Bottoming Out

ericksonNot that I’m trying to stir up the pot at all…but I’m beginning to think that there’s a bottom out there after all. Why…you ask? Because in the last week or so I keep running into multiple offer scenarios on well priced listings…many of which I have clients for and we’ve missed them! Take, for example my friend Ronda O’Leary’s listing at 889 Erickson in Foster City. It’s a short sale and needs some work…but it got three offers last week listed at $599,000. Meanwhile, the same floor plan is also listed around the corner on Cabot for $658,888 by another good friend, Lorelei Keim, and it’s been on for over a month.

sunset1Or How about this one? 820 Sunset in San Carlos listed by Mary Duvall for $675,000. That’s an incredible price…and naturally it got several offers. This story exists right now in just about every community on the Peninsula. When the property is priced significantly, or even sometimes slightly lower, than the comparables it attracts a crowd and that seems to be translating into multiple offers. I could account for  a good number more as well just from the last week or so.

I’m sure it’s too early to jump the gun on this topic but the simple fact seems to be that a floor is developing in this market. Even though there is far too many overpriced homes on the market right now, when a place is priced well…it sells. The kind of activity we’re seeing right now suggests that not only is there a floor on values in this area… it’s a higher floor than many had anticipated. It’s clear that the concept of us being in a free fall in prices isn’t clear at all…and if it’s happening in April 2009 isn’t that a good sign around here for some stability in values in the not too distant future? Maybe it’s just me being hopeful?

Comments

  1. Jim,

    Good call. Another one that probably falls into this category is Donna Marie Baldwin’s listing at 1908 Valdez in Belmont. Really clean home, great location, and priced well (under $770k for a 3/2 in Belmont.) It was gone in 6 days — not sure about multiple offers, but it was getting a ton of showings when I saw it.

    CG

  2. Richard says:

    Fully remodeled 760 Caravel Lane has been on a market for a long time too…

  3. I just love you for being hopeful.
    It is great being married to an optimist!!
    Congratulations again on the big blog brawl win!
    from your biggest fans!!

  4. will these sale prices be used as the “floor” value as you suggested… or will they be the “ceiling” price for future transactions… only time will tell, i guess

  5. Jim Minkey says:

    Hi Green;

    Indeed, time will tell. I do think it’s a pretty good sign that these properties are receiving multiple offers when they hit these prices. Even selling in the first week at asking is a great sign. Once that happens in any range you have to think that a floor has been established…at least that’s how it appears to me.

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