With all the talk about the $700B bail-out of the financial markets, I leave the commentary to the pundits. While we may be in a “wait-and-see” mode when it comes to the financial arena, let’s take a look at this week in real estate:
- East Bay—Busy, busy, busy were the open houses in the East Bay. The CB Danville office reports sales picking up for properties that aren’t bank owned. The same is the case in Fremont, though REOs are still scorching there. At an open house in Livermore, an Agent wrote an offer on the spot. The CB Oakland-Piedmont office says that buyers nervous about the financial market, are offering less than asking price in multiple-offer situations. Nerves were also to blame for two offers canceled at the Berkeley office. But overall, CB’s East Bay offices report that buyers are still out there looking. Desirable listings are getting lots of visitors. Buyers are on the move to find the right homes and the market remains active.
- Monterey County—This seems to be an area where buyers are really taking a step back to consider the financial market before moving forward. Several buyers there were considering making offers, but have put things on hold for now. There have also been a few requests from buyers already in escrow to reduce prices from what was already agreed to in the purchase contract. But overall, things remain steady and 14 offers were ratified.
- North Bay—It’s not a surprise that the Greenbrae office reports that buyers fear not being able to get a loan, paying too much for property, or trying to come to terms with a loss of equity. But the San Rafael office reports that a home in Petaluma they listed for $319,000, had eight offers and sold over asking price just two days after it was listed in MLS—a sign that smart buyers know a good opportunity when they see it. CB’s Santa Rosa office reports that the market below $500,000 has increased in activity, almost doubling the open escrows for the week. Activity is also increasing over the $1.5 million range in Southern Marin. Our Mill Valley office has put three of their listings between $1.5M and $2.6M into contract this past week. The Sebastopol office says “cash is king” when it comes to REOs, as all accepted cash offers were not the highest. And though inventory has slowed in the Petaluma office, open escrows continue to be strong.
- Peninsula—The key words on the Peninsula are “reasonably priced.” That’s what the Burlingame office attributed to a house in Hillsborough selling in 24 hours, and the Half Moon Bay office says one of their listings had two offers after the seller reduced the asking price. The Redwood City/San Carlos office reports having more inventory coming on the market—all more realistically priced. Though buyers there are taking their time, once they find the right property, they move quickly. Open houses were busy in Palo Alto and Menlo Park, where the El Camino office reports offers contingent on selling an home becoming more common.
- San Francisco—Lenders seem to be causing some hiccups for some transactions in the City by the Bay. CB’s Lombard office says that most deals are being sold very close to asking price and about one deal a week has numerous offers and sells over asking. But skittish lenders are causing more 11th hour problems and appraisals are becoming more of an issue. The Noriega office also reports new obstacles when it comes to loans. Overall, inventory is growing in the City, and the Market Street office says it is seeing great attendance at open houses for well priced listings.
- Santa Cruz County—Inventory levels are starting to drop slightly in the county and our offices report sales in July and August have exceeded those of 2007. Much of those have been REOs, with about half the sales under the $500,000 price point. But, one Agent sold his $5 million listing to a cash buyer and closed in 21 days, and has other cash buyers making offers in the $3 million-plus market.
- Silicon Valley—This area continues to be a little bit of a mixed bag. The Cupertino De Anza office is reporting an increase in pending properties, which are mostly in the low-end or under-priced. Those are the only kind of deals the San Jose Almaden office says buyers are willing to pull the trigger on. But an open house in Sunnyvale has had an excess of 175 people on recent weekend openings, and open houses and floor calls are still keeping the San Jose Willow Glen office busy. REOs are still the hot ticket, but non-bank owned properties are also selling well.
- South County—REOs are still in demand in South County, especially in Salinas, Watsonville and Hollister. Activity on that front is booming and the Hollister office reports multiple offers on many bank owned properties.
It’s true that what happens on Wall Street affects Main Street, and in our case Oak Lane and Maple Drive. But we all know real estate is one of the best investments one can make. Even Donald Trump told Larry King this week, “it’s an unbelievable time to buy a house…go out and make a deal!”
