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
Tuesday, September 11, 2007
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
Subscribe to:
Comments (Atom)