Coldwell Banker Weekly Market Watch
Week of September 30, 2007
A home in a coveted neighborhood of Castro Valley sold within a week for $1,020,000 without even having a sign in the yard. Two Danville listings went pending in less than a week – one priced in the $680,000 range and the other at $1,179,000. Oakland-Piedmont sold a $2.5 million home preemptively, and then there were two they didn’t get in multiple offer situations. Two Pleasanton properties sold in fewer than ten days at full price. Southern Marin/Belvedere saw a $3,450,000 listing go pending in one week. Palo Alto and Menlo Park saw preemptive sales and multiple offers on approximately on half of their week’s transactions. San Francisco continues to see its high-end properties in short supply and high demand, and pretty much a well-balanced market in most other price points. Several $2M+ properties in San Francisco had as many as a half dozen disappointed buyers who lost in multiple situations this week. Cole Valley was one, another $1.8M in Corona Heights didn’t make it to the market as someone just had to have it for several hundred thousand more before the seller put it on.
It’s the triptych of real estate truth that we must continue to preach. Everyone – repeat after me, “price, condition, location.” Homes are selling – but buyers must perceive the value. Buyers perceive value when that triad is balanced in proportion to the needs of those buyers. While sellers cannot do anything about the location of their home, they can certainly invest in making the changes and upgrades to the property that are necessary to create value in its condition. In addition, when they are realistic about their price expectations, they can expect to sell in a reasonable amount of time.
We are also seeing decreases in market inventory in many areas – indicative of the fact that sellers in these areas are starting to take their homes back off of the market. The other side of the Buyers’ Perceived Value coin is – as we mentioned last week – that now is not the time to sit on the fence if one wants to buy a home. It’s the best possible time to make that purchase before the seller decides they aren’t going to make any price reductions and pulls that home off of the market. Believe me – when that property goes back on the market next year, it won’t be at its current price.
The vast majority of our offices indicate that listing inventory is steady or decreasing while sales activity is reported as being steady in the majority of our offices. True values are out there and ripe for the picking.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Tuesday, October 9, 2007
Monday, October 1, 2007
Local Real Estate Inventory
I hope you will find the following snapshot of local Real Estate inventory interesting. This information represents aggregated values based on MLS data for the specified date.
Housing Inventory Snapshot
September 30, 07
Average List Price
Median List Price
Average Days On Market
Santa Clara County, CA
Single Family under $1M
$687,065
$669,000
67
Single Family over $1M
$2,016,007
$1,495,000
70
Condo/Townhome under $600K
$435,352
$428,000
67
Condo/Townhome over $600K
$739,136
$695,880
54
San Mateo County, CA
Single Family under $1M
$728,557
$719,988
62
Single Family over $1M
$2,418,165
$1,599,999
65
Condo/Townhome under $600K
$457,509
$469,888
67
Condo/Townhome over $600K
$944,482
$775,000
88
Santa Cruz County, CA
Single Family under $1M
$661,469
$649,900
88
Single Family over $1M
$1,907,303
$1,495,000
93
Condo/Townhome under $600K
$454,850
$474,999
88
Condo/Townhome over $600K
$890,470
$750,000
93
Monterey County, CA
Single Family under $1M
$575,060
$549,000
103
Single Family over $1M
$2,436,917
$1,695,000
126
Condo/Townhome under $600K
$390,812
$365,000
118
Condo/Townhome over $600K
$1,031,055
$809,000
119
San Benito County, CA
Single Family under $1M
$573,548
$549,900
89
Single Family over $1M
$1,498,519
$1,275,000
134
Condo/Townhome under $300K
N/A
N/A
N/A
Condo/Townhome over $300K
$418,787
$409,999
128
Alameda County, CA
Single Family under $1M
$576,129
$555,000
63
Single Family over $1M
$1,648,913
$1,389,000
68
Condo/Townhome under $600K
$414,846
$405,000
66
Condo/Townhome over $600K
$719,317
$679,800
56
Contra Costa County, CA
Single Family under $1M
$521,681
$489,000
76
Single Family over $1M
$1,712,851
$1,399,000
79
Condo/Townhome under $600K
$359,500
$348,828
79
Condo/Townhome over $600K
$707,716
$680,600
70
MORTGAGE. National Averages (September 30, 07)*
30-year fixed
Rate - 6.06%
APR - 6.23%
15-year fixed
Rate - 5.69%
APR - 5.96%
5/1 ARM
Rate - 5.85%
APR - 6.78%* Mortgage rates were collected from publicly available sources (yahoo.com) on the date stated. The accuracy of the information and the availability of these rates are not guaranteed by the publisher. Rates are provided for informational purposes only and are subject to change without notice. Actual market interest rates may vary.
If you know someone who is considering buying or selling a home, please give me a call. I will provide professional & courteous service along with knowledgeable guidance through the process.
Housing Inventory Snapshot
September 30, 07
Average List Price
Median List Price
Average Days On Market
Santa Clara County, CA
Single Family under $1M
$687,065
$669,000
67
Single Family over $1M
$2,016,007
$1,495,000
70
Condo/Townhome under $600K
$435,352
$428,000
67
Condo/Townhome over $600K
$739,136
$695,880
54
San Mateo County, CA
Single Family under $1M
$728,557
$719,988
62
Single Family over $1M
$2,418,165
$1,599,999
65
Condo/Townhome under $600K
$457,509
$469,888
67
Condo/Townhome over $600K
$944,482
$775,000
88
Santa Cruz County, CA
Single Family under $1M
$661,469
$649,900
88
Single Family over $1M
$1,907,303
$1,495,000
93
Condo/Townhome under $600K
$454,850
$474,999
88
Condo/Townhome over $600K
$890,470
$750,000
93
Monterey County, CA
Single Family under $1M
$575,060
$549,000
103
Single Family over $1M
$2,436,917
$1,695,000
126
Condo/Townhome under $600K
$390,812
$365,000
118
Condo/Townhome over $600K
$1,031,055
$809,000
119
San Benito County, CA
Single Family under $1M
$573,548
$549,900
89
Single Family over $1M
$1,498,519
$1,275,000
134
Condo/Townhome under $300K
N/A
N/A
N/A
Condo/Townhome over $300K
$418,787
$409,999
128
Alameda County, CA
Single Family under $1M
$576,129
$555,000
63
Single Family over $1M
$1,648,913
$1,389,000
68
Condo/Townhome under $600K
$414,846
$405,000
66
Condo/Townhome over $600K
$719,317
$679,800
56
Contra Costa County, CA
Single Family under $1M
$521,681
$489,000
76
Single Family over $1M
$1,712,851
$1,399,000
79
Condo/Townhome under $600K
$359,500
$348,828
79
Condo/Townhome over $600K
$707,716
$680,600
70
MORTGAGE. National Averages (September 30, 07)*
30-year fixed
Rate - 6.06%
APR - 6.23%
15-year fixed
Rate - 5.69%
APR - 5.96%
5/1 ARM
Rate - 5.85%
APR - 6.78%* Mortgage rates were collected from publicly available sources (yahoo.com) on the date stated. The accuracy of the information and the availability of these rates are not guaranteed by the publisher. Rates are provided for informational purposes only and are subject to change without notice. Actual market interest rates may vary.
If you know someone who is considering buying or selling a home, please give me a call. I will provide professional & courteous service along with knowledgeable guidance through the process.
Weekly Market Watch
WEEKLY MARKET WATCH
Week of September 23rd
It is perplexing and frustrating to continue to see news reports with people who could be considered little more than “real estate pundits” talk about only one side of the current real estate story. This week, the controversial stock market analyst Jim Cramer of Mad Money told viewers of The Today Show that “If you buy a home now, you will lose money." He went on to add "there is no money and no programs for first time home buyers. Down payment money is the biggest issue in the market, because young people don't have any." Housing is a good long-term investment – it’s not a day-trading activity. As we witness the steep increase in foreclosures among housing boom “flippers” who secured sub-prime, adjustable rate loans with no money down, we see the folly of playing the housing market like the stock market.
Homes are not stocks. Most people stay in their home for about 6 years – they buy for the long haul to create a home for their family, not to buy, then turn around and sell six months later. Owning a home isn’t just about investment, although that’s certainly important. It’s also about building community, a place of your own, and having a part of the American Dream. For people who want to buy a home to live in, this is truly a great time to buy a home. In some areas there may be more to choose from, mortgage rates are historically low and the economy is strong. There are some investor opportunities out there as well, but it’s important to remember that the criteria regarding these buying decisions are different between the investor and the homeowner.
In our area we have seen steady appreciation in home values over the last 30 years. Regarding the median prices in many parts of the Bay Area and Silicon Valley, most specifically in San Francisco and the Peninsula, properties are not only holding steady, but actually increasing. The case could easily be made that waiting for prices to drop may make the realization of home ownership steadily more difficult. Signs aren’t pointing to bargain basement pricing ever becoming the norm in our markets, though price is now, as always, an important consideration. Smart buyers are buying. Smart sellers are selling.
Witness the number of buyers visiting our more than 600 homes held open last week. A Berkley listing was seen by almost 100 visitors. A Walnut Creek listing received four offers and sold for three percent over the current asking price. In San Mateo Park, a home received five offers and the lowest down payment among them was 50 percent. Palo Alto continues to report 100 percent multiple offers. One San Francisco office notes that the $2 million-plus market is “on fire.” The upper end markets are clearly not sending a negative message – in fact, quite the opposite. Last week San Francisco Van Ness closed both sides of a $7M property in a two week long escrow, and in the same week Woodside opened a new sale for $12M, sold by a fellow CB Menlo Park-El Camino agent, and the following day Woodside opened another $13M sale. Again, the message is quite the opposite of the doom and gloom which make headlines.
I encourage people to get the facts from an experienced real estate professional, the person most qualified to discuss the merits of home ownership. Not from a stock broker on television. Now more than ever, there is immense value in working with a real estate agent affiliated with a full-service brokerage, the professional who can guide clients through the financial elements of the real estate transaction from negotiating price to serving as a guide to the mortgage market. At Coldwell Banker Residential Brokerage, we also have a strong, in-house mortgage partner in Princeton Capital who can identify appropriate financing options for customers.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 23rd
It is perplexing and frustrating to continue to see news reports with people who could be considered little more than “real estate pundits” talk about only one side of the current real estate story. This week, the controversial stock market analyst Jim Cramer of Mad Money told viewers of The Today Show that “If you buy a home now, you will lose money." He went on to add "there is no money and no programs for first time home buyers. Down payment money is the biggest issue in the market, because young people don't have any." Housing is a good long-term investment – it’s not a day-trading activity. As we witness the steep increase in foreclosures among housing boom “flippers” who secured sub-prime, adjustable rate loans with no money down, we see the folly of playing the housing market like the stock market.
Homes are not stocks. Most people stay in their home for about 6 years – they buy for the long haul to create a home for their family, not to buy, then turn around and sell six months later. Owning a home isn’t just about investment, although that’s certainly important. It’s also about building community, a place of your own, and having a part of the American Dream. For people who want to buy a home to live in, this is truly a great time to buy a home. In some areas there may be more to choose from, mortgage rates are historically low and the economy is strong. There are some investor opportunities out there as well, but it’s important to remember that the criteria regarding these buying decisions are different between the investor and the homeowner.
In our area we have seen steady appreciation in home values over the last 30 years. Regarding the median prices in many parts of the Bay Area and Silicon Valley, most specifically in San Francisco and the Peninsula, properties are not only holding steady, but actually increasing. The case could easily be made that waiting for prices to drop may make the realization of home ownership steadily more difficult. Signs aren’t pointing to bargain basement pricing ever becoming the norm in our markets, though price is now, as always, an important consideration. Smart buyers are buying. Smart sellers are selling.
Witness the number of buyers visiting our more than 600 homes held open last week. A Berkley listing was seen by almost 100 visitors. A Walnut Creek listing received four offers and sold for three percent over the current asking price. In San Mateo Park, a home received five offers and the lowest down payment among them was 50 percent. Palo Alto continues to report 100 percent multiple offers. One San Francisco office notes that the $2 million-plus market is “on fire.” The upper end markets are clearly not sending a negative message – in fact, quite the opposite. Last week San Francisco Van Ness closed both sides of a $7M property in a two week long escrow, and in the same week Woodside opened a new sale for $12M, sold by a fellow CB Menlo Park-El Camino agent, and the following day Woodside opened another $13M sale. Again, the message is quite the opposite of the doom and gloom which make headlines.
I encourage people to get the facts from an experienced real estate professional, the person most qualified to discuss the merits of home ownership. Not from a stock broker on television. Now more than ever, there is immense value in working with a real estate agent affiliated with a full-service brokerage, the professional who can guide clients through the financial elements of the real estate transaction from negotiating price to serving as a guide to the mortgage market. At Coldwell Banker Residential Brokerage, we also have a strong, in-house mortgage partner in Princeton Capital who can identify appropriate financing options for customers.
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 September 16, 2007
Though the Fed may have assisted the mortgage crisis a bit with its rate lowering and some policy changes, there haven’t been any significant changes in the San Francisco Bay Area market this past week that can be attributed to anything happening in the latest news. Perception is driving the market. The chasm between buyers and sellers seems to be closing a bit – but not quite enough in some communities.
Buyers are starting to realize that selling prices are not going to drop precipitously from where they are. Sellers, on the other hand, are starting to make the adjustments in condition and price that are necessary to remain competitive. Still, there are some sellers that refuse to lower prices to saleable levels, and buyers who are convinced they’ll be able to get an even better deal by waiting. We are seeing some sellers who don’t need to sell taking their properties off the market – if a deal is to be had, now is the time to negotiate it.
More than 640 homes were held open during the week. Attendance was spotty in some areas, while Half Moon Bay and other enclaves saw booming activity. High end properties continue to drive in the fast lane in our markets with exceptional open house activity, and multiple offer situations being reported. Palo Alto continues to report 100% of listings received multiple offers, however that enduring lack of inventory on the Peninsula continues to compel competition among buyers in the area. San Francisco and Marin also have booming high end markets. There are fewer multiple offer situations in the City, and a lower number of multiple offers when they occur, but a week does not go by when several agents in each of our San Francisco offices is involved on one side of a multiple offer situation.
Although the number of sales in San Francisco and the Peninsula is lower than YTD 2006, the median sales price continues to grow.
For the majority of the micro-markets within our San Francisco/Peninsula region, affordability at the entry level and available inventory at the higher end are our biggest concerns. Home Buyers and Sellers are not hearing this message from the media. Now, more than ever, it's critical to know your market, and know just how local real estate really is.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 16, 2007
Though the Fed may have assisted the mortgage crisis a bit with its rate lowering and some policy changes, there haven’t been any significant changes in the San Francisco Bay Area market this past week that can be attributed to anything happening in the latest news. Perception is driving the market. The chasm between buyers and sellers seems to be closing a bit – but not quite enough in some communities.
Buyers are starting to realize that selling prices are not going to drop precipitously from where they are. Sellers, on the other hand, are starting to make the adjustments in condition and price that are necessary to remain competitive. Still, there are some sellers that refuse to lower prices to saleable levels, and buyers who are convinced they’ll be able to get an even better deal by waiting. We are seeing some sellers who don’t need to sell taking their properties off the market – if a deal is to be had, now is the time to negotiate it.
More than 640 homes were held open during the week. Attendance was spotty in some areas, while Half Moon Bay and other enclaves saw booming activity. High end properties continue to drive in the fast lane in our markets with exceptional open house activity, and multiple offer situations being reported. Palo Alto continues to report 100% of listings received multiple offers, however that enduring lack of inventory on the Peninsula continues to compel competition among buyers in the area. San Francisco and Marin also have booming high end markets. There are fewer multiple offer situations in the City, and a lower number of multiple offers when they occur, but a week does not go by when several agents in each of our San Francisco offices is involved on one side of a multiple offer situation.
Although the number of sales in San Francisco and the Peninsula is lower than YTD 2006, the median sales price continues to grow.
For the majority of the micro-markets within our San Francisco/Peninsula region, affordability at the entry level and available inventory at the higher end are our biggest concerns. Home Buyers and Sellers are not hearing this message from the media. Now, more than ever, it's critical to know your market, and know just how local real estate really 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 September 9, 2007
The consensus seems to be that there are plenty of buyers out there, and that they are serious, qualified and eager to purchase. However, these same buyers are listening to media reports about the housing market and some are hesitant to commit to buying a home due to an erroneous thought that housing prices will plummet.
The reality is that in most Bay Area communities, housing prices are remaining steady, or seeing increases. In fact, DataQuick, a company that compiles data and reports on real estate trends each month, indicated this week that while median selling prices in Napa, Solano and Sonoma counties have seen moderate declines, every other county in the greater Bay Area saw an increase in median prices ranging from 4 to 12.4%. This is not the time to sit on the fence. It is the time to commit, as our Walnut Creek manager eloquently stated, “to buying homes as opposed to houses.” Price and condition are always important deciding factors, but the deals are out there right now, so now is the time to decide! And there may be even greater opportunity when we find out what happens after the Fed meet next week.
The upper tier market continues to hold strong in our region with most areas reporting exceptional activity. A $2 million home in Larkspur had a huge crowd for its open house and received three offers in one day. The inventory levels in the city and parts of the Peninsula are loosening up a bit and helping to spur activity. A condo in San Francisco received 11 offers, and a cosmetic fixer in the city’s Richmond district received 22 offers. Open houses were reported to be busy in most areas where our more than 600 homes were open for viewing. Listing inventory and sales activity were both reported as being steady among most offices.
Everyone wants to know the real story. It will be told, and powerfully so, next week when Southern California Economist Gary Watts presents “The Real State of Real Estate…What the Media Isn’t Telling You” on Thursday, September 20th and Friday September 21st. Gary’s presentation is extremely timely, and dead-on. It will give you excellent facts and talking points with your customers. He will be conducting three sessions - in San Francisco, Santa Clara, and in San Ramon. Don’t miss this opportunity to be truly informed. I have attached the details, and I strongly encourage each of you to attend one of these sessions.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of September 9, 2007
The consensus seems to be that there are plenty of buyers out there, and that they are serious, qualified and eager to purchase. However, these same buyers are listening to media reports about the housing market and some are hesitant to commit to buying a home due to an erroneous thought that housing prices will plummet.
The reality is that in most Bay Area communities, housing prices are remaining steady, or seeing increases. In fact, DataQuick, a company that compiles data and reports on real estate trends each month, indicated this week that while median selling prices in Napa, Solano and Sonoma counties have seen moderate declines, every other county in the greater Bay Area saw an increase in median prices ranging from 4 to 12.4%. This is not the time to sit on the fence. It is the time to commit, as our Walnut Creek manager eloquently stated, “to buying homes as opposed to houses.” Price and condition are always important deciding factors, but the deals are out there right now, so now is the time to decide! And there may be even greater opportunity when we find out what happens after the Fed meet next week.
The upper tier market continues to hold strong in our region with most areas reporting exceptional activity. A $2 million home in Larkspur had a huge crowd for its open house and received three offers in one day. The inventory levels in the city and parts of the Peninsula are loosening up a bit and helping to spur activity. A condo in San Francisco received 11 offers, and a cosmetic fixer in the city’s Richmond district received 22 offers. Open houses were reported to be busy in most areas where our more than 600 homes were open for viewing. Listing inventory and sales activity were both reported as being steady among most offices.
Everyone wants to know the real story. It will be told, and powerfully so, next week when Southern California Economist Gary Watts presents “The Real State of Real Estate…What the Media Isn’t Telling You” on Thursday, September 20th and Friday September 21st. Gary’s presentation is extremely timely, and dead-on. It will give you excellent facts and talking points with your customers. He will be conducting three sessions - in San Francisco, Santa Clara, and in San Ramon. Don’t miss this opportunity to be truly informed. I have attached the details, and I strongly encourage each of you to attend one of these sessions.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
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