Week of October 17,2008

So what has last  weeks rollercoaster ride on Wall Street meant for our local housing market?  

•  Peninsula—Half Moon Bay witnessed the results of Wall Street’s volatility this week as two buyers canceled contracts out of fear that their reserves were disappearing.  Woodside is reporting that there are a lot of great deals right now with the high-end quiet, and some sellers are motivated. A $2.7M off-market sale in Menlo Park, plus several sales in Burlingame with multiple offers over $1M, all cash, reminds us that Buyers are out there for the right deals. The rest of the Peninsula seems to be seeing a lot of interested buyers who are entering the market, though waiting to see what comes of the economy. 
• San Francisco—San Francisco saw a similar week to that of the Peninsula with buyers waiting to see what comes of Wall Street and the government’s new plan.  The Market Street office also saw two deals fall through as buyers feared what was happening with the economy, although neither were having issues with securing funding.  While we’ve noted that a few transactions have cancelled, it’s equally important to note that more than 27 new escrows were opened in our San Francisco offices during this volatile Wall Street week.
• Silicon Valley—There are two types of buyers out there right now—those who see this as an opportune time and are acting on it and those who have adopted the wait and see philosophy and are afraid to act.  For the most part, our Silicon Valley offices are reporting that buyer interest has slowed with floor calls and open house activity decreasing.  However, our San Jose Main office disagrees noting that buyer activity at open houses this week actually increased.  The market that seems to be fairing the best is the entry level and continued success lies in the bank-owned arena where REO properties continue to generate multiple offers.  There are two types of clients who are seeing success in today’s market :
  • Buyers who see real estate as a long-term investment and this market, in particular, as an opportunity and are acting on it
  • Sellers who price their home right, stage it and are motivated

There is our market in a nutshell.  Overall, things seem to be steady.  Bank owned properties continue to drive much of our activity. The higher end properties are more sensitive to pricing than they have been in several years. But make no bones about it, homes are selling today, and not a week goes by without several reports of multiple offers.  I am thankful that we have the very best in the business guiding our customers with great strategies and outstanding professionalism.

Until next week -   Make it a great one!

Rick