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