Coldwell Banker Weekly Market Watch
April 7-13
I read with interest this week an article entitled “Real Estate Agents Say Worst Has Past.”
http://www.wkjk.com/script/headline_newsmanager_alt.php?id=661660&pagecontent=NationalNews&feed_id=59 The article reinforced much of what I’ve been saying over the last few weeks: while the first quarter data says “no end in sight,” we are beginning to see major strides within the real estate market in harder-hit areas across the country.
In fact, in the areas that were hardest hit over the last two years (i.e. parts of the East Bay and in Sonoma County), we are seeing a lot more activity, largely in part due to the increase in REOs. In fact, Castro Valley this week is reporting that offers are becoming increasingly competitive and multiple offers are once again on the rise. Nearby Walnut Creek reports that REO listings in Pittsburg and Antioch are getting multiple offers and our North Bay neighbor Petaluma reports that multiple offers are becoming the norm with the office reporting six multiple offers this week alone. As you’ve heard me say in recent sales meetings, I am anxious to see the outlying markets have success, as they need to see increased sales activity before our local “fence-sitters” will gain more confidence.
All but two offices report increasing or steady activity, with nine offices noting a healthy increase. In fact, Silicon Valley reported this week the highest amount of sales of condos and townhouses since June 2007. And even more impressive is that they saw the most single family home sales since the first week of August 2005.
In our more affluent markets like San Mateo County, San Francisco and Marin, we are definitely seeing a strong shift in activity. Listings in prime Westside in Burlingame and San Mateo are still in demand and are selling quickly in the $1.7 million plus category. Our Van Ness office reports a fluency in the $2 million plus range. Possibly the biggest challenge for these markets continues to be a lack of inventory. San Mateo County and San Francisco are still in dire need of good, well-showing properties that will attract more buyers. The buyers are out there – they are just waiting for that perfect home.
In this market, our best negotiating power is to stay competitive. We need to be able to articulate to our buyers why, if they’ve found the house they want, they probably shouldn’t wait. Remember that script I shared with you in the April edition of Reality Check? Now would be a good time to go back and revisit it as a way of educating yourself on how to address concerns with buyers. There are many buyers out there right now who are ready to act but are weary – believing the media hype that prices will go down. We need to explain to these buyers the potential impact of waiting, including the probability of increased interest rates, increased competition and the ultimate sacrifice, losing a house that they love.
My message to sellers is the same: remain competitive. Many buyers are looking for the perfect combination of value and livability. If the home doesn’t show well from the beginning, a large portion of buyers will move on to the next one that does. I'll close with a quote from the above-mentioned article:
"...Among those drawn by the lower prices and mortgage rates are Kristen Werner, a 30-year old attorney for an insurance company, and her 32-year-old husband James, who said they are now looking seriously for their first home after a lull of several years. A pre-approved mortgage and the fact that they don't have a home to sell should smooth the process, and the volume of unsold homes where they are looking -- on Long Island, in the New York suburbs -- means they are more likely to find a house they want. But, in a caution for sellers, the Werners are coming in with expectations of a bargain.
"We need something that's in move-in condition -- I'm not Martha Stewart and my husband's not Bob Vila," Kristen Werner said."
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Monday, April 21, 2008
Wednesday, April 16, 2008
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of March 31, 2008
A recent Forbes Magazine article ranked the Top Ten Best Cities for Home Sellers. San Jose and San Francisco were at the top of the list. The article points out that San Jose and San Francisco came out on top because they fit the profile of a sellers' market--low inventory rates that were still shrinking, good job creation, a large scale cutback in new home construction and a boost in the credit market from new Fannie and Freddie loan limits. This fits neatly with what we’ve been saying for weeks now and reinforces the fact that real estate is local, and national headlines about the real estate market simply don’t apply to every market. It also helps to explain why the majority of our open houses remain so busy.
Some areas of our market, particularly on the Peninsula, Berkeley and in San Francisco, continue to suffer from a shortage of desirable, saleable properties, so when they do come on the market, they generate a lot of interest from potential buyers. In Palo Alto, the luxury market continues to thrive and preemptive offers are not uncommon at all. In San Francisco, the markets change from neighborhood to neighborhood – Noe and Eureka Valleys are highly sought after, and the market is very active in the $1.5 million-plus range. A listing in Noe Valley had more than 100 groups attend its open. There are also more REO properties coming on the market in San Francisco which, because of their perceived value, generate much interest from potential buyers.
In other areas, greater inventory levels, REOs and short sales in the market, are bringing out potential buyers because the affordable prices are practically irresistible. Three deals from the Castro Valley office have received between three and ten multiple offers apiece. These properties, located in the San Leandro, San Lorenzo and Hayward corridor, were priced between $299,000 and $360,000 which, in that area, has become a “magic” price range for generating lots of activity and quick sales. Livermore saw its best week of new sales in two years. In Concord, one home listed at $415,000 had nine offers and other properties in the area listed between $300,000 and $600,000 had as many as 12 offers. These multiple offers happening now aren’t driving up the prices back to unsustainable levels like they did a few years ago. But they do certainly indicate that the interest is out there for those desirable, well-priced homes – and that people are getting the financing necessary to get the deals done.
Some areas still have buyers maintaining a “wait and see” attitude – they’re out looking, but still think they might be able to get an even better deal - but they’re becoming more the exception than the rule. As we start seeing more articles like the one in Forbes magazine, and we continue educating our customers about the local nature of the real estate markets we serve, we’ll see a return to normalcy in the markets hasten.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Week of March 31, 2008
A recent Forbes Magazine article ranked the Top Ten Best Cities for Home Sellers. San Jose and San Francisco were at the top of the list. The article points out that San Jose and San Francisco came out on top because they fit the profile of a sellers' market--low inventory rates that were still shrinking, good job creation, a large scale cutback in new home construction and a boost in the credit market from new Fannie and Freddie loan limits. This fits neatly with what we’ve been saying for weeks now and reinforces the fact that real estate is local, and national headlines about the real estate market simply don’t apply to every market. It also helps to explain why the majority of our open houses remain so busy.
Some areas of our market, particularly on the Peninsula, Berkeley and in San Francisco, continue to suffer from a shortage of desirable, saleable properties, so when they do come on the market, they generate a lot of interest from potential buyers. In Palo Alto, the luxury market continues to thrive and preemptive offers are not uncommon at all. In San Francisco, the markets change from neighborhood to neighborhood – Noe and Eureka Valleys are highly sought after, and the market is very active in the $1.5 million-plus range. A listing in Noe Valley had more than 100 groups attend its open. There are also more REO properties coming on the market in San Francisco which, because of their perceived value, generate much interest from potential buyers.
In other areas, greater inventory levels, REOs and short sales in the market, are bringing out potential buyers because the affordable prices are practically irresistible. Three deals from the Castro Valley office have received between three and ten multiple offers apiece. These properties, located in the San Leandro, San Lorenzo and Hayward corridor, were priced between $299,000 and $360,000 which, in that area, has become a “magic” price range for generating lots of activity and quick sales. Livermore saw its best week of new sales in two years. In Concord, one home listed at $415,000 had nine offers and other properties in the area listed between $300,000 and $600,000 had as many as 12 offers. These multiple offers happening now aren’t driving up the prices back to unsustainable levels like they did a few years ago. But they do certainly indicate that the interest is out there for those desirable, well-priced homes – and that people are getting the financing necessary to get the deals done.
Some areas still have buyers maintaining a “wait and see” attitude – they’re out looking, but still think they might be able to get an even better deal - but they’re becoming more the exception than the rule. As we start seeing more articles like the one in Forbes magazine, and we continue educating our customers about the local nature of the real estate markets we serve, we’ll see a return to normalcy in the markets hasten.
Have a great week!
Rick
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
Weekly Market Watch
Coldwell Banker Weekly Market Watch
Week of March 23, 2008
Baseball season has begun and we’re starting to see buyers sliding into home. Yes, from all indications, the Bay Area real estate market is blooming just in time for spring. We were even able to squeeze a few positive headlines out of the media this week after NAR announced an unexpected increase in February sales figures, and CAR announced that sales have been increasing each month in our state for the past four months. Compared to this time last year, the reports still indicate very slow sales. But a dip in the median price, a copious selection of homes on the market in many areas and near-historically low mortgage rates are enticing buyers off of their fences. According to CAR, a number of cities in our area are starting to see increases in median prices again, which may be an indication that those markets are already bouncing back. Some who may have been waiting for the “bottom” in some areas may have missed it.
Open houses continue to bring in high numbers of attendees in the majority of areas, even on a holiday weekend, and multiple offer situations continue to increase on desirable, well-priced homes. A “not very attractive” home in the Berkeley flats was listed at $549,000, had 50 disclosure packets out and sold with 15 offers on the table. A San Ramon open home had more than 50 groups attend. A TIC in San Francisco drew multiple offers and sold for $50,000 over asking. Woodside/Portola Valley had three sales in multiple offer situations last week – one of them listed for more than $11 million. Menlo Park reports 75% of sales in multiple offer situations.
In many communities in San Francisco and the Peninsula, the month’s supply of inventory decreased this week. This week’s mls tour sheet for San Francisco was three pages fewer than the prior week. Realizing that we’re in the seasonal period where we get our highest surge of inventory, and combined with the fact that last week was Easter and it seemed some agents were waiting a week to bring on a new listing, one would expect many additional pages to this week’s tour. This basically says were not getting the fresh inventory to meet current demand, and prices will either remain very firm or rise in our sought-after neighborhoods.
Remember to use the current stats you can now pull up by mls area in MyRECafe, under “tools”. The graphs you can create around pricing and inventory are perfect for emailing to your clients, and to have printed at your Open House. I’d be asking for Open House attendee’s email addresses, and offering to email them a weekly update on area statistics. Local and current sales stats are what our clients need. Catchy and misleading newspaper headlines regarding horrible real estate market…... not so much.
Have a great week!
Rick
Week of March 23, 2008
Baseball season has begun and we’re starting to see buyers sliding into home. Yes, from all indications, the Bay Area real estate market is blooming just in time for spring. We were even able to squeeze a few positive headlines out of the media this week after NAR announced an unexpected increase in February sales figures, and CAR announced that sales have been increasing each month in our state for the past four months. Compared to this time last year, the reports still indicate very slow sales. But a dip in the median price, a copious selection of homes on the market in many areas and near-historically low mortgage rates are enticing buyers off of their fences. According to CAR, a number of cities in our area are starting to see increases in median prices again, which may be an indication that those markets are already bouncing back. Some who may have been waiting for the “bottom” in some areas may have missed it.
Open houses continue to bring in high numbers of attendees in the majority of areas, even on a holiday weekend, and multiple offer situations continue to increase on desirable, well-priced homes. A “not very attractive” home in the Berkeley flats was listed at $549,000, had 50 disclosure packets out and sold with 15 offers on the table. A San Ramon open home had more than 50 groups attend. A TIC in San Francisco drew multiple offers and sold for $50,000 over asking. Woodside/Portola Valley had three sales in multiple offer situations last week – one of them listed for more than $11 million. Menlo Park reports 75% of sales in multiple offer situations.
In many communities in San Francisco and the Peninsula, the month’s supply of inventory decreased this week. This week’s mls tour sheet for San Francisco was three pages fewer than the prior week. Realizing that we’re in the seasonal period where we get our highest surge of inventory, and combined with the fact that last week was Easter and it seemed some agents were waiting a week to bring on a new listing, one would expect many additional pages to this week’s tour. This basically says were not getting the fresh inventory to meet current demand, and prices will either remain very firm or rise in our sought-after neighborhoods.
Remember to use the current stats you can now pull up by mls area in MyRECafe, under “tools”. The graphs you can create around pricing and inventory are perfect for emailing to your clients, and to have printed at your Open House. I’d be asking for Open House attendee’s email addresses, and offering to email them a weekly update on area statistics. Local and current sales stats are what our clients need. Catchy and misleading newspaper headlines regarding horrible real estate market…... not so much.
Have a great week!
Rick
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