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