Saturday, January 23, 2016

Report from the trenches - The Silicon Valley & SF Peninsula real estate activity.

Our latest "report from the trenches", from the Coldwell Banker office managers all along the Peninsula:

SF Peninsula ...  In her decades of experience in this area, our Menlo Park manager has never seen the market so low on inventory – even for this time of year.  Buyers are out in droves yet after last week in the equity markets, they are a bit in a wait and see attitude.  Properties are still moving quickly but there are more buyers than actual ‘bidders’ right now, she says. Anything under $1.4 million is getting a lot of attention and selling quickly. $5-6 million homes are becoming more and more common in Menlo Park. Inventory is seasonally low in Palo Alto, but demand is still there. Amazingly there is still an incredible lack of inventory all over the Peninsula, says our Redwood City manager. Because of this almost all offers are multiple offers. There still are a lot of buyers with sufficient funds to purchase but due to the lack of inventory there is a tremendous amount of frustration. More inventory is hitting the San Mateo area market, our local manager says. Agents have a number of listings inked and ready to come on in the next couple of weeks. The market is “moribund” right now in the country offices, reports our Portola Valley-Woodside manager.  But she says that this area always seems slow to start the new year.

Silicon Valley – New inventory is slow to hit the Cupertino area market. The few new open houses our local agents held had 200-300 visitors in some cases. There are currently 25 homes for sale in Los Gatos, down 40% from the same time last year, reports our Los Gatos manager. The San Jose Almaden market has been more of the same with lower inventory than previous years, although it has increased since December.  Buyers aren’t waiting to write up offers.  Most of the listings are going into contract during the first weekend of open houses.  A 1,330 square foot SFR in Santa Clara (with Cupertino HS) that had a list price of $895,000 received 46 offers and sold for $1,330,000.  With the New Year underway the post-holiday local Willow Glen market is busy although it is still experiencing extremely low listing inventory. The year started with only 23 active listings and dropped to 21 in week two. Open houses are jammed, and multiple offers well over list price are the norm. Agents all have a bounty of buyers they are trying to get into something.

My personal experience has been a difficult market for buyers, even towards the end of the year, when buyers typically are given a break. The transactions I have had in the past two months have been tough, and buyers could not ask for much... 
Such is the market!

Thank you for reading,
Trends: Local prices and graphs.
A worthy local non-profit to remember: Community Services Agency in Mountain View