East Bay Real Estate Newsletter

MARKET UPDATE: MARCH, 2012

The market has heated up considerably since the first of the year.  Pent up buyer demand and low interest rates are driving this renewed interest.  A house in Piedmont that was on the market for 51 days last fall with no offers, came back on the market in January and sold over the asking prive in just 8 days.  One of my Piedmont listings sold more than $100,000 over its asking price in just 6 days.  San Francisco has already heated up, driving buyers who are priced out of that market to our better-valued neighborhoods.  And with the Bay Area economy doing well (word on the street is that when Face Book goes public 1000 new millionaires will be created) it seals the deal.

Many buyers have money that has been parked on the sidelines since 2008.  This is particularly true at the low and high ends of the market.  So, we are seeing more all cash offers and offers with large down payments.  The rental market is tight and with rents higher and prices soft, investors frequently find themselves in competition for investment properties.  And people at the higher end of the market look at our market as a value investment — with fewer distressed sales and more stable prices than other areas.  The sales figures don’t reflect that quite yet.  This is because there has been so little inventory, another factor keeping demand high.  So, if you are thinking of selling, now is a great time.

Watch for increased activity as the year proceeds and sellers make the moves they have been postponing, bringing more inventory on the market.  But don’t expect supply to exceed demand anytime soon.  If you are thinking of buying, don’t wait.  Many people are staying put by choice which will keep inventory low and upward pressure on prices for some time to come.

Quarterly Report

Please click on a thumbnail below to view a larger image of that graphic.


Sales Volume <$500K
Sales Volume $500K - $1M
Sales Volume $1M - $2M
Sales Volume $2M+
Total Sales Volume
Median Home Price