Weekly Market Watch
Weekly Market Watch
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. An interesting phenomenon is being reported in the prime San Mateo, Burlingame and Hillsborough areas in that there is an increasing number of private “off market” sales where 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.
Sellers who want to, or need to, sell are finally pricing their homes realistically and when they do, they sell their home. Witness a Fremont listing that was originally on the market for $680,000. After changing brokers, the listing was put on the market at $499,000. It had ten offers and sold for $550,000. In Novato, houses that are priced well from the beginning are going into contract “immediately.” A town home in Walnut Creek received 3 offers with strong back up after the seller agreed to reduce the price from $650,000 to $579,000. In Palo Alto, inventory levels remain at “all time lows” and any home that is well-priced receives multiple offers.
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 safe and festive Thanksgiving holiday.
Weekly Market Watch
November 4, 2007
There is a sense that buyers and sellers are really listening to the people that they ought to be listening to – their real estate professionals – and starting to understand that real estate is local.
The markets continue to be mixed throughout the region. Well priced properties in great condition are selling and we are seeing a few multiple offer situations in areas with low inventories. The question is, what is well priced? Remember, real estate prices are heavily influenced by supply and demand. Sellers need to understand this now more than ever. It is confusing to see some areas with little to no available inventory and just a few towns away there can be an oversupply. The Data Quick numbers that come out monthly can be confusing as well. We continue to see unit sales down yet the median prices are holding fairly even. This is due to the fact that a few high priced properties are skewing the numbers. With fewer total sales each month it doesn’t take many high end deals to skew the median upward. Now more than ever. We are dealing with micro markets and the picture can change dramatically from town to town.
A continually increasing buzz of activity is being reported from most areas, and house hunters are becoming more motivated to make informed buying decisions now while interest rates remain low and inventory levels create bargains. Our Reality Check initiative continues to have a positive educational influence and consumer impact, and also reaffirms Coldwell Banker Residential Brokerage’s reputation for being the leading residential real estate firm in Northern California.
More than 540 homes were held open last week and attendance was reportedly busy in most areas. Sellers should continue to take note that the well-priced homes in good showing condition draw the greatest number of potential buyers and get offers. A well-priced Berkeley Street listing drew 58 visitors, and other listings in the area averaged around 20 visitors each. Burlingame notes agents writing offers in all price points. Half Moon Bay, Livermore, San Francisco and most of the Peninsula also report increased buyer activity.
Overall, listing and sales activity remains steady for most offices, but with a buzz of excitement and an increased sense of urgency. Sellers are beginning to think about the upcoming holiday season and many may be reconsidering their decision to sell. While the inventory remains on the market, there are bargains to be had.
