San Francisco Real Estate Market Update for
week of
February 3, 2008
Read what Rick Turley, President of Coldwell Banker, San Francisco/Peninsula says in his latest weekly report:
Again, we saw a week of very busy open homes in practically every area. Historically, Super Bowl weekend is fairly calm, but we saw large numbers of groups moving through our more than 330 open homes in all prices ranges on both Saturday and Sunday.
It’s a good move on the part of those buyers to be actively looking for the perfect home right now. The wide selection of homes to choose from remains excellent in many areas, but a recent report from the National Association of Realtors says that the number of existing homes on the market is starting to see a steady month-over-month decline.
Moreover, we are only one stroke of one pen away from seeing the F.H.A., Fannie Mae and Freddie Mac venture into jumbo loan territory. Optimism is rampant.
In Danville, inventory decreased in the market and an increase in sales activity. Inventory in Berkeley, Albany and Kensington areas are very low. R.E.O. properties in Livermore are generating multiple offers. In Oakland, when properties are perceived as values, they are generating five and more multiple offers. In Burlingame, great homes in all price ranges are garnering multiple offers. Menlo Park saw three sales over $6.5 million, and a $1.4 million property received six offers without even going on tour. San Francisco is also seeing a return to multiple offers in many neighborhoods, and the City has noticed a stabilization of inventory and an increase in the buyer population. There are as many stories about the listing the Buyers didn't get due to competition, as there are regarding properties that are taking a while to sell. Price and condition are key.
The proposed Economic Stimulus Package was approved by the U.S. Senate on February 7th and was passed to the President’s desk for his final approval. By all accounts, we should see it pass into law any time now. This is vitally important to the housing industry in our Bay Area markets because the bill temporarily allows the government-sponsored mortgage finance companies Fannie Mae and Freddie Mac to buy individual home loans worth up to $729,750, up from the current limit of $417,000. The Federal Housing Administration would be allowed to insure loans as high as $729,750 as well. In higher priced areas like ours, this allows a large number of Bay Area homebuyers to buy the home of their dreams, and for home owners to have easier access to refinancing. Since it’s a temporary change at this point (through the end of this year only), it makes sense for buyers to be out actively looking, and then committing to making that home purchase now while the opportunity remains available. Sooner rather than later makes the most sense!
Have a great week!
Rick Turley
President
Coldwell Banker SF/Peninsula
