It was beautiful and warm everywhere in the Bay Area last week, but
the real estate market continues to have some microclimates that are
actually sizzling! Buyers are out “kicking tires” in every
area, causing multiple offer situations to escalate, especially in the
City and on the Peninsula. Woodside/Portola Valley reports that most
agents are in multiple offer presentations with some prices going 10
to 15 % over asking. San Francisco notes that the number of offers in
multiple situations is climbing higher each week, now seeing 6-13 offers
on many properties. Southern Marin offices are seeing multiples becoming
commonplace on properties listed for over $2 million. Areas of Fremont
are seeing 4 to 10 offers per listing.
Pre-emptive offers are increasing which makes for a successful and
faster property sale – with a downside that they are keeping much
need inventory from coming to the market. In San Francisco, sales for
the most part still outnumber listings, especially in the upper-tier
market and neighborhoods. Contra Costa County and areas of Alameda County
are experiencing a very balanced market where inventory has seen some
stabilization, although some very hot micro-markets exist.
Listing inventory is increasing according to 12 office reports, steady
for 17, and only decreasing in one office. Sales activity continues
to increase for 11 offices and remains steady for 13 - decreasing for
6. Of the reporting offices who tracked the number of multiple offers
which occurred for the week, more than half of the offices reported
that over 50% of their total sales were in a multiple offer situation.
The media is taking a detour with their focus on the subprime mortgage
crisis. No doubt - this is a very serious situation nationwide involving
a particular sector of lending - but it should be kept in context for
what it is. It is not a primary driver of our local real estate activity
and health. Buyers and Sellers alike should be encouraged by another
headline found in this Sunday’s Chronicle: “Mortgage rates
are lowest since mid-December”. What a great time to move up!
Rick Turley
President
Coldwell Banker SF/Peninsula
