How’s The Market?

House on LurlineOne of the things about being a Realtor that’s really sort of fun for me, although it can drive my wife crazy, is that everywhere we go  it’s inevitable that almost everybody wants to talk Real Estate. Let’s face it, it’s a more popular activity to talk about Real Estate in the Bay Area than it is to talk about the 49ers! Yesterday I went to a big Super Bowl Party at one of my client’s house and 4 people asked me how the market was and were offering consolation because they assumed it was terrible and I must be starving to death! I was almost embarrassed to tell them I’ve had 4 closings so far in 2008…and when I did they actually expressed shock! The common paradigm in our community is that the market’s gone to Hell in a handbasket. That’s NOT what’s really going on in Foster City.

In October the SF Chronicle did a story where it broke down all of the foreclosures and notices of default filed in each zip code in the Bay Area. In Antioch at that time there were 525 foreclosures and 1344 notices of default filed. In Foster City there were 2 foreclosures and 32 notices of default filed. This community is as solid as probably anyplace in the entire United States from the standpoint of preservation of value.  In the last 6 months 36 single family homes sold in Foster City, 23 of them sold at or over the asking price. That’s incredibly healthy! The remaining 13 houses averaged 4% under asking. For Condos & Townhouses the market is a little weaker, yet 53 units sold in Foster City in the last 6 months with 16 of those selling at either the asking price or over. The remaining units had price erosion of 6% as an average. There are areas in San Jose and Sunnyvale (and many other areas too) that have had 25% price erosion since July 2007. If what that means is that in Foster City prices have fallen way back to 2006 levels, what’s happening is NOT BAD!

The important thing about this market to remember is the old principles are back. In order to get top dollar a seller has to have a smart gameplan and must execute it properly. They also have to be priced right. Pioneering a new price level is probably not a good idea right now. Foster City has been, and will be for the future, a great place to invest.

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