"The market for the week of Nov. 6th-12th is like the title of
Richie Havens’ first album—“Mixed Bag”.
"Open home activity has slowed in about half of our areas and
still active in the other half. San Francisco and San Mateo counties
are still seeing numerous multiple offer transactions with few exceptions---only
Half Moon Bay, Palo Alto Midtown and Woodside did not have multiple
offers. In San Francisco Lakeside office, of the 16 closed escrows—10
went over full price, 2 at full price and 4 went under list price. This
is more the exception rather than the rule for the Bay Area, but it
does show that San Francisco is the strongest of our market areas.
"On the Monterey Peninsula the most affordable areas of Seaside
and Marina are the slowest. This is also true of a many markets in the
East Bay and Sonoma county. Inventories in these price ranges are larger
than in the others.
"We are seeing more bottom feeders----those buyers that are going
in well under asking price and hoping for a desperate seller. This is
potentially a very positive sign. In past correcting markets this usually
indicates that we are in the bottom of the trough.
"Price reductions are eliciting offers. In some cases when a seller
reduces to market price, they are receiving multiple offers. Patience
is a key for sellers. It is taking longer to garner an offer. Once there
is an offer it is taking time to negotiate between buyer and seller.
This is indicative of a balanced market, the kind of market harkening
back to 1996 and 1997.
"We are observing the market gearing down as we approach the holidays.
There is one consistent trend we have been noticing for several weeks
and that is shrinking inventories. This trend is Bay Area wide. Fewer
listings are coming on the market and a number of sellers who do not
have an immediate motivation for selling are taking their homes off
the market. This will have a positive impact on the supply/demand ratio
over time. If this direction continues, it will create a greater sense
of urgency among buyers. That is why now is an advantageous time for
buyers---lowest interest rates in the last 10 months, good supply of
inventory to choose from and the ability to negotiate with sellers.
"Here are the numbers for the week: 3 offices reported increasing
inventories, 10 steady and 18 decreasing---- 5 offices showed increasing
sales activity, 15 steady and 11 decreasing.
"Have a wonderful and warm Thanksgiving. We have so much to be
grateful for."
Avram Goldman
President and COO
Coldwell Banker SF/Bay Area
