"Chugging along seems to typify our market. More offices reported
increasing sales activity as compared to April numbers. Open homes are
still being well attended, although the numbers have backed off from
the early spring. This may be due to the increase of new listings over
the last month. The SF/Peninsula still leads with the highest volume
of multiple offers varying from 20-78% multiples. The rest of the Bay
Area is hit and miss with multiple offers. Half of the remaining offices
had no multiples at all. We are seeing more price reductions as sellers
are becoming more realistic in pricing their homes. Appreciation has
slowed from the double digits down to the mid single digits.
"All of this is indicative of a balanced market. Negotiation is
more prevalent with buyers asking for concessions if problems show up
from inspections. Buyers are more willing today to end negotiations
if sellers are unwilling to compromise. Inventories continue to grow
at reasonable levels.
"The market, I think, is best expressed in an article written
by Carol Lloyd, a SF Chronicle reporter, in yesterday’s real estate
section. She observed that there are prognosticators who are on both
extremes of the market. However she stated that real estate is still
a local phenomenon. Some markets you will continue to see multiple offers
while others will see more reductions in price. In the end she felt
prices will not be going down and that because of demand prices will
hover around current levels. I think her view is an astute one...
"Here are the numbers for the week: 16 offices reported increasing
listing inventory, 12 steady and 3 decreasing---11 offices showed increasing
sales activity, 16 steady and 4 decreasing."
Avram Goldman
President and COO
Coldwell Banker SF/Bay Area
