A quick perusal of some first quarter real estate sales here in San Francisco confirms the National Association of REALTORS’® most recent report on the national housing market. 

According to David Lereah, NAR’s chief economist, home sales should level-out while remaining historically high. 

“Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record,” he said. As for selling prices, NAR president Thomas M. Stevens believes they will cool, but not as much as in earlier projections. “The balance is still a bit more favorable for sellers,” he said. 

Their statements are reflected in the difference between 2005 and 2006 first-quarter home sales and selling prices. Based on sales reported to the San Francisco MLS, it appears that the market is somewhat balancing out. Home sales are down by about 5 percent and properties are spending an average of 9 more “Days on Market” (DOM) than last year at this time. On the other hand, selling prices remain steady, having increased 1 percent over 2005. 

All signs seem to be pointing to a normalizing market. However, this may take some time getting used to here in San Francisco where home owners have become accustomed to a market so hot, they could forego traditional marketing techniques and simply sit back to watch offers roll in. 

A look at 2005 and 2006 first-quarter listing prices indicates that for the most part, homeowners are still not pricing their properties realistically. Listing prices have gone up 7.8 percent over last year despite the slight decline in home sales and the very slight increase in selling prices. This may explain the increase of the median DOM from 25 in 2005 to 34 in 2006. Then again, the slight dip in sales could be attributed to an abnormally rainy spring, from which prospective home buyers are just beginning to emerge. 

The best strategy for selling a home quickly and with the best fiscal outcome is to set a strategic and competitive listing price. As a real estate professional, I’d be happy to assist you in determining the value of your home and showing you the best marketing strategies to optimize your sale.