March 20th, 2012
by Probate and Trust Specialist:
Pat Rock
The Real Estate Market is Sizzling!
While real estate through-out the country is in a deep freeze, the Bay Area real estate market is on fire.
For those of us that have been around; it is looking like 2004 all over again. It is absolutely wild…qualified
buyers crawling over each other bidding up properties in hopes their offer will be chosen. For the moment,
it is definitely a crazed market fueled mainly by a shortage of inventory.
It comes down to supply, demand and consumer confidence. Right now all of these are pointing towards a
sellers’ market in the Bay Area. With continued reports of a recovery consumers are confident as they see
their 401-k consistently move higher.
Given the surging demand for housing you’d think sellers, waiting in the wings, would be rushing to their
local brokerage office to list their homes, right? Guess again. The inventory of homes for sale is the lowest
it has been in years, maybe even a decade, according to long-time industry observers. The results are
buyers are fighting it out for the few homes on the market listed by savvy sellers.
Smart, strategic sellers get it and have already listed their homes for sale – note six months or a year from
now. They are the ones receiving the multiple offers over their asking price because inventories are almost
non-existent for buyer’s attention. They are selling now before everyone waiting for the market to rebound
joins the party, tipping the scales back in favor of buyers once again.
Enough of the news, below is Coldwell Banker’s recent activity by location:
San Francisco – The inventory shortage continues creating an atmosphere verging on panic. Multiple offer
competition has become increasingly intense and favoring cash, large down payments and even pre-offer
inspections. 50% of February sales resulted in multiple offers.
SF Peninsula – To sum it up in two words….crazy busy! Every price point is seeing multiple offers and we
are starting to see non-contingent offers. That’s nuts and was last seen in 2004-2006. The competition is
vicious and getting difficult for buyers that do not have 50% down.
East Bay – No one is kicking the tires these days…buyers are buying and inventories are starting to pick up
but are still at all-time lows. Multiple offers across the board and the condo market is picking up as well.
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