Though the Fed may have assisted the mortgage crisis a bit with its
rate lowering and some policy changes, there haven’t been any significant
changes in the San Francisco Bay Area market this past week that can
be attributed to anything happening in the latest news. Perception is
driving the market. The chasm between buyers and sellers seems to be
closing a bit – but not quite enough in some communities.
Buyers are starting to realize that selling prices are not going to
drop precipitously from where they are. Sellers, on the other hand,
are starting to make the adjustments in condition and price that are
necessary to remain competitive. Still, there are some sellers that
refuse to lower prices to saleable levels, and buyers who are convinced
they’ll be able to get an even better deal by waiting. We are seeing
some sellers who don’t need to sell taking their properties off
the market – if a deal is to be had, now is the time to negotiate
it.
More than 640 homes were held open during the week. Attendance was
spotty in some areas, while Half Moon Bay and other enclaves saw booming
activity. High end properties continue to drive in the fast lane in
our markets with exceptional open house activity, and multiple offer
situations being reported. Palo Alto continues to report 100% of listings
received multiple offers, however that enduring lack of inventory on
the Peninsula continues to compel competition among buyers in the area.
San Francisco and Marin also have booming high end markets. There are
fewer multiple offer situations in the City, and a lower number of multiple
offers when they occur, but a week does not go by when several agents
in each of our San Francisco offices is involved on one side of a multiple
offer situation.
Although the number of sales in San Francisco and the Peninsula is
lower than YTD 2006, the median sales price continues to grow.
For the majority of the micro-markets within our San Francisco/Peninsula
region, affordability at the entry level and available inventory at
the higher end are our biggest concerns. Home Buyers and Sellers are
not hearing this message from the media. Now, more than ever, it's critical
to know your market, and know just how local real estate really is.
Rick Turley
President
Coldwell Banker SF/Peninsula
