San Francisco Real Estate - Residential

San Francisco Real Estate Market Update for 11/6 - 11/12/06

Avram Goldman, President and COO of Coldwell Banker, San Francisco Bay Area said in his latest weekly report:

"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

* 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 @ 6:26 AM