Thursday, July 10, 2008

Weekly Sales Report

Another week of beautiful summer weather, and another week of properties sold in San Francisco. The number of sales was low again this week, but the surprising part of this week's statistics was how many multiple offer situations there were, and how many homes sold over the asking price.

70% of all homes Zephyr sold last week were both in multiple offer situations and sold over the asking price. This was true of the market back in the frenzy five years ago or so when roughly 75% of all properties sold with multiple offers. Of course we have not arrived back at that type of market, but buyers are still out there and are waiting for the right property.

One type of buyer that is definitely out there in full force are investors. They know that now is the time to buy and possibly walk away with a decent price. That brings me to the winner of the multiple offer wars which was 432-436 Laurel Street at California which is right at the Laurel Village shopping center but technically in the Presidio Heights neighborhood. This is a four unit building with two units in the front, two in the back, and a shared courtyard on an extra large lot. The asking price was $1,200,000, there were 7 offers, and it is a probate sale. It went between 20 and 30 percent over the asking price...again like the good old days.

As we must always provide the other end of the spectrum, we will be taking some new clients out on a tour this afternoon. With a price point going up to $750,000 and needing a minimum of two bedrooms somewhere in the central part of the city, I immediately assumed we would only be looking at condominium for their search. I thought just in case I would take a look at the single family homes in their desired neighborhoods and price point, and I was delighted to see there are a good 30 options for them. Granted, some are fixers, others are tenant occupied, and some have no parking. The worst have a combination of all three.

Many buyers have been complaining that the market doesn't feel as "soft" as the media is reporting, as they are being outbid time and again. I believe a sign of the softness is that properties with a strike against them, such as tenants or no parking, are not selling as quickly, and are often having to be reduced in price before moving at all. Pricing is always the key. If it is priced right it will sell; they all eventually do! Remember that when you go to list your home. We can help you do a careful market analysis, one that takes every detail into consideration.

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