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