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February 2014 Real Estate Update

Market Update

The supply of homes for sale in the Bay Area has been at or near historical lows in many communities, driving up prices for those relatively few properties on the market. However, I am starting to hear from clients that they’re thinking about selling, and a good number of homeowners are actually getting their properties ready to list for the spring selling season. Only time will tell if homeowners do in fact decide to list their homes. But my guess is that those who have been on the fence about selling are reading news accounts of prices jumping sharply, and they want to be part of the action. Despite good sales figures in the luxury market, all segments of the Bay Area market could use more well-priced and well-appointed inventory. Buyers are out in droves and ready to purchase right now.So the question is: Are you ready to join the party? If so, call me and let’s talk.

Record Breaking Luxury Market

According to a new report out this week by DataQuick, a La Jolla based real estate information services company, 2013 was a record setting year for luxury home sales in the Bay Area. San Mateo, San Francisco and Santa Clara counties had increases of 39%, 34%,and 29%, respectively. Most of the top sales were concentrated in Silicon Valley, the Peninsula and San Francisco, communities filled with newly minted millionaires looking to invest stock option money into the housing market.“The luxury home market is unique...,” said John Walsh, president of DataQuick. “It responds to its own set of economic factors.Things like job growth, mortgage interest rates and migration patterns do not play the same role as IPOs, stock market performance or how well one type of investment does compared to another, and where one wants to park one’s excess money.” And it wasn't just the Bay Area that saw a surge in luxury sales last year. DataQuick reported that statewide, 840 homes sold for more than $5 million in 2013, an all-time high and up 20.3% from the previous record in 2012.

Real Estate and Housing Reports

Thought you might be interested in this commentary on economic trends in commercial real estate and the housing market. Latest report: Housing Chartbook.

Ginny Kavanaugh

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John Kavanaugh: 415.377.2924 Joe Kavanaugh: 650.400.5312 Ginny Kavanaugh: 650.400.8076