Retirees: This is The Golden Moment
This is a very significant time for older people who are planning to retire and sell their homes in the next 10 years. They want to discuss their equity and what they’ll get out of the house. People are living a long time and need a lot of money. A couple million dollars isn’t what it used to be. For retirees right now, this is a golden moment. In 4-5 years, they may be worse off selling. They want a lot of help. We’re not accountants or tax advisors, but we can sit down with them and check their numbers. We can share tools like the New York Times’ new rent vs buy calculator, which builds in price appreciation over time. The calculator’s default values are decent, although home price growth rate and rental growth are low for our market.
There’s Nothing Wrong with A Good Offer: Negotiation Strategies for this Market
It’s very important that sellers have an agent who recognizes changing markets and changing strategies. When the market shifts, negotiation strategies must follow. Now’s the time to be patient and do more market pricing. This past week, we’ve watched several multiple offer situations shrink into no offers or one offer. Those listing agents would have been better off to take a good offer to start with, rather than holding out for multiple offers that did not materialize. Those agents were holding the playbook for yesterday’s market. If an agent is not listening out there, then she’s playing by yesterday’s rules – and the seller may be left holding the bag if buyer interest goes south.
Buyers: Now is the Wrong Time to Sit on the Sidelines
Be aware of a pattern that’s repeating itself. There was a run-up through the spring, then the June swoon, where the market flattened out. Now there are more buying opportunities and less competition. Yet, buyers are saying, “OK, I didn’t get a house. Is now the end of it?” They’re on the sidelines, watching for a few months. The market will reaffirm itself in early fall – and if they’re not aware of the pattern, they will miss the buying opportunity.
Last Week’s Market Action
Atherton
There were a couple sales and a couple new listings in Atherton last week. 192 Fair Oaks, listed for $7.450, just went pending. An off-market on Stevenson – a tweener house on a great piece of property – just sold. Four homes came on the market in the last 4 days, including one at the end of Walsh Road just under $5M that looks like a teardown or a major remodel. Another at Lindenwood and Mosswood, just under an acre, went on the market for $4.2M.
Menlo Park
We see value in Allied Arts, compared to land in Central Menlo Park. Allied Arts, with its walkability to downtown, is the next Professorville. There’s several decent houses sitting on the market under $3M, whereas land in the middle of Menlo is selling in the $3 – 3.5M range.
North Palo Alto
There are 17 active listings in Palo Alto. 10 are less than 15 days on the market, including 7 new listings. 6 went under contract last week. Only 5 closed escrow. of those, only 2 are single family homes. The average price was $1700/square foot. There is a nice place coming soon on Island Dr.
Portola Valley
It was a quiet week in Portola Valley. The new listing on Corte Madera looks quite nice. The big listing at 707 Westridge, originally listed at $13M, finally went into contract. This is a big sale, considering there have only been three sales over $5M this year in Portola Valley.
Redwood City
There are only a couple new listings in Redwood City, including a good one on Sunset. The pendings are taking a long time to close, and a couple fell out of contract. Farm Hill Estates has the basic metrics: schools and sidewalks. Farm Hill Estates, which feeds into Roy Cloud Elementary, is running $1.5M for 2100 sq ft, 3/2 or a 4/2. Emerald Hills going in fits and starts. The market is not looking favorably on properties without yards. You can get a lot of house for $1.7M in the hills.
Woodside
3 new listings and 2 price reductions last week. A really nice 2500 sq ft house at 128 Audiffred Lane, on a half acre lot, just listed for $3.5M. One is a 1200 sq ft home on a pretty spot, a big flat lot with two acres. Its $2.3M list price is asking a lot. It’s not in a fault zone, but disclosures should be examined for flooding potential. 351 Ridgway went into contract. There are now two bank owned properties in Woodside, both on the east side of 280, both feeding into Redwood City schools.
