For the First Time in a Year, Fewer Sellers Slash Asking Price

For the first time in a year we are seeing fewer Sellers slash asking prices. In some markets the fewer slashed from home Sellers is resulting in bidding wars. Just under 20 percent of homes that went up for sale in March have been reduced once.

San Francisco Market Update:

List Price to Sell Price is 98.15%

What does this mean for Buyers?

If you find a home that is priced right, in good condition and in a great location it will sell fast. The day of waiting for the Seller to drop the price is becoming less and less. There is less inventory on the market at the moment and more buyers taking advantage. In some cases here in San Francisco we are seeing multiple offers on properties.

What does this mean for Sellers?

Preparing you home is key in this market. Preparation can be painting, updating or staging to allow your home to be the "Gem" property in this market. Pricing correctly in the beginning is imparative. The market will determine the value of your home.

Housing Affordability - High Record for 3rd Straight Quarter!

November 19, 2009 - Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.

The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.

"At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."

6 Month Increase in Home Prices - San Francisco & San Mateo Counties!

The chart above shows the index levels for the U.S. National Home Price Index, as well as its annual returns. As of the 3rd quarter of 2009, average home prices across the United States are at similar levels to what they were in autumn 2003. The 3rd quarter values show improvement over the previous two quarters of 2009 and have risen well off their recent bottom.

The 10-City and 20-City Composites continue to show monthly improvement in their annual return figures. Both composites emerged from double-digit annual declines with September's report, the first time in 21 months. In addition, 19 of the 20 metro areas saw improvement in their annual returns compared to the previous month, Cleveland being the only exception.

San Francisco and Washington DC have reported six consecutive months of positive returns. Chicago, Minneapolis, San Diego and the two Composites were close behind with five consecutive months of positive returns. In addition to the two Composites, nine of the MSAs reported positive monthly returns for September and four of those -- Chicago, Detroit Minneapolis and San Francisco -- were greater than +1.0%.