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.....