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.
Inventory Keeps Falling
Inventory has fallen dramatically over the past three years in Palo Alto, Menlo Park and Los Altos. Barring some unbelievable calamity, we expect the market will go great guns next year when buyers start to show up again.
With inventory so tight, buyers are mobbing open houses at certain price points and locales. Our listing in San Mateo, a beautifully restored Eichler offered at $995,000, was put on the MLS only four hours before the open house. The open house was packed with mostly Eichler fans and people attracted to a price point under a million, who got an alert on their Redfin app that morning.
Buyers crowded into our listing in old Palo Alto. 175 Tennyson is an elegant home with refined architectural details. This 6 bed, 6.5 bath house, offered at $5,895,000 got a very positive response.
Why International Buyers Want Public Schools
“I can’t rely on private school” one international client told us. The private schools are very impacted. It’s incredibly difficult to get your child into Castilleja or The Menlo School. International buyers don’t have local connections at these private schools — but they know they can get into public school. So, they focus on public school.
Promising Places to Invest
Our client often ask us where they should invest. Here’s a few popular options:
- Redwood City: There’s still value in Redwood City, despite its price appreciation.
- Castro Valley: Castro Valley is an interesting pocket. It has the rural feel of Emerald Hills, but less hilly. It backs up to Lake Chabot Open Space. It has good transportation access, being near a BART station and easy access to 580. A decent house can be bought for $700,000 to 800,000.
- Sonoma: Clients are buying investment properties in Sonoma for $800,000.
Palo Alto
There are five houses under construction with a block of Kingsley. That corner of historic Professorville will soon be transformed. Buyers are wary of constraints on historic homes, and the hassle of working with the city, but win-win solutions do happen. Last week, the historic review board just approved the request of a recent buyer to pick up a large historic house and re-situate it on the lot.
Redwood City: The Flats
Inventory has tapered off, after enjoying the most inventory on the Peninsula until recently. A couple properties in Mount Carmel came on the market, including a big price on Iris that is already pending. There was one notable sale on Lanford. Offers poured in for this house, priced under its lot value (and it had an existing house), which sold for nearly a million more than its $1.298M list price.
Redwood City: The Hills
A couple new listings in Emerald Hills present interesting opportunities. A 5/2 with a view in Farm Hill Estates was just listed at $1.75M. Another on Cambridge, offered at $1.149M, promises a good value, as most done houses that are in good shape go fast for $1.5 – $1.6M
San Francisco
They’ve had price appreciation of 25-30% this year, and they’re shell shocked at their own prices. The edgy neighborhood are on fire, as young techies buy in Bernal Heights.
Saratoga
The market is slower in Saratoga. The shift north is impacting this market. LinkedIn just sold a building in Sunnyvale, in favor of another in San Francisco.
Woodside
Seven new listings came on the market in the past two weeks, with an average price of $4.3M. Recent pendings and sales suggest that people are buying challenged homes because inventory is slim.
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