San Francisco Real Estate Market Update for the week of April 6, 2008
Read what Rick Turley, President of Coldwell Banker, San Francisco/Peninsula says in his latest weekly report:Bernice Ross pointed out in her Inman News column this week that this is the best buyer’s market in 35 years. She backs up the claim with some interesting facts that bear sharing with buyers in any area who may still be hesitant. Ross notes that in April of 1973, mortgage rates were hovering at the same near-historic lows that they are today. Since that time, mortgage rates have only dipped this low during the height of the seller’s market in the early part of this decade when inventory was tight and prices were on the rise. The last time we experienced major buyer’s markets were during the economic downturns in the early 1980’s and 1990’s – both with mortgage rates in the double digits. So, the current combination of substantial inventory and low mortgage rates is the best possible situation for buyers since 1973.
That being said, there does seem to be an increasing number of buyers starting to make offers in many of our areas and again we’re seeing price, condition and location flexing their muscles at the willing. Out of 30 offices reporting in for the week, 21 of them experienced at least one multiple offer situation, and many experienced significantly more than one. What’s interesting is the mix. In Palo Alto where inventory is tight, those multiple offers are as high as 20-25% over the list price of a home in any price range, and homes priced at more than $5 million are selling before going on the MLS. There were two offers on a $4.5 million Woodside/Portola Valley Listing. A home in San Francisco’s Bernal Heights received 20 offers. In Castro Valley where inventory is more abundant, the multiple offers are on REO properties, and with prices dipping below $300,000, buyers are willing and able to snap up bargains. In Redwood City, a short sale listed at $629,000 had five offers but four of those had contingencies, and while a home there may generate multiple offers, most of those offers are coming in under list price. Though the implications of multiple offers differ from one town to the next in our Bay Area real estate market, the fact of the matter is that the buyers are making offers, and sellers who truly want to sell their homes are pricing them accordingly.
Read the rest of the April 6, 2008 report here.
- Rick Turley
* For an e-mail alert when this report is updated, send an e-mail to info@SFResidence.com with "weekly market report" in the subject line.
posted by SFResidence.com @ 8:57 AM
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