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COLDWELL BANKER
Weekly Market Watch

Oct 15, 2007

Reports this week indicate that, in many areas, our more than 560 open houses were seeing steady streams of visitors, and buyer interest is up.  There are slower spots around the Bay Area to be sure, but for every slow spot, there is another that is seeing exceptional activity.  As I keep saying, real estate is a local industry.  The trends, numbers, statistics and "facts" we read about tell a regional story, but that story isn't indicative of market conditions in specific locations, neighborhoods and communities.  There are cold spots with high inventory levels, and there are hot spots where competition to buy a home is fierce.

The reality is this – the increased median prices that are reported in most areas are affected by the fact that, in those hotter markets, the prices have barely dropped, if at all.  In addition, homes in the $2 million plus range are selling quickly and over asking price.  There is a wide variety of homes available in several areas of the East and North Bays at bargain prices waiting to be snapped up.  In San Leandro, we're seeing condominiums now available for under $300,000.  In San Francisco and the Peninsula, sales activity is down because inventory is down – people are hanging on to their long term real estate investments in those areas.

It is nice to see that both buyers and sellers are starting to change their perceptions and recognize the localness of our real estate industry. Today's consumer is best-served by being an educated consumer. Those interested in learning more about how to navigate current real estate conditions – and how to take advantage of the buyer's market and historically low interest rates – should start that education with a LOCAL real estate professional instead of relying solely on the area newspaper or real estate blog. There are bargains to be had and now is the time to take advantage of them.

Refreshing, isn't it, to note that listing inventory reported by our offices is steady almost across the board?  Sales activity is also reported as being overwhelmingly steady.  Keep in mind that when the combination of price, location and condition are in alignment, boom, a house sells.

Have a great week!

Brought to you courtesy of :

TARA POLLEY, GRI, ABR, Realtor
Coldwell Banker
707-799-2004 Mobile 

HOUSING CRISIS OR OPPORTUNITY?

Historically, Real Estate Has Been a Solid, Long Term
Investment

Looking at the last 40 years of real estate in California, we have seen very few times in which real estate values have dropped. In fact, according to the California Association of Realtors, since 1970 the real estate market in California has only dropped seven times, six times under 3.7% and only once at 4.5%. On the contrary, our market has seen remarkable growth. In 1970, the median cost of a singlefamily home in California was $26,000. Today, 37 years later, homes have seen a 2,165% increase, now selling for
$588,970.

Historically, Sonoma County Has Enjoyed Even Stronger
Success

According to the California Association of Realtors, in 1990 the median price of a single-family home in Sonoma County was $174,022. Today, just 17 years later, that same single family home is selling for $597,826 - a 244% increase. Certainly in recent months we have seen a shift from a seller's market to a buyer's market but that switch was necessary to continue a healthy flow of exchange amongst buyers and sellers.

The bottom line is that our economy couldn't maintain the double digit increases we saw in home prices in 2003 and 2004 without seeing a shift. If we continued to see an upstream of that magnitude we would nearly eliminate the first-time home buyers which could potentially drastically
hinder our economy. Shifts in our market are what keep our economy running smoothly.

Is Now the Time to Buy?

Now may be the time to buy: mortgage rates remain low (certainly by historical standards), prices have stabilized and there is a large selection of homes to choose from.

Certainly it makes a more exciting news story for journalists to dwell on the negative, but for smart consumers it is definitely more economically advantageous to seize opportunities as they present themselves. And this market may offer some tremendous opportunities.

While no one can predict the future, if history is any indication, then real estate over the long run will continue to be a solid investment. And that's good news for everyone - buyers, sellers and the real estate industry.

If you are ready to make an informed and educated decision about real estate, please contact me today. I would be happy to help you.

TARA POLLEY, GRI, ABR, Realtor
Coldwell Banker Office
707.535.8837 (Direct)
707.799.2004 (Mobile)
tara4home@aol.com
www.WelcomeHomeSonoma.com

SOURCE: California Association of REALTORS®