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.
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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.