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