Is Piedmont (the city) an Island? Musings and Price Reductions
After 4 generations in Hawaii, my father and most of his siblings moved to the “Mainland” to raise the next generation. But every year, my father would take us back to Hawaii so we would know our grandparents and other relatives still there. And each year, my father would see changes in the islands, most notably in terms of development. As we watched real estate soar in Honolulu and its surrounding environs, my father would say “the bubble’s got to burst, it can’t keep going”. But each year, real estate prices did keep going, and are still holding, if not rising, today even as real estate everywhere else in America is tanking. Basically, Hawaii is, literally, an island (or rather, a grouping of islands) and on an island, you only have so much land to build on, especially on the most coveted areas such as beachfront. This fact, along with the weather and stricter lending laws than in many areas on the Mainland, seem to have protected Hawaii from the housing crash that is going on around the US. In fact, Prudential Locations reports that Hawaiian foreclosure levels are low with mortgage delinquency and default rates the lowest in the US.
So…what does this have to do with Piedmont? I’m just wondering if Piedmont is an island. Piedmont is small. Piedmont is scenic. Piedmont has some of the most beautiful homes in Oakland. Still, there are other Oakland areas that can compete with these characteristics (Rockridge, Montclair, Claremont). However, Piedmont has something neither Oakland (nor even perhaps Berkeley) has: incredible public schools. Piedmont real estate prices seem to depend in large part on the desirability of its schools and this may be protecting it in a sense amid this bursting bubble.
At this point, prices appear to be holding. While there are some price reductions, they are not to the extent that other properties are undergoing in Oakland. As we move out of the slow selling winter months and into spring, it’ll be interesting to see what happens in Piedmont.
Photo Credit: Shelley Dante, “Poipu”
330 Sheridan Ave. Photo pictured at right.
2 Homes on 1 Lot: Main Home is 3bd/3ba; 2nd home is 2bd/2ba
Original Price: $2,988,000 Reduced to: $2,649,000
Designed by Clarence Mayhew.
221 Mountain Ave.
5bd/3ba
Original Price: $2,895,000 Reduced to: $2,650,000
Previous High Sale: $2,400,000 May 2002
49 Estrella Ave.
4bd/2.5 ba
Original Price: $1,650,000 Reduced to: $1,575,000
Previous High Sale: $1,495,000 in March 2006
Brown shingle crafstman, close to Havens Elementary
1859 Trestle Glen Rd.
3bd/2.5ba
Original Price: $1,049,000 Reduced to: $1,009,000
77 Oakmont Ave.
2bd/1ba
Original Price: $950,000 Reduced to: $899,000
On the market for 133 days. Description states “needs some updating”.
Appears to be the lowest-priced Piedmont listing on Redfin.
Treeman said:
The list of homes are not supporting evidence of Piedmont being on an island. Each of these homes have had significant price declines, with one home being on the market for a long time (ironically the cheapest home). This entry does not make any sense.
I’m always amazed when people say that certain areas are impervious to the economic realities of the rest of the country. Piedmont, just like Rockridge, and even San Francisco (yes, even the desirable neighborhoods) will see price declines. You’ve proven that with the list of 4 homes you showed.
March 24, 2008 10:08 AM
Alison said:
Hi Treeman: thanks for your comment. Yes, the listing prices above are reduced from their original list prices; however price reductions are different from sales prices. While the reductions may seem significant, the list prices are not yet below the previous sales prices (for which data is listed). This is unlike other areas in the Bay Area. Today I did a search for Piedmont sales in the past 6 months; I found 12 homes that listed sales history prior to the most recent sale. Of those 12, 11 were above their previous sales’ price. There do not appear to be many short sales and foreclosures in Piedmont, (for now), so in this way, Piedmont does seem like an island. People may not be getting the mammoth appreciation rates they were getting 1-5 years ago, but they are getting appreciation significantly above the rest of the US nonetheless. But hey, things could change. That’s why I said it will be interesting to see what happens. Here is a list of homes sold in the past 6 months (n.b.: this is only a list of homes that have listed sales history; so it’s possible that there are Piedmont homes out there that are short sales..I just could not find any listed in the past 6 months, save 211 Crocker Ave.)
1116 Ranleigh Sold for $785,000; Prior sale was $695,000
199 SAINT JAMES DR Sold for $1,920,000; Prior sale was $742,000
101 LEXFORD RD Sold for $1,749,000; Prior sale was $1,250,000
101 LAKE AVE Sold for $1,280,000; Prior sale was $660,000
305 BLAIR AVE Sold for $2,528,000; Prior sale was $785,000
237 GREENBANK AVE Sold for $725,000; Prior sale was $450000
139 ARBOR DR Sold for $1,350,000; Prior sale was $772,000
218 LINDA AVE Sold for $1,080,000; Prior sale was $406,000
1057 HARVARD RD Sold for $880,000; Prior sale was $332,000
7 HUNTLEIGH RD Sold for $2,100,000; Prior sale was $1,733,000
54 SAINT JAMES PL Sold for $1,750,000; Prior sale was $1,260,000
211 CROCKER AVE Sold for $2,200,000; Prior sale was $2,350,000
March 24, 2008 4:24 PM
corrie said:
Hi,
FYI, Piedmont is not a neighborhood in Oakland. Piedmont is a separate city with its own tax base, police department, school district, etc.
March 24, 2008 11:11 PM
Alison said:
Thanks Corrie. Yes, of course you are right; that’s why its school district is totally different from Oakland’s. Even though I know that (that’s why the title says “Piedmont (the city)”) I slipped up when I said “Piedmont has some of the most beautiful homes in Oakland.” Since Piedmont the city depends on Oakland for shopping, grocery stores, etc., and since it’s literally surrounded by Oakland, it’s easy for me (and others!) to blend it into Oakland. But I will be more vigilant! Thanks for the reminder.
March 25, 2008 10:38 AM
Alison said:
Hi Corrie, here are some of my previous posts on the frequent confusion of Piedmont the City and Oakland:
http://sfbay.redfin.com/blog/2007/12/a_piedmont_property_puzzle.html
http://sfbay.redfin.com/blog/2008/01/is_that_your_final_answer.html
March 25, 2008 10:43 AM