Weekly Market Watch
Week of October 28, 2007
These are actual news headlines culled from various sources over the past two weeks: “Does the Drop in Housing Prices Mean It’s Time to Buy?”, “Buying a House Now isn’t a Bad Choice for Everyone,” “Housing Economists Expect Market Turnaround to Begin in 2008,” “Investors Find Silver Lining in Real Estate Market,” and my personal favorite from the San Jose Mercury News Real Estate Blog, “For Avid House Hunters, the Season Starts Today.”
Getting our Reality Check message communicated to the populace of Northern California seems to be having an impact and even the media is beginning to find those silver linings in our housing micro-markets. Our Reality Check campaign team, under the leadership of Anne Treacy and with outstanding daily focused research and production from Matt Geiser and Kacie Ricker, is not leaving anything to chance. Besides the positive messages they are helping us create, they have been issuing Press Releases on the campaign, and evidenced by the headlines in the paragraph above, it’s working.
Motivated buyers are buying and motivated sellers are selling. And all before the Feds made their rate cut on Halloween! Attractive Berkeley and Oakland Hills properties are still getting multiple offers. A $900,000+ listing on the Alamo/Walnut Creek border sold in one day. A San Ramon listing priced at $1,425,000 sold in less than one week. Greenbrae is reporting solid activity, some multiple offer situations and steady movement of higher end properties. Pending sales are on the increase in Pleasanton and well-priced Santa Rosa homes are seeing multiple offer situations.
Burlingame, Half Moon Bay and Menlo Park are reporting exceptional open house activity. Burlingame noted that homes in solid middle price points were experiencing anywhere from 20 to 75 groups of visitors. Palo Alto is noting an “all time low of – 29 listings on MLS in Palo Alto.” San Francisco reports that supply and demand are “quite balanced.” It’s important for our hesitant buyers to be reminded that the upper end of the market remains strong. This week alone, our City offices reported a home closed at over $15M, and two new sales at $5M, while the Woodside office reported a new sale at $7+M.
More than 565 homes were held open last week, and sales activity was reportedly increasing or steady by a vast majority of the offices.
It’s getting busy out there! Our patchwork quilt of a real estate market continues to be sewn together from dozens of micro-markets, but many of them are seeing marked improvement in what is a traditionally slower time of year. Even the headlines are beginning to agree that buyers are well-advised to lock in a lower home price now while the variety remains, grab a low mortgage interest rate from a reputable lender such as Princeton Capital, and establish roots in their neighborhood of choice. Now may be the best time to buy.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Tuesday, November 6, 2007
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of October 21, 2007
The scope of the tragedy engulfing our Southern California neighbors is staggering. Nearly 2,000 homes have been destroyed by the fires rampaging through San Diego, Orange, Riverside and Los Angeles counties, and tens of thousands of people remain displaced. Let us all take a moment to offer our heartfelt prayers and best wishes to the victims of these fires. You may have heard that our colleague Brian Buffini and his family lost their home entirely - without the opportunity to go in and retrieve any items whatsoever. And there are many more victims without the financial resources of someone like Brian who face the unbelievable burden of recovering from this. I encourage those of you who choose to assist in the aid and relief of our Southern California colleagues, friends, and family members to make a donation through the Realogy Charitable Foundation – the details are at the bottom of this week’s Weekly Market Watch.
In the San Francisco Bay Area, buyers are starting to realize that selling prices are just not going to drop precipitously from where they are now in most of the Bay Area. If a deal is to be had, now is the time to negotiate it, and it seems the negotiating has begun. Offices in all areas reported increased sales activity and buyer interest, and our more than 600 homes held open were overwhelmingly well attended. Sales activity and buyer activity is reportedly increasing in practically every area.
Oakland reports plenty of buyers and multiple offers on the better available listings. There’s a “buzz” in Lamorinda’s steady market. Buyers are writing offers in Santa Rosa. The high end homes continue to sell quickly in Southern Marin while Walnut Creek is seeing sales in all price points and in every corner of that market.
Inventory still remains tight on much of the Peninsula. Palo Alto and West Menlo are starved for fresh, well-priced inventory. A San Mateo Park home sold for $3.8 million without ever being exposed to the market. There was an all cash sale in Woodside for $3.1 million. A Palo Alto property sold for $250,000 over list price in a multiple offer situation. Eight offers are on the table for a $2.7 million “tear down” in Atherton. San Francisco continues to see good activity in all price ranges with the properties over $1.5 million remaining the most desirable.
We are still seeing year-over-year median-price gains in Santa Clara, Marin, San Francisco, and Contra Costa counties. Bay Area housing remains a solid long term investment. It makes good sense to get into the market when there is still a good selection of available housing at multiple price points and while interest rates remain low.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of October 21, 2007
The scope of the tragedy engulfing our Southern California neighbors is staggering. Nearly 2,000 homes have been destroyed by the fires rampaging through San Diego, Orange, Riverside and Los Angeles counties, and tens of thousands of people remain displaced. Let us all take a moment to offer our heartfelt prayers and best wishes to the victims of these fires. You may have heard that our colleague Brian Buffini and his family lost their home entirely - without the opportunity to go in and retrieve any items whatsoever. And there are many more victims without the financial resources of someone like Brian who face the unbelievable burden of recovering from this. I encourage those of you who choose to assist in the aid and relief of our Southern California colleagues, friends, and family members to make a donation through the Realogy Charitable Foundation – the details are at the bottom of this week’s Weekly Market Watch.
In the San Francisco Bay Area, buyers are starting to realize that selling prices are just not going to drop precipitously from where they are now in most of the Bay Area. If a deal is to be had, now is the time to negotiate it, and it seems the negotiating has begun. Offices in all areas reported increased sales activity and buyer interest, and our more than 600 homes held open were overwhelmingly well attended. Sales activity and buyer activity is reportedly increasing in practically every area.
Oakland reports plenty of buyers and multiple offers on the better available listings. There’s a “buzz” in Lamorinda’s steady market. Buyers are writing offers in Santa Rosa. The high end homes continue to sell quickly in Southern Marin while Walnut Creek is seeing sales in all price points and in every corner of that market.
Inventory still remains tight on much of the Peninsula. Palo Alto and West Menlo are starved for fresh, well-priced inventory. A San Mateo Park home sold for $3.8 million without ever being exposed to the market. There was an all cash sale in Woodside for $3.1 million. A Palo Alto property sold for $250,000 over list price in a multiple offer situation. Eight offers are on the table for a $2.7 million “tear down” in Atherton. San Francisco continues to see good activity in all price ranges with the properties over $1.5 million remaining the most desirable.
We are still seeing year-over-year median-price gains in Santa Clara, Marin, San Francisco, and Contra Costa counties. Bay Area housing remains a solid long term investment. It makes good sense to get into the market when there is still a good selection of available housing at multiple price points and while interest rates remain low.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Weekly Market Watch
Week of October 14, 2007
Offices throughout the San Francisco Bay Area reported increased sales, increased activity and optimistic sales associates. Of our more than 560 homes held open, the majority of areas reported moderate to heavy attendance and many reported an influx of new buyers who aren’t letting the barrage of mixed messages about the real estate market frighten them away. We are also hearing of newly invigorated buyers who have finally realized that this really is the time to buy.
In remembering that real estate markets are local in nature, let’s take a snapshot of some of the markets in the Bay Area this past week. From the North, reports indicate that new listings in Santa Rosa were seeing a good turnout of qualified buyers. Sales activity is increasing in Southern Marin and Greenbrae areas, and higher-end home sales continue to be strong. For the first time in 12 months, the sfh and condo combined inventory in San Francisco reached over 4 months supply in September. This is recognized as being just on the cusp between a seller’s market and a balanced market. All year the City has seen between a 2.1 and 3 month’s supply. Be sure to note, however – the median sold price keeps growing, not necessarily what you would expect with growing inventory. From the Peninsula, Burlingame reports that sales in upper-end communities continue to be very strong, and that many agents report meeting new savvy buyers at busy opens in a variety of price points. Menlo Park noted increased sales activity and very busy open homes. Palo Alto simply states, “Low, low inventory. High, high multiple offers.” In the East, it is reported that the inventory of active listings in the Livermore/Tri-Valley area is declining. Homes under the $1 million price point in Lafayette and Orinda are selling with multiple offers. The hills of Oakland are swarming with buyers who are willing to go into multiple offer situations on the right properties.
We can’t repeat the message often enough – now is the time to buy! Let’s have a quick reality check: Inventory levels in most areas are starting to decline. The median price for homes in the San Francisco Bay Area rose almost 1% in September. Rents are soaring. There is still a wide, but declining, selection of homes for sale in many areas and there are bargains to be had. It’s time to make that long term investment – now.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of October 14, 2007
Offices throughout the San Francisco Bay Area reported increased sales, increased activity and optimistic sales associates. Of our more than 560 homes held open, the majority of areas reported moderate to heavy attendance and many reported an influx of new buyers who aren’t letting the barrage of mixed messages about the real estate market frighten them away. We are also hearing of newly invigorated buyers who have finally realized that this really is the time to buy.
In remembering that real estate markets are local in nature, let’s take a snapshot of some of the markets in the Bay Area this past week. From the North, reports indicate that new listings in Santa Rosa were seeing a good turnout of qualified buyers. Sales activity is increasing in Southern Marin and Greenbrae areas, and higher-end home sales continue to be strong. For the first time in 12 months, the sfh and condo combined inventory in San Francisco reached over 4 months supply in September. This is recognized as being just on the cusp between a seller’s market and a balanced market. All year the City has seen between a 2.1 and 3 month’s supply. Be sure to note, however – the median sold price keeps growing, not necessarily what you would expect with growing inventory. From the Peninsula, Burlingame reports that sales in upper-end communities continue to be very strong, and that many agents report meeting new savvy buyers at busy opens in a variety of price points. Menlo Park noted increased sales activity and very busy open homes. Palo Alto simply states, “Low, low inventory. High, high multiple offers.” In the East, it is reported that the inventory of active listings in the Livermore/Tri-Valley area is declining. Homes under the $1 million price point in Lafayette and Orinda are selling with multiple offers. The hills of Oakland are swarming with buyers who are willing to go into multiple offer situations on the right properties.
We can’t repeat the message often enough – now is the time to buy! Let’s have a quick reality check: Inventory levels in most areas are starting to decline. The median price for homes in the San Francisco Bay Area rose almost 1% in September. Rents are soaring. There is still a wide, but declining, selection of homes for sale in many areas and there are bargains to be had. It’s time to make that long term investment – now.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Weekly Market Watch
Week of October 7, 2007
Our Coldwell Banker Residential Brokerage agents are brimming with enthusiasm. Reports this week indicate that, in many areas, our more than 560 open houses were seeing steady streams of visitors, and buyer interest is up. There are slower spots around the Bay Area to be sure, but for every slow spot, there is another that is seeing exceptional activity. As I keep saying, real estate is a very local industry. The trends, numbers, statistics and “facts” we read about tell a regional story, but that story isn’t indicative of market conditions in specific locations, neighborhoods and communities. There are cold spots with high inventory levels, and there are hot spots where competition to buy a home is fierce.
The reality is this – the increased median prices that are reported in most areas are affected by the fact that, in those hotter markets, the prices have barely dropped, if at all. In addition, homes in the $2 million plus range are selling quickly and often over asking price. There is a wide variety of homes available in several areas of the East and North Bays at bargain prices waiting to be snapped up. In San Francisco and the Peninsula, sales activity is down largely because inventory is down – however offices in both the Peninsula and the City noted activity and sales were more brisk at particular price points. I am aware of at least two high-end sales our offices ratified this week, and the lower of the two was over $14M. SF Lombard noted a sale going $200K over list – and a $900K price reduction all in the same day. One of our Menlo Park offices stated the market seems stalled under $1M, but $1.5 to $2.5 very brisk. In North San Mateo Co, including Daly City, Brisbane, So City – there are currently 321 Active SF Homes, with an average list price of $754K, 3bd, 2ba 1540 sq ft, and the average Days on Market is 67. Looks like Buyer opportunity time in that market.
It is nice to see that both buyers and sellers are starting to change their perceptions and recognize the localness of our real estate industry. Today’s consumer is best-served by being an educated consumer. Those interested in learning more about how to navigate current real estate conditions – and how to take advantage of the buyer’s market and historically low interest rates – should start that education with a LOCAL real estate professional instead of relying solely on the area newspaper or real estate blog. There are bargains to be had and now is the time to take advantage of them.
Refreshing, isn’t it, to note that listing inventory reported by our offices is steady almost across the board? Sales activity is also reported as being overwhelmingly steady. Keep in mind that when the combination of price, location and condition are in alignment-presto, a house sells.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of October 7, 2007
Our Coldwell Banker Residential Brokerage agents are brimming with enthusiasm. Reports this week indicate that, in many areas, our more than 560 open houses were seeing steady streams of visitors, and buyer interest is up. There are slower spots around the Bay Area to be sure, but for every slow spot, there is another that is seeing exceptional activity. As I keep saying, real estate is a very local industry. The trends, numbers, statistics and “facts” we read about tell a regional story, but that story isn’t indicative of market conditions in specific locations, neighborhoods and communities. There are cold spots with high inventory levels, and there are hot spots where competition to buy a home is fierce.
The reality is this – the increased median prices that are reported in most areas are affected by the fact that, in those hotter markets, the prices have barely dropped, if at all. In addition, homes in the $2 million plus range are selling quickly and often over asking price. There is a wide variety of homes available in several areas of the East and North Bays at bargain prices waiting to be snapped up. In San Francisco and the Peninsula, sales activity is down largely because inventory is down – however offices in both the Peninsula and the City noted activity and sales were more brisk at particular price points. I am aware of at least two high-end sales our offices ratified this week, and the lower of the two was over $14M. SF Lombard noted a sale going $200K over list – and a $900K price reduction all in the same day. One of our Menlo Park offices stated the market seems stalled under $1M, but $1.5 to $2.5 very brisk. In North San Mateo Co, including Daly City, Brisbane, So City – there are currently 321 Active SF Homes, with an average list price of $754K, 3bd, 2ba 1540 sq ft, and the average Days on Market is 67. Looks like Buyer opportunity time in that market.
It is nice to see that both buyers and sellers are starting to change their perceptions and recognize the localness of our real estate industry. Today’s consumer is best-served by being an educated consumer. Those interested in learning more about how to navigate current real estate conditions – and how to take advantage of the buyer’s market and historically low interest rates – should start that education with a LOCAL real estate professional instead of relying solely on the area newspaper or real estate blog. There are bargains to be had and now is the time to take advantage of them.
Refreshing, isn’t it, to note that listing inventory reported by our offices is steady almost across the board? Sales activity is also reported as being overwhelmingly steady. Keep in mind that when the combination of price, location and condition are in alignment-presto, a house sells.
Have a great week.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
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