Weekly Market Watch

I post these market updates from Larry Klapow when he sounds particularly brilliant:

April 27 – May 4

I read with interest earlier this week a Market Watch article entitled “Home price data has its flaws.” The article emphasized what we have been saying for months and what has become the basis of our Reality Check initiative: real estate consumers aren’t getting the full story and the indexes the media use to report on the housing market can be misleading because of the locations, prices, types of housing and the rates of increase these organizations track.

Just days later, Realty Times writer Blanche Evans followed that story up (http://realtytimes.com/rtpages/20080505_realtyviewpoint.htm) by slamming both Shiller’s Index and the Associated Press for being “Grim Reapers.” And, for the first time in our knowledge, S&P Index Committee Chairman David Blitzer “acknowledged his organization’s” overall and metro-market readings paint an incomplete picture.

NAR Chief Economist Lawrence Yun even weighed in noting “Just like saying the average nationwide temperature today is 57 degrees doesn’t tell you anything, the same is true for real estate prices. The only way to tell what your home is really worth is to look at local-market conditions, do Internet research and utilize professionals (such as licensed appraisers) to help determine the value of your home.”

So, with that said, let’s paint the local, Bay Area market picture. It remains one of various micro climates that are showing signs of recovery each and every day:

East Bay – The East Bay market, which has its own share of mini micro climates, seems to be flourishing this spring. The Berkeley offices reports “We’re still hungry for inventory,” while the Castro Valley offices reports that it is “extremely busy with REOs.” Fremont Manager Will Butler confirms that adage that “Properly priced listings that show well are generating activity while properties that don’t sell in the first 20 days tend to sit longer.”

North Bay – The North Bay is showing great signs of recovery. In fact, Santa Rosa Manager Rick Laws reports, “Close your eyes, click your heels and ‘Toto, something tells me we’re not in Kansas anymore.’ We’re in the spring of 2004 if you’re in the (entry level) market under $500,000. Crowded open houses and multiple offers. We have experienced a very busy week in our office. It’s good to be us.” Santa Rosa’s Marin neighbor seems to concur. In fact, Southern Marin Manager Alice Gray noted, “Things are definitely better. Multiple offers on well-priced properties. One property in Sausalito had four offers after its first open house.”

Peninsula – I hate to be a broken record, but the biggest challenge in the Peninsula remains a lack of quality inventory. Having said that, the last few weeks have shown even greater promise for this unique market. All Peninsula offices report steady listing inventory and the jury is out on sales activity with offices reporting mixed valuations of steady or increasing sales. Burlingame Manager Leigh Whitten reports that one Millbrae home had over 200 visitors and Menlo Park Santa Cruz Avenue Manager Dave Hobson reporting “a slight surge in sales activity the last few weeks.”

San Francisco – The City – which, thanks to its years of pent-up demand and its locale as a global destination, has never really felt the effects of a true real estate slowdown – seems to have received an even bigger booster shot in the last couple of weeks. One Agent in our Lombard office went in unsuccessful on 21 offers recently only to find client success two days later against 17 offers on another listing. Both homes were said to have gone over by 25-30% over asking. The Van Ness office continues to report “our activity continues at a fast pace all price ranges.”

Bulb 101

Since everyone wonders what to do once their bulbs are finished flowering, I thought I'd post a little bulb primer.

From Ed Hume;

Q: How do you care for lilies, gladiolas, and irises after they have flowered, and is it the same as for tulips and daffodils?

A: Immediately after flower, I think it is a good idea to feed the foliage of all bulbs with 0-10-10 fertilizer. This helps build strength back into the bulbs, roots and tubers for the following year. If you live in the NW or other moderate climate areas, these bulbs can be left in the ground year-round. All you need to do is dig and divide them every few years, then replant them immediately if you wish. Iris and gladiolas need full sun, while lilies need a little shade for best and longest flowering.