Extinction

I can clearly remember when some folks listed a house in San Mateo Village on the corner of Pasadena and Santa Clara for $305,000 and I thought they had gone completely out of their minds. Certainly nobody would be dumb enough to pay such an outlandish price for a house in that neighborhood! It’s ridiculous, I thought. Right now, today, there’s a 3 bedroom, 1 bath house on E. 40th Ave in San Mateo Village that was listed for $735,000 and should close any day now over $800,000. I also remember a conversation I had with a young lady who told me she wasn’t going to make an offer on a 3 bedroom, 2.5 bath townhouse in Redwood Shores that was listed fro $350,000 because her father told her that those prices were too high and they surely were going to go back under $300,000. She should wait, he advised.

Guess what, those prices are HISTORY. in fact those price ranges are as extinct as the dinosaur up there. Obviously, right? Does anybody reading this seriously think you’re going to see 3 bedroom, 2.5 bath townhouses in Redwood Shores or Foster City sell for $350,000 again? Even if one was listed it would get 50 offers and sell for $750,000. You know what else, 3 bedroom 2 bath houses in Foster City are never going to sell for under $750,000 ever again. You could probably make the case that they aren’t going to sell under $850,000 just as easily! Those ranges are extinct too.

Having said that here’s a really amazing statement…I think 2 bedroom condos under $500,000 are almost extinct right now. Can you believe that? A week or so ago I wrote an offer on a short sale at 815 Sea Spray listed for $459,000. 10 offers came in on it, 4 of them all cash and almost all of them were over $500,000. I noticed a 1 bedroom condo at 15 Pelican in Redwood Shores listed for $375,000 close at $440,000. See what I’m saying? As unbelieveable as it is, in the very near future you won’t be able to buy a 2 bedroom condo for under $500,000. That’s truly astonishing, it doesn’t seem like that long ago that you could buy a waterfront house for $500,000! Just for fun I checked…a 4 bedroom, 3 bath waterfront house at 1040 Flying Fish sold for $528,950 in April of 1998. It had been on the market for 43 days, apparently it had some difficulty selling! That was only 15 years ago and now, outside of the Admiralty, it’s almost impossible to buy a 2 bedroom condo for under $500,000. Maybe if it’s only got 1 bath? Ooops, then were back to the Admiralty again.

Speak Your Mind

*