Bay Area Housing Market is
Rolling Forward and Rolling Strong!
As we get close to Thanksgiving, some would think a real estate slow down is here. Not in the least!
This month’s newsletter has some compelling data from other major US cities for some perspective.
As always, I encourage you to share this info with family, friends and colleagues. Referrals are always appreciated and never taken for granted.
Have a great Thanksgiving and remember to help someone who needs it.
Dino Virella’s November 2014 Real Estate Market Watch
Agents in the trenches know all too well that if you don’t make an offer quickly when the right home comes along in the hot Bay Area housing market you’ll be left in the dust. But what they may not realize is just how quickly homes are selling here compared to the other hot spots around the country, such as Austin, Texas, Seattle, and Los Angeles.
An interesting new report by Realtor.com shows that the San Jose and San Francisco metro areas are tied for second place in the U.S. for fastest sales. Homes in those two cities were only on the market for a median of 36 days in September vs. three months for the national average.
To find the number one market for fastest sales in the entire country you don’t have to travel far – just across the Bay Bridge. The Oakland metro area tops the national ranking with a median of 35 days on the market!
As the Silicon Valley Business Journal noted in a story this week, Oakland’s rise to the top of hot housing markets may be the result of “skyrocketing prices in San Francisco and Silicon Valley sending prospective buyers fleeing to farther-flung Bay Area housing markets…”
According to the report, Oakland had the most inventory of the three local markets, with 4,175 homes on the market as of September, compared to 2,050 in the San Jose area and 2,397 in San Francisco. Median home prices were $500,000 in Oakland, $718,000 in San Jose and $949,000 in San Francisco.
Other strong housing markets on the list were:
– Denver with a median of 37 days on market
– Washington D.C. with 40 days
– Seattle with 51 days
– Los Angeles and Austin tied with 56 days on market
Below is a San Francisco & Peninsula report based on information provided by my colleagues at Bay Area Coldwell Banker offices:
SF Peninsula – Every day seems like a new market on the Peninsula, according to our Burlingame office. One day, things are quiet and then the next is a flurry of activity, all centered on the newest hot listing and which day they are hearing offers.
Smart agents are ignoring offer dates and submitting pre-emptive offers, which then generate multiple pre-emptive offers, completely passing by the published offer date. At the same time many buyers are stepping back and refusing to be drawn into the competition so sometimes, a home that everyone thinks will be highly sought after sits on the market while buyers wait on the sidelines and try to gauge the interest. It’s hard to say right now where the fall market will take us as the holiday season approaches.
Hillsborough currently has 36 active and 4 pending listings. Listing activity is beginning to slow.
Half Moon Bay reports that inventory in San Mateo County is very low. As of 10/22, there are 464 active single-family listings compared to 624 at the end of June 2014. Open houses are busy. Some agents have it open during weekdays from 4-7 and are getting good activity. If a home is priced right, there are a good number of multiple offers. If the home is not priced right, it’s staying on the market.
Buyers are still lining up for prime locations in Menlo Park, Palo Alto and San Carlos. A Menlo Park property listed for $2.2 million sold for 500k over list. It continues to be a brisk market. In the Palo Alto area, properties are selling as soon as they hit the market with multiple offers.
Our Redwood City-San Carlos office says the market seems to change day by day and is very unpredictable. List prices seem to be more realistic but inventory is still very low.
San Francisco – Our Lakeside office says the local market is uneven and seems to be in some transition. Prices have risen during the early part of the year but now mostly seem stable, as buyers are sometimes saying no to higher prices. There are pockets with growing inventory while the general market still is short of inventory. One buyer was in a multiple offer negotiation with a seller who demanded too high a price and the buyer was able to find a better property close by that for less money.
According to our Lombard office, there has been a little increase in general inventory this week. One week there are a few more properties, some longer days on market, even some price reductions and you conclude there may be a slight cooling or leveling off. Then, bam, the next 3 deals had 10, 12 and 15 offers, going way over. It’s hard to see a trend, but there are still a lot of buyers chasing a few good homes.
Be careful out there kids!