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