Reports this week indicate that, in many areas, our more than 560 open houses were seeing steady streams of visitors, and buyer interest is up. There are slower spots around the Bay Area to be sure, but for every slow spot, there is another that is seeing exceptional activity. The trends, numbers, statistics and “facts” we read about tell a regional story, but that story isn’t indicative of market conditions in specific locations, neighborhoods and communities. 

There are cold spots with high inventory levels, and there are hot spots where competition to buy a home is fierce.The reality is this – the increased median prices that are reported in most areas are affected by the fact that, in those hotter markets, the prices have barely dropped, if at all. In addition, homes in the $2 million plus range are selling quickly and often over asking price. There is a wide variety of homes available in several areas of the East and North

Bays at bargain prices waiting to be snapped up. In San Francisco and the Peninsula, sales activity is down largely because inventory is down – however offices in both the

Peninsula and the City noted activity and sales were more brisk at particular price points. I am aware of at least two high-end sales our offices ratified this week, and the lower of the two was over $14M.   SF Lombard noted a sale going $200K over list – and a $900K price reduction all in the same day. One of our

Menlo Park offices stated the market seems stalled under $1M, but $1.5 to $2.5 very brisk. In North San Mateo Co, including Daly City, Brisbane, So City – there are currently 321 Active SF Homes, with an average list price of $754K, 3bd, 2ba 1540 sq ft, and the average Days on Market is 67. Looks like Buyer opportunity time in that market.

It is nice to see that both buyers and sellers are starting to change their perceptions and recognize the localness of our real estate industry. Today’s consumer is best-served by being an educated consumer. Those interested in learning more about how to navigate current real estate conditions – and how to take advantage of the buyer’s market and historically low interest rates – should start that education with a LOCAL real estate professional instead of relying solely on the area newspaper or real estate blog. There are bargains to be had and now is the time to take advantage of them.

Refreshing, isn’t it, to note that listing inventory reported by our offices is steady almost across the board? Sales activity is also reported as being overwhelmingly steady. 

It is perplexing and frustrating to continue to see news reports with people who could be considered little more than “real estate pundits” talk about only one side of the current real estate story. This week, the controversial stock market analyst Jim Cramer of Mad Money told viewers of The Today Show that “If you buy a home now, you will lose money.” He went on to add “there is no money and no programs for first time home buyers.  Down payment money is the biggest issue in the market, because young people don’t have any.” Housing is a good long-term investment – it’s not a day-trading activity. As we witness the steep increase in foreclosures among housing boom “flippers” who secured sub-prime, adjustable rate loans with no money down, we see the folly of playing the housing market like the stock market.

Homes are not stocks. Most people stay in their home for about 6 years – they buy for the long haul to create a home for their family, not to buy, then turn around and sell six months later. Owning a home isn’t just about investment, although that’s certainly important. It’s also about building community, a place of your own, and having a part of the American Dream. For people who want to buy a home to live in, this is truly a great time to buy a home. In some areas there may be more to choose from, mortgage rates are historically low and the economy is strong. There are some investor opportunities out there as well, but it’s important to remember that the criteria regarding these buying decisions are different between the investor and the homeowner.

In our area we have seen steady appreciation in home values over the last 30 years.  Regarding the median prices in many parts of the Bay Area and Silicon Valley, most specifically in San Francisco and the Peninsula, properties are not only holding steady, but actually increasing. The case could easily be made that waiting for prices to drop may make the realization of home ownership steadily more difficult. Signs aren’t pointing to bargain basement pricing ever becoming the norm in our markets, though price is now, as always, an important consideration. Smart buyers are buying. Smart sellers are selling.  

Witness the number of buyers visiting our more than 600 homes held open last week. A Berkley listing was seen by almost 100 visitors. A Walnut Creek listing received four offers and sold for three percent over the current asking price. In

San Mateo

Park, a home received five offers and the lowest down payment among them was 50 percent. 

Palo Alto continues to report 100 percent multiple offers.  One

San Francisco office notes that the $2 million-plus market is “on fire.” The upper end markets are clearly not sending a negative message – in fact, quite the opposite. Last week San Francisco Van Ness closed both sides of a $7M property in a two week long escrow, and in the same week Woodside opened a new sale for $12M, sold by a fellow CB Menlo Park-El Camino agent, and the following day Woodside opened another $13M sale.  Again, the message is quite the opposite of the doom and gloom which make headlines.