San Francisco Real Estate Market Update

Our Chief Executive Officer, Mark McLaughlin, recently painted an interesting overall summary of the real estate market based on the input from our offices around the Bay Area. I thought this would be interesting information for you to read....

"With respect to residential real estate specifically in the San Francisco Bay Area, we are a largely supply constrained market. In the six counties we serve, only two counties really experienced over building in the pre-2007 housing boom. As a result, our inventories are manageable and not causing downward pressure on pricing."

"In a conference call yesterday with our Management Team the following observations were made of this week’s market activities:

San Francisco – stability seems to be present. Business as usual although light activity as expected in summer. Multiple new escrows in past few days mainly in $1.25 to $2.25 million range.

Marin – High-end of market is still performing although summer slowdown is real. PUI is scheduled to close $45 million in August ’11. Six (6) deals currently pending to close in August ’11 over $2 million, one over $4.5 million – all buyers seem stable, committed and feel values are still appropriate.

Alameda – General market consensus is cautious but very active with appetite for additional inventory. Market needs additional inventory in the $750K - $1.2 million price range. Historically low mortgage rates are motivating buyers. Seems like a great time to be a seller!

Contra Costa – Status quo seems to be prevailing attitude. More new inventory this week than expected is a positive sign leading up to schools starting back up again. Distress sales (short sales, REOs and pre-foreclosure) still seem to generate multiple offers which confirms value-pricing is paramount!

Napa – High-end of market is on fire!! Since Saturday, PUI ratified both sides of a deal over $7 million, two deals at est. $2.4 million, two more at $1.2 and $1.9 million. We also represent two very active buyers over $10 million.

Sonoma – No evidence of stress in the markets yet! PUI secured eight new listings last week and ratified eight new escrows between $400K - $1.495 million. Like Contra Costa County, historically low mortgage rates are motivating buyers. Seems like a great time to be a seller!

It really is interesting how strong the demand for housing is in the San Francisco Bay Area! We are lucky to have Mark's insight's which helps us better advise our clients. Thanks, Mark