"It is officially summer. Vacations are in full force.
The market is in slow motion. The same consistent pattern exists between
geographic regions. The SF/Peninsula still is receiving the largest
number of multiple offers. However, these transactions with some exceptions
are going for list price or a little above. Multiples are few are far
between in the North and East Bay regions.
"Inventory growth has slowed due to fewer listings coming on the
market and more properties expiring. Price reductions are becoming a
way of life. The market is finding its level. Buyers are exceedingly
deliberate in their decision making. Most don’t have a sense of
urgency. These buyers are very knowledgeable. What a terrific time for
buyers who now find much to choose from, still very affordable interest
rates and the ability to negotiate. All of this was not the case a year
ago.
"Most sellers are just beginning to realize that market conditions
have changed from the last several years. For those savvy sellers who
know they have to do all they can to prepare their properties for the
market and price competitively are reaping the benefits, because they
are setting themselves apart. When buyers see a value they are like
bees to honey. A few examples are the 9 offers on a Mill Valley listing
at $1.1 mil. that went well over asking, or the 17 offers in Palo Alto
or the 8 offers on a Monterrey Peninsula property. We are seeing those
sellers who don’t have an immediate need to sell are beginning
to drop out of the market.
"It is challenging to predict where the market will go, particularly
with summer seasonality. Activity normally picks up as we enter the
fall months. If that happens, it portends positive notes for the real
estate market. Given the Bay Area positive job growth figures, the diversity
of our local economy, the attributes of a desirable lifestyle and the
demographics of immigrant groups, the local market should be positioned
to withstand any challenges, just as it did after the dot.com fiasco."
Avram Goldman
President and COO
Coldwell Banker SF/Bay Area
