To get clients the inside track on their deals, our agents constantly swap intelligence on the Peninsula real estate market, especially at our weekly all-hands meeting. I recap their collective intel and share it with you. Remember, this is banter, not a perfect representation. It reflects many individuals’ different opinions and thoughts.
Advice for Agents
Listing agents: Don’t let anybody get in front of your disclosures
If you’re doing off market or looking at a preemptive offer, do not let anybody get in front of your disclosures. Buck the pressure and do your due diligence on a house because people are acting first and thinking later. Buyers are getting into the deals, then starting to do their investigations. So, be extra careful on square footage disclosures, because everybody is moving too fast.
Listing Agents: Take more time before taking offers
Take more time on the listing side before we take offers. Consider a week and a half, hold a couple open houses.
Market Read: Uncertainty
We’re approaching that mismatch tug of war where sellers want a lot of money, and buyers have had enough. Some worry that the’ve overpaid; others are upset about losing another house. There’s an uncertain feeling in the market, a sense that things are off kilter. We’re at an inflection point. It could be a tough couple months as the market evens out.
Keep your language good with buyers
Buyers are paying big prices on deals. Until you’ve been through a couple real estate cycles, you don’t know what it’s like to look at a buyer who you sold to when the market crashes. It doesn’t stop you from selling houses, but it does change your language. I told just told a client: “If you’re really going to hang it out there, I don’t want you to do it on a corner like this. This is not a super prime piece of property, and that bothers me.” Three years from now, I can feel good about saying that to him. If anything, be too careful. Think it through with your buyers. Better to get in the way of the market moving than risk buyer remorse. As I’ve always said, “I don’t want to sell a house that I don’t want to sell again.”
Sales Messages
Buyers:It’s slowed down. It’s a good buying time.
Sellers: Mainland Chinese buyers will be in the market this summer for new houses, turnkey houses.
This Week’s Market Action on the Peninsula
ATHERTON
Notable sales: The high end is moving, and they’re mostly done houses. Park, Amador and another all went into contract.
Current listings: There’s 12 listings between $7 – $15M.
New listings: A couple came on this week that will be on tour.
MENLO PARK: WEST
Notable sales: A couple big sales – one in Sharon Heights, one with a year leaseback that was taken off the price, one that sold for 30% more than it sold for two years ago.
New listings: A lot of listings came on last last week.
MENLO PARK: THE WILLOWS
Notable sales: Mckendry sold with multiple offers, in line with recent Willows activity. A really nice house on Menalto sold with multiple offers.
New listings: A recently remodeled 1,639 sf house on an 8,820 sf corner lot is listed for $1,645,000. Nice remodel with an open floor plan.
PALO ALTO: NORTH
Comparing the last 9 days with the same 9 days in 2013, we’re seeing inventory come on that we didn’t see last year. The huge move in prices is clear. Asking prices have come up, we’re not seeing as many high overages.
- 2014 inventory: 7 houses listed in NPA in last 9 days.
- 2013 inventory: zero houses listed. Houses were sitting at that time.
- 2014 sale prices: $1500 – $2000 price per square foot2013: $980 – $1110 price per square foot (plus one outlier at $1400, the big lot on Lincoln).
Notable sales: Channing sold for $3.4M.
Current Listings:Hamilton, West Crescent and Lincoln still sitting.
Coming Soon: De Soto coming back on.
PALO ALTO: SOUTH
New listings: A couple great homes have come on, a little bit lower in price, such as 2202 Greer at $2M and 3221 Ross at $1.6M.
Notable sales: College Terrace is still a hot neighborhood. A 2000 sq ft house in College Terrace on a 5000 sq ft lot sold for $3.3M. We’re seeing big numbers on condo sales. Otherwise, nothing out of the ordinary. Homes are going $200-300K over ask.
PORTOLA VALLEY
Ladera seems to be the most popular and affordable in terms of convenience and its suite of amenities.
New listings: 2 great new listings. Holden has spectacular views. Cherokee is lovely. Price is definitely on the higher end.
Notable sales: An unremarkable property on South Balsamina closed well over list price. Joaquin fell out of contract.
REDWOOD CITY: THE FLATS
New listings: Redwood City quieted down last week, not a whole lot happening. A couple crazy FSBO sellers are throwing their homes on the market to see what they can get, such as a record-setting list price of $1.7M FSBO in Woodside Plaza. This stuff makes Oakdale look great – beautiful house, gated.
Notable sales: Rutherford just sold more than $150K over asking – cute but small, going for $1000/sq ft. Marlin in Redwood Shores sold above asking – a superior location and lot size on the water.
REDWOOD CITY: THE HILLS
The infusion of inventory has subsided a bit. More listings will be coming; people are talking about it.
New listings: 623 Upland is a lot of house for the money, good for someone with a large family, on a narrow, bumpy “B street”. Massive 5100 sq ft house on a steep lot listed at $2.55M on Springdale Way.
WOODSIDE
Inventory sits in Woodside. Several listings expired this week. Woodside is a normal market. If buyers are tired of fighting multiple offers, go to Woodside.
Notable sales: Albion, listed at $15M, sold. Heather Ridge’s auction strategy got several offers.
Current listings: Price increase on Greer to $60.9M. Price drop on Hacienda to $4.995M.
New listing: 358 Albion is for sale.
