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FOR THE WEEK OF March 17th to 23rd, 2025
Greetings,
We hope you’re enjoying the onset of spring! This past week (March 17th – 23rd) has been notably active in the Bay Area real estate market, with multiple properties closing at double-digit percentages above their listing prices and a significant number of cash transactions. This dynamic underscores both the robust buyer demand and the continued appeal of prime neighborhoods throughout the region.
Diverse Price Points: The pending properties span a wide range of listing prices, reflecting the broad appeal of each neighborhood. Buyers at various budget levels are finding options that meet their needs, from entry-level homes to higher-end luxury listings.
Days on Market (DOM) Many of these listings show relatively short DOM, suggesting strong buyer interest and swift movement toward contract. In a competitive market, properties that are priced appropriately and presented well tend to secure offers quickly.
Key Observations from the Week
- Widespread Above-List Sales: Properties in neighborhoods like Atherton, Belmont, Burlingame, Palo Alto, and Menlo Park have consistently fetched sale prices well above the original list—some by double-digit percentages. This trend highlights the competitive environment and the eagerness of buyers to secure quality homes.
- Notable Cash Purchases: A substantial share of these transactions were completed with all-cash offers. This suggests that buyers are leveraging liquidity to stand out in multiple-offer scenarios, circumvent higher interest rates, or expedite the closing process.
- Strong Demand Across Neighborhoods: From Sunnyvale to Redwood City, San Mateo to Los Altos Hills, various price points are seeing quick turnarounds, underscoring the Bay Area’s diverse market and ongoing desirability.
- Low Inventory, High Competition: Even though new listings are entering the market, the number of buyers vying for available homes remains high. Homes in move-in-ready condition or in sought-after school districts are particularly prone to bidding wars.
Why This Matters
- Sellers: With many properties achieving double-digit over-asking results, it’s an opportune time to consider listing—especially if your home is well-maintained or located in a high-demand area.
- Buyers: Be prepared to act quickly and competitively, potentially considering cash or pre-underwritten offers if feasible. Staying flexible on terms can also help you stand out in multiple-offer situations.
- Investors: This ongoing market strength and fast turnover highlight continuing growth opportunities in the Bay Area, particularly for those aiming to capitalize on rising property values.
Next Steps
If you’d like more details on any specific property or neighborhood, or if you want to discuss your real estate goals, we’re here to help. Our team is dedicated to providing you with the insights and guidance you need to make confident, informed decisions.
Wishing you a successful week ahead,
Henry Chu and Denise Liew
Presented by Henry Chu
The Sotheby’s International Realty® brand’s 2025 Luxury Outlook℠ report explores global trends in high-end residential markets and forecasts key developments for the year ahead. It highlights how the US$84 trillion intergenerational wealth transfer will reshape investment dynamics, while anticipated price normalization in 2025 may present strategic entry points in key markets. The report tracks where 135,000 high-net-worth individuals are projected to relocate in the coming year, offering insights into luxury hubs around the world, and how “Best Place to Live” rankings impact property values and inventory – from Vienna, Austria to Naples, Florida.
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