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.
Google Acquisition Sets in Motion a Tilt Toward Northern Peninsula
Google plans to buy a one million square foot office campus in Redwood City, right by the water, according to the Silicon Valley Business Journal. And there’s plenty of room to grow in the swanky Pacific Shores complex. Google could more than double the entire office park, building out another two million square feet. This Redwood Shores location also opens up the possibility of running ferries from San Francisco to the Port of Redwood City and reducing Google’s reliance on shuttles.
Silicon Valley Business Journal calls this “a stunning deal that could reshuffle the Peninsula real estate scene.” More tech companies are taking a shine to the north Peninsula. For instance, Box Inc. just leased a major office complex in downtown Redwood City.
There are now multiple tech centers of gravity in the Bay Area. Highway 237, down in the South Bay, anchors chips and hardware. Social media seems to be concentrating in San Francisco, with the (major) exception of Facebook, while Redwood Shores and the north Peninsula can claim software.
With Google’s game-changing real estate acquisition, we anticipate that the northern Peninsula will attract many more tech workers. Redwood City, already a beacon of progressive development, is frontrunner to become Silicon Valley’s next hotspot. We believe buyers will soon shop over a bigger area, as Santa Clara to Burlingame becomes one big Palo Alto. The winners in this reshaping landscape will be areas with access to San Francisco and the Peninsula, so look for activity in San Mateo, Belmont and even Colma. For instance, 80 buyers tramped through a townhome’s open house in Colma last weekend. Multiple offers are heating up in SF’s Sunset district, due to its southerly position and 280 access.
Do your risk analysis: The market doesn’t go up forever….
Last week’s stock selloff serves as a sharp reminder that markets don’t always go up. Don’t neglect risk analysis when considering buying or selling any asset, including real estate. Next year, we’ll enter the fifth year of local real estate market expansion. We don’t have a crystal ball, but the stock market’s gyrations is a reminder that markets can go down as well as up and that includes real estate. Even in Palo Alto.
More affordable bridge money available
New, affordable programs have broadened the financing options available to homeowners who want to make a single move from old house to new house. Both Nikki James at Opes and Joel Spolin of Spoloan have new programs.
Atherton: Sellers are testing the market again.
Listings for sale in Atherton, particularly its high end, are sitting on the market. Prices were pushed up in the spring, and sellers are pushing the price again, and the market is not reacting positively. It’s a predictable pattern year after year, as buyers say: “I got hammered in the spring, and now I’m getting hammered again.” When it stalls, buyers are thinking, “Well, maybe the market is done.” and Sellers (or at least real sellers) are forced to adjust their price, sometimes lower than they would have got had they priced the house at market to start with. These adjustment periods, especially November to January, are a great time for buyers.
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