Weekly Market Watch
Week of December 16, 2007
The past week was like a snapshot of the entire year as far as San Francisco Bay Area real estate is concerned. I’ve mentioned before that our market is like a patchwork quilt – it’s often stitched together by definition into one large market area, but it’s actually made up of a multitude of different textures and patterns that shift and swirl. There is not only significant variation geographically among cities and communities, but also just a few days make a significant difference in the activity a particular branch experiences. Last week saw some areas entrenched in the end-of-the-year holiday slowdown. Others are seeing a surprisingly heightened level of buyer activity, including some fierce competition with multiple offers in the Peninsula.
San Francisco Van Ness still saw double-digit number of sales for the week, while commenting that activity felt slower. Another office in the City states fewer sales occurring, but prices holding firm. Most offices seem to be gearing up their new listings for January. The Peninsula still has pent-up demand for $1.5 to $1.9 homes in Palo Alto, parts of Menlo Park, Burlingame, and San Mateo. Well-written and presented offers with sound strategy are critical, as witnessed by our Redwood City/San Carlos office - the winner of multiple offers did not go to the Buyer with the highest priced offer. Half Moon Bay saw activity pick up as Buyers are recognizing the value our coastal community has to offer.
Open houses in Santa Rosa saw an increase in attendance and sales have picked up. Several offices mentioned good activity on their REO properties. There were four preemptive offers on a $1.15 million listing out of Sebastopol, and in Palo Alto there were 15 offers on a home listed at $1,699,000 that eventually sold for more than $2 million.
With the latest release of figures from DataQuick – we see an “at a glance” snapshot of our patchwork quilt marketplace. The report on Bay Area home sales for November shows the number of sales continue to slide - though not as much as naysayers had predicted. The report states that prices remain relatively stable in the Bay Area as a whole. Marin, Santa Clara, San Francisco and San Mateo Counties saw year-over-year price increases ranging from .7% in Santa Clara to 7.2% in San Francisco. Several areas have seen prices decline sharply. The report reiterates the power of our Reality Check initiative by stating that “in some cases those price declines appear to be stoking more sales.” It is refreshing to see DataQuick commentary offer positive angles on declining numbers. You have to believe our Reality Check initiative has helped many Buyers, as well as our competitors (and the press) with understanding that purchasing real estate in our communities offers solid investment potential.
This will be the final issue of the Weekly Market Watch for 2007. The next issue will be sent out the second week of January.
Rick Turley
President - San Francisco/Peninsula
Coldwell Banker Residential Brokerage
2355 Market Street
Sunday, January 6, 2008
Weekly Market Watch December 2, 2007
Weekly Market Watch
Week of December 2, 2007
How many different economic reports came out this week? It seems that every day, another dozen or so indices, studies, surveys and reports about the housing industry make the headlines. Perhaps too many, as we are seeing many buyers finally decide not to listen to all of these numbers, and are instead getting financing approved, making offers, signing contracts and moving into the home of their dreams.
We traditionally experience a slow down during the holidays, this time of year many home sellers are focused on selling their home before the New Year. There is a lot of negotiating still going on out there and buyer activity continues to increase with a sense of urgency that may be attributable to a holiday decrease in inventory in many areas, and the desire to buy or sell before the end of the year.
Many areas of the Peninsula continue to suffer from a shortage of inventory. Burlingame and Woodside/Portola Valley also report an increase of off market listings – homes selling before they ever hit the MLS - especially in the $2-4 million range. There’s a different story in northern San Mateo County, where more REO properties and short sales are showing up. In San Francisco, well-priced listings continue to garner multiple offers, and though our offices report a lot of negotiating and counteroffers, activity is robust for many properties. Several offices have reported an increase in escrows falling out, and one office reported each fall out was quickly replaced with a new sale.
More than 420 homes were held open last week, and most areas reported a high level of activity and interest. While there may be fewer showings around the holidays, a higher percentage of Buyers looking at property in December are more motivated and serious about buying than at other times of the year. It’s not the best time to “test the market” for a Seller, but for those homeowners who are taking savvy professional advice on pricing and condition, they may have a better opportunity with fewer homes to compete with.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of December 2, 2007
How many different economic reports came out this week? It seems that every day, another dozen or so indices, studies, surveys and reports about the housing industry make the headlines. Perhaps too many, as we are seeing many buyers finally decide not to listen to all of these numbers, and are instead getting financing approved, making offers, signing contracts and moving into the home of their dreams.
We traditionally experience a slow down during the holidays, this time of year many home sellers are focused on selling their home before the New Year. There is a lot of negotiating still going on out there and buyer activity continues to increase with a sense of urgency that may be attributable to a holiday decrease in inventory in many areas, and the desire to buy or sell before the end of the year.
Many areas of the Peninsula continue to suffer from a shortage of inventory. Burlingame and Woodside/Portola Valley also report an increase of off market listings – homes selling before they ever hit the MLS - especially in the $2-4 million range. There’s a different story in northern San Mateo County, where more REO properties and short sales are showing up. In San Francisco, well-priced listings continue to garner multiple offers, and though our offices report a lot of negotiating and counteroffers, activity is robust for many properties. Several offices have reported an increase in escrows falling out, and one office reported each fall out was quickly replaced with a new sale.
More than 420 homes were held open last week, and most areas reported a high level of activity and interest. While there may be fewer showings around the holidays, a higher percentage of Buyers looking at property in December are more motivated and serious about buying than at other times of the year. It’s not the best time to “test the market” for a Seller, but for those homeowners who are taking savvy professional advice on pricing and condition, they may have a better opportunity with fewer homes to compete with.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch November 25, 2007
Weekly Market Watch
Week of November 25, 2007
While we are experiencing the traditional seasonal slowdown in our real estate market, we continue to see pockets filled with activity. San Francisco and the Peninsula especially continue to defy negative headlines and supposed housing market trends. For example, in Palo Alto there were 20 offers on a $1.4M house. As the Menlo Park El Camino manager points out, this left 19 buyers disappointed. Between Menlo Park and Palo Alto there are only 13 homes on the market between $1.2 and $1.M7 – not enough for 19 buyers in that price range. In the City, a “fixer” in the Sunset district was listed at $629,000, received 29 offers and sold for more than $125,000 over the asking price.
Other areas are seeing increased buyer activity as well, but note that buyers are also negotiating heavily to get prices and terms into alignment with what they are reading in the headlines. While C.A.R. reported that the state’s median resale home price fell 9.9% in October, the report also stated that many communities saw increases during the same time period including Redwood City (20.6%), San Carlos (9.5%) and San Ramon (14.4%) among the top ten in the state. The same report indicates that year-over-year prices in the San Francisco Bay Area as a whole have increased 8.9%. It is important for consumers to make informed decisions based on individual needs and the actual local market and timeliness in a given area, community, neighborhood or street.
More than 500 homes were held open over the past weekend and reports from most areas indicate brisk activity. There was increased activity at open houses in Fremont, Greenbrae, Oakland, Orinda, Burlingame, San Francisco and most of the Peninsula.
Sales activity remained steady for most offices. Listing inventory was widely reported as decreasing for most offices with the majority of the rest holding steady – possibly a sign of the season, and possibly a sign that now is the best time to get in the market while there is still a selection of fine homes that won’t be on the market much longer.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of November 25, 2007
While we are experiencing the traditional seasonal slowdown in our real estate market, we continue to see pockets filled with activity. San Francisco and the Peninsula especially continue to defy negative headlines and supposed housing market trends. For example, in Palo Alto there were 20 offers on a $1.4M house. As the Menlo Park El Camino manager points out, this left 19 buyers disappointed. Between Menlo Park and Palo Alto there are only 13 homes on the market between $1.2 and $1.M7 – not enough for 19 buyers in that price range. In the City, a “fixer” in the Sunset district was listed at $629,000, received 29 offers and sold for more than $125,000 over the asking price.
Other areas are seeing increased buyer activity as well, but note that buyers are also negotiating heavily to get prices and terms into alignment with what they are reading in the headlines. While C.A.R. reported that the state’s median resale home price fell 9.9% in October, the report also stated that many communities saw increases during the same time period including Redwood City (20.6%), San Carlos (9.5%) and San Ramon (14.4%) among the top ten in the state. The same report indicates that year-over-year prices in the San Francisco Bay Area as a whole have increased 8.9%. It is important for consumers to make informed decisions based on individual needs and the actual local market and timeliness in a given area, community, neighborhood or street.
More than 500 homes were held open over the past weekend and reports from most areas indicate brisk activity. There was increased activity at open houses in Fremont, Greenbrae, Oakland, Orinda, Burlingame, San Francisco and most of the Peninsula.
Sales activity remained steady for most offices. Listing inventory was widely reported as decreasing for most offices with the majority of the rest holding steady – possibly a sign of the season, and possibly a sign that now is the best time to get in the market while there is still a selection of fine homes that won’t be on the market much longer.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch November 11, 2007
Weekly Market Watch
Week of November 11, 2007
It was a particularly interesting real estate market in the Bay Area this week. Some areas remain sluggish while others are bubbling with activity. Still others that have been on the slow side of the market for months are seeing a spike in buyer activity. We do spend a lot of time talking about how our media buries the positive aspects of our real estate markets behind negative headlines, but even they are starting to tell both sides of the real estate story with more accuracy and balance. We’re starting to see even more headlines like “OK ’08 seen for Bay Area real estate market,” “October Sales Jump,” and “Traditional reasons for home purchase still financially sound.” Perhaps this trend, and initiatives like our Reality Check, are truly impacting the consumer and reducing the hesitancy that buyers have been having about entering the market.
The number of new pending sales in the Danville market area is up for the third consecutive week. Livermore saw an increase in pending sales. Pleasanton is reporting properties in multiple offer situations. Buyers are “waking up” in Santa Rosa. Sales activity picked up in Walnut Creek and open homes are seeing up to 40 groups going through them. These areas seemed to be the most challenged in August and September.
An interesting phenomenon is being reported in the prime neighborhoods within San Mateo, Burlingame and Hillsborough where there is an increasing number of private “off market” sales. Some Sellers are putting out the word that they will entertain pre-listing offers, and the properties are selling without ever going on the market. San Mateo sales are very strong for a November with multiple offers frequently seen. Palo Alto, West Menlo Park report inventory levels remain at “all time lows” and nearly any home that is well-priced receives multiple offers – however a different market exists east of 101. San Francisco remains strongest in the $1.5M+ properties. Lower and mid-range price points in the City are trending toward multiple counters versus multiple offers. That said, every one of our San Francisco offices will see a well-priced and staged property sell within 0 to 14 days, while others remain listed over a month. TIC and condo inventory overall is growing, currently between 4 and 5 months supply.
Most of the areas where our more than 560 homes were held open reported traffic as being steady to busy. Listing inventory is reportedly decreasing by a majority of offices (a sign that now may be the best time to buy while the selection remains available.) Sales activity is reported as steady or increasing by most offices.
I’d like to offer each of you my warmest wishes for a wonderful Thanksgiving holiday – and my sincere thanks for all the great work that you do, keeping Coldwell Banker by far the #1 real estate company in San Francisco and the Peninsula.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of November 11, 2007
It was a particularly interesting real estate market in the Bay Area this week. Some areas remain sluggish while others are bubbling with activity. Still others that have been on the slow side of the market for months are seeing a spike in buyer activity. We do spend a lot of time talking about how our media buries the positive aspects of our real estate markets behind negative headlines, but even they are starting to tell both sides of the real estate story with more accuracy and balance. We’re starting to see even more headlines like “OK ’08 seen for Bay Area real estate market,” “October Sales Jump,” and “Traditional reasons for home purchase still financially sound.” Perhaps this trend, and initiatives like our Reality Check, are truly impacting the consumer and reducing the hesitancy that buyers have been having about entering the market.
The number of new pending sales in the Danville market area is up for the third consecutive week. Livermore saw an increase in pending sales. Pleasanton is reporting properties in multiple offer situations. Buyers are “waking up” in Santa Rosa. Sales activity picked up in Walnut Creek and open homes are seeing up to 40 groups going through them. These areas seemed to be the most challenged in August and September.
An interesting phenomenon is being reported in the prime neighborhoods within San Mateo, Burlingame and Hillsborough where there is an increasing number of private “off market” sales. Some Sellers are putting out the word that they will entertain pre-listing offers, and the properties are selling without ever going on the market. San Mateo sales are very strong for a November with multiple offers frequently seen. Palo Alto, West Menlo Park report inventory levels remain at “all time lows” and nearly any home that is well-priced receives multiple offers – however a different market exists east of 101. San Francisco remains strongest in the $1.5M+ properties. Lower and mid-range price points in the City are trending toward multiple counters versus multiple offers. That said, every one of our San Francisco offices will see a well-priced and staged property sell within 0 to 14 days, while others remain listed over a month. TIC and condo inventory overall is growing, currently between 4 and 5 months supply.
Most of the areas where our more than 560 homes were held open reported traffic as being steady to busy. Listing inventory is reportedly decreasing by a majority of offices (a sign that now may be the best time to buy while the selection remains available.) Sales activity is reported as steady or increasing by most offices.
I’d like to offer each of you my warmest wishes for a wonderful Thanksgiving holiday – and my sincere thanks for all the great work that you do, keeping Coldwell Banker by far the #1 real estate company in San Francisco and the Peninsula.
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Week of November 4, 2007
There is a sense that buyers and sellers are really listening to the people that they ought to be listening to – their real estate professionals – and starting to understand that real estate is local.
A continually increasing buzz of activity is being reported from most areas, and house hunters are becoming more motivated to make informed buying decisions now while interest rates remain low and inventory levels in some areas create bargains. Our Reality Check initiative continues to have a positive educational influence and consumer impact, and also reaffirms Coldwell Banker Residential Brokerage’s reputation for being the leading residential real estate firm in Northern California.
More than 540 homes were held open last week and attendance was reportedly busy in most areas. Sellers should continue to take note that the well-priced homes in good showing condition draw the greatest number of potential buyers and get offers. A well-priced Berkeley listing drew 58 visitors. Burlingame notes agents writing offers in all price points, as well as active floor-time with a walk-in who bought in 24 hours. Half Moon Bay as well as majority of the East Bay, seem to have turned the corner most dramatically with respect to increased activity. A few of the micro-markets in the City and Peninsula may have seen a little slower week. One thing for certain - is nothing is for certain in the current market.
It was a wild week for the stock market, and financials had quite a roller-coaster ride this week. Seems as if a good Employment/Jobs report for the month means one thing one day, and then totally another the next. Economists are having difficulty staying consistent with any story line. But isn’t it great to remember that nearly every year-over- year period, San Francisco Bay Area Real Estate has consistently been a good investment.
Overall, listing and sales activity remains steady for most offices, but with a buzz of excitement and an increased sense of urgency. Sellers are beginning to think about the upcoming holiday season and many may be reconsidering their decision to sell. I believe if I were a potential Seller right now, I would try my chances over the next six weeks while inventory is likely to be its lowest -and while Buyers are enjoying lower interest rates as well.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of November 4, 2007
There is a sense that buyers and sellers are really listening to the people that they ought to be listening to – their real estate professionals – and starting to understand that real estate is local.
A continually increasing buzz of activity is being reported from most areas, and house hunters are becoming more motivated to make informed buying decisions now while interest rates remain low and inventory levels in some areas create bargains. Our Reality Check initiative continues to have a positive educational influence and consumer impact, and also reaffirms Coldwell Banker Residential Brokerage’s reputation for being the leading residential real estate firm in Northern California.
More than 540 homes were held open last week and attendance was reportedly busy in most areas. Sellers should continue to take note that the well-priced homes in good showing condition draw the greatest number of potential buyers and get offers. A well-priced Berkeley listing drew 58 visitors. Burlingame notes agents writing offers in all price points, as well as active floor-time with a walk-in who bought in 24 hours. Half Moon Bay as well as majority of the East Bay, seem to have turned the corner most dramatically with respect to increased activity. A few of the micro-markets in the City and Peninsula may have seen a little slower week. One thing for certain - is nothing is for certain in the current market.
It was a wild week for the stock market, and financials had quite a roller-coaster ride this week. Seems as if a good Employment/Jobs report for the month means one thing one day, and then totally another the next. Economists are having difficulty staying consistent with any story line. But isn’t it great to remember that nearly every year-over- year period, San Francisco Bay Area Real Estate has consistently been a good investment.
Overall, listing and sales activity remains steady for most offices, but with a buzz of excitement and an increased sense of urgency. Sellers are beginning to think about the upcoming holiday season and many may be reconsidering their decision to sell. I believe if I were a potential Seller right now, I would try my chances over the next six weeks while inventory is likely to be its lowest -and while Buyers are enjoying lower interest rates as well.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
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