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