"It is a Leopard’s Market. Meaning the market is spotty.
A good number of markets have slowed and some are increasing with the
majority holding steady. Open home activity continues to reflect the
last several months with “just listed” opens having the most
active attendance---two new listings in Millbrae and Redwood City each
attracting over 100 groups.
"We are still seeing multiple offers. During this period two-thirds
of the offices had at least one multiple offer. Four offices had more
than 50% of their transactions involved in multiple offers. A multiple
offer on the Eastside of Millbrae listed at $599,000 (3bdr/1bath 900
sq.ft.) garnered 42 offers last week. No we are not back in 2005. This
home was aggressively priced. What it does indicate is that in desirable
marketplaces with limited inventories, buyers are ready to buy quickly.
Multiple offers in our current market for the most part are not going
over list price by astronomical numbers as they did during the over-heated
markets of 2004-2005. Some are even selling a little below or at list
price. Yes, there are still a few going over by 10% or more, but they
are few and far between.
"Although marketing times have expanded with rising inventories,
they are still within very reasonable time periods. In most marketplaces
it is still well under 60 days. That would appear surprising. Since
sales activity is down from last year in the Bay Area by approximately
21%. What it suggests is that those homes that are priced aggressively
or at least at the levels of the most current sales and that are fully
prepared for the market (staged and all deferred maintenance work completed)
will sell in the shortest amount of time. Conversely, those that are
not priced correctly and are not prepared will linger and can become
stigmatized in the eyes of perspective buyers. One of the first questions
that many buyers ask an agent when viewing a listing is 'how long has
it been on the market'. Buyers feel the longer the time on the market
the more negotiable the price and terms.
"We are in the midst of the fall market. Normally we see a spike
in sales. Currently we are seeing it in some markets and not in others.
What we are observing is there are still many buyers in the market.
They are being more deliberate in their buying decisions and more demanding
in their requests during the escrow period. We are noticing a trend
among buyers to walk away from transactions if sellers are not more
flexible in negotiating these requests.
"The media is continuing their negative slant on the market. Obviously
they need to do this to do what they do best---sell papers. Our market
today as compared to previous transitional markets is in far better
shape as indicated by the number of multiple offers. In those previous
markets of the early 80’s and 90’s we rarely ever saw multiple
offers and inventories were significantly higher than they are today.
Plus interest rates are far more attractive and the economy is in much
better shape. One could historically classify today’s market as
a healthy market were demand and supply are in balance as compared to
either the go-go early part of this decade or the no-no market of the
early 80’s or 90’s.
"Here are the office numbers for this period: 10 offices reported
increasing inventories, 20 steady and 2 decreasing---4 offices showed
increasing sales activity, 19 steady and 9 declining."
Avram Goldman
President and COO
Coldwell Banker SF/Bay Area
