I guess it goes without saying that good schools are a pretty good element for an community’s property values. Good schools are a reason people decide to live in certain places. In Foster City the schools are both fantastically good and are also a very good reason why prices are stable here. Every year the API scores for all the FC schools shine and as a result many people are attracted to this town.
Basic stuff you say, right? Well what surprises me is how VERY important this seems to have gotten this year. The market turned around and multiple offers are now the rule again…in many places. Not all places though. It sure seems to me that buyers are more discriminating about where they are willing to write over bids on. San Carlos, Palo Alto (obviously), Menlo Park, Burlingame, parts of San Mateo, Belmont, Millbrae and Foster City have done very well this year. Other areas with weaker schools…not so much.
I wrote 3 offers in Foster City on different properties in the last week. All of them had multiple offers and went well over the asking price. In San Carlos it seems like everything that comes up is getting overbid. A large 4 bedroom house on Melendy ( a busy street) got multiples a few days ago. Meanwhile, I have a listing on a VERY nice home in Redwood City that’s 1) Priced well, 2) is in fantastic condition and 3) is in a very nice neighborhood…yet I’ve had slow traffic at best and not even a hint of an offer, much less multiple offers. The only explanation is the reputation of the schools. How did I have 300 people at 2 open houses in September at a listing in San Carlos, get multiple offers with the winner going $275,000 over asking? A few weeks later I get 60 or 70 people at 2 open houses in Redwood City and get no interest and almost a full week before we have an agent showing.
Really, it’s amazing! It has to be the schools. People have become more focus than ever on this one single criteria. They’re willing to pay more to get it too and that makes it so much more competitive in the good areas.