August 15, 2012
San Francisco Real Estate Update
by Probate and Trust Realtor:
The Lazy Crazy Days of Summer
Summer is typically the time of year that our housing market slows down as buyers, sellers and
agents all take time to enjoy the great weather and go on holiday before school resumes. But
for the most part with low inventories the market remains resilient as the end of summer nears.
A couple of highlights from our most recent office reports tell the story of a robust housing
market around the Bay:
In San Francisco virtually every listing generates multiple offers the majority over asking. A
new listing ~$4M sold in three days, over asking, all cash, and closed in five days.
The shortage of homes is particularly acute on the Peninsula, leading some agents to
wonder what will happen when the hundreds of newly minted Facebook millionaires begin
searching for homes once they're allowed to cash in their shares.
No one knows what the future will hold though history has been a good indicator. We certainly
have our economic challenges, both in the U.S. and overseas. The latest job numbers were
anemic, but came in 50,000 over expectations and Wall Street responded with a huge rally.
Until we get our Dept under control and Europe does the same I suspect we will continue to
face economic headwinds which of course has a direct impact on most of the housing market.
Enough of the news, below is Coldwell Banker’s recent activity by location:
San Francisco Real Estate – Inventories continue to shrink, buyers are out eager to pounce,
and multiple offers are driving up values resulting in happy sellers and frustrated buyers.
Appraisals continue to be a huge issue while the market catches up. I have found
Buyers willing to make up the difference between the sales price and what the bank
appraisal comes in at provided it is negotiated at the time of the offer. Trying to
negotiate this after the appraisal is unacceptable and will lighten the pocket book.
SF Peninsula – The upper end market activity has slowed over the summer though activity
out on the coast has been nothing but slow. Mid November is when the Facebook people will be
to cash in their stock and no doubt most will sell their stock to avoid the increase in capital
gain tax expected in January. They may not buy right away but when they do if inventories are
still non-existent we may see a spike in values. Most of the Half Moon Bay starter homes have
sold over asking with multiple offers.
East Bay Real Estate – The East Bay real estate market is not experiencing the typical
summer slowdown. Some Sellers are putting their homes on the market now in advance of the
surge of listings expected after Labor Day. Many homes listed in the mid to upper range are
experiencing multiple offers over asking.
For additional information go to: www.CourthouseRealtors.com