Sales check in

Since Jan 1, 2009 we have seen 13 closed condo sales in downtown PA> most of those were at the Woodmark/Weatherly/800 High st/101 Alma building. There are 5 pending sales and 22 condos remain available for purchase.

I'm surprised the little one on Everett hasn't gone into contract yet. It's a 2/1, 800 sq ft, listed for $599,000. That's as entry level as you get in downtown PA and it's cute, great location. Strange.....

325 Channing #304 is in contract...

somehow...It will be interesting to see what that one closes at. When I saw it months ago for $2.6 million I laughed out loud while touring it. I thought it was closer to $1.9. It was listed as low as $2.249000 when it finally got into contract. I hated the floor plan, I guess someone just really wanted to get into that great building...

the sale at 272 Waverley #4

I want to take a look at this sale since it was the first one we've had this year not from the 101 alma building where we can see what price per sq foot is doing in an older building (when I say older i am referring to any building in downtown PA that is older than 30 years or so)....

this was a 2/1 866 sq feet. It had been remodeled nicely. On the market for 49 days, listed for $649,000 it sold remarkably close to the list price at $645,000. That's 744 sq/ft which is a very nice number and something any seller in an older building will appreciate. It's only one sale, but it's a good one......

Sales Update...

Nothing. Zilch. Nada. The good news is that there haven't been any new condo listings in the last 2 weeks so that's good for inventory. There's a pending sale on Waverley that's set to close tomorrow, I'll let you know what it sold for when I find out.....

saw the 2 new ones downtown today.....

I saw the 2/2 at 320 Palo ALto Ave for $897,000 and I saw the 2/1 at 190 Everett for $599,000. I think, hands down, the listing on Everett is the better deal. For starters, the PA Ave listing isn't really a 2/2 and shouldn't be sold that way. It's a 1 bedroom with an office space they are calling a 2nd bedroom. That should turn off about 75% of the buyers who are looking for a legit 2 bedroom. The one on Everett is small but it's priced right. Look for that one to sell near the list price and the one on PA Avenue to sell WAY under.....

a new one at Tall Tree Estates

this is a new one in the complex that is in the northest part of North PA--runs along the creek. We see about 1 a year come on here. It's listed as a 2/2, listed for $897,000, 1187 sq ft. Won't see the inside till tomorrow but 755/sq ft is pushing it for the 30+ year old buildings. Looking forward to seeing it, that complex has a nice, quiet feel to it.....

Still very little movement in the PA condo market

3 current pending sales, 22 units for sale in downtown PA-- it's anyone's guess as to why the condo market is stuck while the rest of the single family PA market has begun to move but here is my guess: Condo owners, for the most part, don't have the equity that many single fam owners have in their homes and, thus, CAN'T drop their units to where they need to be. My advice to condo owners: "If you don't have to sell right now, take your unit off the market. It isn't going to sell at the price you want right now and all you are doing is clogging up inventory. Wait until 2010......"

Looking at closed sale activity for 2009

It's May 19th, though we'd take a look at the closed condo sales in North PA. Since 1/1/09 we have had 8 closed sales (normally, would have 2 and a half times that number). Take a look at the closed sales:

$1,330,000

$1,200,000

$1,200,000

$1,160,000

$665,000

$635,000

$692,000

$608,000

If you have  a working knowledge of the downtown PA condo market you don't even need to see the addresses to know where those sales occurred. It's interesting that we haven't had even ONE sale in the 800,000-900,000 range. That range covers almost every 30 something year old building in downtown PA. And there are a lot of those.......

Two new listings this week

I saw the 2/2 at the Weatherly today ($1,349,000) and the new listing on Bryant (2/2.5, $895,000). The unit at the Weatherly is the typical spilt master suite floor plan they have there. It's a ground floor unit and most people prefer units above ground floor (although not me, I like being able to walk from your unit straight on to the street). I think it will appeal to some but the most recent comp is $1,330,000 (1/09) and that one was in pristine condition and it was on the 2nd floor).
The one on Bryant is ok, it's got a nice outside patio and the bedrooms are large--kitchen has been remodeled. But I think the list price is too high....
We also saw some new construction in north PA this week. The house on Parkinson is nice but the owner/builder/listing agent is being unrealistic with his list price--$1,000 a sq/ft isn't happening anymore....

New Listing at The Weatherly

There is a new 2/2 on the first level at the Weatherly, 1544 sq feet, listed for $1,349,000 that will tour for the brokers tomorrow. The last comp in that building was Jan for $1,330,000. Looking forward to seeing this one, I love the units in that building....

Another closed sale at HIGH STREET

The 3/2, 1440 sq feet closed yesterday at $1,160,000. It was originally listed at $1,295,000. It is important to note that a non-MLS agent represented the buyer so the sales price probably reflects a sale that did not pay commission to the buyers agent. Subtract about 30K and you would get the sale price had the agent been paid (therefore a closed sale would have been about $1,130,000 instead of the reported $1,160,000). They got 805 a sq foot for that unit, not bad at all considering this market (previous sale a month earlier sold at 738 a sq ft).......

Let's look at "Average Days on Market"...

Many of you remember the "good 'ol days" where we could list a condo and it would sell in a week with multiple offers. Hmmmm. We are in a different time to say the least.

Currently, we have 13 condo's on the market in downtown PA (not a big number at all) and they have collectively been on the market for 693 days. That's an average of 54 days each and that number is lower than it should be since I used two new listings that just came on that likely will start to see their DOM number increase, too.

Personally, I believe that single family home owners in our area are pricing their houses better than condo owners in the area are pricing their condos. We are seeing movement in the single family home market, we are not seeing it in the condo market. Condo sellers need to stop hoping things will get better and start pricing their units at today's market (or take their unit off the market).

For a rough estimate, we are between 20 and 30% off last Spring's sales. For a more definitive opinion of value of your unit, please contact me directly........

Looking at another downtown sale

360 Everett 4C closed this week. It is a 2/2 1600 sq ft, remodeled, contemporary--nice building once you get inside but the exterior can be a little rough for some people. It sold for $1,395,000 last November. It came back on the market a few months later for the same list price, they dropped it to $1,295,000 and it finally sold this week for $1,200,000--- it's important to remember that last Nov we were already seeing a decline in sales price. Anyway, a new comp for what it's worth........

Great Open House Today....

I had maybe 12 groups through. The number wasn't the issue, what was interesting was that EVERY SINGLE GROUP was a serious buyer(s). We have REAL buyers walking the open houses these days, something we didn't have in the first quarter. Wouldn't be surprised at all if 212 Everett sells in the next couple of days......

Tour Today

Nothing new in the condo market this week except a 2/2 in the 101 Alma building for $629,000. Inventory remians fairly low, not too many sales. The unit on Everett is set to close today. If it does that will help add to the real comps.

I'm holding open 212 Everett this Sun. We have a great price drop to $1,399,000. This is as low as this one wil go, it's a great deal in this market. Come by and see it this Sun.

My Open House this Sun

Please come by and see me at my Open House at 212 Everett in downtown Palo Alto this Sun between 1:30 and 4:30. We have had ANOTHER price reduction on this great 12 year old 3 bed/2.5 bath (please go to 212everett.com for more info). Originally listed at $1,650,000, 212 Everett is now listed for $1,399,000. A very good comp last year around the corner sold for $1,912,000......

Inventory check

18 current condo listings in downtown PA-- 4 of the 18 are in contract: 360 Everett, 800 High St (#206), 272 Waverley #4, and 101 Alma #606.....

I also know of a 2 bedroom 1 bath condo in the 800 High St building that is currently available but not advertised in the MLS. Contact me if you or someone you know would be interested in seeing this unit......

Loan info from Wells Fargo.....

As of Monday (04/27) Wells Fargo will have available the new High Balance Conforming Loan limit for your buyers (and for refi'ers as well).  This new loan limit increases the conforming loan limit from the current $625,500 to $729,750.   Obviously this will allow people to borrower more and therefore be able to afford more expensive homes.   Considering that the Jumbo loan market has still not recovered this is welcome news.

 

Also good news is that the underwriting conditions have not changed for these High Balance Conforming Loans.  People have not had difficulty qualifying for these loans.

First Quarter Sales Stats

We didn't have enough condo sales in Palo Alto so I am giving you the single family home sales data for the first quarter and comparing it to 2006-2008. Sales volume is also included.  Ugly numbers that aren't hiding anything. This is where we are right now....

2009: 

Q1 median sales price: $1,287,500

Q1 sales volume: $69 million

2008: 

Q1 median sales price: $1,617,000

Q1 sales volume: $126 million

2007:

Q1 median sales price: $1,500,000

Q1 sales volume: $193 million

2006:

Q1 median sales price: $1,400,000

Q1 sales volume: $147 million

yes, we are under 2006 sales numbers folks.......

Looking at the 101 Alma Building....

We actually had a sale close there last week--a unit on the 6th floor was listed for $608,888 and sold for $572,500. That is in line with the last closed sale there last Dec. That works out to $472 a square foot (on the sale last week). The unit down the hall from that one (ont he 6th floor) that was listed for $649,000 is also in contract so that's good to see. Sales! We need more sales! :)

A comp!

Yes, after three months, we finally have a closed sale in downtown Palo Alto. At 800 High St the 4 bed 2ba sold. It started at $1,398,000, finally dropped to $1,298,000 and sold for $1,200,000. --that's $738 a sq ft if you want to comp out your own unit, roughly of course. If you live in an older building it will be less per sq foot.......

Condos in Contract right now

Interesting that both of the listings at 800 High St are in contract. Afterall, that is the building that is going to be most effected by the proposed low income housing project. Those comps (if and when they close) will go a long way to giving us something recent to work with to help further define value in the current downtown Palo Alto condo market........

Slow weekend with Easter, there is very little on tour today. 

We've had two condos recently taken off the market, presumably because they didn't sell. 548 Everett and 427 Alma both came off. Currently, there are 15 condos for sale in downtown PA, the least expensive being a 1 bedroom at 545 Fulton for $599,000 (on the market now for 32 days). The most expensive condo for sale is in the Woodmark for $2,495,000 (on the market for 25 days).......

Aftermath of the Meeting last Wed re: the Alma Housing Project

If you're following this at all, here's a link that summarizes what happened last Wed at the City meeting to discuss the Alma Housing Project....

http://www.paloaltoonline.com/news/show_story.php?id=11824

This proposed housing development will directly effect those who live at the 800 High St building.....

My Open house yesterday....

We've had Everett on for a pretty long time, that's why I was surprised to see 20 groups come through yesterday. I was also pleasantly surprised by the overall attitude of the buyers who walked the house. Their mind sets were MILES more positive than a few months ago.  THIS is the thing we need to start seeing and the fact that THEY see us at the bottom ready to come out is what will get this market moving again.....

Come see me!

I'm holding opening 212 Everett today in downtown Palo Alto. It's a great 3/2.5,  1766 sq feet priced great at $1,450,000.

Check it out: www.212everett.com or come on down and see me between 1:30pm and 4:30pm

New Listing at 365 Forest...

It's like all the other units in there, lots of angles, lots of space. The problem with that building is that it's structure is so unique that it can't realy help but look dated since buildings just aren't built that way anymore. Having said that, it has a nice contemporary feel to it and you can't beat 1918 sq feet for the price. Great location, too.

New Listing at 365 Forest

Units in this distinctive building rarely come on the market so it will be fun to tour this new listing. It's listed for $1,199,000, 2bed/2.5 baths but it's 1918 square feet. This building is full of architectural flair, if it's open this weekend be sure to check it out if you want to see something unique.

Price Reductions and a few new sales......

The 3/2 at High St has had a price reduction from $1,249,000 down to $1,195,000. They were at 867 sq/ft (way to high). Now they are down to 829 sq/ft. We also saw 360 Everett drop from $1,395,000 to $1,278,000 and 548 Everett drop from $1,095,000 to $995,000. These look like nice price drops but as I've been saying all winter the condo listings in downtown PA all started out too high. 

There are a few sales to report, all pending none closed. 766 University, 101 Alma  and 1327 Alma are all now in contract. They were all on a very long time with price drops so it will be very interesting to see what they finally sold for. 

As I've been saying, our market is trying to find itself right now. Reported sales will help with that. Expect to see us off around 20% from where we were last Spring......

Our Market is Starting to Move.....

We'll see what direction it's going, but North Palo Alto has 10 pending sales over the last 2 weeks. That's double what we saw over the first two months of the year. We still only have one pending condo sale in downtown PA (the 4 bedroom at 800 High Street).  Over the next month, assuming these deals close, we will have some comps to go froward with into the Spring. 

As I posted Friday, it's a FABULOUS time to be a buyer right now. I've talked to more than a few buyers this week who were surprised at how easy it was to get pre-approved and were delighted with the rate they were able to lock in.....

Good News for Buyers....

Here's an email I got from one of my lenders today. Very good news and a GREAT time to be a buyer....

Good morning Craig,

 

I’ve never had the experience of riding in a Shelby Supercars Ultimate Aero Twin Turbo, but between the possible $18,000 in tax credits.., mortgage rates back in the mid-4% range, housing starts hitting a record since 1990 and purchase applications up over 7%, I feel like I’m about to board the housing industry’s version of a Shelby. 

 

As if the $8,000 federal income tax credit for first-time homebuyers wasn’t enough incentive to buy a how about an ADDITIONAL $10,000 state tax credit for buying a NEW home!  And what if this credit was NOT limited to first-time homebuyers nor by income requirements (the Federal credit is limited to those households earning $150k AGI; $75k single…)?!!!  That’s right your first-time-homebuyer clients may be eligible for $18,000 in tax credits just for buying a new home in CA, WOW!  But if you’re not a first-timer and still want to buy, say 861 Channing in Palo Alto as a primary residence, a $10,000 state credit is nothing to sneeze at.  Please make sure to lick on the link above for a summary, the details and other helpful links.

 

Want more incentive to buy a home?  OK, how about the fact that conforming-level mortgages (loans up to $729,750, FHA included) are now priced back in that 4% range..?  This is all thanks to the Fed for stepping up efforts to buy more mortgage-backed securities, which of course means that we’re printing more money again, but it makes the tax-adjusted* payment on a $600,000 30-year fixed mortgage incredibly attractive at about $2,200 per month (including principal).

 

If huge tax credits and lowest interest rates in history aren’t enough to spur home buying, how about even more data supporting the fact that this market is about to turn?  With housing starts setting a record not seen since 1990, ending a 10-month decline, it’s obvious that the builders and developers are confident that land and materials aren’t going to get any cheaper, and that now is the time to act.

 

You probably heard that purchase mortgage applications were up 7.1% for the month of February, which is a very encouraging sign that people are preparing to buy; and on a local basis, about 10% of our current applications are purchase money.  Even with the mad rush on refinance locks yesterday, of the $25,000,000 in loans that we locked just YESTERDAY 5% were purchase money.  Every week, we are seeing more and more buyers actively applying to become pre-approved for a mortgage loan.

Info regarding the proposed low income/senior housing along Alma St.

Anyone interested in the proposed low income/senior housing project along Alma St (and this directly effects the 800 High Street Building) please note that there will be a Special Public Hearing of the Planning and Transportation Commission to discuss the project and hear opinions from the public. If you're interested in attending, it is scheduled for Wednesday, April 1st, 2009 at 6:00pm at the Council Chambers, Civic Center 250 Hamilton Avenue, 1st Floor. The public's opinion could impact decisions related to this highly controversial project....

Closed Sales in PA since 1/1/09

We have 10 closed sales in North Palo Alto since 1/1/09. Of those ten sales, one of them was a condo (at the Weatherly). Of the 10, three sold over the list price (fairly surprising), 5 sold under the list price, only 2 sold right at the list price. 

Of the homes that are currently pending sales: 2 of them are listed over 4 million, 1 listed over 3 million, 1 listed over 2 million ($2,095,000),  and 9 listed between $600,000 and $1,600,000. It will be VERY interesting to see what the actual sales prices are for these homes when they close but just looking at what's pending, it's fairly clear what part of the market is moving these days....

February Sales Stats

We don't have any condo sales to report so I will give you the sales stats for single fam homes in PA for February. 

Feb 2009: 14 closed sales, median sales price $1,395,000

Feb 2008: 17 closed sales, median sales price $1,657,000

Pretty much in line with what we saw in January, too...

Pricing Update

As I reported earlier in the week, we do have one pending sale--the 4 bedroom at 800 High St, listed for $1,298,000, is in contract set to close April 14th. They were originally listed at $1,398,000 before the price drop and were on the market 46 days. Good for them, nothing else is pending in downtown Palo Alto.....

We did see a price drop at 548 Everett. They were at $1,098,000 and dropped this week to $995,000. That's the right direction, I felt they should have started out at this list price. It's a great unit, one level 2/2 set back off the street, very private. I don't know if this new list price will do it but as I said, they are headed in the right direction to secure a sale.....

Price Drop Coming Soon on 212 Everett Ave....

212 Everett, a 3bed/2.5ba, 1766 sq feet, 12 years old is a Dreyfus Properties listing that is about to see another price drop. Currently listed for $1,575,000 in the next day or so we are dropping it to $1,450,000. The most recent comp sale of these units was last Spring on Ramona for (sit down for this) $1,950,000! That one was a couple hundred square feet bigger, but if there is a better example for what has happened to our market I haven't seen it. This is a great house in a fabulous part of downtown PA. If you or someone you know wants to see it don't hesitate to call me. 650-218-6499

A Pending Sale!

Who would have thought a pending sale would be such an exciting event? In this market it is. The 4 bedroom at 800 High St (listed for $1,298,000, on the market for 46 days) is now in contract. It is set to close April 14th. Cross your fingers for a comp!

Downtown Condo Sales Update.....

Well, it's not really an "update". 19 condos continue to be available in downtown PA-no pending sales. In fact, there has only been ONE sale in 2009 in the downtown PA condo market (it was a 2 bedroom at the Weatherly). One. Wow. 

I tell everyone the same thing: Pricing your home off last Spring's sales accomplishes nothing. This is not a market where you "hope and wait for things to get better". Th message is simple: If you don't need to sell your house take it off the market-all you are doing by keeping it listed is adding to the swelling inventory list. If you do need to sell your house, be very open and realistic to what I tell you it's worth. Because I will tell you this: Whatever I say it's worth TODAY is more than it will be worth by the end of the year. Guaranteed....

"Why aren't buyers buying real estate right now?"

Someone walked into our office yesterday and asked us this question. It's a fair question, here was my response (basically word for word):

"Buyers aren't buying for three main reasons:

1) You can't have the world's economy tank without having an overall repricing of pretty much every asset in the world. Almost everyone, across the board, had a reduction of their wealth

2) Lenders have severely stepped up their requirments for pre-approval. Good for them, their wayward approach to lending is what's fueled the nation-wide forclosure mess. But many lenders are now requiring 30% down. For someone who's taken a 25% hit on what they were worth last August, having to put down 30% (instead of 10-20%) to purchase is not exactly driving buyers to the offer table.

3) Most buyers think we have another drop in the market and seem content on waiting for that to happen before they buy again. This world wide consumer pessimism is contributing to the resistence people have towards buying ANYTHING right now....."

Oh, and prices are too high, but that's a topic for another time :)

Recent Pending Sales and some Current Listing Info

Welcome to March 1st! Always one of my favorite days of the year, not sure why. Let's look at what Feburary brought us in terms of pending sales: 

We have three (3) pending sales in north Palo Alto since Feb 1. That is astounding. In terms of downtown PA, one of the pending sales was 832 Waverley-- This home came on this week listed for $2,095,000. It was built by Summerhill and is part of their "Channing Collection".--My understanding is that this property received 2 offers. Just the fact that it got multiple offers is worth noting. It is the exception and not the rule.....

The other two pending sales are on Elsinore and Fulton--

In terms of active listings, all classes in North Palo Alto, we have 82 current listings. Yes, that is a lot. That would  usually be a big number for ALL of Palo Alto. The number for current listings in all of Palo ALto is 179. That is a huge number......

The two new ones on Hawthorne

Once again, David Solnick has outdone himself with another contemporary masterpiece (actually two of them). The only negatives would be the proximity to Alma and, honestly, I prefer the 2nd level on the front unit and the first level on the back unit--two bad they couldn't have just done that with ONE unit :)

I also think they are priced too high....

But who cares about all that! If you want to see an outstanding contemporary design check out both of these this weekend at the open house.....

A new one at The Abitare and Solnick's 2 New creations on Hawthorne

They are shooting for $955 a sq ft for the new one at the Abitare on High Street. That's an absurd number. David Solnick's two new contemporary creations are open this weekend. I can't wait to see them Friday on tour, his architectual designs are breath taking. Both of those units are listed for $1,998,000, approximately 2000+ sq feet. Anyway, really looking forward to seeing both of them despite their proximity to Alma....

Keeping track of "days on the market"

It's something to pay attention to for obvious reasons. We don't have any pending condo sales in downtown PA right now so let's look at how long everything has been on the market:

325 Channing #106 --28 days

498 Fulton --7 days

800 High #407-- 34 days

800 High #206 --7 days

117 Emerson -- 6 days

457 Homer-- 196 days (this one could stay on till the end of time at this price)

548 Everett-- 21 days 

500  Fulton --26 days

766 University- 111 days

1327 Alma-- 96 days

545 Fulton --40 days

101 Alma #603-- 27 days

Several of these are seeing their "DOM" start to pile up (and the newer listings are NOT going to be selling quickly, trust me). That means one thing: they are priced too high and buyers are not going to be paying these list prices. As we enter into the Spring market we will see the market begin to sort itself out.....

the new conforming load rate has been raised and is on the way!

Finally, it’s official that the $729,750 conforming loan limit will return to the BAY Area!!  Direct from the ASF, “The American Securitization Forum (ASF) clarified that GSE and FHA loans originated in 2009 in amounts between $625,500 and $729,750, pursuant to the increases in loan limits enacted by the stimulus package, will be eligible for delivery into the TBA market subject to the existing de-minimis limits for superconforming loans to borrowers in high-cost areas.”  Don’t you just love the way that the ASF writes their statements?  Before we all start submitting loans, however, the systems do need to be updated and pricing needs to be established.  This process will likely take at least a month, and manual underwriting will likely be required for loans between $625,500 and $729,750, as this allowance expires at the end of 2009.  Stay tuned!

pricing your unit by $/sq foot--it's a decent rough estimate

I've had a few emails the last couple of days from sellers asking how to price their unit by $/sq ft, specifically what number should they use. I don't use price per sq/ft as a measure of existing single family homes, there are too many variables to factor in (lot size, location,age,  condition of home, etc...), but this is a fairly reliable measure for any newer condo since the condition of the units were all in the same condition when they were built (and they are all the same age). Older condo buildings are a little more difficult to price out if you are just using $/sq foot as a measure but it's still a decent measure.

Last Spring we had a lot of sales so it is fairly easy to come up with an average of what units were selling for per square foot. In buildings built around 1980 (and there were a lot of these built in downtown PA around that time), remodeled units were selling for around $770 a sq/ft. Units in need of upgrades in the similar aged buildings were selling around $710 a sq/ft. There were exceptions of course and I threw out the high and the low sales. But, those were the numbers I would use if I was pricing something out LAST SPRING. 

If you live in a building built around 1980 you should use a number that is less than the 2 I quoted above since our market has declined since last Spring. How far it's declined is still anyone's guess since we don't have any recent comps to use. You would be safe in taking off at least 10%....

If you don't live in a building built circa 1980 and want to know the numbers for your specific building or something close to it, please contact me and I will be happy to pass it along...

condo inventory and sales in downtown PA

Something for you sellers to keep an eye on: We've got 14 condo listings right now in downtown PA--It's important to see what happens with these as it relates to sales price per sq foot. Last Spring, a remodeled unit in downtown PA was going anywhere from 770 a sq/ft to high 800's a sq/ft (in the newer buildings). 

Right now, if you take away the high and the low (and substract the two listings in the 55+ Byron building) you are looking at sellers trying to get around 750 a sq/ft for their units. However, until we start seeing some actual closed sales we won't know if that's the right number. I know several sellers who are looking for some comps that they can "grasp on to" to get a better handle on what their unit is worth TODAY. It doesn't do them any good to look at what units sold for last Spring. 

As I said, let's pay close attention to what these 14 listings do. Several are starting to see their "days on market" pile up. Will we see some sales? Price drops? Stay tuned....

New Construction coming Up on Hawthorne

Anyone who appreciates the contempory design appreciates the dramatic creations of David Solnik. He has projects sprinkled all over North PA and his latest work will be coming up soon on Hawthorne Avenue (he has another project on Hawthorne that was finished in 2006). I understand that the current project will be two separate 3 bedrooms/2bath units, tentatively scheduled to be listed for $1,900,000 each. We will see what the public thinks of that list price. His finished product is always worth a walk through, especially if you are into contemporary construction. 

Let's talk about Downtown PA dinner spots!

Hi--I know this is a little random for a condo website blog, but I got an email from someone in NY who is moving out here and they specifically wanted to know where the best place for a "Valentine's Dinner" might be. I sent him back a response but thought I would post some of that here too, in case there are others from out of town who want to know more about downtown nightlife!

There are many, many resturant choices in downtown PA but here would be my top 3 "Valentine Dinner" restaurants:

1) Osteria-- this is a Palo Alto staple, they've been open for at least 20 years (or as long as I can remember). The food has an Italian flavor to it, the best dish is probably the chicken piccata. It's quaint, small, good date spot.

2) Evvia-- this is a probably my favorite restuarant in Palo Alto in terms of just reviewing the food. The atmosphere is much louder than Osteria, and it's more expensive, but you cannot beat the food.  If I had to describe the food, Id say it's a mix of Greek and Italian. There isn't one thing to reccommend, it's all good.

3) Lavanda-- It's really more of a wine bar--- if you are just going out for a drink this is a great spot. The atmosphere is nice, the employees fall over themselves to make sure you are happy. It certainly qualifies as a Valentine Evening spot. The food is good, if not spectacular. 

Periodically, I get emails from people around the country wondering about different aspects of Palo Alto and I think I might use this blog to educate those who don't live here on the finer details of our city......

the four bedroom at High St just had a price reduction

It was listed for $1,398,000 and they just dropped it to $1,298,000. Great unit. 4 bedrooms (1638 square feet) at that price is a bargain. Unfortunately, that building is dealing with some buyer uncertainty over the proposed "Affordable housing" project that I blogged about earlier in the week. 

taking a look at January closed sales.....

The numbers are in and they aren't pretty. Because we are just looking at 1 month i decided to pull the stats for all of Palo Alto single family home sales to give us the broadest look at what the real estate market is doing in our area. Here are the median sales prices for the last 5 January's:

2005: $1,275,000

2006: $1,198,000

2007: $1,348,000

2008: $1,800,000

2009: $1,372,000

If you want to see an example of an area dealing with a ton of foreclosures, look no further than East Palo Alto. Median sales prices for the last 4 January's:

2006: $675,000

2007: $606,000

2008: $468,000

2009: $255,000!

They have double the number of average sales while doing half the volume. East Palo Alto is a prime example of the fallout from the predatory sub prime lending market.....

Follow up with the Environmental Impact Report that relates to the proposed "affordable housing" project

I am having some technical difficulties reposting the exact document in a way that fits into the blog template. Here are the "high" points: The project will consist of two buildings over approximately 1 acre of land along Alma between Homer and Channing. The main project is the Alma Family Affordable Housing built over approximately 16374 sq feet--5 stories. 49 units. The lower level will be commerical space. The secondary project will be for Seniors, built over approximately 6424 sq feet. The project will also include a reconfiguaration of Homer Avenue and the adjacent alley. This report identified that "the project would have significant impacts in the areas of transportation, noise, air quality (construction), hazards and hazardous materials, hydrology and water quality, and biological resources". 

Of course, any 5 story building should be a concern for downtown Palo Alto residents and businesses. 

There will be a public meeting to review this Environmental Draft Report and it is tentatively scheduled for March 18th, 2009. 250 Hamilton Avenue. 

The Downtown Low Income Housing Project --800 High Street Owners BE AWARE!

We've just received the Environmental Impact Report for the Alma Street Mixed Use Project. This is the housing project that will run along Alma between Homer and Channing. I'll go over the details of this document tomorrow after I check into a few things with the planning department but it's important to note that the project plan is for FIVE stories (previously we had heard it would be three stories). More details forthcoming....
PS--I am having some technical difficulties posting the Environmental Report but will re-post the document in it's entirety sometime tomorrow in the am.
...Craig

Didn't have any new condo listings this week but....

...there was definitely some new inventory in North Palo Alto. Again, I will just say that many of these agents are not appreciating the current state of the market with many of their list prices.  Was that diplomatic enough? I'm not trying to call anyone out but I know what the vast majority of buyers are thinking and feeling TODAY and I suspect their will be many, many pontential buyers this weekend walking through open houses with their arms crossed shaking their heads (collectively)....

If you are in the mood to see some truly unique new contruction go take a look at 1030 Hamilton (LISTED FOR $7,950,000). Every room, in fact every turn in that house, had amazing "old world" detail (and remember this is brand new construction). It's simply spectacular, in my opinion. Huge lot (16,500 sq feet), not the best location on Hamilton. It's priced around 1500 a sq foot which is absurdly high but honestly I don't see how you put a list price on something this unique. The right buyer is out there for this house and when they seen it they will come along and pay to get it....

Should you list your house with the agent who gives you the highest list price?

I hope we all know the answer to this is a resounding "NO". Many agents will give a seller a high list price just to get the listing knowing that very likely they will be dropping the list price within a month. Unethical? Yes. Does it happen? All the time. Pricing your home too high, especially in today's market, will ultimately result in you leaving money on the table. Obviously this goes both ways, you don't want to list your home too low either. It is critical that your agent know what the market is doing TODAY. Honestly, my opinion is that many of them don't. My advice to you is to interview at least 3 agents before you decide who to list your home with. Make sure you pay close attention to the marketing plan that they present to you. It is critical that your agent have a plan that is specific to your unit. By the way, the key word there is "plan". Too many agents think selling a home is about sticking a sign in front of the house, inputing it into the MLS and they're done. If the agent you are interviewing doesn't have a marketing plan specific to selling your home, thank them for their time and show them the door.....

Tour tomorrow and a follow up with a pending sale

There are several new listings in North PA on tour tomorrow. I don't think some of the list prices we are seeing are accurately reflecting where the market is NOW.  A couple of weeks ago I said we should pay close attention to what 1730 Guinda did--it's a 3/2, 2000+ sq ft home, 7000+ lot, nice location, listed for $1,698,000--that's a lot of house/lot/location for the money. Frankly I was surprised that it didn't go right into contract but I do know that there were several people interested in it and it did go into contract yesterday. That's a good example of what's happening right now--qualified buyers are circling and circling but many of them aren't ready to pull the trigger.....

What Buyers are Faced with Today....

As I noted earlier, most lenders in many cases are now requiring 30% down and near perfect credit. This requirement can vary depending on the size of the loan and the purchase price. While we've come a long way from the "sub prime 100%" finanacing days, the pendulum seems to have swung a little too far the other way.

We saw the 4th Q of 2008 drop nearly 20% in areas of Palo Alto. Taking a $1,500,000 home, this would lower it's value to $1,200,000. Seemingly good for a buyer. But they need MORE MONEY down now than they did if they were going to purchase the home at $1.5 million! Today, to buy a $1,200,000 home they would need $360,000 down. Previously, a buyer would have likely needed 20% down and on a $1,500,000 purchase that would have been $300,000 down. Couple this with the fact that many buyers share a perception that our market still has a drop left in it, and you can see why we are seeing a very stagnant market in Palo Alto across the board. We've got 5 closed sales in North Palo Alto since December 1st, 2008. Ouch. 

Sales Prices are all over the map

There are 2 more closed sales in North PA. New construction on Seale sold in a week with 2 offers. It was listed for $3,498,000 and closed at $3,625,000. On the other hand, a historical home on Ramona that was a total fixer was listed for $1,650,000 and sold for $1,350,000....The market is sorting itself out on a sale by sale basis........

What lenders are looking for.......

Just spoke to a well respected lender. While rates are great right now he said that MOST lenders are now requesting 30% down and near perfect credit. The plus side is that if you are working with a buyer now you can be sure that you're working with someone extremely well qualifed.....

The Tour Sheet today

Before we go on tour each Friday we pick up the tour sheet with all the new listings in PA and/or old listings with price drops. Back at the peak, the tour sheet would often be 6,7, maybe 8 pages long! Today it is is a page and half. And of that there are only THREE new listings in North Palo Alto. This speaks to many things, the main one being we are obviously seeing some hesitancy on the side of the sellers in this uncertain market place to put their house on the market. But the fact is, houses are selling,  if there is something UNIQUE about the product. The new construction on Seale went right into contract as well as the unit at the Weatherly. That unit was in pristine condition having been owned by the builder who never lived in it. 

This may be an uncertain time in the market place but we are very light on inventory. Buyers are out there not just looking for a deal but they are looking for that unique product, too. Sometimes what is "unique" is the price, but not always as is evidenced by how quickly Seale and Homer went into contract this week....

Tour tomorrow

We are starting to see a little more inventory come on in downtown PA. Last week we saw two new downtown listings, one at the Weatherly and one at 800 High St. The listing at the Weatherly went right into contract so that's good to see. This week there is a new listing at the Woodmark. It's at 325 Channing, a 2/2.5, 2086 square feet, listed for $1,600,000. Tomorrow I'll post my feedback about this unit and anything else that I see on tour. 

listings and sales (pending and closed) since 12/1/08

Just looking at the activity in North Palo Alto (everything NORTH of Oregon Expressway) and wanted to pass it on. Since 12/1/08 we've seen 24 new listings (just looking at single family homes). Of those, we have 2 closed sales ($1,675,000 and $1,165,000) and 3 pending sales.  27 days into January, that is a stark lack of activity. 

866 Seale is one of the 3 pending sales. It toured for the brokers last Friday--new construction, listed for $3,498,000, 3600 square feet, lot 9514. I really liked it, no surprise it went into contract so quickly. I also think it was wise of the listing agent to list this under $1000 a sq/ft. The days of 1200-1400 a square foot for new construction in North PA are over, for now at least....

Interesting Palo Alto sales stats....

I took a look at the 4th quarter sales stats for 2005 thru 2008. Normally, I separate South PA and North PA but there just weren't enough sales to glean anything meaningful. Here are the Q4 sales stats with sales volume (all rounded up)....

2005 Q4: median sales price: $1,347,000/sales volume:  $157,000,000

2006 Q4: median sales price:$1,538,000/sales volume: $172,000,000

2007 Q4: median sales price: $1,861,000/sales volume: $163,000,000

2008 Q4: median sales price: $1,473,000/sales volume: $95,000,000

Yesterday's Open House

I held open 212 Everett yesterday. I believe it was the 4th OH we've had. I found there to be suprisingly good traffic. No neighbors (we usually see them during the first weekend open). Everyone who came through (about 12 groups) were real buyers. I often ask the question "Are you looking for a house or just out looking at houses?" to greet them and gather their intentions--- all of them were actively looking. Having said that, the prevailing attitude was that prices would continue to come down even further. The question for today's buyer is, do you wait for prices to drop and then go "all in" against all your fellow buyers or do you make those offers now with the number adjusted accordingly (to where you think the market has gone) and avoid competing? 

I'm holding open 212 Everett tomorrow

It's only been on 2 weeks, 3 bedrooms, 2.5 bath single family home in the HEART of downtown Palo Alto. Listed for $1,650,000. Come see me. :)

Tour Feedback from January 23, 2009

The new 800 High Street listing is definitely worth checking out if you are looking for a unit in this contemporary building. It's a 4/2, these don't come up that often. I think it's priced right at $1,398,000. As 2009 begins and starts to unfold it's wise for sellers to be cautious with their list prices. This is a good one to follow to get a gauge of the condo market right now in downtown PA.

There was also a unit that came on in the Weatherly (315 Homer #203).  It's nice,they all are in that building. Personally, I liked the unit at 800 High St better--more space, bedrooms, etc....

It wasn't a condo, but the "Deal of the Day" is Kathy Pasin's listing on Guinda. It's a TON of house for that price (2030 sq ft), great lot (7000+), great location. You cant beat all that in North PA. I think this one is going to get a lot of interest. Watch to see what our market is doing. If it doesn't sell at or above that list price we really have to consider that our market is worse right now than we thought....