Feb. 26, 2008

Economic news was sketchy again this week, with housing related headlines continuing to point out the scary negatives.  Fortunately, we continue to see a surprising amount of interest from buyers who are finally deciding to take the plunge.  Really, the deals that are out there are getting to be irresistible, and with mortgage rates starting to creep back up, buyers are recognizing that now really just may be the best time to buy. 
Sales are increasing in some  areas, and it is perhaps the passing of the economic stimulus package that is spurring these buyers into bringing their checkbooks with them when they’re looking at properties. If not the passing of the package itself, it is the added degree of consumer confidence that came as a result of it. Buyers are also being properly educated by the real estate industry and doing their research, not just being scared by skewed headlines.  Now they’re jumping in while the deals are out there.  We are also starting to see homes that have been on the market for quite awhile starting to get some interest. It is all about being the best price and condition in your class of property.  First time buyers are also finding affordable, desirable homes in lower price ranges and through REO sales and they’re buying them.

In Sonoma county we continue to see improved sales activity especially in the lower price ranges and on REO properties. Marin county sales are continuing to improve from January levels as well. In San Francisco , as in other parts of the Bay Area, the high end market remains particularly strong with homes well over the $1 million mark in high demand. A Burlingame property had seven offers and sold for $125,000 over the listing price.    Parts of the Peninsula keep seeing this phenomenon occurring, but other sub markets still languish. In Southern Alameda County we have a mixed bag with parts of Pleasanton and Fremont attracting motivated buyers while entry level interest in Livermore still anemic.
Like never before, markets differ from one city to another and in some markets foreclosure pricing is driving the market. It’s worth keeping in mind that many of these off-market sales aren’t included in sales figures collected and reported by the media.  Everything isn’t as bleak as some would have us all believe. We are certainly seeing what I would call a split market with the high end doing well, and with the median priced homes slowing their price dive.

The New Year seems to be starting off with a bang!  Yes - the headlines continue spouting the latest "factoids" about the implosion of the housing market from whatever company is cranking out the latest set of numbers.  However, buyers may have reached the tipping point and seem to realize that the only way to find out if they can get the best deal on the home of their dreams is to TRY.  And they're out in full force doing just that in most of our markets.  Is it a sea change?  It's too early too tell, but it is motivating to know that both buyers and sellers seem more willing to listen to their real estate professionals now, and are putting less faith in Ivory Tower economists who don't live in the Bay Area or understand the nuances and intricacies of our housing markets.

Over and over, our offices are reporting listings and open houses that are buzzing with activity. Two agents in our office report that they encountered multiple offer situations when trying to present $1M + offers just this past weekend. We have witnessed similar scenarios in our South Livermore-Pleasanton Market. In most local markets agents report that they are very surprised at the excellent turn out and open enthusiasm of open house attendees.  Buyers appear serious for the first time in a long time.

It's pleasant to report that not only are buyers out there looking - they're also buying.    It's been said many times before, but it bears reminding everyone that proper and smart pricing of a home is truly key to entering into a speedy sale.   Inventory, priced right, is getting a lot of attention.  If it's not, it's not.

 We are off and running for the New Year and buyers seem to be ready willing and able to seize the moment....at least so far!

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1/8/08
The New Year is here and with it brings countless predictions by economists, industry analysts and more regarding the impending 2008 real estate market.  While we don’t profess to own a crystal ball, what we can say with definite certainty is that the current market won’t last forever which is why we're here to tell you that 2008 may be your best opportunity to own a slice of the Golden State.

What You May Expect from Real Estate in 2008....
Some industry analysts predict that the market will turn around in 2008 believing that the overall economy and job growth will continue to move ahead at a decent pace, core inflation will remain under control, the credit crunch in mortgage markets is showing signs of easing, the supply-demand equation will be better balanced as builders begin to whittle down their excess inventories and that interest rates will continue to be attractive.

We tend to agree with the California Association of Realtors®’ prediction that we will see a moderate decline (between three and four percent) statewide in California home prices next year. 

In areas where there is little new housing, where it is hard to build and where there is a wealthy population,we believe there may be little decline.  The main reason is that there is limited opportunity for new development in these areas and therefore properties are likely to retain their values. 

For Buyers
The current housing market offers a unique window of opportunity for confident buyers.  The exciting news is that for the first time in quite a while, the stars are in alignment for consumers: mortgage rates remain attractive and there is a large selection of homes to choose from.  Furthermore, if history is any indicator, home prices in California remain strong.  Thanks to these important factors, now truly may be the best time to buy.

For Sellers
Homes are selling!  They may not be selling at the red hot, multiple offer heydays of 2003 and 2004, but they definitely are selling.  For those that aren’t, unfortunately those sellers may not be receiving the counsel they need to get their home sold in today’s market.

Now, possibly more so than ever, you need a qualified, experienced Realtor® who can assist you in selling your home.  It is usually not enough to simply post your home on the MLS and post a “For Sale” sign in the yard.  You need someone who understands the intricacies, inventory and challenges of your local market and someone who knows how to properly position your home so it stands out among the sea of listings currently available. 

If you are considering buying or selling your home in 2008,we have the resources, knowledge and experience to properly represent you in today’s market.  Contact us today for the expert representation you deserve.

Sincerely, Larry & Kathleen

From Castro Valley to San Francisco, Menlo Park to Livermore and Walnut Creek, we’re hearing that buyer activity is surprisingly busy for this traditionally slower time of year. In some areas, this can be attributed partly to the great selection of value priced homes on the market. It can also be attributed to the fact that there are fewer buyers and fewer sellers around during the holiday season and the ones that are in the market are very serious about buying or selling a home as quickly as possible. Negotiations between buyers and sellers still remain fierce in many areas one of our office reports that up to five and six counter offers are not uncommon before a deal can be closed.

Attendance at open houses was as scattered as our micro-markets are. Sebastopol reports light attendance at opens, but lots of sales activity on properties near $1 million and over a fact illustrated by a five acre property with a small farmhouse that was listed at $850,000, received seven offers and sold for almost $1 million. Buyers haven’t slowed down in the Peninsula housing market either. Menlo Park reports that many agents are as busy now as they usually are during more traditionally busy months, and that open houses were "surprisingly well attended." One listing in Palo Alto had 10 offers and was ratified at approximately 20% over the asking price. "Above average" to brisk open house attendance is also being seen in Half Moon Bay and San Francisco .

A large majority of Coldwell Banker offices reported steady or increasing sales activity, while listing inventory in our markets saw mostly steady or declining levels. While inventory remains high and sellers are willing to negotiate some great deals, now may be the best time to buy.