San Francisco Real Estate Market Update for 7/3 - 7/9/06
Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:"Typical Fourth of July week----for the most part open homes were less well attended and sales a bit sluggish. Why not, it was a beautiful weekend. Listing inventories continue to increase and the same sales patterns continue by region.
"The SF/Peninsula continues to lead in highest percentages of multiple offers. While virtually all of the rest of the Bay, with a few exceptions, multiple offers have all, but disappeared. Price reductions continue in the North and East Bay. One change we have noticed is the Monterey Peninsula seems to be coming to life again. After a strong first quarter, the Monterey Peninsula tailed off, looks like they are picking up a little momentum in the third quarter.
"Given current months supply of inventory the strongest market is the SF/Peninsula, which still finds itself in a seller to balanced market depending on area. The upper end which has been strong all year is beginning to ease back, that is the market over $ 3 million. The North and East Bay is somewhere between a balanced to buyer’s market depending on location. East and West Contra Costa county has the highest build up of inventory. Those areas where sellers are competing with new home sales are faced with stiff competition due to developer incentives and price reductions.
"Condos as a property class are seeing the largest build up of inventory. Pricing has become the defining element as to whether those listings in condo developments will sell. As condo inventories in particular developments increase, buyers tend to view them more as a commodity, since all the units are similar.
"Although the market has slowed from the last several years we all need to keep in mind that 2004 and 2005 were exceptional years and that this year is more in line with what is considered a normal market with longer marketing times and where price and merchandising become key components in the sale of homes. Buyers do not have the same sense of urgency as last year. Also there is great diversity between markets you cannot paint the entire Bay Area with one broad brush. Even within cities you can have one area being a seller’s market and another being a buyer’s market. The key is desirability of an area and supply of inventory.
"Here are this week’s numbers:12 offices reported increased listing inventories, 15 steady and 4 decreasing---6 offices showed increasing sales activity, 19 steady and 6 decreasing."
- Avram Goldman
* For an e-mail alert when this report is updated, send a note to info@SFResidence.com with "weekly market report" in the subject line.
posted by SFResidence.com @ 9:52 PM
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