San Francisco Real Estate Market Update for 6/2 - 6/8/07
Read what Rick Turley, President of Coldwell Banker, San Francisco/Peninsula says in his latest weekly report:Some subtle changes were noted in our Bay Area market this week. The East Bay offices report ratified offers on well priced properties, and positive response from price reductions on some older inventory. With only a few exceptions (Orinda and Berkeley), the majority of East Bay offices reported no multiple offers. North Bay offices speak of slower activity, with Marin reporting the upper-end properties are still scarce and hot. San Francisco and the Peninsula reflect the same as Marin – it seems the higher the price, the better the opportunity for a quick sale. That should not be taken as advice for Sellers to raise their price from the current market analysis. It simply points to a greater demand for new inventory in the $2M+ range in the City and Peninsula markets.
For the City, there was a decline in the number of multiple offers, but very strong activity. I checked a 24 hour Market Watch in the SF MLS, and during one 24 hour period last week, MLS reported 42 new listings, and 45 new pending sales for the same time period. At first glance, we’re selling more than is coming to the market. The Peninsula, from Burlingame to Palo Alto continues the highest rate of multiple offer activity, with more than 50% of reported sales in multiple offers, the exception is Half Moon Bay.
The recent declines in the stock market have moved the bond yield up, and we are already experiencing the upward pressure on interest rates. As SF Lombard noted, we should be aware that the combination of a fatigued Buyer and rising interest rates could slow us down this summer. For the immediate future, fresh inventory remains to be the key. I would encourage every potential Seller to finish their projects and get their property on the market. In most years past, we’ve said a Seller may have missed the best opportunity by waiting until June – not the case this year.
Buyers are out in full force with most areas reporting strong attendance at the nearly 600 homes held open during the week. More than 100 groups came through a Berkeley Hills listing. A home in Millbrae had over 200 attendees, and it wasn’t even its first open. The Internet and emerging technologies continue to play an increasingly important role in bringing buyers and sellers together, and increasing foot traffic at open homes. A Woodside/Portola Valley sales associate posted her listing to a Blog and had a huge turnout at her open home. The sales associate noticed that every buyer for this starter home had come as a result of Internet searches as opposed to looking in the newspaper.
Listing inventory remained steady for 13 offices, increased for 12 offices and decreased in only four. Sales activity was reported as being steady for 19 offices. It increased for seven offices and just three offices saw a decrease.
- Rick Turley
* 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 @ 6:53 AM
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