Some subtle changes were noted in our Bay Area market this week. The
East Bay offices report ratified offers on well priced properties, and
positive response from price reductions on some older inventory. With
only a few exceptions (Orinda and Berkeley), the majority of East Bay
offices reported no multiple offers. North Bay offices speak of slower
activity, with Marin reporting the upper-end properties are still scarce
and hot. San Francisco and the Peninsula reflect the same as Marin –
it seems the higher the price, the better the opportunity for a quick
sale. That should not be taken as advice for Sellers to raise their
price from the current market analysis. It simply points to a greater
demand for new inventory in the $2M+ range in the City and Peninsula
markets.
For the City, there was a decline in the number of multiple offers,
but very strong activity. I checked a 24 hour Market Watch in the SF
MLS, and during one 24 hour period last week, MLS reported 42 new listings,
and 45 new pending sales for the same time period. At first glance,
we’re selling more than is coming to the market. The Peninsula,
from Burlingame to Palo Alto continues the highest rate of multiple
offer activity, with more than 50% of reported sales in multiple offers,
the exception is Half Moon Bay.
The recent declines in the stock market have moved the bond yield up,
and we are already experiencing the upward pressure on interest rates.
As SF Lombard noted, we should be aware that the combination of a fatigued
Buyer and rising interest rates could slow us down this summer. For
the immediate future, fresh inventory remains to be the key. I would
encourage every potential Seller to finish their projects and get their
property on the market. In most years past, we’ve said a Seller
may have missed the best opportunity by waiting until June – not
the case this year.
Buyers are out in full force with most areas reporting strong attendance
at the nearly 600 homes held open during the week. More than 100 groups
came through a Berkeley Hills listing. A home in Millbrae had over 200
attendees, and it wasn’t even its first open. The Internet and
emerging technologies continue to play an increasingly important role
in bringing buyers and sellers together, and increasing foot traffic
at open homes. A Woodside/Portola Valley sales associate posted her
listing to a Blog and had a huge turnout at her open home. The sales
associate noticed that every buyer for this starter home had come as
a result of Internet searches as opposed to looking in the newspaper.
Listing inventory remained steady for 13 offices, increased for 12
offices and decreased in only four. Sales activity was reported as being
steady for 19 offices. It increased for seven offices and just three
offices saw a decrease.
Rick Turley
President
Coldwell Banker SF/Peninsula
