From Rick Turley’s Weekly MarketWatch:
A closely watched housing report was released last week showing the Bay Area market slowly improving in the first month of the new year. DataQuick, the La Jolla-based information firm, said combined new and existing home sales were up 2.3 percent over January of last year. While that increase is less than many of us would like, there are signs that today’s market may actually be gaining more momentum.
What’s important to remember is that closed sales are really just a snapshot of sales activity that began as much as two to three months before – in this case the fall of last year. But as I said in an interview with the Oakland Tribune and Contra Costa Times, we should balance the DataQuick report with more timely market indicators. And in that case, we have reason for optimism.
As the Tribune and Times articles point out, things are starting to improve. Pending sales for January in the East Bay, for example, are much better than a year ago. Overall, pending sales in Alameda and Contra Costa counties were 34 percent higher last month compared to January 2010 – even though at the same time last year home sales were being stimulated by tax credits that have since expired. January marked the highest number of pending sales since last April – the final month of the credit.
Although this is more anecdotal, it’s interesting to note that many of our offices report that they are busier with new transactions today than they were at this same time last year. They are seeing greater numbers of buyers and not just “lookers” at open houses. They’re getting calls from customers who have been sitting on the sidelines over the past year or so and are now ready to move forward.
Apparently, we’re not alone. Other brokers in the East Bay quoted in the news media said that pending sales last month were up anywhere from 18 percent to 66 percent over last year at this time, depending on the community. While I don’t have figures yet for the rest of the Bay, indications are that sales activity is on the rise.
The bottom line is that there are strong indications that more buyers are seriously looking for a home or even going into escrow. And although we won’t see that activity turn into closed sales for another month or two, I’m encouraged that we are moving in the right direction. It will be interesting to see sales figures as we head into the spring buying season. …
Silicon Valley – Our Cupertino office reports that although the local market was off to a slow start, it is definitely picking up steam. Buyers at open houses seem more committed to buying, rather than just looking. The Los Altos market is improving in most price ranges. Our local office was involved with multiple offers on a higher end townhouse in Cupertino that sold for the high $800s and had 22 offers. We also had one of our listings of a high-end condo in Mountain View that was listed in the mid $800s sell with 6 offers in the low $900s. And one of our Palo Alto single-family homes sold with 6 offers over 10% above the $2M list price. Open house activity is also picking up in Los Gatos, where sales are on the upswing. Both sales and inventory are picking up, according to our San Jose Almaden office. Attractively priced homes that are considered a good value by buyers are selling quickly. Our sales are keeping pace with new inventory in markets west of HWY 87. Over all, this appears to be starting off as a healthy market. Similarly, the Willow Glen market has been steady in the new year. Open houses have been very, very busy, and there were more cash offers than usual. Finally in Saratoga, as expected, we are seeing the market improve with listings and sales both on the upswing. ~ Rick Turley, President, San Francisco Bay Area, Coldwell Banker Residential Brokerage
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