It’s very interesting to review the past several weeks’ market
reports and notice the geographical migration of low inventory concerns
throughout the Bay Area. Several weeks ago the communities further east
and north were largely commenting on lack of sales activity - listed
properties not moving. The same week, San Francisco and the Peninsula
were starting to comment on the lack of new properties coming to the
marketplace. Notice this week that sales activity is picking up in the
north and east bays, while San Francisco and Peninsula offices are genuinely
concerned about the shortage of inventory.
In Pleasanton, our office reports that 67 new homes came on the market
during the week, and 63 homes went pending. Inventory in the Danville
market has dropped below a three month supply. Coastal inventory in
Half Moon Bay is down dramatically. Palo Alto reports that 65% of all
of their offers are multiple offers. Menlo Park cries “We’re
starving for houses to sell.” Burlingame reports multiple pre-emptive
offers at a $3M price-point listing. That being said, there are some
properties in both San Francisco and the Peninsula in the $2.5M+ range
which aren’t flying off the shelves, indicating that a sensitive
list price is still key.
Of the more than 485 open houses held by our offices, all were well
attended. In San Francisco an approx. 950 sq ft home w/o dining room
in Bernal Heights had more than 300 visitors. By mid-week, it sold for
more than 20% over its $699,000 LP with 13 offers. Another San Francisco
home in the Westwood Highlands district had 43 disclosure packets out
and 21 offers submitted after only 4 days of showings.
Listing inventory overall was reported as being steady by 16 offices,
increasing by 6 and decreasing by 10. Sales activity reportedly increased
in 7 offices, decreased in 4, and was steady for 18 offices. Of the
offices reporting, there were more than 200 ratified offers.
There is a lot of buzz indicating that sellers are waiting for late
spring before putting their homes on the market. Hopefully, those sellers
aren’t looking at the media headlines and thinking they’re
indicative of a bad time to list. The buyers are out there…waiting
for something to buy!
Rick Turley
President
Coldwell Banker SF/Peninsula
