Category Archives: Redwood City

Q2 Redwood City Market Update

The Redwood City housing market has taken off, trailing just on the heels of its neighbors in the Peninsula. The city where buyers used to come for “bargains” has emerged from its cocoon as a beautiful and difficult to catch housing market. Buyers from neighboring cities apparently didn’t get the memo that the downtown in Redwood City is flourishing, and the entire city seems to be buzzing with a younger, more tech-savvy group who focus on its current attributes and future potential. As a direct result, buyer demand is driving this housing market to mimic historical trends of neighboring cities.

The second quarter of 2013 has exploded, leaving the similar time period from last year in the dust. Inventory is still down. The homes that do appear on the MLS disappear as sold listings just as quickly. Significant gains in median price, substantial overbidding, and extremely rapid sales are driving Redwood City as one of the newest highly-competitive markets in the Peninsula.

Redwood City, as a Whole

Throughout the city, we have seen the median home price jump 19% from Q2 2012, rising from $777,500 to $926,000. The average days on market for these sales has dropped more than 50% from an average of 41 days on the market to only 20 days. Significant overbidding has returned to the county seat, with sales prices averaging 6.3% over the list price, compared with only 1.5% overbidding in Q2 2012.

Old Redwood City*

Drilling down to a neighborhood view, Old Redwood City was even more competitive. Q2 comparison of median home price between 2012 and 2013 showed an increase of 15%, with median sales price rising from $1,100,000 in 2012 to $1,265,000 in 2013. Buyers were even more eager to get into this neighborhood, and the average days on the market plummeted by 50% from 60 days to 30 days. Buyer competition for the second quarter is still fierce in Old Redwood City, with significant overbidding on homes at 8.0% over the list price, compared to 1.6% over list in 2012.

The City to Watch

Keep an eye on Redwood City as the downtown develops further, more buyers are priced out of other cities, and the city’s schools catch up with the demand for top performing schools. We have seen the beginning of this trend, but can expect that future home prices will more closely rival those of the surrounding cities.

*Old Redwood City is defined by the area between James St. & Edgewood Rd., and Alameda de las Pulgas & El Camino Real.

Goodbye Old Palo Alto… Hello Old Redwood City!

Where the Heck is Old Redwood City?

Peninsula residents are always looking for the next big thing, from
electronic gadgets, websites, start-ups, to neighborhoods. Yes,
neighborhoods. More established neighborhoods like Old Palo Alto,
Crescent Park, and Central Menlo Park are being taken by storm by
the newest moniker to hit residential real estate: Old Redwood City.

Once you and the other established-city bullies stop clamoring about how
Redwood City used to be called a variety of other schoolyard names, you’ll
see how this super-neighborhood is taking the Peninsula by storm.
(Super, coming mainly by the size and how it encompasses a few other
smaller niche neighborhoods – but also because of its qualities.)

“Old Redwood City” is area that encompasses a few other areas within its
boundaries: Edgewood Park, Wellesley Crescent, and Mount Carmel
northwest of and including Brewster Ave. Within these boundaries you will
find some of the oldest and most historical housing stock in Redwood City,
as well as nearly every type of architecture you can imagine: Colonial,
Spanish Revival, Tudor, California Bungalow, mid-Century, etc.

The lots in Old Redwood City tend to be well-sized and spacious, ranging
anywhere from 6500 square feet to 1.5 acres, and the closer you get to
San Carlos (without entering San Carlos), the larger the lots and homes.
This is a neighborhood reminiscent of the best parts of Palo Alto, having
just as much charm and character, just as many (if not more) trees and
greenery, and wide, tree-lined avenues transecting the neighborhood.
Within this grid you will find narrower, less busy cross streets with deeper
lots but less frontage.

Around Old Redwood City you will find plenty of pedestrians throughout
all seasons of the year: runners, people walking dogs, parents with kids,
elderly people out for a stroll. The quantity and variety of pedestrian
demonstrates how the neighborhood is conducive to and safe for nearly
everybody. A neighbor of mine is in her eighties and can be seen
strolling the neighborhood at all times of the day! The nearby Stafford Park
is a local favorite gathering spot for walkers, families, and those looking for a
great picnic spot. A large play structure and interactive fountain entertains
the youngsters, while a summer music series entertains kids of all ages.
Neighbors brings chairs, blankets, picnic baskets, adult libations, and
many of their friends – what a great way to enjoy the summer!

If you haven’t been enticed by this article, go for a drive (or better yet a walk)
through Old Redwood City and see what all of the buzz is about. And keep
an eye out for Part two of this article, where we will further discuss the
economics of exploring a new neighborhood known as Old Redwood City!

Should I Stay or Should I Go? Renovating vs. Selling

Having trouble deciding whether you should remodel your place and stay put or search out a more suitable pad? Read on for some considerations which should hopefully help you with this decision:

Many of my clients like their house enough, but it’s just not the right one for them. If they could tweak the floor plan, upgrade the kitchen, and build out an extra family room – it would be perfect. Except for the howling dog, the drummer who works practices with his band twice each week, and the constant roar of the El Camino traffic. Or, the neighborhood is perfect, the neighbors periodically bring baked goods – but the half-sized lot won’t allow for the extra bedroom you need and the pool you have always wanted.

Neighborhood is key.

As you always hear, you can change almost anything about a house except for the neighborhood. This is where I always start with clients who aren’t sure. Are you happy where you are, should you have a house more suited to your needs? Are you near a busy street or another nuisance that drives you crazy on a regular basis?

Will you be able to recoup any money invested when it is time to resell?

It’s great that you might want to double your square footage, put in a custom kitchen and that hand-excavated 10,000 bottle wine cellar you have always wanted. But when you go to sell in 10, 20, or (heaven forbid) a job change forces a THREE year plan, will you be able to get out of your home without a decent sized “haircut” to your investment? Look around your neighborhood at what has recently sold. Compare that with how your neighborhood has fared over the years. Do you already have the biggest, most expensive house on the block? If so, you may not want to over-improve your current home beyond the standards set by the neighborhood.

Does renovation make financial sense?

Do you have the cash needed to make the necessary repairs, or are you already maximized on your monthly debt and have no cash reserves to cover any unexpected “bumps” in your proverbial road? Would taking an additional loan put you in an uncomfortable financial position?

Can you endure living through construction?

I probably should have put this at the top of the list because it is where most people will stop reading. Living through construction isn’t fun, it disrupts daily routines, and puts an extra layer of stress upon everybody in the household/construction zone. Renovations can be fun when you’re choosing finishes, but what about when the four month project is going on eight months and you can’t possibly endure anymore take out dinners? I’m not saying all projects go over time and budget, but how would you deal with the situation if it did?

Tally up your responses to these questions and ask others for their input if needed. Only you will have the right answer for your personal situation, but a real estate professional can help with a “before” and “after” valuation to determine if the cost of the improvements/changes to your home would be a wise investment. Your favorite Dreyfus agent would be happy to have a more in-depth conversation with you!

Regional Bicycle Share Pilot Project

Coming to the Bay Area in August 2013 – Bike sharing!

The Bay Area Air Quality Management District (Air District) in partnership with the City and County of San Francisco, San Mateo County Transit District, City of Redwood City, County of San Mateo, and Santa Clara Valley Transportation Authority is working to pilot bike sharing in the Bay Area.

A main goal of the pilot is to evaluate bike sharing’s potential to effectively reduce vehicle traffic and improve local air quality. Bike sharing offers a clean and healthy alternative to polluting single-occupancy vehicles, by providing a means for completing first- and last-mile trips in conjunction with regional transit, as well as stand-alone short distance trips.

The pilot system will launch in two phases. The first phase will deploy a fleet of approximately 700 bicycles and 70 kiosk stations and is anticipated launch in August 2013. Within 3-6 months after the first set of equipment has been deployed, it is anticipated that additional equipment will be added to grow the system to include a fleet of at least 1,000 bicycles. The communities participating in the pilot include: San Francisco, Redwood City, Mountain View, Palo Alto, and San Jose. More program announcements and updates will follow later this spring.

Bicycle stations will be located near transit hubs, high-density residential areas and key destination points such as shopping areas and employment centers making it easier to quickly and conveniently connect to and from transit or make a short distance trip by bike.

The results from the pilot will be used to assess opportunities for expanding the program to include other Bay Area communities.

In order for System to reach its full potential (between 6,000 to 10,000 bicycles) additional funding from a combination of user fees and private sponsorships will be needed. To this end, the Air District is currently developing a Request for Sponsorship and interested in sponsoring the system should contact the Air District at (415) 749-8660.

Pilot City Name	Title of Contact	Contact Email	Contact Website
Palo Alto, Mt. View, San Jose	Aiko Cuenco	[email protected]	Santa Clara VTA
4th & King, Redwood City, Mtn. View, Palo Alto, and San Jose Diridon Caltrain Stations	Douglas Kim, Samtrans Planning Director	[email protected]	Samtrans
Redwood City	Redwood City Bike Share Liaison	[email protected]	Redwood City
San Francisco	Bicycle Sharing Program Manager	[email protected]	SFMTA
San Mateo County	Peggy Jensen	[email protected]	N/A

(from the Bay Area Air Quality Management District press release: http://www.baaqmd.gov/Divisions/Strategic-Incentives/Alternative-Transportation/Bike-Share-Pilot.aspx)

Menlo Park and Redwood City New Homes – March 26, 2013

Inventory has been fluctuating substantially week by week, and based on
the booked schedules of stagers and home inspectors I would imagine
the first week in April will be a busy time. Here is a recap of homes that
have listed on the MLS in the past week:

MENLO PARK

1144 CASTLE WAY $4,450,000 | 6 Bed/5 Bath | 4,612 ft./9,956 Lot

In case you didn’t see it last time it was listed, Castle Way is back on the
MLS with a reduced price. This recently built home offers plenty of space
for a growing family as well as great access to downtown, nearby parks, and
the bike path to Stanford. Very nicely constructed with thoughtful finishes.

1361 SHERMAN AVENUE | $1,800,000 | 4 Bed/3 Bath | 3,010 ft./9,375 Lot

Sherman offers an expansive home in a central location, and by adding your
own touches you could have a house fit for entertaining all of your friends.

REDWOOD CITY

424 QUARTZ STREET | $1,449,000 | 4 Bed/2 Bath | 2,160 ft./11,682 Lot

Unique and charming are key words for this property. You won’t find anything
like it out there and being tucked away on a flag lot on top of a hill in the
precious stones street, you get views of much of the city. Don’t miss the
hide-away stairs to the rooftop for 360 degree views!

1227 FERNSIDE STREET | $775,000 | 3 Bed/2 Bath | 1,410 ft./6,272 Lot

A spacious fixer on a nice street makes this an ideal purchase for a first
time buyer. This home offers a traditional layout for this neighborhood in
great proximity to Stulsaft Park, commute routes, and walking in Woodside
Hills.

614 LANCASTER WAY | $749,999 | 2 Bed/1 Bath | 1,250 ft./5,500 Lot

A spacious two bedroom home offers a clean slate for first time buyers or
those looking to downsize. A gem with refinished floors and a quiet
neighborhood.

634 RUBY STREET $649,000 | 2 Bed/2 Bath | 1,190 ft./6,175 Lot

What a house! This is my pick for a tremendous starter home in Redwood City,
located in a nice pocket near the park. Ruby offers endless charm and
character with large bedrooms and a very efficient layout. Excellent choice
for first timers!

Where Do I Go?

The popular topic in the local real estate community is the
ongoing lack of inventory of homes for sale. According to our local MLS, the
number of homes for sale in our local market (Palo Alto, Menlo Park, Atherton,
Portola Valley, Woodside) is down 40% – 60% versus this time a year ago,
depending on the price point and neighborhood. Since our are generally has
fewer homes for sale relative to the number of homes and buyers, this inventory
decrease translates to it feeling like there is NOTHING for sale, and multiple
offers on the few homes available are the norm, not the exception.

Adding to this, with the phenomenon of overseas buyers and
recent liquidity events and stock run ups for local companies, we are seeing
more wealth and resources available to purchase homes than ever before. This is
like adding gasoline to the proverbial fire, and driving prices upward at
impressive rates. Check out these charts, showing changes in median home prices
(half of the houses sold for more, half for less) in our communities over the
past year. Palo Alto up 20% 2011 to 2012, Menlo Park 11%, Woodside down 10%
(I’ll come back to that), and Portola Valley up 13%.

That’s better than the NYSE which is up 12.9% over the same
period, and you get a place to keep your stuff too.

So let’s assume you have been sitting in your house in North
Palo Alto for the last few years while your kids finish High School, watching
houses around you sell in a week at prices you can’t believe. You come home,
realize you don’t need a four bedroom house and the property taxes and say to
yourself “Self, let’s cash out!” (Actual clients’ example here). Your next step
would be to call me and say ‘Chris, what is my house worth?’. I’d give you a
range (say $3M – $3.2M) and you would say ‘wow, that’s like $500,000 – $700,000
more than I paid for it in 2006’ or something like that. Then you would ask me
the hard question:

Where do I go?

So you sell your house in Palo Alto and pocket a $500,000
net gain after selling costs, plus your original equity and you are going to
downsize to a three bedroom house. The kids are in college so schools don’t
matter much but you don’t want to move to Napa. Your new budget is $2M so your
property taxes will be lower and your mortgage is something you can pay off
before retirement.

Woodside:

OK, I’m biased as I am currently buying a home in Woodside.
Why? Read my other blog article “A Realtor Buys a House”. For our
fictional couple here, it’s close enough to all the fun stuff you did in Palo
Alto, the market isn’t as tilted in favor of sellers (prices down 10% last
year), and you get some land or a view depending on where you are in town. If
you have little ones, Woodside Elementary School is fantastic. Woodside Bakery
and Buck’s are experiences in and of themselves. Bring your horse.

Ladera
Ranch:

Ladera is really unincorporated San Mateo County, but it is
a closely knit community border Portola Valley with off-street walking paths
leading down to the shopping center and a community center with pool and tennis
courts, so it combines the best of rural and suburban living. Many of the homes
have views and the neighborhood feeds into the excellent Los Lomitas schools.
Convenient to 280 and open space preserves.

Portola
Valley:

Extra space and views of the Bay or open space are hallmarks
of Portola Valley. The small town vibe and peaceful feeling make it an escape
from the madness that defines most of Silicon Valley. Generally, there are more
bikes than cars and the open spaces define the views and feeling. If you feel
like Woodside is getting too uppity and flashy (the locals say too Palo Alto),
then PV is the place.

Emerald
Hills:

Views on a budget. Roy Cloud Elementary is excellent and the
market and prices make for a great downsizing option. You are car dependent,
and the narrow, winding roads will have you trading the Suburban for a Vespa.
If you like Tuscan hill towns, Emerald Hills may be just your thing.

Redwood City:

Redwood City is the largest city on the Peninsula and where
I think the biggest potential for appreciation is. Prices are relatively low
compared to the surrounding cities, and Redwood City has invested heavily in an urban renewal of its downtown that is
drawing more business to restaurants, The Fox Theatre and the Cineplex. As we
have seen in Mountain View over the past 20 years, an attractive, bustling
downtown leads to gentrification which leads to rising property values. Redwood
City, especially neighborhoods like Mount Carmel, is my appreciation pick for
the next decade.