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