An island of good news appeared this week in a sea of negative media
regarding weakness in the housing market. The National Association of
Realtors' pending home sales index jumped five percent to 102.4 in June.
The index was created to be a more forward-looking snapshot on home
sales than NAR's existing home sales report, which charts sales at the
time of closing. The pending home sales index tracks when a sales agreement
is signed, generally a month or more ahead of closing. The nationwide
report is good news in that it indicates that home sales could see an
increase in coming months. Now we need a few more media sources to pick
up reports such as this, and we’re working on that. The important
message to a Buyer in one of our micro markets where sales activity
is slower is that historically as soon as media picks up that sales
activity is stronger – Sellers quickly become less negotiable.
We’ve been regularly referring to distinct micro-markets within
the Bay Area. San Francisco and the Peninsula continue to experience
even more distinction within these two counties when comparing inventory
and activity. Several SF offices reported fewer than usual multiples,
and a little slower activity – while other spots in the City seemed
hot. In San Francisco, a home in the West Portal area listed for $999,000
and received 8 offers. An agent’s Buyer had a win on a Mountain
View property with 26 offers, the same agent reported a different buyer
lost on a 14 offer presentation in Palo Alto, both in the same week.
Their office also closed a $16 million sale this week – a walk-in
which opened escrow Monday and closed Friday! Menlo Park reported 70%
of open sales were in multiples for the week. Half Moon Bay reports
that coastal inventory is dramatically up, but just now to normal season
levels.
Listing inventory remained healthy for the week with 17 of our offices
reporting steady inventory. Six offices reported increasing listing
inventory and only four reported a decrease. In addition, 16 offices
reported steady sales activity. Five offices saw increased sales activity,
and only six reported a decrease.
Buyers and Sellers are depending on your expertise even more now. Sites
like Zillow can offer some interesting generic info to the public, considered
to be largely entertainment value. Business models like Redfin can offer
money back to Buyers from agents who may be at a computer several counties
away and haven’t seen the property. You are continuing to demonstrate
priceless value to your customers each and every day.
Rick Turley
President
Coldwell Banker SF/Peninsula
