Over Reaching

reaching

Last week, a 2 bedroom townhouse at CityHomes listed for $758,000 got 21 offers and launched all the way up to $925,000. It was a cash offer, good since the last comparable for this floorplan was 3 weeks old and came in at $875,000. Nothing like escalating $50,000 over a very recent comp, huh? When I hear stories like that (I had clients in that frenzy too) it sort of gives me the shivers. I figure it’s bound to mean that pretty much ALL townhouses now will be selling for $1,000,000 this year. I mean, if a 1410 sq ft place like this gets 21 offers…what’s a 3 bedroom place going to go for?

This problem is particularly troublesome now because of this horrible inventory! It’s actually beyond belief. Today, there are 6 whole listings in Foster City. 4 houses, 1 townhouse and 1 condo. It’s a 1 bedroom condo too. In January there were a mere 517 homes for sale in all of San Mateo county…condos/townhouses and single family combined. In January 2013 there were 1028…a reduction of 49%. Consequently, the temptation is sure there to try out new and higher prices on what comes up. Some folks have tested the market just to see what it’ll bare. Interestingly, it would appear that in spite of it all, the sky is actually NOT the limit.

In Foster City of the 6 listings currently on 4 of them have over reached…at least in my humble opinion. Of course, they could always sell and who knows what could happen, but they’re chance of a market driven frenzy are probably slim at this point. The gorgeous house on Beach Park seemed high to me at $1,748,000 and it’s been on now for almost a month. The house at 1101 Catamaran didn’t get what they were hoping for at $1,605,000 and they dropped the price today to $1,529,000. The townhouse at 678 Libra didn’t come together in spite of receiving multiple offers. It’s been on for 21 days at $749,000. The last unit like this one sold last fall for $710,000.

Certainly, there’s nothing wrong with taking a shot. I do think it’s sort of encouraging that people aren’t willing to pay any price just to get in. Apparently not every property gets 21 offers and sells $175,000 over asking.

Comments

  1. The one on Mira may get 21 offers and $175k over list price.

  2. Jim Minkey says:

    At least!!! WAY underpriced!

  3. It ended up with 11 offers and went $242,000 over asking

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