San Francisco Real Estate Market Update for
week of
March 2, 2008
Read what Rick Turley, President of Coldwell Banker, San Francisco/Peninsula says in his latest weekly report:
It’s official. The Department of Housing and Urban Development has released the amounts of increases in the conforming loan limit for FHA, Fannie Mae and Freddie Mac secured loans. This is great news for Bay Area homeowners, home buyers and home sellers alike. For homeowners, the increase may allow them to refinance their existing “jumbo” loans at a lower rate of interest. For buyers, it may make getting a loan much easier and cheaper. For sellers, it ought to spur fence-sitting buyers to take more immediate action and start writing offers on all those open houses they’ve been flocking to for the past weeks. Though there is a possibility that the increases will be permanent pending new legislation, for now the conforming loan limit increases are only confirmed through the end of 2008. Buyers have a distinct time-frame through which to take advantage of this opportunity. Move-up buyers and first time buyers both have a terrific break right now to find the home of their dreams.
The new increased limits (up to 125% of an area’s median home price) impact practically all of our Bay Area Counties. Alameda, Contra Costa, Marin, San Francisco and San Mateo all qualify for FHA, Fannie and Freddie increases up to the cap of $729,750. Sonoma County’s FHA conforming loan limit increases up to $662,500, and for Solano, the increase is up to $557,500.
We aren’t certain when new loan products will actually hit the market and become available, but it shouldn’t take long. Lenders have to be pre-approved to offer FHA loans, so it’s more important than ever for buyers to be working with skilled real estate professionals who have the connections and resources necessary to make recommendations and guide their clients toward reputable, pre-approved lenders. Our Princeton loan officers are doing a great job keeping us abreast of new opportunities.
Open houses continue to be massively successful in most of our Bay Area markets – another sign that we may be seeing a sea change in buyer confidence regarding Bay Area real estate. Listings in Berkeley and El Cerrito ranging in price between $659,000 and $1.4 million saw between 65 and 100 groups attending the open houses. In Fremont, where REO’s continue to be a large percentage of the market, open homes were receiving up to 120 visitors. A new Hillsborough listing saw more than 50 groups. In Redwood City, attendance was “incredible,” and in San Mateo, activity was great at the open houses and “on paper.”
Greenbrae notes more multiple offers and buyers activity, and in Santa Rosa buyers have already jumped off that fence – their office is “busy, busy, busy.” On the Peninsula, with the exception of Palo Alto with inventory at an all time low, we’re starting to see an up tick in the availability of saleable homes in a wider variety of locations and price ranges – this is bringing potential buyers out in large numbers when price, location and condition are in alignment. In San Francisco, a mixed-use listing in the Sunset district generated 21 offers. MLS Inventory stats in the City show stable inventory, however our 5 offices reported 30 new listings this week. We’ll gladly take them, as activity is brisk.
All in all, good news this week for us in San Francisco and on the Peninsula. Nationally, new reports came out including employment figures which had our financial markets in dismay. While we have to be ever cognizant of the state of our national economy, it’s important to keep your daily focus on the pulse of your local real estate market. This is the critical information our customers need to make good financial decisions regarding housing. I sent you all a special edition of Reality Check materials this week that will help you to educate your buyers and sellers about the impact that the increase in the conforming loan limits could have on them.
Rick Turley
President
Coldwell Banker SF/Peninsula
