Weekly Market Watch
Week of June 23 – 29
It’s a great time to buy real estate.
Consumers need to be reminded that you can’t and shouldn’t play the housing market like the stock market. It’s not a quick-in, quick-out type of investment. Real estate is meant to be a long-term investment——one that historically speaking yields positive results. If consumers intend to be in their home for at least a few years, buying right now may make good sense. Couple that with the fact that your home provides shelter—a place for you to call home—it makes for one of the safest investments consumers can make.
So why are consumers still sitting on the sidelines? Is it fear? Overanalyzing? Lack of access to facts? Low consumer confidence? In all honesty, it’s probably a combination of them all. And our economy—including those darn gas bills—isn’t helping. But now truly is one of the best times in our recent history to buy real estate.
What I can say with the greatest level of certainty is that what goes up, must come down and on the flipside, what goes down, must come up. The down cycle has to stop somewhere and the good news is that we are seeing some consistent and positive trends that are making even the most pessimistic of analysts raise their eyebrows. Take a look at what came out this week:
Home sales increased 18.1% in May in California compared with the same period a year ago, according to CAR.
Furthermore, CAR recently reported “Home sales exceeded 400,000 last month for the first time since early 2007. While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state,” said CAR President William E. Brown. “Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels.”
The latest home resale report from NAR notes that sales were up by 2% nationally in May. Condo sales also jumped up 5.5% nationwide.
I know what you’re thinking, “Yeah, but this is just because of all of the REOs.” And yes, on some levels, this is true. But what this means is that while the recent slowdown in the housing market has softened prices for home sellers, it has also resulted in an unusually good opportunity to buy rentals and other investment properties. And savvy investors are taking notice and making offers, which is helping to drive an upswing in our market.
So now, on to our local markets:
- East Bay – The East Bay remains a market full of mini microclimates. Take Castro Valley for example. This market has been full steam ahead since late Spring which launched a flurry of REO sales. This week was no different. In fact, one Agent reported that for the first time in nine or ten months, there were more Agents representing buyers than there were listings. There are buyers everywhere that are taking advantage of the REOs and lower prices. Nearby Fremont concurs noting that they are enjoying a typical summer market with increased listings and increased sales—again, largely in part due to REOs. The Walnut Creek office reports that pending sales are up 300% in East Contra Costa County—one of the Bay Area markets hit highest by foreclosures. The affluent East Bay community of Orinda is what surprises me this week. They reported 15 ratified offers—three of which went into a multiple offer situation. All but one of the nine East Bay offices reported that sales activity were steady or increasing. A great sign as we had into the 4th of July holiday.
- North Bay – Yet another market enjoying the benefits of the flurry of REOs, Sonoma County continues full-steam ahead. Our Petaluma office reported that multiple offers are “dominating our marketplace” with five of 13 offers going into multiples. Our Santa Rosa office concurs reporting that the majority of their open escrows are in the entry level market—another sign of REO flurry. Neighboring Marin has been hit the least by REO activity but, thanks to its lack of buildable land and its global destination locale, remains a relatively stable market.
- Peninsula – We saw a much slower week along the Peninsula than we have in recent weeks. But in all honesty, we can’t really complain. The Peninsula has been its own mini microclimate through much of this real estate downturn with its most common problem being lack of inventory. Somehow the Peninsula has almost weathered the storm with very little effect to its bottom line. A couple of bright spots for the week: The Menlo Park El Camino office reported that there was strength in all price ranges this week—$290,000 to $7 million. Oh, and that $290,000 listing received 13 offers! The Palo Alto office reported that multiple offers are occurring about 80% of the time in Palo Alto proper. Not bad for a market that had a “slower than usual” week.
- Monterey – This week was a very busy one with writing offers and closing sales before the month’s end. The offices reported that they closed 10 sales on Friday alone. Phew! Why is this market moving so smoothly? I chalk it up to a consideration that they may not be quite as impacted by the effects of the national economy as some of our inland communities. Monterey by nature is a more affluent and upscale community and lending issues and credit concerns become less relevant.
- Santa Cruz – No information reported this week.
- San Francisco – I think we can chalk this slower than usual week up to an early 4th of July holiday. Many City residents are heading out on vacation and thus, the market traditionally takes a bit of a pause until San Franciscans return. Having said that, well priced and presented properties are still yielding multiple offers—though, for the most part, homes don’t seem to go wildly over listing. The Market Street office is reporting that they are getting a lot of multiple offers with buyers much less hesitant to act. Some Buyers are even setting up “Plans B and C” in case they lose out on their first choice.
- Silicon Valley – Silicon Valley is one of the broadest areas for micro climates. Take San Jose for instance. This market is currently enjoying the REO flurry as well with many listings going into multiples. Our Cupertino Stevens Creek office reported that Cupertino and Sunnyvale listings are moving quite well—as long, of course, as they are priced well and show well. One listing this week received three offers. Neighboring South County (Gilroy, Morgan Hill and Hollister) are also seeing the short sale and foreclosure frenzy. Our Gilroy office reported eight multiple offers this week alone and that a large percentage of available listings are short sales. The affluent communities of Los Altos, Los Altos Hills, Los Gatos and Saratoga are seeing movement but only if the old adage of “price it right from the start” holds true. Homes that test the waters often sit while those that price their homes competitively from the beginning—and show well to potential buyers—seem to move almost as soon as they hit the market.
Friday, July 11, 2008
Weekly Market Watch
Weekly Market Watch
Week of June 2-8
How do you catch a falling knife? Sorry, I don’t have the answer, largely due to the fact that I’m not willing to do the research. But what I can tell you is that in Northern California regions which have experienced a price decline, home prices are now more affordable than they have been in years. This obviously creates opportunity for many buyers. In areas where price has softened somewhat, but overall limited inventory still prevails, we could see a shift from a buyer’s market to a seller’s market almost overnight.
In a recent survey conducted by RealTrends, of the leading Broker/owners of the real estate industry, 69% of respondents said that, as of end of May, they strongly or somewhat agree that their market is showing signs of improvement.
While I don’t want to paint too rosy of a picture, what I can tell you is that while we still have a surplus inventory of homes in some areas, those homes that are priced accordingly are selling. Unfortunately too many buyers right now are relying on data reported by the media that has a three or even four month lag. Their perception may be that nothing is selling, when in fact; the sales rate may be brisk for well-priced property.
Take the City for instance. According to the Altos 10-City Composite Price Index, which is known for “real-time real estate research”, as of the end of May, San Francisco had the fastest rate of inventory turnover among all 10 major cities in the country with just 73 days on the market, in comparison to Miami which had the longest days on market at 152. Plus, consider the fact that according to the U.S. Bureau of Labor Statistics and the Census Bureau, San Francisco is the second leading producer of jobs in the country—which creates organic demand for the housing industry. Now throw in the fact that we live in one of the most desirable markets in the world. There will certainly be “would-be” buyers who, several years from now, will wish they would have bought in the summer of 2008.
Just take a look at what happened this week in the Bay Area:
East Bay – Business continues to build momentum in the East Bay, largely in part (in many markets) due to REOs. In Berkeley this week we had nine listings go into escrow of which three (or 1/3) went into multiple offers. In Castro Valley, prices continue to dip which makes for increased activity. Now that sellers have adjusted their prices, buyers are really starting to take action, which should be a lesson for all markets that once sellers reduce their price to a position that a buyer considers a “value,” then buyers will move from the ever important position of “fence sitter” to “house sitter.”
North Bay – The North Bay is seeing its own share of teeter totter success. Many homes are being sold prior to hitting the market—some even with multiple offers—and then others continue to sit. Price and value is truly key to market success and some consumers haven’t realized this reality yet. South of San Rafael seems to be holding strong with good market activity. And a new $6.5 million listing in Sausalito just received multiple offers in its first week on the market. Not bad! Sonoma County continues to thrive—again, largely in part due to REOs. In fact, the Petaluma office had 17 agents involved in multiple offers this week. Of the ratified sales, five were REOs and seven were short sales.
Peninsula – You’ve been great at getting the true facts of the market out, as we’re starting to see fence sitting buyers in the Peninsula take action. In fact, we are starting to see more multiple offers in many markets. It’s great to see buyers listen to our advice and make offers instead of waiting on the sidelines. A micro-climate of its own, Half Moon Bay is seeing a surge of inventory, and is also reporting open home visitor levels at near record highs, with the expectation that many of these properties will soon be in escrow. Palo Alto reports that open house activity has been very good but that there still is some skepticism from buyers. The good news is that volume of sales has actually increased in the Palo Alto Downtown office over the last few weeks. Of our eight reporting Peninsula offices this week, 19 of the pending sales were in multiple offers, a strong sign of upcoming activity as those buyers who didn’t prevail will be looking for the next new listing.
San Francisco – It seems sales activity in the City slowed this week. Was it due to the incredible weather, or perhaps the stock market? This was the week that the dollar was finding new lows while oil was finding new highs. But don’t fear- I can tell you that several offices have already picked up their pace by the end of the week, keeping in mind that the individual office reports are gathered throughout the week at your sales meetings from the preceding week’s activity
Week of June 2-8
How do you catch a falling knife? Sorry, I don’t have the answer, largely due to the fact that I’m not willing to do the research. But what I can tell you is that in Northern California regions which have experienced a price decline, home prices are now more affordable than they have been in years. This obviously creates opportunity for many buyers. In areas where price has softened somewhat, but overall limited inventory still prevails, we could see a shift from a buyer’s market to a seller’s market almost overnight.
In a recent survey conducted by RealTrends, of the leading Broker/owners of the real estate industry, 69% of respondents said that, as of end of May, they strongly or somewhat agree that their market is showing signs of improvement.
While I don’t want to paint too rosy of a picture, what I can tell you is that while we still have a surplus inventory of homes in some areas, those homes that are priced accordingly are selling. Unfortunately too many buyers right now are relying on data reported by the media that has a three or even four month lag. Their perception may be that nothing is selling, when in fact; the sales rate may be brisk for well-priced property.
Take the City for instance. According to the Altos 10-City Composite Price Index, which is known for “real-time real estate research”, as of the end of May, San Francisco had the fastest rate of inventory turnover among all 10 major cities in the country with just 73 days on the market, in comparison to Miami which had the longest days on market at 152. Plus, consider the fact that according to the U.S. Bureau of Labor Statistics and the Census Bureau, San Francisco is the second leading producer of jobs in the country—which creates organic demand for the housing industry. Now throw in the fact that we live in one of the most desirable markets in the world. There will certainly be “would-be” buyers who, several years from now, will wish they would have bought in the summer of 2008.
Just take a look at what happened this week in the Bay Area:
East Bay – Business continues to build momentum in the East Bay, largely in part (in many markets) due to REOs. In Berkeley this week we had nine listings go into escrow of which three (or 1/3) went into multiple offers. In Castro Valley, prices continue to dip which makes for increased activity. Now that sellers have adjusted their prices, buyers are really starting to take action, which should be a lesson for all markets that once sellers reduce their price to a position that a buyer considers a “value,” then buyers will move from the ever important position of “fence sitter” to “house sitter.”
North Bay – The North Bay is seeing its own share of teeter totter success. Many homes are being sold prior to hitting the market—some even with multiple offers—and then others continue to sit. Price and value is truly key to market success and some consumers haven’t realized this reality yet. South of San Rafael seems to be holding strong with good market activity. And a new $6.5 million listing in Sausalito just received multiple offers in its first week on the market. Not bad! Sonoma County continues to thrive—again, largely in part due to REOs. In fact, the Petaluma office had 17 agents involved in multiple offers this week. Of the ratified sales, five were REOs and seven were short sales.
Peninsula – You’ve been great at getting the true facts of the market out, as we’re starting to see fence sitting buyers in the Peninsula take action. In fact, we are starting to see more multiple offers in many markets. It’s great to see buyers listen to our advice and make offers instead of waiting on the sidelines. A micro-climate of its own, Half Moon Bay is seeing a surge of inventory, and is also reporting open home visitor levels at near record highs, with the expectation that many of these properties will soon be in escrow. Palo Alto reports that open house activity has been very good but that there still is some skepticism from buyers. The good news is that volume of sales has actually increased in the Palo Alto Downtown office over the last few weeks. Of our eight reporting Peninsula offices this week, 19 of the pending sales were in multiple offers, a strong sign of upcoming activity as those buyers who didn’t prevail will be looking for the next new listing.
San Francisco – It seems sales activity in the City slowed this week. Was it due to the incredible weather, or perhaps the stock market? This was the week that the dollar was finding new lows while oil was finding new highs. But don’t fear- I can tell you that several offices have already picked up their pace by the end of the week, keeping in mind that the individual office reports are gathered throughout the week at your sales meetings from the preceding week’s activity
Weekly Market Watch
Weekly Market Watch
Week of May 12-18
DataQuick News, the real estate information resource that much of the industry and media look to for housing data, released its April report (http://www.dqnews.com/News/California/Bay-Area/RRBay080520.aspx) last week and in it, we saw several signs of momentum, including:
“Bay Area home sales edged up from a seven month run of record lows last month, indicating that mortgage availability is improving and that an increasing number of fence sitters have decided they like today’s lower prices.”
“A total of 6,310 new and resale houses and condos sold in the nine-county Bay Area in April. That was up 28.8% from 4,898 in March and down 15.3% from 7,447 for April 2007.”
The month-to-month jump was the strongest for any March/April in DataQuick’s statistics, which go back to 1988 and it the April figures show the first monthly sales gain in six months.
“This could be the first sign that (the market has) bottomed out,” DataQuick analyst Andrew LePage said. “One month doesn’t make a trend, but there’s some momentum.”
The biggest factor driving up sales, according to DataQuick, was a flurry of bargain hunting in parts of the Bay Area most affected by foreclosures. The only two counties that saw year-over-year increases in resale home sales were Contra Costa and Solano Counties, the two also hardest hit by REOs. Last month, foreclosure properties represented 44.7% and 54.2% of all sales in those areas, respectively.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going under contract. It seems in most markets, housing prices in the Bay Area have adjusted to a point where they are fair and it seems buyers are responding. As a result, people who couldn’t afford a home a few years ago are coming back into the market. Here is what we saw in each of the individual, local markets:
East Bay – The East Bay is a market filled with its own mini microclimates. As we saw with DataQuick’s stats, portions of Contra Costa County have endured a large number of REOs marking more than 40% of all sales in the region. Though not considered an REO market, neighboring Lamorinda is reporting it is “HOT.” Orinda Manager Val Cook-Watkins reports. “Lots of new listings, lots of closed sales and a ton pending.” Alameda County, which hasn’t been hit quite as hard by the REO influx, continues to make good strides. The Berkeley office reports that the $550,000 to $750,000 range is getting “lots of action, visits and offers.” The Castro Valley office reports that its Agents are “urging buyers to get out there and move now because things are happening so fast.” In fact, some houses in Castro Valley are seeing multiple offers within a week of listing. In some cases, lower priced REOs are seeing multiple offers that sell over asking. The Livermore office reports that open houses and showings were active and that pending sales in Livermore, Pleasanton and Dublin are rising weekly in small increments.
North Bay – The more affordable regions of the North Bay, including much of Sonoma County, seem to be on fire. In fact, the Santa Rosa office reported 18 multiple offers last week. Manager Rick Laws notes, “We are continuing on a multiple offer mode. Great turnout for the Open House Weekend. One listing had 50+ people through.” Neighboring Sebastopol reports that it is seeing multiple offers in the low and high end but it is slower in the middle range ($500,000 to $999,000). One REO property had 27 offers.
Peninsula – The Peninsula market continues to see an influx of buyers who are in “wait and see” mode. Though sales have slowed in many areas throughout this market, we are seeing a great deal of buyer interest at open houses which leads me to believe that many savvy buyers are just looking for the perfect combination of value and move-in ready condition. The Half Moon Bay office reports “This was an incredible weekend for open houses with more properties than ever for buyers to view. There are serious buyers out there and several offers were made but negotiations continue to be challenging.” The Woodside office concurs noting, “Open houses are good. Buyers are just waiting for the right price.” The Menlo Park El Camino office reports that one listing had 10 offers.
San Francisco – The City, which was one of only two markets in the Bay Area that saw an increase in sales volume (6.5% to be exact) from April 2007 to April 2008, continues to flourish. The Lakeside office, which enjoyed six multiple offers last week, notes that multiple offers continue to occur on “nicely presented homes.” The Lombard office noted that “most deals this week had one or two offers.” We are seeing steady inventory in all prices throughout the City and strong open house traffic which continues to be a good symbol of pent-up demand for quality listings that show well and are priced competitively.
For most markets within the Bay Area, if the house is priced right, it will sell. Even with the increased momentum and interest from buyers, sellers must continue to price their homes competitively to get their homes sold in this market. Regardless of interest, buyers are looking for value in today’s market and sellers need to position themselves accordingly.
Week of May 12-18
DataQuick News, the real estate information resource that much of the industry and media look to for housing data, released its April report (http://www.dqnews.com/News/California/Bay-Area/RRBay080520.aspx) last week and in it, we saw several signs of momentum, including:
“Bay Area home sales edged up from a seven month run of record lows last month, indicating that mortgage availability is improving and that an increasing number of fence sitters have decided they like today’s lower prices.”
“A total of 6,310 new and resale houses and condos sold in the nine-county Bay Area in April. That was up 28.8% from 4,898 in March and down 15.3% from 7,447 for April 2007.”
The month-to-month jump was the strongest for any March/April in DataQuick’s statistics, which go back to 1988 and it the April figures show the first monthly sales gain in six months.
“This could be the first sign that (the market has) bottomed out,” DataQuick analyst Andrew LePage said. “One month doesn’t make a trend, but there’s some momentum.”
The biggest factor driving up sales, according to DataQuick, was a flurry of bargain hunting in parts of the Bay Area most affected by foreclosures. The only two counties that saw year-over-year increases in resale home sales were Contra Costa and Solano Counties, the two also hardest hit by REOs. Last month, foreclosure properties represented 44.7% and 54.2% of all sales in those areas, respectively.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going under contract. It seems in most markets, housing prices in the Bay Area have adjusted to a point where they are fair and it seems buyers are responding. As a result, people who couldn’t afford a home a few years ago are coming back into the market. Here is what we saw in each of the individual, local markets:
East Bay – The East Bay is a market filled with its own mini microclimates. As we saw with DataQuick’s stats, portions of Contra Costa County have endured a large number of REOs marking more than 40% of all sales in the region. Though not considered an REO market, neighboring Lamorinda is reporting it is “HOT.” Orinda Manager Val Cook-Watkins reports. “Lots of new listings, lots of closed sales and a ton pending.” Alameda County, which hasn’t been hit quite as hard by the REO influx, continues to make good strides. The Berkeley office reports that the $550,000 to $750,000 range is getting “lots of action, visits and offers.” The Castro Valley office reports that its Agents are “urging buyers to get out there and move now because things are happening so fast.” In fact, some houses in Castro Valley are seeing multiple offers within a week of listing. In some cases, lower priced REOs are seeing multiple offers that sell over asking. The Livermore office reports that open houses and showings were active and that pending sales in Livermore, Pleasanton and Dublin are rising weekly in small increments.
North Bay – The more affordable regions of the North Bay, including much of Sonoma County, seem to be on fire. In fact, the Santa Rosa office reported 18 multiple offers last week. Manager Rick Laws notes, “We are continuing on a multiple offer mode. Great turnout for the Open House Weekend. One listing had 50+ people through.” Neighboring Sebastopol reports that it is seeing multiple offers in the low and high end but it is slower in the middle range ($500,000 to $999,000). One REO property had 27 offers.
Peninsula – The Peninsula market continues to see an influx of buyers who are in “wait and see” mode. Though sales have slowed in many areas throughout this market, we are seeing a great deal of buyer interest at open houses which leads me to believe that many savvy buyers are just looking for the perfect combination of value and move-in ready condition. The Half Moon Bay office reports “This was an incredible weekend for open houses with more properties than ever for buyers to view. There are serious buyers out there and several offers were made but negotiations continue to be challenging.” The Woodside office concurs noting, “Open houses are good. Buyers are just waiting for the right price.” The Menlo Park El Camino office reports that one listing had 10 offers.
San Francisco – The City, which was one of only two markets in the Bay Area that saw an increase in sales volume (6.5% to be exact) from April 2007 to April 2008, continues to flourish. The Lakeside office, which enjoyed six multiple offers last week, notes that multiple offers continue to occur on “nicely presented homes.” The Lombard office noted that “most deals this week had one or two offers.” We are seeing steady inventory in all prices throughout the City and strong open house traffic which continues to be a good symbol of pent-up demand for quality listings that show well and are priced competitively.
For most markets within the Bay Area, if the house is priced right, it will sell. Even with the increased momentum and interest from buyers, sellers must continue to price their homes competitively to get their homes sold in this market. Regardless of interest, buyers are looking for value in today’s market and sellers need to position themselves accordingly.
Weekly Market Watch
Weekly Market Watch
Week of April 14
Here’s the headline: The number of sales reported in San Francisco and Peninsula MLS’s continues to drop. Here’s the rest of the story: The new pending sales each month are dropping in an almost parallel fashion relating to the number of new listings coming to market. Please be sure your Buyers and Sellers understand this. For the most part in nearly every SF and Peninsula community, Median Sales Price is continuing to grow, albeit a slower rate. With new sales tracking new inventory rates, prices remaining stable to increasing, and interest rates extremely attractive – Buyers who hesitate will likely find fewer choices at higher prices.
Based on what we’re seeing in our local offices, April is shaping up to be one of our busiest months in at least a year. After a relatively slow first quarter, here is what we’re seeing in the market today:
- Busy Open Houses: In fact our Berkeley office reported 80 visitors to one Berkeley listing and 70 visitors to one Kensington listing. Berkeley manager noted, “All hosting Agents reported that the buyers were focused, enthused and most of them were just starting out in the home buying process.” San Francisco Market Street reports that several open houses had more than 100 people through over the weekend. Throughout the Peninsula open houses were reported as being robust and well-attended.
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- Increase in Pending Sales: The Tri-Valley reports that pending sales are up 35%. SF Lombard reported increased activity in pendings. Woodside, Palo Alto and Menlo Park offices also had a bigger week of new sales.
- Inventory is Stabilizing or Decreasing: Out of 27 responding offices, 13 offices reported steady inventory while four reported decreasing inventory levels, leaving just 10 markets, largely in the North Bay, East Bay and in parts of San Francisco, with an increase in inventory. This trend, can be construed as a double edge sword. Though stabilizing or decreased inventory continues to build pent-up demand, one major issue in our market is the lack of good, solid listings that buyers will act on. Let’s hope that as the weeks play out, we see a better influx of good listings.
-
- Increase in Multiple Offers: The trend of multiple offers is continuing to prove demand outweighs supply for prime properties in sought-after neighborhoods. Some of the most prominent areas enjoying the benefits of multiple offers are: San Francisco, reporting 15 multiple offers last week; Menlo Park with six multiple offers, one of which received 10 offers; Palo Alto with four multiple offers; and several parts of our more affordable, outlying areas like Santa Rosa, with eight offers.
Week of April 14
Here’s the headline: The number of sales reported in San Francisco and Peninsula MLS’s continues to drop. Here’s the rest of the story: The new pending sales each month are dropping in an almost parallel fashion relating to the number of new listings coming to market. Please be sure your Buyers and Sellers understand this. For the most part in nearly every SF and Peninsula community, Median Sales Price is continuing to grow, albeit a slower rate. With new sales tracking new inventory rates, prices remaining stable to increasing, and interest rates extremely attractive – Buyers who hesitate will likely find fewer choices at higher prices.
Based on what we’re seeing in our local offices, April is shaping up to be one of our busiest months in at least a year. After a relatively slow first quarter, here is what we’re seeing in the market today:
- Busy Open Houses: In fact our Berkeley office reported 80 visitors to one Berkeley listing and 70 visitors to one Kensington listing. Berkeley manager noted, “All hosting Agents reported that the buyers were focused, enthused and most of them were just starting out in the home buying process.” San Francisco Market Street reports that several open houses had more than 100 people through over the weekend. Throughout the Peninsula open houses were reported as being robust and well-attended.
-
- Increase in Pending Sales: The Tri-Valley reports that pending sales are up 35%. SF Lombard reported increased activity in pendings. Woodside, Palo Alto and Menlo Park offices also had a bigger week of new sales.
- Inventory is Stabilizing or Decreasing: Out of 27 responding offices, 13 offices reported steady inventory while four reported decreasing inventory levels, leaving just 10 markets, largely in the North Bay, East Bay and in parts of San Francisco, with an increase in inventory. This trend, can be construed as a double edge sword. Though stabilizing or decreased inventory continues to build pent-up demand, one major issue in our market is the lack of good, solid listings that buyers will act on. Let’s hope that as the weeks play out, we see a better influx of good listings.
-
- Increase in Multiple Offers: The trend of multiple offers is continuing to prove demand outweighs supply for prime properties in sought-after neighborhoods. Some of the most prominent areas enjoying the benefits of multiple offers are: San Francisco, reporting 15 multiple offers last week; Menlo Park with six multiple offers, one of which received 10 offers; Palo Alto with four multiple offers; and several parts of our more affordable, outlying areas like Santa Rosa, with eight offers.
Weekly Market Watch
Weekly Market Watch
Week of April 14
Here’s the headline: The number of sales reported in San Francisco and Peninsula MLS’s continues to drop. Here’s the rest of the story: The new pending sales each month are dropping in an almost parallel fashion relating to the number of new listings coming to market. Please be sure your Buyers and Sellers understand this. For the most part in nearly every SF and Peninsula community, Median Sales Price is continuing to grow, albeit a slower rate. With new sales tracking new inventory rates, prices remaining stable to increasing, and interest rates extremely attractive – Buyers who hesitate will likely find fewer choices at higher prices.
Based on what we’re seeing in our local offices, April is shaping up to be one of our busiest months in at least a year. After a relatively slow first quarter, here is what we’re seeing in the market today:
- Busy Open Houses: In fact our Berkeley office reported 80 visitors to one Berkeley listing and 70 visitors to one Kensington listing. Berkeley manager noted, “All hosting Agents reported that the buyers were focused, enthused and most of them were just starting out in the home buying process.” San Francisco Market Street reports that several open houses had more than 100 people through over the weekend. Throughout the Peninsula open houses were reported as being robust and well-attended.
-
- Increase in Pending Sales: The Tri-Valley reports that pending sales are up 35%. SF Lombard reported increased activity in pendings. Woodside, Palo Alto and Menlo Park offices also had a bigger week of new sales.
- Inventory is Stabilizing or Decreasing: Out of 27 responding offices, 13 offices reported steady inventory while four reported decreasing inventory levels, leaving just 10 markets, largely in the North Bay, East Bay and in parts of San Francisco, with an increase in inventory. This trend, can be construed as a double edge sword. Though stabilizing or decreased inventory continues to build pent-up demand, one major issue in our market is the lack of good, solid listings that buyers will act on. Let’s hope that as the weeks play out, we see a better influx of good listings.
-
- Increase in Multiple Offers: The trend of multiple offers is continuing to prove demand outweighs supply for prime properties in sought-after neighborhoods. Some of the most prominent areas enjoying the benefits of multiple offers are: San Francisco, reporting 15 multiple offers last week; Menlo Park with six multiple offers, one of which received 10 offers; Palo Alto with four multiple offers; and several parts of our more affordable, outlying areas like Santa Rosa, with eight offers.
Week of April 14
Here’s the headline: The number of sales reported in San Francisco and Peninsula MLS’s continues to drop. Here’s the rest of the story: The new pending sales each month are dropping in an almost parallel fashion relating to the number of new listings coming to market. Please be sure your Buyers and Sellers understand this. For the most part in nearly every SF and Peninsula community, Median Sales Price is continuing to grow, albeit a slower rate. With new sales tracking new inventory rates, prices remaining stable to increasing, and interest rates extremely attractive – Buyers who hesitate will likely find fewer choices at higher prices.
Based on what we’re seeing in our local offices, April is shaping up to be one of our busiest months in at least a year. After a relatively slow first quarter, here is what we’re seeing in the market today:
- Busy Open Houses: In fact our Berkeley office reported 80 visitors to one Berkeley listing and 70 visitors to one Kensington listing. Berkeley manager noted, “All hosting Agents reported that the buyers were focused, enthused and most of them were just starting out in the home buying process.” San Francisco Market Street reports that several open houses had more than 100 people through over the weekend. Throughout the Peninsula open houses were reported as being robust and well-attended.
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- Increase in Pending Sales: The Tri-Valley reports that pending sales are up 35%. SF Lombard reported increased activity in pendings. Woodside, Palo Alto and Menlo Park offices also had a bigger week of new sales.
- Inventory is Stabilizing or Decreasing: Out of 27 responding offices, 13 offices reported steady inventory while four reported decreasing inventory levels, leaving just 10 markets, largely in the North Bay, East Bay and in parts of San Francisco, with an increase in inventory. This trend, can be construed as a double edge sword. Though stabilizing or decreased inventory continues to build pent-up demand, one major issue in our market is the lack of good, solid listings that buyers will act on. Let’s hope that as the weeks play out, we see a better influx of good listings.
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- Increase in Multiple Offers: The trend of multiple offers is continuing to prove demand outweighs supply for prime properties in sought-after neighborhoods. Some of the most prominent areas enjoying the benefits of multiple offers are: San Francisco, reporting 15 multiple offers last week; Menlo Park with six multiple offers, one of which received 10 offers; Palo Alto with four multiple offers; and several parts of our more affordable, outlying areas like Santa Rosa, with eight offers.
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