Sort of coming on the heals of that last post I wrote about changing criteria is the also new phenomenon of buyer flight to the East Bay and South San Jose. It’s a veritable Real Estate Diaspora. Folks that would just as soon live in Foster City are taking flight and buying in Fremont or Blossom Valley.
Yesterday I looked at offers on a condo on Lido that I had listed. We got 13 offers and it went WAY over the $829,000 asking price. The question for buyers now is, what can we do if you can’t afford at least $1,000,000 on a home? Incredibly, you’re not going to be able to buy in Foster City now unless you buy a condo. Townhouses and Single Family are out. Last week an agent friend of mine won a bidding war on a 3 bedroom townhouse in Mountain View that was also listed for $829,000. It sold for $1,051,000. You can still get a townhouse for less in San Bruno, Pacifica, South San Francisco or Daly City but like I said before you might not be too happy with the schools there.
This diaspora I’m talking about is coming as a shock to the agents in Fremont and South San Jose. As recently as November, single family houses were getting multiple offers and selling for $20,000 over asking. Now they’re getting a gazillion offers and going for $150,000 over asking. In just a few months this has happened. Last week I wrote an offer on a fixer upper 3 bedroom house in the Cambrian section of South San Jose. It was listed for $725,000. They got 27 offers. Many from the Peninsula the listing agent told me. It sold for $860,000. Today, I wrote an offer in Fremont on a house listed for $789,000. The agent told me she had 26 offers!! The majority from Peninsula and San Jose agents! I think this house is going for $900,000.
What a freaking world! Meanwhile, my seller on Lido is moving to Oregon where he’s found a 3400 sq ft house with a master suite that’s about as big as his Lido condo…for $510,000. No competition either!
As an agent, this sure is a strange phenomenon. I had a fellow agent tell me he wouldn’t work with a buyer unless they were qualified to $1,300,000. Sheesh! Buy a condo for $800,000 or compete in Fremont and then have a 2 hour commute. If you’re lucky enough to get the Fremont house in the first place!