This year has been almost indescribably crazy so far and prices are reaching heights that even I didn’t dream of. I think it’s really safe to say that $1,300,000 is the floor when it comes to single family home values right now. Three bedroom ranchers are ranging now between $1,350,000 and $1,420,000. What do you do if you want to live in Foster City but can’t afford that? Welcome to The Void.
A couple of months ago I predicted that there wouldn’t be a 3 bedroom townhouse in Foster City that didn’t sell for at least $1mil this year. Ha! What did I know! Today we have had three 2 bedroom townhouses close at $1mil or more! In January there were two 4 bedroom townhouses that sold for $1,000,000 and $1,020,000. Today there are two 4 bedroom townhouses in escrow that will close at $1,175,000 and $1,200,000 and another one is set to look at offers on Friday and it’s priced at $1,099,000. Last week I presented an offer on a small 3 bedroom townhouse at Harborside that was listed for $995,000. Nice place! The most money ever spent on this size unit was $930,000…in December. They got 16 offers and it’s in escrow just under $1,300,000. I thought the offer I wrote was insane at $1,200,000!
This is what I mean about the Void. A gap has been created between single family values and townhouse values in Foster City. If you want to live in Foster City but can’t afford $1,400,000 or more you have to settle on a townhouse or condo. The demand is great. there’s an old phrase that nature abhors a vacuum. The disparity between $1,020,000 for a 4 bedroom townhouse and a rancher at $1,400,000 was too great. The void needed to be filled. Large townhouses are now WAY in demand. Actually…small townhouses are too…if you want to live in the Mid Peninsula instead of Fremont or South San Jose.
It’s a pretty freaking scary thing to step into that void though. You better have ALOT of down payment money since finding a few comparables for the appraiser is going to be a challenge. That’s what’s happening though.