Inventory is not increasing at the rate it typically does in March.
The number of pages in our MLS tour sheets is a good indicator, and
they are decreasing in both the SF and Peninsula MLS’s this week.
We’re hearing of new listings in the pipeline for many of our offices;
however we appear to have plenty of Buyers already lined up for these
new properties once they come online. In some respects, it’s a
good problem to have. Having just returned from our International Business
Conference and meeting with the CB presidents from all over the US,
most metros would love to have this problem. My take is the market feels
“healthy” in the majority of the metro areas, but none seem
to be experiencing the sizzling Buyer demand we have in the Bay Area
for well-priced, good condition homes. The typical drivers for a healthy
market are in place: low interest rates, low unemployment, consumer
confidence index is steady – in spite of a recent world-wide stock
market drop. Add to that the limited housing we have in the Bay Area,
and we should continue to see robust activity at least through the 2nd
quarter, provided we have listings to sell.
Multiple offer situations dominate the conversation in most of our
offices. Along with the obvious benefits of multiple-Buyer demand, comes
the responsibility of educating the Seller on the best method to deal
with this level of activity. It’s also important to over-communicate
with the agents of Buyers who have an interest in our listings. Pre-emptive
offers are more common now, and as the Seller must be the one who decides
how to deal with these opportunities, it remains our responsibility
to communicate the game plan with all the possible players.
In the $1-2 million range (where inventory still seems to be the tightest)
homes are getting anywhere from two to 12 offers. Berkeley indicates
that 75% of their sales were in multiple offer situations, and in San
Francisco’s Westwood Park, a “contractor’s special”
received 33 offers – 22 of which were all cash. In Palo Alto, practically
anything on the market for less than $2 million is receiving multiple
offers. Listing inventory overall decreased for 6 offices, remained
steady for 11 and increased in 10. Sales activity continues its upswing
with 15 offices reporting an increase, 10 seeing steady activity, and
only 2 reporting a decline.
We get an extra hour of daylight now - let’s hope homeowners
put it to good use in whipping their homes into shape for a quick Springtime
sale. Let’s also make sure we’re taking full advantage of
our Princeton partners, getting our Buyers pre-approved and underwritten
in advance, for a super-clean offer.
Rick Turley
President
Coldwell Banker SF/Peninsula
