Ups and Downs

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So, what the heck is this market really doing? Sometimes it seems like it’s doing everything! Foreclosures (REO’s) are getting an incredible amount of interest and in many places it feels just like 2004. In the northern part of San Mateo County it seems like everything that comes on the market that even looks like a discount is getting multiple offers. Who would have thought that Daly City would ever be a hotter market than San Carlos?

Here’s how it seems to be breaking out to me. If a property (single family)is priced below $550,000 you can probably expect a ton of interest. In some areas there’s multiple offers on homes that are listed below $700,000! I wrote an offer on a house at 420 31st in San Mateo on Friday that got 3 offers and went over the asking price…it’s a 2 bedroom, 1 bath houses and was listed for $699,000. I think single family homes in these lower ranges are in real demand. In most of their price ranges FHA loans are available for buyers who have less than 20% down and that’s adding fuel to the fire. I also think that prices have already gone up in many areas from where they were in January or February.

That’s not, however, the case with condos/townhouses in the same price ranges and alot of that may be because of high HOA dues. I’ve had many clients balk at the notion of $450.00 plus dues this year. They would rather have a house.

It’s also not the case with single family in the Jumbo loan ranges. If your house is priced at $950,000 or more, for example I’ll bet you’re experiencing things at a much slower pace. The higher the price…the slower the market.

I think the market is much, much healthier than it was a few months ago…but it’s still not back yet. Yes, I do think that prices have come back to a very great degree in many areas. Demand has certainly come back in most of the Peninsula too, but I think there’s still room for price erosion in the range over a million dollars and in condo/townhouses that have HOA dues over $450.00 a month.

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