You guys are great!! Indeed, it was Pompano park…what there is of it. Congratulations to first time winner Birgit Eeckman who arrived first and wins the $30.00 gift card to Cuisinett in San Carlos. Also answering correctly was Shruti, Alex O, J Kwan, Janny Lee, Dana, Pak and Anu. Good job folks!! Thanks for playing. See you again this Friday.
This one is actually sort of obscure. It’s one of the smallest parks in Foster City. Which one is it? If you’re first to tell me that you’ll win a $30.00 gift card to Cuisinette in San Carlos. As usual, all the rules of the road are available to view on the left hand margin as well as on the bar above. The winner, along with all other correct answers will not be published until Monday morning. Any and all silly jokes, snappy quips and all wrong answers will be published immediately if not sooner. Have a great weekend!
The last big item that’s powering this market is undoubtedly technology. In 2000 when this all really started booming, people didn’t use technology anywhere near as much as we do now. Plenty of people were downright intimidated by a computer. I clearly remember agents who didn’t want to enter their own listings because it scared them to do so. Now everybody uses the internet all day every day. It’s on our phones and tablets…it’s a 24/7 use. Because of that us there’s SO MUCH more participation in the wealth being created by players that are a part of it around here.
Folks being a part of IPO money are certainly more plentiful now than ever before. How about the small number of WhatsApp employees about to take a slice of the 16 billion Facebook is giving them? Earlier this week I saw a 2 bedroom, 1 bath house in original condition on an average size lot in Menlo Park sell with 18 offers. It sold for $1,706,000! This kind of money is NOT flowing in Sacramento or Reno or Portland. It is relevant in this area.
The kind of wealth being created around here is fueling the boom we’re experiencing and I can’t see how this will all disappear. Can you? It actually feels like it has plenty of life left in it.
OK, here we are again. This time with this fabulous water shot. This week’s question…what’s the name of this project in the background? The white places. If you’re the first to tell me that you’ll win a $30.00 gift card to Safeway. As usual, all the rules of the road are available to view on the left hand margin as well as on the bar above. The winner, along with all other correct answers will not be published until Monday morning. Any and all silly jokes, snappy quips and all wrong answers will be published immediately if not sooner. Have a great weekend!
Last week we looked at the high cost to rent as a factor in causing the growth of prices in this market and why, in my opinion, it’s not just a temporary bubble….it’s a reestablishment in values. Today I thought we’d look at how population growth around here also impacts prices and will for some time to come. This chart above tells a bunch of the story all by itself. What it says is that between now and 2040 this area is going to boom. Frighteningly enough it says that as homes become less affordable more and more people are going to be forced to move out of the close in areas. It predicts San Francisco as actually losing population. Never the less…it shows San Mateo County as still increasing by 28% during this period.
According to the US Census the overall Bay Area is predicted to grow 30% by 2040…but housing units are only predicted to grow by 24%. Right now 87% of new housing around here is multi family dwellings. Apartments, condos, townhouses. In San Mateo County there really are VERY few new single family houses being built and, of course, that puts enormous pressure on prices of existing single family houses since SO MANY people want to live in a house.
Interestingly, the Bay Area leads the overall population growth of California by a bunch too. Of course, who wouldn’t want to live here given this area’s ability to support job growth. It’s the place you want to be if you’re in the information economy. None of this is radical news for any of you…I know. I had a client tell me last week that they thought they could wait 3 or 4 years to buy a house. Of course they can…but are rents coming down? Is the population of this area declining? For those two reasons alone prices will increase just to keep pace with these trends. How could they not.
Here’s an oldie but goodie and a bit of a challenge. In which park is this fin located? If you’re first to tell me that you’ll win a $30.00 gift card to Kobe Japanese at Edgewater Place. As usual, all the rules of the road are available to view on the left hand margin as well as on the bar above. The winner, along with all other correct answers will not be published until Monday morning. Any and all silly jokes, snappy quips and all wrong answers will be published immediately if not sooner. Have a great weekend!
There are a number of factors right now that are contributing to the frenzy of growth in prices that we’re experiencing and I thought I’d talk about some of them in the next several posts. In my mind at least these factors all lead me to believe that this is more of a value reset…not a short term bubble. The first one that comes to mind for me is the problem with rentals in this area. Last summer I helped a client rent their townhouse at Bay Vista, it’s a 3 bedroom, 2.5 bath townhouse in 1290 sq ft. I ran one Craigslist ad…I got 25 applicants. We asked $3000 a month. Several parties offered up to 6 months rent in advance. Some offered over the asking price. I was shocked. You know what…it’s worse now!
I have a multi unit building I’m going to list in San Francisco. It’s got four units, a 4 bedroom place, two 3 bedroom places and a 2 bedroom place. I went to Craigslist to check and see what rents were going for on similar properties. The lowest rent I found in the area this building is was $4900 a month. That was for a 3 and 1…and based upon the details I figured it was really a 2 and 1 that the landlord was allowing the dinning room to be used as a bedroom. It was astonishing looking at these ads. Many places are listed for $6000 to $18000 a month. Studios are renting for $2800 a month.
A wonderful friend of mine told me today that she received notice that her apartment in Redwood City is going to take a 10% increase from $3800 to $4180. For an apartment just off of El Camino. Just to put that in perspective a bit, an $800,000 loan on a house at 4% has a monthly principal and interest of $3800 a month. That’s of course fixed…for all we know a 10% increase in rent could be coming every year of so to keep up with the demand of the market.
Needless to say, a whole bunch of folks do not like the idea of paying more in rent than they could purchasing. Lots of the buyers out there right now are in this category. I can’t see rents plummeting and as a result I’m thinking more people are going to be entering the purchase market. Why give a landlord $4000 or more a month when you can invest in an asset that’s paying off as well as real estate does?
These were the little red roofs I was thinking about…congratulations to Ujjwal Kumar who arrived first with the answer of CityHomes and specifically Cityhomes Lane. Ujjwal wins the Starbuck gift card. Also answering correctly was Matt, Michael, Janny, J Kwan, Pak, Pushpa and Birgit. Great job folks! See you again this Friday.