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.
Summer Inventory Sells the Second Week of August
We saw it again this year. We sell everything in the second week of August. Don’t panic when homes don’t move in June or July. Everybody buys during the second week of August. It seems too late, as school is just about to start when these all these deals go down. Buyers have been looking all summer and finally realize that they’re out of time.
Buyers Without Budgets
Buyers out in the market are buying what’s available at any price. It’s shocking, but true. They aren’t looking at what backwards, they are looking forward. The latest high priced sale in Palo Alto shows that buyers simply buy the best house available, regardless of price. The prices that will be reported in August in Palo Alto will shock everybody once again. Now, the market has moved once more. And, we have next to nothing for sale.
Fall Inventory: Historic Lows Predicted
The real story this fall will be things to sell. Inventory dropped considerably this summer compared to last summer. This July, there were 62 homes for sale, compared with 87 last June. The inventory drought will continue through fall. We are not hearing reports of homes coming on the market after Labor Day. The story is similar in Menlo Park, Mountain View, and Los Altos. There are very few homes for sale.
With the August selloff, this Labor Day Weekend is a great time to put a home on the market. It will hit everybody’s inboxes at a moment when there’s no inventory.
International Buyers Desperately want New Construction
International buyers are desperately seeking new construction. Palo Alto is no longer the be all and end all destination for international buyers. They want new — in Menlo Park, Atherton and Los Altos.
Facebookers Head to Lindenwood
The Facebook / Google crowd has discovered Lindenwood. They’re no longer fixated on Palo Alto. For Facebookers who like to ride their bikes to work, Lindenwood is an ideal location.
Redwood City’s Alphabet Streets Break $1M
The Alphabet Streets, the hidden gem of Redwood City, are breaking the $1M mark for the first time. Their secret? The Alphabet streets walking district to downtown and feeds into Clifford School (K-8), one of RWC’s top schools. The most desirable streets are E, F and G. Lined with trees, right on the border of San Carlos, and now selling for $1M. Buyers can get a 3/2 for $1.1M. Redwood City is a great option for anyone priced out of other areas. Menlo Park and Palo Alto buyers have begun to recognize the opportunity and move to Redwood.
Dirt Value and Spec Builds in Menlo Park
A 6,000 square foot lot sold for $1.8M in Menlo Park last week, setting a new high water mark for dirt. Speculation is running high about its use: was the lot bought by a builder who will build a home on spec, or an end user will build a $3M home there? If someone is building a house for themselves, that’s a good move for someone who wants their finishes for a little bit less than buying a spec house. On the other hand, if a builder intends to build a spec house and sell it for $3.5, that would set another high water mark for Menlo Park new construction. If so, we’ll probably see the market bump again in a few months, as the premiums for new construction are huge. Look at the sale prices of new construction versus previously owned homes in Menlo Park.
Coming Soon
Los Altos Hills: a mid-century modern on two acres with panoramic views.Offered at $2,695,000. Listing Agent: Dawn Thomas.
Menlo Park: 4 bedrooms, 3.5 baths, newer home. Will be offered at $2,795,000. Listing Agent: Mary Jo McCarthy.
Redwood City: Classic, gorgeous house on a landscaped 10,492 square foot lot. Prime location on the best street in Redwood City. This is a Palo Alto house in Redwood City for half the price. Will be offered around $2.8M. Listing Agent: Brian Ayer.
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