Interesting conversation on the Peninsula real estate market in Monday’s meeting. Some of the main points are worth summarizing (this isn’t a perfect representation):
Overall
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Inventory is not coming, despite what we all said.
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The selling season will go all year. Don’t fall into “This is the only time to sell a house.”
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The buying corridor on the Peninsula has shifted north.
San Carlos
San Carlos continues to roll. When Palo Alto and Menlo Park prices go nuts, San Carlos gets excited because they’re next in line. It’s the best neighborhood where you can get a house on the Peninsula for under $2M. There is huge demand inside “The Golden Box,” the area next to Burton Park between Cedar, Arroyo and Brittan. The Box is valued for its promixity to downtown and its homes with a little more character. A 2000 square foot two bedroom house just went for $1.7M with 17 offers in this micro-neighborhood. Insiders joke that middle management lives in San Carlos, while Belmont is the town for engineers, because the numbers pencil.
Redwood City
Buyers priced out of San Carlos have found homes they really like in Redwood City for $1.5M.
Atherton
Atherton just clicked on the high end. All the sudden, they’re all going.
Menlo Park
Santa Cruz Ave is becoming like University Avenue. People are putting a lot of money into spectacular homes on this flagship street. A great example of this trend is 1275 Santa Cruz Ave, a five bedroom for sale on 21,000 square foot lot that took our Best of Tour honor last week.
Woodside
Some lot sales last week.
Portola Valley
Portola Valley seems to be moving at a decent clip. Even a weird lot just sold for nearly $3M.
Palo Alto
Palo Alto remains “la ville d’or.” There were four offers last week on a vintage Professorville Tudor – two overseas, two domestic. One of the overseas buyers got it.
Los Altos
There are only nine houses for sale in the entire town of Los Altos. There’s been some crazy sales recently. As soon as they close, Los Altos prices will adjust.
Off-market activity
Off-market sales are definitely happening in Palo Alto and Menlo Park. Los Altos agents don’t go there as much. Burlingame has always had a huge private market. Nothing is off-market in San Mateo, according to agents there.
Lending
Two highlights in loan offerings:
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A private investor is doing 10% bridge loans for short amount of time.
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BBVA Compass offers loans for professionals, fixers and first timers – as low as 5% down.
