San Francisco Real Estate - Residential

San Francisco Real Estate Market Update for 12/11 - 12/17/06

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

"Hope all had a festive holiday celebration. It’s that time of year to be with family and friends.

"Time to reflect on a year filled with change. Although sales were not as strong as the last several years the market held its own. We moved from a frenzied sellers’ market to one with more sanity. A market that cannot be defined with a broad brush as each market has its own pulse. Sellers had to adjust to a new reality of negotiation and compromise and buyers learned that sellers are not giving away their homes. A year where skilled and experienced realtors are more appreciated for their real estate acumen.

"We are ending the year on a positive note. Over the last three months the decline in volume of sales dollars on a per month basis has declined. Year to date through September the market was off about 22%. In the last quarter of the year it has declined to under 15% from the same period last year. Inventories continue to decline. They are lower than both 2002 and 2001at year’s end..

"The numbers of multiple offers have declined. However, San Francisco and the Peninsula (Palo Alto, Menlo Park, Burlingame and San Mateo) still generate a good number of multiple offers. This is primarily due to having the lowest supplies of inventories. Those sellers who adjust their prices to the new reality are selling their homes, at times with more than one offer. Buyers are savvier than ever to pricing and value. If you are going to find the willing buyer you will need to use the right bait---meaning pricing and presentation.

"It looks like 2007 is shaping up to be similar to 2006. We are not going to see the go-go days of 2004 and 2005. With that said, prices will not drop off the face of the earth. The expected continued rise in listing inventories has not occurred as predicted by the nascent media reporters and some economists. Interest rates should remain relatively stable provided oil prices don’t rise through the stratosphere. The economy is bumping along with unemployment remaining fairly stable.

"The numbers for the week of December 11-17th are as follows: 2 offices reported increasing inventories, 6 steady and 19 decreasing---4 offices showed increasing sales, 10 steady and 13 decreasing.

"This will be the last report of the year. Due to the holidays, I will be taking a two week break and resuming next year. Wishing all of you a Happy New Year and a year ahead filled with good health, fun and much success."

- 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 @ 10:02 AM