Let's Take a Look at the Local Market

Now, more than ever, I'm reminded of how much real estate is about location, location, location. Things are far better here in the Bay Area than nationally. The overall market is much more stable than elsewhere in the country, and in some ares, it’s fairly robust. We continue to have multiple offers in all our offices. Not every property certainly, and not all multiple offers are well over the asking price. But there is a strong indication of Bay Area buyer demand that most of the nation is not experiencing today. We hear different variations on a common theme from our local Coldwell Banker offices: “It seems I get one of two results; either a few multiple offers within first 7 to 10 days, or I’m getting a price reduction 30 days later.” Thoughtful and strategic pricing, combined with staging interior and exterior of property are key elements to having the best chance at multiple offers....no surprise there.
The momentum seems to be slowing a bit in Cupertino. The best properties are still getting lots of attention, but there is less of a sense of urgency for the majority of the market as inventory continues to increase. The market is doing particularly well in the good school districts and in single-family homes, while condo sales remain slow.
We are continuing to see a high influx of buyers coming from the Pacific Rim with large down payments looking for good schools. There is still a lack of good inventory for buyers, especially in the entry-level markets. Palo Alto remains an extremely strong market with multiple offers in excess of 10% to 20% over list price, in many cases.
The bottom line... when a well-priced, beautifully stage listing comes on the market, it can probably expect multiple offers.

Real Estate Headlines Can Be Deceiving

At this morning's office meeting, we had several hand-outs. The headlines from various newspapers ran the gamut from "Good News in the Real Estate Market" to "Is This the Beginning of Another Bubble?" and everything in between.
I was amazed at the attention the Case-Schiller housing study received last week. It covers only 20 markets, and that is just one of its many flaws. Yet many consider it “the be-all-and-end-all” economic indicator that defines our entire national housing picture. As we know, all real estate is local, and it is unfortunate that the reporting on a 20-city “national” index can have such a jarring impact on otherwise rational people.
Look at some of the headlines the other day:
“Home prices at lowest point since 2006 bust”
“Home values continue downward churn”
“No relief in sight’ for falling home prices”
And even in paradise – Maui- the front page headline in the paper screamed “Crash Spreads.” And Maui isn’t one of the 20 markets. In fact the nearest market covered is San Diego, a mere 2500 miles away!
For those who don't panic at any change in the wind, this can be the smartest time to buy a home if you have the lifestyle reason, financial stability and viability to do so.
You might just be surprised that the end of the world isn’t here yet … at least until next month’s report.