One of my favorite things about Foster City, as a realtor at least, is the fact that it’s relatively easy to study comparables. There’s a finite amount of homes and floor plans in this town so I can simply search by square footage and find what these houses have sold for historically. It’s, of course, not exactly foolproof since no two houses are the same. Some are very upgraded and others not so much. Never the less, it’s alot easier studying comps and how the market is doing in Foster City since you have lots of like kind homes. It also makes it very interesting to look at how the 2012 market is evolving. Here’s some examples:
685 Pilgrim was listed for $888,000 a month or so ago. The most ever spent for this 3 bedroom, 2 bath floor plan was $900,000 and I thought Pilgrim was priced high since it needed a roof. What do I know…it got 10 offers and closed at $908,000.
844 Vega was listed for $998,000 also about a month ago and also got multiple offers. The most money ever spent for this floor plan was $1,066,000 in 2005. 844 Vega sold for $1,050,000.
354 Bluefish was listed for $910,000..same time last month. Guess what…it got multiples. The most money ever spent for this floor plan was $1,000,000 in 2005. 354 Bluefish closed at $967,000.
There are others in escrow now that are going to extend this list. It’s an amazing thing that in just a few months the values of these homes are bouncing right back to where they were before the meltdown. I hate to say it, but heard a whole lot of commentary about how we were never going to really recover from the binge that was the subprime era. Dare I say it, I think we’re recovering nicely…thank you. Coming close to and exceeding all time highs in Foster City is really a testimony to how strong this local economy is.
J Kwan on 
shruti on 
Janny Lee on 
Jim S on 
Do u think this is the low inventory effect? or the fear of Facebook millionaires?
I think its both…plus a few other variables like very high rents.
I think Foster City prices are quite overpriced currently. There are very few homes on the market. And the ones below 900K get lot of attention and offers. I wanted to buy a house here, but not in this BUBBLE. And this is not facebook or linkedin effect as those guys have yet to reclaim their stock money. And for the house prices here i believe pleasanton or san ramon might be a better place to invest or move to. Bad traffic and overcrowded public schools will doom foster city as they have done elsewhere. Let the games begin….
I can certainly understand your feelings about the prices being overpriced here…but i suggest to you that they are not. They simply reflect what people, and plenty of them too, are willing to pay for them. There are alot more people who want to live here than homes available. I agree that these folks are facebook or other IPO types…what happens when they do get their money? The fact is, just with basic population gowth projections these home values can only go up. I would also encourage you to be cautious about the East Bay towns. While they’re nice places to live…they aren’t here. Do you want to commute to Oracle or where ever each day from Pleasanton? Also, exactly where have “bad traffic and overcrowded public schools” doomed other communities around here? Which “doomed” towns are you referring?
LA is a prime example about what traffic and overcrowding can do to you. Lot of people have moved away from nice areas as torrance, santa monica. Overcrowding can also be seen in Redwood shores where you are not guaranteed a local school. Let these people spend their money as long as they have it and make the bubble bigger till it bursts. I might then come back to invest. I will anxiously wait to see prices here and in redwood shores after 12,000+ new homes are developed via Saltworks project.
LA compared to Foster City. Well, I guess anything is possible. There aren’t too many people who have successfully accomplished what you suggest. Just so that I understand: Pleasanton and San Ramon are going to out appreciate Foster City and Redwood Shores and will hold their value after our areas tank? Hmmm…that will be a unique occurance. Speaking of tanking…have you been following the recent problems that have been confronting the Saltworks project? 12,000 units? Actually those were 12000 living units. Apartments, condos, townhouses, maybe even senior housing and maybe even some single family homes. When I say “were” that’s because its been scaled way back. Here’s some recent links:
http://www.mercurynews.com/peninsula/ci_20545549/redwood-city-saltworks-project-will-be-scaled-back
http://www.mercurynews.com/peninsula/ci_20571698/even-after-redwood-city-saltworks-project-is-withdrawn
Not a bad looking project…and 5+ years from now when it’s done I’m still not thinking it’s going to make that much difference to folks who bought one of those houses in Foster City in 2012.
Really, I have to laugh at this “bubble” thing. Why is a 5 year cycle of price erosion “normal” and a 2 month cycle of price appreciation a “bubble”? Well, get ready because this “bubble” is here to stay for awhile.