Which California did you mean?!

As I read the newly released information from Zillow about property values I was once again reminded how crucial it is to be precise about what area you refer to when speaking about value trends. We start with: "California one of three states with largest losses in property values." Then we go to the supposedly local information: "San Francisco values down 13% from last year". But read on: San Francisco, Oakland and Fremont are all defined as the same area! If you're reading this from another state you cannot fully appreciate the absurdity of this collection of different markets being lumped into one metropolitan area. I am quick to acknowledge that I would have the same problem evaluating the information provided for any area other than the areas where I actively sell. And so the first point: Sell only what you know first hand! and the second point: California is not one housing market, but many completely different markets. San Francisco alone is not one housing market, but many diverse and conflicting markets. I primarily represent the markets of Berkeley, Albany and North Oakland. Last week in a desirable Berkeley neighborhood a house listed in the low $900K range received 10 offers, with the successful offer being more than $350K over list! That was noteworthy, but not unique in my market area. Multiple offers are common, just not having ten of them! We are seeing fewer and fewer contingencies in offers. We see pre-offer inspections by buyers, and once again we have pre-emptive offers. Right here, right now, there certainly are more qualified buyers than desirable listings.

Meanwhile, buyers continue to read that it's their market, and are shocked, and sometimes resentful, when I need to educate them to the true and fast nature of our local market. But the local news is all that really matters!