the upper-tier properties remain the hot tickets in most areas. A $3.9 million Kentfield listing had nine offers. In Mill Valley, a $2.8 million listing received multiple offers. Oakland/Piedmont and Menlo Park both report multiple offers in all price ranges. Our San Francisco offices reported approximately 1 in 3 sales involved multiple offers for the week. All in all, more than 80 multiple offer situations occurred.
Listing inventory remained steady as reported by 14 offices, increased in 10 offices and decreased for five. Sales activity also remained steady for 14 offices, while it reportedly increased for 12 offices and only decreased for 3.
DataQuick is an excellent resource, and reading the report provides a fair reflection on the previous 60 to 90 days. However, no matter how the media tries to spin it, DataQuick is a reflection only - not necessarily a current depiction of the market. Thankfully, our Buyers and Sellers have true professionals like you in the field; helping them evaluate precisely what is happening at the very moment in your specific market and neighborhood.
This week we’re very excited to welcome our new associates from Droubi Real Estate in San Francisco. We’re pleased to be working with former owners Lamisse Droubi, Paul Christopher, and their very talented sales associates. We’re also pleased to welcome back BJ Droubi to the San Francisco marketplace.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of May 13, 2007
DataQuick numbers were released this past week and the media swarmed to extract a pattern of doom for the housing market from the report. DataQuick reported a slowdown in sales and an increase in median prices and attributed the results to a “continued buyer-seller standoff.” However, the only true pattern emerging in Bay Area real estate over the week is one we’ve already identified before – pricing and condition are crucial to a reasonably quick sale. And as DataQuick pointed out, when interested-but-wary buyers meet sellers who are reluctant to negotiate, a no-sale situation is the result. For our City and Peninsula offices, no-to-low inventory is still the main story.
Multiple offers are up again, and the upper-tier properties remain the hot tickets in most areas. A $3.9 million Kentfield listing had nine offers. In Mill Valley, a $2.8 million listing received multiple offers. Oakland/Piedmont and Menlo Park both report multiple offers in all price ranges. Our San Francisco offices reported approximately 1 in 3 sales involved multiple offers for the week. All in all, more than 80 multiple offer situations occurred.
Listing inventory remained steady as reported by 14 offices, increased in 10 offices and decreased for five. Sales activity also remained steady for 14 offices, while it reportedly increased for 12 offices and only decreased for 3.
DataQuick is an excellent resource, and reading the report provides a fair reflection on the previous 60 to 90 days. However, no matter how the media tries to spin it, DataQuick is a reflection only - not necessarily a current depiction of the market. Thankfully, our Buyers and Sellers have true professionals like you in the field; helping them evaluate precisely what is happening at the very moment in your specific market and neighborhood.
This week we’re very excited to welcome our new associates from Droubi Real Estate in San Francisco. We’re pleased to be working with former owners Lamisse Droubi, Paul Christopher, and their very talented sales associates. We’re also pleased to welcome back BJ Droubi to the San Francisco marketplace.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Friday, June 1, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of May 6, 2007
It was a patchwork quilt of a market in the San Francisco Bay Area this week with determined buyers aggressively bidding and buying homes in some areas, and aggressively bargaining in others. Like last week, place and price continue to be the most critical factors in getting buyers and sellers to come to terms. Five Petaluma listings were in multiple offer situations with two-to-three offers per property. Condo sales in Novato are stagnant, but upper-end homes are moving nicely, and the rental market is “hot” – even experiencing multiple lease offer situations. Santa Rosa reports brisk activity at several price points, but notes the $1M+ properties are seeing the steadiest activity. The high end also continues to get a lot of attention in Southern Marin and well-priced homes sell quickly.
Inventory is at an all time high in Orinda, nevertheless prime properties are going into heavy competition with multiple offers. In Alamo, a three bedroom, two and a half bath home priced at $1,499,000 received four offers in five days.
Burlingame, on the other hand, reports more buyers than ever competing for shrinking inventory in specific prime areas. Palo Alto continues to report that one-hundred percent of listings were in multiple offer situations, and Woodside/Portola Valley reports that people are frustrated with the lack of inventory and are starting to buy in new areas on the advice of their savvy agents. In San Francisco, a $1 million condo generated five offers in one day and sold for 22% over asking. More than 90 homes were reportedly in multiple offer situations.
Listing activity was reported as increasing by 10 offices and decreasing in only three offices, but remaining steady in 14. Sales activity increased for nine offices, decreased in six offices and remained steady for 12. More than 550 busy open homes were held.
I personally stopped in a few Opens today, and found it to be very busy for a Mother’s Day. Let’s all pull together for a huge effort in taking new listings the next four weeks. It doesn’t appear we’ll have any trouble selling them in the beginning weeks of the summer.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of May 6, 2007
It was a patchwork quilt of a market in the San Francisco Bay Area this week with determined buyers aggressively bidding and buying homes in some areas, and aggressively bargaining in others. Like last week, place and price continue to be the most critical factors in getting buyers and sellers to come to terms. Five Petaluma listings were in multiple offer situations with two-to-three offers per property. Condo sales in Novato are stagnant, but upper-end homes are moving nicely, and the rental market is “hot” – even experiencing multiple lease offer situations. Santa Rosa reports brisk activity at several price points, but notes the $1M+ properties are seeing the steadiest activity. The high end also continues to get a lot of attention in Southern Marin and well-priced homes sell quickly.
Inventory is at an all time high in Orinda, nevertheless prime properties are going into heavy competition with multiple offers. In Alamo, a three bedroom, two and a half bath home priced at $1,499,000 received four offers in five days.
Burlingame, on the other hand, reports more buyers than ever competing for shrinking inventory in specific prime areas. Palo Alto continues to report that one-hundred percent of listings were in multiple offer situations, and Woodside/Portola Valley reports that people are frustrated with the lack of inventory and are starting to buy in new areas on the advice of their savvy agents. In San Francisco, a $1 million condo generated five offers in one day and sold for 22% over asking. More than 90 homes were reportedly in multiple offer situations.
Listing activity was reported as increasing by 10 offices and decreasing in only three offices, but remaining steady in 14. Sales activity increased for nine offices, decreased in six offices and remained steady for 12. More than 550 busy open homes were held.
I personally stopped in a few Opens today, and found it to be very busy for a Mother’s Day. Let’s all pull together for a huge effort in taking new listings the next four weeks. It doesn’t appear we’ll have any trouble selling them in the beginning weeks of the summer.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of April 29, 2007
Those serious buyers mentioned in last week’s edition of the Weekly Market Watch are busy writing offers, some are writing at under list price, while others are making strong Pre-emptive offers. In many cases, Sellers, however, seem to be sticking to their list prices – sometimes it works, sometimes it doesn’t. The lesson this week? Proper pricing is crucial.
Multiple offer situations are simmering down in most areas, though Berkeley agents are still scratching their heads about the 15 offers received by a two bedroom El Cerrito listing under $600,000. Homes priced in the $1-3+ million range seem to be the most likely multiple offer candidates in many areas. A small Mill Valley home listed at $1,345,000 had five offers. Pleasanton too notes that the upper end homes tend to move faster than lower priced properties. Walnut Creek reports that inventory in the $1-2 million range is moving quickly, and in San Francisco, the sales price during the week for one office averaged $2.7 million. More than 60 properties, all in all, were in multiple offer situations.
Of the more than 555 houses held open, most all of them were busy with buyers willing to negotiate. A new Piedmont listing saw 100 groups go through. A Millbrae listing had over 150 visiting groups. Over 100 buyers came to a new Palo Alto listing, and over 200 to a new listing in San Jose.
Listing inventory was reported as increasing by 15 offices, steady for 10 offices and decreasing in only two. Sales activity remained steady for 14 offices, increased for eight offices and decreased for five.
Sellers understandably want to get the most amount of money possible for their home. However, like art, a home is really only worth what a buyer is willing to pay for it. Pricing that is derived from a true understanding of market conditions, home condition, and other carefully considered factors is most conducive to a timely sale.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of April 29, 2007
Those serious buyers mentioned in last week’s edition of the Weekly Market Watch are busy writing offers, some are writing at under list price, while others are making strong Pre-emptive offers. In many cases, Sellers, however, seem to be sticking to their list prices – sometimes it works, sometimes it doesn’t. The lesson this week? Proper pricing is crucial.
Multiple offer situations are simmering down in most areas, though Berkeley agents are still scratching their heads about the 15 offers received by a two bedroom El Cerrito listing under $600,000. Homes priced in the $1-3+ million range seem to be the most likely multiple offer candidates in many areas. A small Mill Valley home listed at $1,345,000 had five offers. Pleasanton too notes that the upper end homes tend to move faster than lower priced properties. Walnut Creek reports that inventory in the $1-2 million range is moving quickly, and in San Francisco, the sales price during the week for one office averaged $2.7 million. More than 60 properties, all in all, were in multiple offer situations.
Of the more than 555 houses held open, most all of them were busy with buyers willing to negotiate. A new Piedmont listing saw 100 groups go through. A Millbrae listing had over 150 visiting groups. Over 100 buyers came to a new Palo Alto listing, and over 200 to a new listing in San Jose.
Listing inventory was reported as increasing by 15 offices, steady for 10 offices and decreasing in only two. Sales activity remained steady for 14 offices, increased for eight offices and decreased for five.
Sellers understandably want to get the most amount of money possible for their home. However, like art, a home is really only worth what a buyer is willing to pay for it. Pricing that is derived from a true understanding of market conditions, home condition, and other carefully considered factors is most conducive to a timely sale.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Sunday, April 29, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of April 22, 2007
You have heard the expression, “It’s not personal. It’s just business.” Well, in real estate, our business is always personal, and the Bay Area market bears witness to that. With the pressures of tax season and spring break over, people have started getting back to the business of investing in the home of their dreams. Most areas saw a sharp increase in serious buyers – not just tire kickers - as well as a welcome influx of fresh inventory from sellers.
Of the more than 615 homes held open during the week, most were well attended by serious buyers. A home in Pleasanton saw 53 groups of people go through, while 300 people packed into a $1.8 million dollar listing in Redwood City. Petaluma reports that open house activity was “phenomenal.” Menlo Park had an open house in the Willows district with over 100 visitors. Berkeley, Oakland/Piedmont, Pleasanton, Santa Rosa, Sebastopol, Walnut Creek, San Francisco and Orinda all reported exceptional turnout as well.
The higher-end homes continue to do well in many areas. Menlo Park notes brisk sales activity in the $1-3M dollar range. A $4.9M property in San Francisco received an offer immediately upon coming on the market and was ratified. Mind you, this was after excellent leadership from the Coldwell Banker co-listing agents on preparing, staging, pricing, and timing which began several months ago. Southern Marin also notes that the high end remains active.
Multiple offers are still the rule of thumb in many areas – especially in desirable niche markets where sellers are heeding the advice of their real estate professionals and allowing for the proper staging and pricing that helps homes sell more quickly. More than 60 properties were in multiple offer situations. Menlo Park office reports a Palo Alto property listed at $2.5M received seven offers and ratified for quite a bit over list price. In San Francisco, one property in the Sunset received 24 offers while another receive 28! Redwood City, Orinda, Palo Alto and San Mateo also saw many multiple offer situations. The Lombard office in the City reminds us that most of the South of Market condo sales are going solo.
Overall, we are seeing strengthening inventory and good movement in sales in most areas. Listing inventory was reported as increasing by eight offices, decreasing by only three offices, and steady by 17. Sales activity increased for nine offices, decreased for five offices and remained steady for 13, and more than 250 offers were ratified. I have heard reports of some excellent floor calls at the up-desk this past week. Perhaps we’re getting our typical spring season just a little bit later this year. We’ll gladly accept the new listing inventory, as we are selling them a very acceptable pace.
Keep up the great work of making our business personal for buyers and sellers alike!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of April 22, 2007
You have heard the expression, “It’s not personal. It’s just business.” Well, in real estate, our business is always personal, and the Bay Area market bears witness to that. With the pressures of tax season and spring break over, people have started getting back to the business of investing in the home of their dreams. Most areas saw a sharp increase in serious buyers – not just tire kickers - as well as a welcome influx of fresh inventory from sellers.
Of the more than 615 homes held open during the week, most were well attended by serious buyers. A home in Pleasanton saw 53 groups of people go through, while 300 people packed into a $1.8 million dollar listing in Redwood City. Petaluma reports that open house activity was “phenomenal.” Menlo Park had an open house in the Willows district with over 100 visitors. Berkeley, Oakland/Piedmont, Pleasanton, Santa Rosa, Sebastopol, Walnut Creek, San Francisco and Orinda all reported exceptional turnout as well.
The higher-end homes continue to do well in many areas. Menlo Park notes brisk sales activity in the $1-3M dollar range. A $4.9M property in San Francisco received an offer immediately upon coming on the market and was ratified. Mind you, this was after excellent leadership from the Coldwell Banker co-listing agents on preparing, staging, pricing, and timing which began several months ago. Southern Marin also notes that the high end remains active.
Multiple offers are still the rule of thumb in many areas – especially in desirable niche markets where sellers are heeding the advice of their real estate professionals and allowing for the proper staging and pricing that helps homes sell more quickly. More than 60 properties were in multiple offer situations. Menlo Park office reports a Palo Alto property listed at $2.5M received seven offers and ratified for quite a bit over list price. In San Francisco, one property in the Sunset received 24 offers while another receive 28! Redwood City, Orinda, Palo Alto and San Mateo also saw many multiple offer situations. The Lombard office in the City reminds us that most of the South of Market condo sales are going solo.
Overall, we are seeing strengthening inventory and good movement in sales in most areas. Listing inventory was reported as increasing by eight offices, decreasing by only three offices, and steady by 17. Sales activity increased for nine offices, decreased for five offices and remained steady for 13, and more than 250 offers were ratified. I have heard reports of some excellent floor calls at the up-desk this past week. Perhaps we’re getting our typical spring season just a little bit later this year. We’ll gladly accept the new listing inventory, as we are selling them a very acceptable pace.
Keep up the great work of making our business personal for buyers and sellers alike!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Sunday, April 22, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
April 20, 2007
Inventory is picking up a bit - that's a good thing in most of our markets. Open houses are still very well attended. Multiple offers continue to be the norm in the areas with the least available properties for sale.
Among the hot spots, Palo Alto reports that multiple offers exceeding 20% of list price are not unusual. In San Francisco one low priced listing received 51 offers. A home in the Avenues received 20 offers, and the only listing available in St Francis Wood, an upscale neighborhood west of Twin Peaks, was a fixer which hadn't been remodeled in over 50 years. The list price was $1.2M, there were 33 offers, and one of our agents found that writing $300K over asking put his buyers somewhere in the bottom third of offers. San Mateo is seeing multiple offers on at least 80% of all listings. Half Moon Bay reports that, while pricing is still key, they are averaging 20 to 30 groups at open homes.
In the North Bay, some positive signs of sustained activity are being witnessed in Greenbrae with an up-tick in inventory and buyers and sellers meeting at a comfortable level. Petaluma is seeing buyers starting to write offers and Santa Rosa is enjoying generous (but not excessive) inventory levels for their buyers to select from. Sebastopol and Southern Marin/Belvedere are still seeing the upper end homes moving quickly. In fact, a Kentfield property listed at $2.1 million had seven offers.
Inventory was reported as increasing by 12 offices and steady by 14 offices, while decreasing inventory was only reported by four. Sales activity, though sluggish due to the Spring Break and tax deadlines, was reported as increasing by six offices, steady by 17 offices and only decreasing by seven.
Below is a copy of some stats I came up with when rebuffing a poorly reported real estate story in the Chronicle last week. I'll send a copy of my response to that article in another email - but wanted to share these very positive statistics with you in the meanwhile.
Have a great week!
Rick
SF County: Median Price YTD '06 vs '07 up $23,500, or 3.11%
(Jan 759K, Feb 769,500, Mar 789,500 - increasing each month this year)
Month's Supply of Inventory for '07 - declining each month: Jan 2.4 - Feb 2.2 - Mar 1.9
San Mateo County: Median Price YTD '06 vs '07 up $45,000, or 5.84%
(Jan 780K, Feb 792K, Mar 835K - increasing each month this year)
Month's Supply of Inventory for '07 - declining each month: Jan 3.2 - Feb 2.6 - Mar 2.3
Rick Turley
President, San Francisco/Peninsula
April 20, 2007
Inventory is picking up a bit - that's a good thing in most of our markets. Open houses are still very well attended. Multiple offers continue to be the norm in the areas with the least available properties for sale.
Among the hot spots, Palo Alto reports that multiple offers exceeding 20% of list price are not unusual. In San Francisco one low priced listing received 51 offers. A home in the Avenues received 20 offers, and the only listing available in St Francis Wood, an upscale neighborhood west of Twin Peaks, was a fixer which hadn't been remodeled in over 50 years. The list price was $1.2M, there were 33 offers, and one of our agents found that writing $300K over asking put his buyers somewhere in the bottom third of offers. San Mateo is seeing multiple offers on at least 80% of all listings. Half Moon Bay reports that, while pricing is still key, they are averaging 20 to 30 groups at open homes.
In the North Bay, some positive signs of sustained activity are being witnessed in Greenbrae with an up-tick in inventory and buyers and sellers meeting at a comfortable level. Petaluma is seeing buyers starting to write offers and Santa Rosa is enjoying generous (but not excessive) inventory levels for their buyers to select from. Sebastopol and Southern Marin/Belvedere are still seeing the upper end homes moving quickly. In fact, a Kentfield property listed at $2.1 million had seven offers.
Inventory was reported as increasing by 12 offices and steady by 14 offices, while decreasing inventory was only reported by four. Sales activity, though sluggish due to the Spring Break and tax deadlines, was reported as increasing by six offices, steady by 17 offices and only decreasing by seven.
Below is a copy of some stats I came up with when rebuffing a poorly reported real estate story in the Chronicle last week. I'll send a copy of my response to that article in another email - but wanted to share these very positive statistics with you in the meanwhile.
Have a great week!
Rick
SF County: Median Price YTD '06 vs '07 up $23,500, or 3.11%
(Jan 759K, Feb 769,500, Mar 789,500 - increasing each month this year)
Month's Supply of Inventory for '07 - declining each month: Jan 2.4 - Feb 2.2 - Mar 1.9
San Mateo County: Median Price YTD '06 vs '07 up $45,000, or 5.84%
(Jan 780K, Feb 792K, Mar 835K - increasing each month this year)
Month's Supply of Inventory for '07 - declining each month: Jan 3.2 - Feb 2.6 - Mar 2.3
Rick Turley
President, San Francisco/Peninsula
Sunday, April 15, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
April 13, 2007
The Easter and Passover holidays in combination with spring break brought an anticipated cooling of activity in many areas. However, there were a lot of surprises in our markets as well, with hot spots in the communities with the least inventory of new properties.
With the Easter holiday being a notoriously slow one for open houses, the recent influx of groups touring properties was not expected to materialize. But of our more than 240 homes held open, a number of areas saw surprising attendance levels. A $1.9 million listing in Berkeley had a “mob” of people go through. Agents “flocked” to open houses on tour in the Greenbrae area. Redwood City reported an “amazing amount of attendees,” and open houses remain a “hot commodity” in San Francisco. Turnout was also impressive in Burlingame, Palo Alto and Woodside/Portola Valley.
Multiple offers remain highly competitive in a number of areas. An El Cerrito Hills property received nine offers. Larkspur saw a $1.6 million fixer receive four offers and sell well over asking. Palo Alto reports that the majority of their sales are from multiple offer situations. In San Francisco, a Noe Valley home received 26 offers during the week, and the only listing that received only one offer received that pre-emptively. Orinda too is very busy with multiple offer situations.
Listing inventory is still seeing incremental increases in most areas, though not fast enough for the City and much of the Peninsula. Danville actually saw four listings get sold from “coming soon” signs. The Marin market remains “on fire,” with the $2 million range being particularly strong - as one Greenbrae Sales Associate put it, “$2 million is the new $1 million.” I toured new listings in Palo Alto this Friday and felt the very same thing -most of the listings I saw were asking $1.8M to $2.4M. The agents I toured with commented it was the greatest increase for number of new properties on tour in quite some time.
Eight offices saw an increase in listings during the week, while only 5 reported a decrease and 17 indicated steady listing inventory. And while these holidays and the Spring break generally see a slowing in sales, 15 offices maintained steady sales activity, 6 saw an increase and only 9 reported decreased activity.
Buyers would undoubtedly be confused by misleading newspaper articles such as those that appeared in the Chronicle this week. But the reality of Bay Area real estate is that buyers are researching, recognizing and grabbing a good deal when they see one – and are willing to negotiate and fight for properties that are well-priced and in good condition. They continue to recognize the positive value of Bay Area real estate as a long term investment.
Have a great week-
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
April 13, 2007
The Easter and Passover holidays in combination with spring break brought an anticipated cooling of activity in many areas. However, there were a lot of surprises in our markets as well, with hot spots in the communities with the least inventory of new properties.
With the Easter holiday being a notoriously slow one for open houses, the recent influx of groups touring properties was not expected to materialize. But of our more than 240 homes held open, a number of areas saw surprising attendance levels. A $1.9 million listing in Berkeley had a “mob” of people go through. Agents “flocked” to open houses on tour in the Greenbrae area. Redwood City reported an “amazing amount of attendees,” and open houses remain a “hot commodity” in San Francisco. Turnout was also impressive in Burlingame, Palo Alto and Woodside/Portola Valley.
Multiple offers remain highly competitive in a number of areas. An El Cerrito Hills property received nine offers. Larkspur saw a $1.6 million fixer receive four offers and sell well over asking. Palo Alto reports that the majority of their sales are from multiple offer situations. In San Francisco, a Noe Valley home received 26 offers during the week, and the only listing that received only one offer received that pre-emptively. Orinda too is very busy with multiple offer situations.
Listing inventory is still seeing incremental increases in most areas, though not fast enough for the City and much of the Peninsula. Danville actually saw four listings get sold from “coming soon” signs. The Marin market remains “on fire,” with the $2 million range being particularly strong - as one Greenbrae Sales Associate put it, “$2 million is the new $1 million.” I toured new listings in Palo Alto this Friday and felt the very same thing -most of the listings I saw were asking $1.8M to $2.4M. The agents I toured with commented it was the greatest increase for number of new properties on tour in quite some time.
Eight offices saw an increase in listings during the week, while only 5 reported a decrease and 17 indicated steady listing inventory. And while these holidays and the Spring break generally see a slowing in sales, 15 offices maintained steady sales activity, 6 saw an increase and only 9 reported decreased activity.
Buyers would undoubtedly be confused by misleading newspaper articles such as those that appeared in the Chronicle this week. But the reality of Bay Area real estate is that buyers are researching, recognizing and grabbing a good deal when they see one – and are willing to negotiate and fight for properties that are well-priced and in good condition. They continue to recognize the positive value of Bay Area real estate as a long term investment.
Have a great week-
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Monday, April 9, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
April 6, 2007
No April fooling around in the Bay Area real estate market for the week. Serious buyers are making serious offers. Inventory continues to trickle in to San Francisco and the Peninsula, but not fast enough for eager buyers. Most areas of the East and North Bay markets, however, remain steady, but without the traditionally expected deluge of spring listings.
Of the more than 550 homes held open, most were well attended - especially in the City and on the Peninsula – and multiple offers among the well-priced offerings and desirable homes continue to be the norm in all areas. In San Francisco, a home in Noe Valley listed at $925,000 received 14 offers. Another in Inner Sunset district had 20 offers and sold for substantially over the asking price.
The mid-high end market saw another week of increased activity in all areas with Novato, Oakland, San Francisco, Menlo Park and Palo Alto all noting that pre-emptive and multiple offers are the rule of thumb on virtually all listings in the $1.5- 3 million range.
Listing inventory increased for 10 offices, remained steady for 14 offices and declined in 5. Sales activity saw a little up-tick from the previous weeks with an increase reported by 10 offices, steady reported by 14 offices and a decline in 5 offices. Over 240 offers were ratified, and nearly 100 multiple offers were reported.
A note of interest comes from Redwood City, and also discussed recently in Menlo Park, where it seems that open house attendees are relying more on Internet sources than on print media to locate homes to tour. Hopefully, it’s an infectious trend as our Coldwell Banker Internet sites and relationships with innovative technology companies continue to provide information that is more accurate and up-to-date than anything found in the newspapers.
Historically we are experiencing our strongest listing month of the year in April. The amount of new property listings taken in April and May will shape the sales activity we can expect for the summer of 2007. Sellers need to seize this incredible opportunity in today's market with pent-up Buyer demand and very low interest rates.
Happy Spring Holidays-
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
April 6, 2007
No April fooling around in the Bay Area real estate market for the week. Serious buyers are making serious offers. Inventory continues to trickle in to San Francisco and the Peninsula, but not fast enough for eager buyers. Most areas of the East and North Bay markets, however, remain steady, but without the traditionally expected deluge of spring listings.
Of the more than 550 homes held open, most were well attended - especially in the City and on the Peninsula – and multiple offers among the well-priced offerings and desirable homes continue to be the norm in all areas. In San Francisco, a home in Noe Valley listed at $925,000 received 14 offers. Another in Inner Sunset district had 20 offers and sold for substantially over the asking price.
The mid-high end market saw another week of increased activity in all areas with Novato, Oakland, San Francisco, Menlo Park and Palo Alto all noting that pre-emptive and multiple offers are the rule of thumb on virtually all listings in the $1.5- 3 million range.
Listing inventory increased for 10 offices, remained steady for 14 offices and declined in 5. Sales activity saw a little up-tick from the previous weeks with an increase reported by 10 offices, steady reported by 14 offices and a decline in 5 offices. Over 240 offers were ratified, and nearly 100 multiple offers were reported.
A note of interest comes from Redwood City, and also discussed recently in Menlo Park, where it seems that open house attendees are relying more on Internet sources than on print media to locate homes to tour. Hopefully, it’s an infectious trend as our Coldwell Banker Internet sites and relationships with innovative technology companies continue to provide information that is more accurate and up-to-date than anything found in the newspapers.
Historically we are experiencing our strongest listing month of the year in April. The amount of new property listings taken in April and May will shape the sales activity we can expect for the summer of 2007. Sellers need to seize this incredible opportunity in today's market with pent-up Buyer demand and very low interest rates.
Happy Spring Holidays-
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Monday, April 2, 2007
Coldwell Banker Weekly Market Watch
March 25, 2007
The Bay Area real estate market is in full bloom. Even with negative media focused on subprime issues, most of the Bay Area is seeing a steady, if slow, increase in inventory. Sales activity has seen an escalation in most areas with the number of multiple offer situations dipping.
Inventory is still not coming on fast enough in San Francisco and most of the Peninsula where they are still seeing multiple offer situations. Palo Alto is seeing 53% of listings in multiple offers, and Redwood City and Burlingame noted strong open house attendance even for condos and townhouses. San Francisco is also strong where one home had 114 groups. Even properties on the market for 5 or more months are garnering multiple offers. San Mateo notes 85-90% multiple offers.
The luxury home market – especially in the $2-3 million range - continues to show solid figures in all areas. An Atherton listing for $2.8 million had 4 offers. A San Francisco home garnered 20 offers and went for substantially over the $1.295 million price.
Even with increasing inventories, multiple offers occur on homes that are well-priced and desirably located – especially in the East and North Bay areas. One Berkeley property received 18 offers. Another, listed in the $800 thousand range, sold for $450 thousand over asking. Healthy and stable describe Walnut Creek, Orinda, Danville, Livermore, Pleasanton and Fremont market areas where sales are brisk in all categories and buyers are very competitive for the right homes.
More than 550 homes were held open with most noting heavy attendance. More than 260 offers were ratified, and well over 100 properties were in multiple offer situations.
Overall, listing inventory actually increased for 5 offices, remained steady for 21, and decreased in 4. Sales activity increased for 10 offices, remained steady for 17, and only decreased for 3.
Baseball season is just around the corner, so get those buyers sliding into home!
Rick Turley
President
San Francisco Peninsula
March 25, 2007
The Bay Area real estate market is in full bloom. Even with negative media focused on subprime issues, most of the Bay Area is seeing a steady, if slow, increase in inventory. Sales activity has seen an escalation in most areas with the number of multiple offer situations dipping.
Inventory is still not coming on fast enough in San Francisco and most of the Peninsula where they are still seeing multiple offer situations. Palo Alto is seeing 53% of listings in multiple offers, and Redwood City and Burlingame noted strong open house attendance even for condos and townhouses. San Francisco is also strong where one home had 114 groups. Even properties on the market for 5 or more months are garnering multiple offers. San Mateo notes 85-90% multiple offers.
The luxury home market – especially in the $2-3 million range - continues to show solid figures in all areas. An Atherton listing for $2.8 million had 4 offers. A San Francisco home garnered 20 offers and went for substantially over the $1.295 million price.
Even with increasing inventories, multiple offers occur on homes that are well-priced and desirably located – especially in the East and North Bay areas. One Berkeley property received 18 offers. Another, listed in the $800 thousand range, sold for $450 thousand over asking. Healthy and stable describe Walnut Creek, Orinda, Danville, Livermore, Pleasanton and Fremont market areas where sales are brisk in all categories and buyers are very competitive for the right homes.
More than 550 homes were held open with most noting heavy attendance. More than 260 offers were ratified, and well over 100 properties were in multiple offer situations.
Overall, listing inventory actually increased for 5 offices, remained steady for 21, and decreased in 4. Sales activity increased for 10 offices, remained steady for 17, and only decreased for 3.
Baseball season is just around the corner, so get those buyers sliding into home!
Rick Turley
President
San Francisco Peninsula
Monday, March 26, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
March 18, 2007
The hot-and-cold-running microclimates of the past few weeks have apparently started to temper geographically. The typical spring onslaught of listings remains hesitant this year, though there has been a refreshing, if slight, up-tick in inventory in most areas. Most areas are also seeing stale inventory starting to sell, and not just due to price reductions but also to the limited selection available to buyers that are getting weary of the hunt.
While San Francisco and most of the Peninsula remain ravenous for homes to show and sell in all price categories, Burlingame, Castro Valley, Danville, Livermore, Oakland, Orinda, Redwood City, Santa Rosa, San Carlos and Woodside/Portola Valley all report an upswing in inventory coming on the market and are feeling more balanced activity.
Multiple offer situations are finally slowing down a bit, though upper-tier homes (and virtually anything in San Francisco) are continuing to see an increase in multiple and pre-emptive offers. There were 12 offers on a Portola Valley listing priced at $2,995,000. One Burlingame home that was listed at $1,388,000 had 13 offers and closed at $1,801,000. Reports from the North Bay indicate that the luxury market over $2 million is particularly hot in Greenbrae, Corte Madera, Larkspur and Ross, and Novato notes momentum in high-end sales as well. A Mill Valley tear-down priced at $800,000 sold significantly over asking and, in San Francisco, some high-end pre-emptives are going pre-MLS.
We held an increased number of homes open, over 540, and they were all well-attended. Some Sebastopol opens reported over 40 groups going through and a San Mateo Park home has over 100 groups in attendance. San Francisco Agents were noticing that it was difficult to get in and out of open houses in Noe Valley due to the number of people out looking!
All in all, things continue to bode well for spring with listing inventory remaining steady for 14 offices, increasing for 14 and decreasing in only 2. Sales activity remains steady in 18 offices, increased for 5 offices and declined for 7. Over 220 offers were ratified and more than 70 multiple offer situations occurred. We may have lost an hour of sleep, but we gained an extra hour of daylight to get those homes ready for the market.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
March 18, 2007
The hot-and-cold-running microclimates of the past few weeks have apparently started to temper geographically. The typical spring onslaught of listings remains hesitant this year, though there has been a refreshing, if slight, up-tick in inventory in most areas. Most areas are also seeing stale inventory starting to sell, and not just due to price reductions but also to the limited selection available to buyers that are getting weary of the hunt.
While San Francisco and most of the Peninsula remain ravenous for homes to show and sell in all price categories, Burlingame, Castro Valley, Danville, Livermore, Oakland, Orinda, Redwood City, Santa Rosa, San Carlos and Woodside/Portola Valley all report an upswing in inventory coming on the market and are feeling more balanced activity.
Multiple offer situations are finally slowing down a bit, though upper-tier homes (and virtually anything in San Francisco) are continuing to see an increase in multiple and pre-emptive offers. There were 12 offers on a Portola Valley listing priced at $2,995,000. One Burlingame home that was listed at $1,388,000 had 13 offers and closed at $1,801,000. Reports from the North Bay indicate that the luxury market over $2 million is particularly hot in Greenbrae, Corte Madera, Larkspur and Ross, and Novato notes momentum in high-end sales as well. A Mill Valley tear-down priced at $800,000 sold significantly over asking and, in San Francisco, some high-end pre-emptives are going pre-MLS.
We held an increased number of homes open, over 540, and they were all well-attended. Some Sebastopol opens reported over 40 groups going through and a San Mateo Park home has over 100 groups in attendance. San Francisco Agents were noticing that it was difficult to get in and out of open houses in Noe Valley due to the number of people out looking!
All in all, things continue to bode well for spring with listing inventory remaining steady for 14 offices, increasing for 14 and decreasing in only 2. Sales activity remains steady in 18 offices, increased for 5 offices and declined for 7. Over 220 offers were ratified and more than 70 multiple offer situations occurred. We may have lost an hour of sleep, but we gained an extra hour of daylight to get those homes ready for the market.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Coldwell Banker Weekly Market Watch
March 11, 2007
It was beautiful and warm everywhere in the Bay Area last week, but the real estate market continues to have some microclimates that are actually sizzling! Buyers are out “kicking tires” in every area, causing multiple offer situations to escalate, especially in the City and on the Peninsula. Woodside/Portola Valley reports that most agents are in multiple offer presentations with some prices going 10 to 15 % over asking. San Francisco notes that the number of offers in multiple situations is climbing higher each week, now seeing 6-13 offers on many properties. Southern Marin offices are seeing multiples becoming commonplace on properties listed for over $2 million. Areas of Fremont are seeing 4 to 10 offers per listing.
Pre-emptive offers are increasing which makes for a successful and faster property sale – with a downside that they are keeping much need inventory from coming to the market. In San Francisco, sales for the most part still outnumber listings, especially in the upper-tier market and neighborhoods. Contra Costa County and areas of Alameda County are experiencing a very balanced market where inventory has seen some stabilization, although some very hot micro-markets exist.
Listing inventory is increasing according to 12 office reports, steady for 17, and only decreasing in one office. Sales activity continues to increase for 11 offices and remains steady for 13 - decreasing for 6. Of the reporting offices who tracked the number of multiple offers which occurred for the week, more than half of the offices reported that over 50% of their total sales were in a multiple offer situation.
The media is taking a detour with their focus on the subprime mortgage crisis. No doubt - this is a very serious situation nationwide involving a particular sector of lending - but it should be kept in context for what it is. It is not a primary driver of our local real estate activity and health. Buyers and Sellers alike should be encouraged by another headline found in this Sunday’s Chronicle: “Mortgage rates are lowest since mid-December”. What a great time to move up!
Hope the luck of the Irish is with you all week long!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
March 11, 2007
It was beautiful and warm everywhere in the Bay Area last week, but the real estate market continues to have some microclimates that are actually sizzling! Buyers are out “kicking tires” in every area, causing multiple offer situations to escalate, especially in the City and on the Peninsula. Woodside/Portola Valley reports that most agents are in multiple offer presentations with some prices going 10 to 15 % over asking. San Francisco notes that the number of offers in multiple situations is climbing higher each week, now seeing 6-13 offers on many properties. Southern Marin offices are seeing multiples becoming commonplace on properties listed for over $2 million. Areas of Fremont are seeing 4 to 10 offers per listing.
Pre-emptive offers are increasing which makes for a successful and faster property sale – with a downside that they are keeping much need inventory from coming to the market. In San Francisco, sales for the most part still outnumber listings, especially in the upper-tier market and neighborhoods. Contra Costa County and areas of Alameda County are experiencing a very balanced market where inventory has seen some stabilization, although some very hot micro-markets exist.
Listing inventory is increasing according to 12 office reports, steady for 17, and only decreasing in one office. Sales activity continues to increase for 11 offices and remains steady for 13 - decreasing for 6. Of the reporting offices who tracked the number of multiple offers which occurred for the week, more than half of the offices reported that over 50% of their total sales were in a multiple offer situation.
The media is taking a detour with their focus on the subprime mortgage crisis. No doubt - this is a very serious situation nationwide involving a particular sector of lending - but it should be kept in context for what it is. It is not a primary driver of our local real estate activity and health. Buyers and Sellers alike should be encouraged by another headline found in this Sunday’s Chronicle: “Mortgage rates are lowest since mid-December”. What a great time to move up!
Hope the luck of the Irish is with you all week long!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Monday, March 12, 2007
Coldwell Banker Weekly Market Watch
Week of March 4, 2007
Inventory is not increasing at the rate it typically does in March. The number of pages in our MLS tour sheets is a good indicator, and they are decreasing in both the SF and Peninsula MLS’s this week. We’re hearing of new listings in the pipeline for many of our offices; however we appear to have plenty of Buyers already lined up for these new properties once they come online. In some respects, it’s a good problem to have. Having just returned from our International Business Conference and meeting with the CB presidents from all over the US, most metros would love to have this problem. My take is the market feels “healthy” in the majority of the metro areas, but none seem to be experiencing the sizzling Buyer demand we have in the Bay Area for well-priced, good condition homes. The typical drivers for a healthy market are in place: low interest rates, low unemployment, consumer confidence index is steady – in spite of a recent world-wide stock market drop. Add to that the limited housing we have in the Bay Area, and we should continue to see robust activity at least through the 2nd quarter, provided we have listings to sell.
Multiple offer situations dominate the conversation in most of our offices. Along with the obvious benefits of multiple-Buyer demand, comes the responsibility of educating the Seller on the best method to deal with this level of activity. It’s also important to over-communicate with the agents of Buyers who have an interest in our listings. Pre-emptive offers are more common now, and as the Seller must be the one who decides how to deal with these opportunities, it remains our responsibility to communicate the game plan with all the possible players.
In the $1-2 million range (where inventory still seems to be the tightest) homes are getting anywhere from two to 12 offers. Berkeley indicates that 75% of their sales were in multiple offer situations, and in San Francisco’s Westwood Park, a “contractor’s special” received 33 offers – 22 of which were all cash. In Palo Alto, practically anything on the market for less than $2 million is receiving multiple offers. Listing inventory overall decreased for 6 offices, remained steady for 11 and increased in 10. Sales activity continues its upswing with 15 offices reporting an increase, 10 seeing steady activity, and only 2 reporting a decline.
We get an extra hour of daylight now - let’s hope homeowners put it to good use in whipping their homes into shape for a quick Springtime sale. Let’s also make sure we’re taking full advantage of our Princeton partners, getting our Buyers pre-approved and underwritten in advance, for a super-clean offer.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Week of March 4, 2007
Inventory is not increasing at the rate it typically does in March. The number of pages in our MLS tour sheets is a good indicator, and they are decreasing in both the SF and Peninsula MLS’s this week. We’re hearing of new listings in the pipeline for many of our offices; however we appear to have plenty of Buyers already lined up for these new properties once they come online. In some respects, it’s a good problem to have. Having just returned from our International Business Conference and meeting with the CB presidents from all over the US, most metros would love to have this problem. My take is the market feels “healthy” in the majority of the metro areas, but none seem to be experiencing the sizzling Buyer demand we have in the Bay Area for well-priced, good condition homes. The typical drivers for a healthy market are in place: low interest rates, low unemployment, consumer confidence index is steady – in spite of a recent world-wide stock market drop. Add to that the limited housing we have in the Bay Area, and we should continue to see robust activity at least through the 2nd quarter, provided we have listings to sell.
Multiple offer situations dominate the conversation in most of our offices. Along with the obvious benefits of multiple-Buyer demand, comes the responsibility of educating the Seller on the best method to deal with this level of activity. It’s also important to over-communicate with the agents of Buyers who have an interest in our listings. Pre-emptive offers are more common now, and as the Seller must be the one who decides how to deal with these opportunities, it remains our responsibility to communicate the game plan with all the possible players.
In the $1-2 million range (where inventory still seems to be the tightest) homes are getting anywhere from two to 12 offers. Berkeley indicates that 75% of their sales were in multiple offer situations, and in San Francisco’s Westwood Park, a “contractor’s special” received 33 offers – 22 of which were all cash. In Palo Alto, practically anything on the market for less than $2 million is receiving multiple offers. Listing inventory overall decreased for 6 offices, remained steady for 11 and increased in 10. Sales activity continues its upswing with 15 offices reporting an increase, 10 seeing steady activity, and only 2 reporting a decline.
We get an extra hour of daylight now - let’s hope homeowners put it to good use in whipping their homes into shape for a quick Springtime sale. Let’s also make sure we’re taking full advantage of our Princeton partners, getting our Buyers pre-approved and underwritten in advance, for a super-clean offer.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Sunday, March 4, 2007
Coldwell Banker Weekly Market Watch
February 25, 2007
Pre-emptive offers are increasingly a factor in squashing inventory to low levels in most areas. Homes that are priced right, staged, and located in desirable neighborhoods continue to get multiple offers. This translates into a lot of disappointed buyers out there waiting for the ideal home to come on the market. One Corte Madera home listed at $880,000 received 9 offers, while a home with a second unit in San Francisco’s Ingleside District received 13 offers. Burlingame presented 16 offers to a seller in the $1.4M range this week. Palo Alto reports that 97% of all this week’s sales were in multiple offer situations. Half Moon Bay's market had been very slow after the Devil's Slide highway closure and the general slow-down experienced throughout NorCal last year, but now reports from our HMB associates are very positive as they are enjoying brisk activity.
Inventory is starting to trickle back, but supplies remain sparse throughout most our communities. Buzz is that this month will bring more properties for sale, and as long as interest rates remain low, sales should be brisk. Be prepared for a very busy March.
It’s important to note that Coldwell Banker continues to dominate the luxury home market. We have over 28% of the $2M+ market (listings sold - last 12 months) in the Peninsula. In San Francisco, we dominate with 35% market share over $2M. The competition doesn’t even come close. A $4,895,000 Menlo Park home sold at the first open before the Broker tour, and Palo Alto reports significant movement in homes listed at $3.5 million and up. More than seven offices have commented on strong sales among upper-end homes this week.
Of the more than 450 open houses held open, all continued with surprisingly high attendance. A west side Burlingame home had 350 groups through. Inventory is reportedly steady in 16 offices, decreasing for 5 offices and increasing for 8. Sales activity remains on par with inventory levels with 14 offices reporting steady activity, decreasing reported by 7, and increasing for 8. Ratified offers increased again reaching more than 235 for the week. Another good sign that spring is just around the corner, and that sellers need to start getting their homes ready for a quick sale!
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
February 25, 2007
Pre-emptive offers are increasingly a factor in squashing inventory to low levels in most areas. Homes that are priced right, staged, and located in desirable neighborhoods continue to get multiple offers. This translates into a lot of disappointed buyers out there waiting for the ideal home to come on the market. One Corte Madera home listed at $880,000 received 9 offers, while a home with a second unit in San Francisco’s Ingleside District received 13 offers. Burlingame presented 16 offers to a seller in the $1.4M range this week. Palo Alto reports that 97% of all this week’s sales were in multiple offer situations. Half Moon Bay's market had been very slow after the Devil's Slide highway closure and the general slow-down experienced throughout NorCal last year, but now reports from our HMB associates are very positive as they are enjoying brisk activity.
Inventory is starting to trickle back, but supplies remain sparse throughout most our communities. Buzz is that this month will bring more properties for sale, and as long as interest rates remain low, sales should be brisk. Be prepared for a very busy March.
It’s important to note that Coldwell Banker continues to dominate the luxury home market. We have over 28% of the $2M+ market (listings sold - last 12 months) in the Peninsula. In San Francisco, we dominate with 35% market share over $2M. The competition doesn’t even come close. A $4,895,000 Menlo Park home sold at the first open before the Broker tour, and Palo Alto reports significant movement in homes listed at $3.5 million and up. More than seven offices have commented on strong sales among upper-end homes this week.
Of the more than 450 open houses held open, all continued with surprisingly high attendance. A west side Burlingame home had 350 groups through. Inventory is reportedly steady in 16 offices, decreasing for 5 offices and increasing for 8. Sales activity remains on par with inventory levels with 14 offices reporting steady activity, decreasing reported by 7, and increasing for 8. Ratified offers increased again reaching more than 235 for the week. Another good sign that spring is just around the corner, and that sellers need to start getting their homes ready for a quick sale!
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Coldwell Banker Weekly Market Watch
February 19 to February 25, 2007
The fact that there are limited choices out there may have played into the rise of ratified offers, over 240 for the week. Inventory shortages seem to be the primary factor in agents’ strategy, whether working with Buyers or Sellers. Springtime is known for Open Houses industry-wide, but our ability to meet new Buyers is hampered by the amount of homes available to be held open.
There are remarkable reports of “micro-climate market” activity in several areas and it will be interesting to watch how they evolve as spring nears. The Greenbrae office noted inventory continues to be a controlling factor, but that some neighborhoods are red-hot while others are tepid at best. A somewhat original condition Eichler home in San Rafael seemed poised for many offers, one of the lowest list prices available in the area – however just a few offers came in, and not as far over the asking as what one might have expected.
In other areas, multiple offers are once again the rule. The Burlingame office reports 18 offers on a property in San Mateo and 8 offers on a San Carlos home. The Palo Alto office is seeing 82% of its listings in multiple offer situations. In San Francisco’s Sunset district, a fixer-upper had 9 offers and went for well over the asking price. Lest Sellers get too carried away – it’s worth noting that a 3/2 in San Francisco priced at $1,275,000 received 11 offers, and a very similar listing just blocks away at nearly the same list price received one.
Some offices report a fair amount of stale inventory – Buyers are not “panic buying” – not buying just to buy. Buyers and their Agents alike are looking for value. It’s important to note that some sales are coming together on homes pulled off the market a few months ago. This is a product of networking at our sales meetings - very critical, and a great value we bring to our Buyers and our Sellers.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
February 19 to February 25, 2007
The fact that there are limited choices out there may have played into the rise of ratified offers, over 240 for the week. Inventory shortages seem to be the primary factor in agents’ strategy, whether working with Buyers or Sellers. Springtime is known for Open Houses industry-wide, but our ability to meet new Buyers is hampered by the amount of homes available to be held open.
There are remarkable reports of “micro-climate market” activity in several areas and it will be interesting to watch how they evolve as spring nears. The Greenbrae office noted inventory continues to be a controlling factor, but that some neighborhoods are red-hot while others are tepid at best. A somewhat original condition Eichler home in San Rafael seemed poised for many offers, one of the lowest list prices available in the area – however just a few offers came in, and not as far over the asking as what one might have expected.
In other areas, multiple offers are once again the rule. The Burlingame office reports 18 offers on a property in San Mateo and 8 offers on a San Carlos home. The Palo Alto office is seeing 82% of its listings in multiple offer situations. In San Francisco’s Sunset district, a fixer-upper had 9 offers and went for well over the asking price. Lest Sellers get too carried away – it’s worth noting that a 3/2 in San Francisco priced at $1,275,000 received 11 offers, and a very similar listing just blocks away at nearly the same list price received one.
Some offices report a fair amount of stale inventory – Buyers are not “panic buying” – not buying just to buy. Buyers and their Agents alike are looking for value. It’s important to note that some sales are coming together on homes pulled off the market a few months ago. This is a product of networking at our sales meetings - very critical, and a great value we bring to our Buyers and our Sellers.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Subscribe to:
Comments (Atom)