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