From the desk or iPad of Mike James, President of the Coldwell Banker Residential Brokerage San Francisco Bay Area and Hawaii regions.
Coldwell Banker Northern California has unveiled the Coldwell Banker Global LuxurySM program [of which your humble correspondent John Fyten is a member], reflecting the interconnected world of luxury real estate. Coldwell Banker Global Luxury showcases luxury properties to an international network in 49 countries and territories and effectively retires the Coldwell Banker Previews International name.
“The Global Luxury program is a fresh take on international luxury real estate and we’re pleased to launch the program in Northern California,” said Mike James, president of Coldwell Banker Residential Brokerage Sacramento/Tahoe and San Francisco Bay Area. “This roll-out will reinforce our superior client service and demonstrate our leadership in the global market.”
Coldwell Banker is a local leader in luxury real estate, where the company’s affiliated sales associates represented homebuyers and sellers in thousands of luxury home sales throughout 2016. The launch of a fresh global marketing program reinforces Coldwell Banker Northern California’s leadership in luxury and strengthens the company’s presence in the luxury market.
According to the National Association of Realtors®, $100 billion in U.S. property sales each year can be attributed to international buyers. The launch of a dedicated global luxury brand will better identify elite, international clientele and showcase the luxury real estate offerings in Northern California.
As part of the introduction of Coldwell Banker Global Luxury, a new logo, signage and website have been unveiled. The new site connects 750,000 luxury agents across multiple international brands and syndicates listings globally to real estate portals around the world. Multiple language translations and currency conversion tools allow international buyers to tailor their experience. The website is mobile-friendly with an accompanying app.
The new Coldwell Banker Global Luxury website can be viewed at coldwellbankerluxury.com.
Offices and sales associates are encouraged to help spread the word via social media using this Twitter link: Introducing Global Luxury: @ColdwellBanker reimagines its luxury program to demonstrate its global impact via @CBGlobalLuxury
Here’s what was happening in our local Northern California offices in early April:
SF Peninsula – If priced fairly with an ocean view or easy access to the ocean, the property usually sells within seven to 14 days. Currently active listings in the Half Moon Bay, El Granada, Moss Beach, Montara, Pacifica and Pescadero areas average 56 days on the market. There are total of 77 properties for sale. Currently pending listings average 21 days on the market, and there are 23 pending listings. The lowest priced home active in Pacifica is listed for $598,000. In Menlo Park, the market is still very active. There are multiple offers on most homes while overpriced homes spend more days on the market. Anything over 30 days and under $3 million should sell within 30 days if priced right. The Palo Alto Downtown area has a strong luxury market and strong activity for properties priced in the $2 million and up price-point, up and down the valley. The Redwood City area market is challenging for buyers due to a lack of inventory, with many receiving multiple offers.
Silicon Valley – In Cupertino, the market has been very busy, with a few new listings coming up. The Silicon Valley market can be categorized into three segments: entry-level homes, mid-level properties and very high-end listings. Each segment has its own set of particulars that impact buyers and sellers. First-time buyers in both Morgan Hill and Gilroy are faced with fierce competition over the few moderately priced homes available. These first-time buyers are usually required to pay over asking price as well as give up their appraisal contingencies. Mid-level home sellers (for those homes priced between $900,000 and $1.5 million) are experiencing their homes staying on the market for longer periods of time because buyers for these types of properties are looking for a real bargain. Lastly, sellers of very high-end properties are learning that in order to garner an offer reflective of their asking prices, buyers are demanding that these homes must be in the correct location, area or zip code. For Los Altos, the luxury market with homes priced over $4.5 million is steady, but frenzied bidding and multiple offers are the exception as opposed to the rule. Overall, inventory levels are still very low compared to buyer demand. Currently, there is less than one months’ worth of inventory in Los Altos. With such a limited number of homes available for sale, most homes receive multiple offers and typically achieve a sales price that is over asking. The market in Mountain View is even hotter with barely two weeks worth of inventory. The number of homes coming on the market for sale each week is slowly on the rise in both the Los Altos and Mountain View areas. However, these homes are being absorbed quickly and are selling very fast. Most homes coming on market are priced to induce offers and are selling in less than a week. The markets of Los Altos and Mountain View are still very strong and extremely robust.
San Francisco – The luxury market is slower than the regular market. There has been a very active two weeks of closings across the city, including 77 condos closing the first week of the month with the majority closing over asking price and almost all San Francisco Pacific Heights closing well over asking with multiple offers. Market activity seems to slow at about the $3 to $4 million-price point. As mortgage rates dip, buyers outnumber the few listings. Properties that are reasonably priced and presented well receive multiple offers. Those that are overpriced stay on the market longer. Contractor specials are also scooped up swiftly if their price is right.
South County – Homes under $1.5 million are selling, but there continues to be a large inventory of homes in this price point available, mostly due to conflicting desires amongst buyers and sellers. Open houses are buzzing and attracting buyers from the entire state but especially the East and South Bay. There are multiple offers on most properties, especially if they are priced under $600,000. There are many sharp offers and counter offers.
Monterey County – The first quarter finished slightly above last year in total dollars and even in units year to date. More sellers are beginning to list their properties. There has been good attendance at weekend open houses, and buyers are still interested in properties on the Monterey Peninsula.
East Bay – March saw a significant increase in activity, and April is still busy. However, there is still limited inventory and excessive demand. With very few exceptions, most listings received multiple offers.
North Bay –The luxury market continues to be alive and well. The Greenbrae office had multiple offers on a $4,495,000 listing in Ross, a $2,795,999 listing in Kentfield and a $2,500,000 listing in Stinson Beach. They also closed a $6,495,000 sale in Tiburon, a $3,200,000 in Kentfield and a $3,200,000 off market listing in San Anselmo. In Marin County, 300 properties are currently available, with only 65 under $1 million. Demand continues to outpace supply. Even though there is an increase in listings each week, the listings available are still fewer than a year ago. The Greenbrae office was down 21 percent in inventory for the first quarter of 2017 versus the first quarter of 2016. There was a slight increase in listings and number of homes in contract in the Novato area. There was little change year over year from March 2016 to March 2017 in the number of listings and homes sold. While the average days on market in Novato dropped significantly from 58 in March 2016 to 37 in March 2017, the average selling price dropped by 6 percent to $863,000. The lack of inventory affected sales in the first quarter of the year. Currently, there are 43 active properties in Novato with almost twice that number of contingents and pending. Ten of the active properties are in the $1 million plus price point and 17 properties over $1 million are in contract. With only two months of properties available, we still have a strong sellers’ market with multiple offers at all price points. Inventory in Petaluma is increasing, but days on the market are minimal with homes going into escrow almost as fast as they come on the market. Most properties receive multiple offers. The median price March over March increased by 7 percent to $680,000. In Santa Rosa, The luxury market rebounded in March notching a 50 percent increase in sales over February at 45 units sold. There are currently 271 active listings at $1 million and up in the county. There has been an increase in the number of showings as well in the upper end. The March median price in Sonoma County was $599,950, which is up 13 percent from March of 2016. We saw a 45 percent increase in properties sold in March compared to February and inventory fell 3 percent for the same period and was 10 percent below March of last year. The number of multiple offers per property is increasing, demonstrating buyer demand and activity. This increase in demand will coincide with our expected spring increase in supply. The number of buyers moving to Sonoma County continues to grow. Open houses have more than 40 attendees who are ready to buy now. Listing agents are receiving multiple offers on most homes and buyers are submitting huge overbids on properties in every price range. Inventory has finally picked up, but they are still at a record low. In Southern Marin, the market is at the strongest it has been since the recovery. In the last two weeks, Coldwell Banker Southern Marin ratified six properties over $5 million. The demand is high and buyers are very discerning. The general market is robust with most properties listed under $2 million receiving multiple offers. After reaching an encouraging, almost three-month supply inventory (MSI), they have quickly regressed back to a less than two-month supply. This sellers’ market will continue until there is more supply.
Placer County – Open houses have had great attendance. One open house had more than 50 visitors. Homes under $400,000, regardless of condition, are selling within days with multiple offers and over listing price. One of the homes sold for $25,000 over listing price and another for $11,000 over listing price. Properties in Colfax and other outlying areas are also being shown and sold in short amounts of time. There is little new construction of subdivision homes in the area, and the new construction builders that are building one home at a time, are selling homes months before they are finished. The number of buyers for new construction homes is double that of last year at this time. Luxury sales for properties priced above $1 million are down 10 percent from 2016 luxury sales. For 2017, there have been 51 luxury properties sold as compared to 57 sold last year for the same period. The median sales price for luxury properties in 2017 to date is $1,495,000, up 3 percent from the median sales price of $1,452,810 in 2016. The average sale price of luxury homes year to date stands at $2,292,850 as compared to $2,360,917 in 2016, and is down almost 3 percent.
Sacramento County – The over $750,000 market is a buyers’ market. All properties listed at $450,000 and under receive multiple offers as soon as they are on the market.