Below is the latest snapshot on the state of real estate in the Bay Area based on data provided by the Coldwell Banker offices serving the territories:
- East Bay – The East Bay remains a market full of mini microclimates. Take Castro Valley for example. This market has been full steam ahead since late Spring which launched a flurry of REO sales. This week was no different. In fact, one Agent reported that for the first time in nine or ten months, there were more Agents representing buyers than there were listings. There are buyers everywhere that are taking advantage of the REOs and lower prices. Nearby Fremont concurs noting that they are enjoying a typical summer market with increased listings and increased sales—again, largely in part due to REOs. The Walnut Creek office reports that pending sales are up 300% in East Contra Costa County—one of the Bay Area markets hit highest by foreclosures. The affluent East Bay community of Orinda is what surprises me this week. They reported 15 ratified offers—three of which went into a multiple offer situation. All but one of the nine East Bay offices reported that sales activity were steady or increasing.
- North Bay – Yet another market enjoying the benefits of the flurry of REOs, Sonoma County continues full-steam ahead. Our Petaluma office reported that multiple offers are “dominating our marketplace” with five of 13 offers going into multiples. Our Santa Rosa office concurs reporting that the majority of their open escrows are in the entry level market—another sign of REO flurry. Neighboring Marin has been hit the least by REO activity but, thanks to its lack of buildable land and its global destination locale, remains a relatively stable market.
- Peninsula – We saw a much slower week along the Peninsula than we have in recent weeks. But in all honesty, we can’t really complain. The Peninsula has been its own mini microclimate through much of this real estate downturn with its most common problem being lack of inventory. Somehow the Peninsula has almost weathered the storm with very little effect to its bottom line. A couple of bright spots for the week: The Menlo Park El Camino office reported that there was strength in all price ranges this week—$290,000 to $7 million. Oh, and that $290,000 listing received 13 offers! The Palo Alto office reported that multiple offers are occurring about 80% of the time in Palo Alto proper. Not bad for a market that had a “slower than usual” week.
- Monterey – This week was a very busy one with writing offers and closing sales before the month’s end. The offices reported that they closed 10 sales on Friday alone. Phew! Why is this market moving so smoothly? I chalk it up to a consideration that they may not be quite as impacted by the effects of the national economy as some of our inland communities. Monterey by nature is a more affluent and upscale community and lending issues and credit concerns become less relevant.
- San Francisco – I think we can chalk this slower than usual week up to an early 4th of July holiday. Many City residents are heading out on vacation and thus, the market traditionally takes a bit of a pause until San Franciscans return. Having said that, well priced and presented properties are still yielding multiple offers—though, for the most part, homes don’t seem to go wildly over listing. The Market Street office is reporting that they are getting a lot of multiple offers with buyers much less hesitant to act. Some Buyers are even setting up “Plans B and C” in case they lose out on their first choice.
- Silicon Valley – Silicon Valley is one of the broadest areas for micro climates. Take San Jose for instance. This market is currently enjoying the foreclosure flurry as well with many listings going into multiples. Our Cupertino Stevens Creek office reported that Cupertino and Sunnyvale listings are moving quite well—as long, of course, as they are priced well and show well. One listing this week received three offers. Neighboring South County (Gilroy, Morgan Hill and Hollister) are also seeing the short sale and foreclosure frenzy. Our Gilroy office reported eight multiple offers this week alone and that a large percentage of available listings are short sales. The affluent communities of Los Altos, Los Altos Hills, Los Gatos and Saratoga are seeing movement but only if the old adage of “price it right from the start” holds true. Homes that test the waters often sit while those that price their homes competitively from the beginning—and show well to potential buyers—seem to move almost as soon as they hit the market.
What I can tell you is that all of this activity surround foreclosures is music to the ears because it means there is a revival of the first-time-home-buyer. And with that ever important consumer, comes a domino effect that will likely begin to shape our entire housing market. It may not be today. And it probably won’t be tomorrow. But soon it will come, so be ready when it does.
