"Typical Fourth of July week----for the most part open
homes were less well attended and sales a bit sluggish. Why not, it
was a beautiful weekend. Listing inventories continue to increase and
the same sales patterns continue by region.
"The SF/Peninsula continues to lead in highest percentages of
multiple offers. While virtually all of the rest of the Bay, with a
few exceptions, multiple offers have all, but disappeared. Price reductions
continue in the North and East Bay. One change we have noticed is the
Monterey Peninsula seems to be coming to life again. After a strong
first quarter, the Monterey Peninsula tailed off, looks like they are
picking up a little momentum in the third quarter.
"Given current months supply of inventory the strongest market
is the SF/Peninsula, which still finds itself in a seller to balanced
market depending on area. The upper end which has been strong all year
is beginning to ease back, that is the market over $ 3 million. The
North and East Bay is somewhere between a balanced to buyer’s market
depending on location. East and West Contra Costa county has the highest
build up of inventory. Those areas where sellers are competing with
new home sales are faced with stiff competition due to developer incentives
and price reductions.
"Condos as a property class are seeing the largest build up of
inventory. Pricing has become the defining element as to whether those
listings in condo developments will sell. As condo inventories in particular
developments increase, buyers tend to view them more as a commodity,
since all the units are similar.
"Although the market has slowed from the last several years we
all need to keep in mind that 2004 and 2005 were exceptional years and
that this year is more in line with what is considered a normal market
with longer marketing times and where price and merchandising become
key components in the sale of homes. Buyers do not have the same sense
of urgency as last year. Also there is great diversity between markets
you cannot paint the entire Bay Area with one broad brush. Even within
cities you can have one area being a seller’s market and another
being a buyer’s market. The key is desirability of an area and
supply of inventory.
"Here is this week’s numbers:12 offices reported increased
listing inventories, 15 steady and 4 decreasing---6 offices showed increasing
sales activity, 19 steady and 6 decreasing."
Avram Goldman
President and COO
Coldwell Banker SF/Bay Area
