Weekly Market Watch

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