Below is a market-by-market report
North Bay – In Marin County, the high-end of the market in Central and Southern Marin is going strong with buyers stepping up and sellers willing to negotiate. Inventory continues to be an issue. Homes coming on the market are getting LOTS of attention, our local manager reports. One agent put in an offer for $200K over a $1 million property, free three month rent back and all cash. Sadly, they didn’t get the house! Buyers are starting to panic a bit and there does seem to be a bit of a frenzy at the moment. In Sebastopol, the entry-level market remains exceedingly competitive with multiple offers being the norm. There is a lot of cash, which is beating the low down FHA buyers every time. Agents there are also seeing improved activity in the Previews high-end market with more buyers in the marketplace then good quality homes for sale.
San Francisco – Our Lakeside office manager says the news from agents is very consistent: “I wrote an offer but there were XX other offers and I didn’t get it.” Some agents are writing five or six offers in a week with buyers who are anxious to settle down and get themselves out of the buying fury. Occasionally, an agent says, “I dug up a listing for my buyer and we got it.” It is definitely a time for a buyer to have a close working relationship with their agent and work hard to get the deal done. Similarly, our Lombard manager reports lots of activity, and high open house traffic. Most deals are multiple offers and over asking price – some 25% over. No appraisal problems with this yet, but lot of winners are all cash. The Sunset office also says open houses are extremely busy. A new Sunset listing priced at $890,000 had approximately 200 people during a three-hour open house. More than 50% of ratified offers were multiple offer situations. There are plenty of non-contingent cash offers out there trying to beat out the competition.