Wednesday, March 12, 2008

Weekly Sales Report

Daylight savings time is here, buying season is upon us! You can start scheduling those property tours after work; there will be plenty of light! You may start to see more twilight open houses popping up as well. We will most likely start to see the inventory pick up over the next few months. Historically, April, May, and June are very strong months.

That is what's to come, but let's take a look at what has happened. In the past week, two thirds of the properties accepting offers only received one offer. As they say, it only takes one! Although we may not have reached "the bottom", you can certainly get a good property at a decent price at the moment which was at one point completely unheard of in San Francisco.

One of our clients submitted an offer this past week at asking price on a beautiful, spacious, completely remodelled condo in the Inner Mission that had only been on the market for less than a week.

We felt it was a long shot as the listing agent mentioned they were experiencing a high level of interest; they would certainly be looking for well over asking price at this stage of the game. They did counter our clients' offer, but only for $11,000over asking, and they agreed to the long sixty escrow our clients requested. Don't be afraid to ask; you just might end up with a reasonably priced home in this incredibly expensive city! OK, reasonable is relative, but you understand.

Also this past week, 55% of the sold properties went for under the asking price; the other 45% were above the asking price.

Mortgage Minute

The main focus at the moment is the upcoming change in conforming loan limits. The new loan limits have been released. The temporary jumbo conforming loan product will apply to loans originating from July 1st, 2008 to December 31, 2008. The maximum loan limit is calculated as 1.25 times the median home price in the area. For the purposes of this calculation, San Francisco has been grouped in with Alameda, Contra Costa, Marin, and San Mateo counties. The loan limit in general cannot exceed $729,750, which is what it will be for the San Francisco area.

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