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.