Week of October 21, 2007

The scope of the tragedy engulfing our Southern California neighbors is staggering. Nearly 2,000 homes have been destroyed by the fires rampaging through San Diego, Orange, Riverside and Los Angeles counties, and tens of thousands of people remain displaced. 

In the San Francisco Bay Area, buyers are starting to realize that selling prices are just not going to drop precipitously from where they are now in most of the Bay Area. If a deal is to be had, now is the time to negotiate it, and it seems the negotiating has begun. Offices in all areas reported increased sales activity and buyer interest, and our more than 600 homes held open were overwhelmingly well attended. Sales activity and buyer activity is reportedly increasing in practically every area. 

Oakland reports plenty of buyers and multiple offers on the better available listings. There’s a “buzz” in Lamorinda’s steady market.

The high end homes continue to sell quickly in Southern Marin while

Walnut Creek is seeing sales in all price points and in every corner of that market.

Inventory still remains tight on much of the Peninsula. Palo Alto and West Menlo are starved for fresh, well-priced inventory.  A San Mateo Park home sold for $3.8 million without ever being exposed to the market. There was an all cash sale in Woodside for $3.1 million. A Palo Alto property sold for $250,000 over list price in a multiple offer situation. Eight offers are on the table for a $2.7 million “tear down” in Atherton. 

San Francisco continues to see good activity in all price ranges with the properties over $1.5 million remaining the most desirable.

We are still seeing year-over-year median-price gains in Santa Clara, Marin, San Francisco, and Contra Costa counties. Bay Area housing remains a solid long term investment. It makes good sense to get into the market when there is still a good selection of available housing at multiple price points and while interest rates remain low.