Properties are selling quickly, with multiple offers, for amounts over asking, but will this trend continue?

"The uncertain question in this market is when and how much? Some appraisers believe the market may be due for a correction. But any correction will be tempered by several facts," says Realtor Jeffrey Tong. "The SF Bay Area is home to the nation's top universities and medical centers (UC Berkeley, Stanford, UCSF), a world-class biotech industry, is adjacent to a world-class wine producing area (the Napa valley), and is a major tourist destination, amongst others." He continues, "Having said that, the real estate market is influenced by numerous factors, including availability, mortgage rates, demand, and overall economy. My recommendation is to consult with your Realtor to assess your situation, then take advantage of whatever opportunities you might have today, because one may not have another chance tomorrow!"

Realtor Julia Mason adds, "Each neighborhood is unique and all have something special to offer. Although still a Seller's market, activity seems to be cooling a bit. Multiple offers are still common, however we are not seeing the high numbers of offers per property, that we were seeing earlier in the year. Inventory remains on the low side and interest rates remain steady."

"Most properties are still going quickly and usually over their asking price. A greater number of properties are taking offers "As They Come," rather than setting an "Offer Date," which is a welcome change for the Buyer. Sellers -- it's a great time to sell! Buyers -- with interest rates at historic lows, real estate can be one of your best investments. Never wait to buy Real Estate, buy Real Estate and wait!"

"An assessment of the San Francisco market would appear that prices are holding with many areas starting to drop slightly. The increases we have seen appear to have been the result of individual high sales. Home prices are going up and lending rates soon may too," note Reatlors Bernard Pizzoli and Terry Rodriquez.

"The inventory is not really a concern except in the most desirable neighborhoods, where finding the right property will just be part of the extra time and effort. The only exception to this may be sporadic scarcity of entry-level properties hotly pursued by first-time buyers scampering to get into the market while the getting's good. Remember: a home, first and foremost, is a residence rather than part of a portfolio. Even the most enthusiastic doomsayers are conceding that a major general loss in California's real estate value is unlikely; short of that, the attraction of a home is as the center of life and a safe place to be. Buyers, especially move-up buyers who have repeatedly profited from sale and purchase, may find this a shift in perspective."

Published: September 19, 2005

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