Media reports regarding the condition of the mortgage industry continue
to have a perplexing effect on buyers. Some potential buyers aren’t
even attempting to qualify for loans for fear of rejection, and others
are simply confused by what the media is reporting and think that reasonable
loans don’t exist any more. The reality is that credit tightening
has only affected a very, very small percentage of buyers. The fact
is that they could be missing a good buying opportunity by waiting,
or not trying to qualify.
Our partner Princeton Capital is a well-capitalized, multi-source lender,
and is guiding many of our customers through some of the confusion,
and assisting them through successful purchase transactions. This remains
a great time to buy a home, and a chance to leverage the many opportunities
now available. In areas of the East Bay and North Bay, sellers are beginning
to lower their listing prices; meaning there are bargains to be had.
In other areas, multiple offer situations and tighter inventory render
it absolutely crucial for buyers to be working with a strong, solid
lender.
Traditionally, this is vacation time. The kids are getting ready to
go back to school, and things slow down a bit in the housing market.
While our offices witnessed a slight dip in activity overall, many were
surprised to see that our more than 500 open homes were well attended
by potential buyers. San Francisco and much of the Peninsula continue
to enjoy some multiple offer situations, and in certain situations homes
are selling for as much as 20+ percent over asking. The upper end in
Silicon Valley is experiencing the same patterns – higher priced
areas fairing better than the median price neighborhoods. An influx
of fresh homes after the Labor Day weekend should help mitigate the
tight inventory situation in our upper-end markets.
Our SF/Pen combined median sales price hit an all-time high of $1.230M
in May, and has dropped each month since, to $1.059 in July. While this
is not necessarily a trend, it is indicative of more activity in the
tough $800K to $1.3M range which has been needed. Of the offices reporting,
listing inventory increased for four offices, decreased for six offices
and remained steady for 17. Sales activity decreased for seven offices,
but remained steady for 17 and increased for 3.
Buyers have more leverage right now than they have in years. Armed
with good credit, a Coldwell Banker sales associate, and an expert multi-source
lender like Princeton Capital, right now is the ideal time to consult
with the experts, and buy that dream home.
Rick Turley
President
Coldwell Banker SF/Peninsula
