Final Market Watch of 2007

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