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