Today’s post takes a look at pending sales and active inventory in San Carlos as reported by Multiple Listing Service data as of this date. Currently there are 64 active class one (single family ) listings. Our MLS shows 31 pending sales.
The pending sales data indicates an average 1981 sq feet home on a 7201 sq foot lot. The average list price for the pending sales reported was $948,479.
Cafe Zoe in Menlo Park (1929 Menalto) will be hosting a Silicon Valley Open Studio featuring three local artists this weekend. Located in the Willows, Cafe Zoe is a popular destination for locals. You can visit their website at www.cafezoemenlopark.com .
Spring has definitely arrived and my email inbox continues to receive numerous weekly market updates. Today’s blog looks at the entry level real estate market:
“Stress Test Reveals More Work to Be Done By Banks- While Entry Level Local Real Estate Market Heats Up!
This week the results of the long-awaited Stress Test on US banks were released. What the government hoped to accomplish through this Stress Test was to determine how much capital the banking sector currently has, and what level they deem appropriate to withstand the recession. The result was that 10 of the nation’s 19 largest banks will need to raise a total of $74.6 billion in capital. The Stress Test revealed that banks like Goldman Sachs and J.P. Morgan seemed to be better positioned than Citigroup and Bank of America.
At this point, according to Kiplinger, “The stronger banks will actively do what they can to return any money borrowed from the government to get out from under restrictions on dividends and executive compensation. Their ability to sell common stock to the public is far better than their weaker counterparts, who may have to privately sell stock to investors or raise capital with so-called mandatory convertible preferred shares.”
According to industry analysts, it seems that until the banks get back on their feet, credit will continue to be tight. That leaves the Federal Reserve responsible for filling in the gaps with its own programs aimed at jump-starting lending.
On a brighter note, however, the real estate sector of our economy continues to show some positive signs. USA Today reported earlier this week that “More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.” It’s exactly what we’ve seen locally, the entry level home buyer market is fueling this recovery. We forecasted this, and now that multiple offers are the norm in the majority of our entry level markets, some frustrated buyers are scratching their heads and wondering what happened to the buyer’s market. We warned that things could turn on a dime, and it seems in many starter home markets, prices are already on the rise.
Here are some links to some interesting news stories from the week:
• USA Today: More homes get multiple offers; downturn may be nearing end (http://www.usatoday.com/money/economy/housing/2009-05-05-foreclosure-home-sales_N.htm?loc=interstitialskip)
• Business Week: Want to Sell Your Home? Lower Your Price (http://www.businessweek.com/lifestyle/content/may2009/bw2009055_075566.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis)
• RISMedia: Relocation.com Survey Shows Consumers Moving Further Due to Economy (http://rismedia.com/2009-05-05/relocationcom-survey-shows-consumers-moving-further-due-to-economy/) – This is a good reminder to consumers on why they should choose an Agent who is affiliated with a large, global real estate company that has the breadth and influence to reach the largest pool of buyers.
• NYTimes: Where Home Prices Crashed Early, Signs of a Recovery (http://www.nytimes.com/2009/05/05/business/economy/05turnaround.html?_r=2&hp)
• Realty Times: Real Estate Outlook: Sales Rising in Some Areas (http://realtytimes.com/rtpages/20090505_realestateoutlook.htm) “
(Source: Rick Turley, President, Coldwell Banker Residential Brokerage San Francisco Bay Area)
These articles cited present an interesting look at our current market. San Francisco Mid Peninsula Open Houses continue to be heavily attended with multiple offers becoming more and more likely in the entry level market.