San Francisco Real Estate Market Update for 7/31 - 8/6/06
Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:It is officially summer. Vacations are in full force. The market is in slow motion. The same consistent pattern exists between geographic regions. The SF/Peninsula still is receiving the largest number of multiple offers. However, these transactions with some exceptions are going for list price or a little above. Multiples are few are far between in the North and East Bay regions.
Inventory growth has slowed due to fewer listings coming on the market and more properties expiring. Price reductions are becoming a way of life. The market is finding its level. Buyers are exceedingly deliberate in their decision making. Most don’t have a sense of urgency. These buyers are very knowledgeable. What a terrific time for buyers who now find much to choose from, still very affordable interest rates and the ability to negotiate. All of this was not the case a year ago.
Most sellers are just beginning to realize that market conditions have changed from the last several years. For those savvy sellers who know they have to do all they can to prepare their properties for the market and price competitively are reaping the benefits, because they are setting themselves apart. When buyers see a value they are like bees to honey. A few examples are the 9 offers on a Mill Valley listing at $1.1 mil. that went well over asking, or the 17 offers in Palo Alto or the 8 offers on a Monterrey Peninsula property. We are seeing those sellers who don’t have an immediate need to sell are beginning to drop out of the market.
It is challenging to predict where the market will go, particularly with summer seasonality. Activity normally picks up as we enter the fall months. If that happens, it portends positive notes for the real estate market. Given the Bay Area positive job growth figures, the diversity of our local economy, the attributes of a desirable lifestyle and the demographics of immigrant groups, the local market should be positioned to withstand any challenges, just as it did after the dot.com fiasco.
- 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 @ 12:36 AM
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