March 28, 2008

Mirabile Dictu, Price Drops in El Cerrito

2201102664 e00d5d8ef3 m Mirabile Dictu, Price Drops in El Cerrito

Verily, there’s no doubt the slowdown is spreading, or deepening, or something, when prices start going down in El Cerrito.  This lovely town is safe, has two BART stations and boasts its own lovely restored movie theater, the Cerrito, along with one of my favorite natural food stores. It’s sorta kinda in between Albany and Richmond, and has pretty good freeway access as well. Check out these recent price drops. (Photo of the Cerrito: ingorr.)

 5804 Avila Avenue, El Cerrito: 2 bedrooms/1 bath, 751 sq ft, was $435,000, now $399,000. Okay, take a deep breath and repeat after me: “Neighborhood, neighborhood, neighborhood.” This tiny, undistinguished house with its tar-and-gravel roof (next to a park, wonder how noisy it gets) is smack dab in one of the most appealing ‘hoods imaginable. You can walk to: BART; the Cerrito Theater; amazing coffeehouse Central Perk; the El Cerrito Plaza; Peet’s Coffee.

745 Balra Drive, El Cerrito: 1 bedroom/1 bath, 1,011 sq ft, was $539,000, now $499,000. If you’re unimpressed with the less-than-stellar domicile above, here’s a truly sweet deal to make up for it. This place appears to be a knockout. It has gorgeous views, wood first and an updated kitchen. It’s in the hills, hence further from the attractions in the first place, but still relatively close.

747 Gelston Place, El Cerrito: 4 bedrooms, 3 baths, 2,480 sq ft, was $850,000, now $789,000. We’re told this place is on a cul-de-sac (no photo; what’s up with that?), has panoramic views, two fireplaces, hardwood floors, well-maintained gardens. It’s close to the Kensington border, Kensington being an upscale Contra Costa hill town north of Berkeley and south of El Cerrito.


  • Toady! Thanks for doing my homework, you RULE! I was going to check out Dataquick or some such source for El Cerrito's median price, but you beat me to it. Meanwhile, I drove past 745 Balra and it sure looks nice; there was a view of the Golden Gate Bridge from the sidewalk to the south, though I didn't go inside the house. Tree-lined street, nice nabe and walking distance to Fat Apple's restaurant and BART.

  • Toady

    Sorry, I should have looked at that a little more closely. Redfin has 55 current El Cerrito listings and median price is $586K.

  • Toady

    You don't really need to look at just one listing to understand that prices are dropping in El Cerrito. Median sale price for El Cerrito stalled out a couple of years ago: $647K for 2006 and $645K for 2007. And for the 77 properties currently listed on Redfin, median list is only $529K.

    I think Ninth and Virginia was just good timing and a smart agent. It was a decent size, in good shape, on a huge lot, in a reasonable neighborhood. The agent just priced it correctly and it sold.

    It looks to me like there were a handful of Berkeley buyers waiting out the winter, and as soon as some nice looking, reasonably priced houses started coming on the market, those buyers jumped.

  • Heidi

    My point is that if you want to make a blanket statement on prices dropping in a city; know the fundamentals of the the properties. The property on Avila was on the market when prices were going up and it did not sell then.
    On you question about teh real estate boom. What about the house on 9th and Virginia in Berkeley. priced at 549,000. The agent said 50 disclosure packets went out to buyers agents and they received 15 offers. The accepted one offer and put 2 in back up position. Remember this is at 9th street and Virgina. What are peoples thoughts ?

  • Red, good to see from you! Looks like we dropped our posts almost simultaneously. I really appreciate your historical perspective. Do you think houses will ever get back to the precipitous highs they reached while the boom was still on?

  • Actually, since I live in Richmond, I'm going to cruise by a couple of those properties and check them out, Heidi. Do you live in El Cerrito? If so, I imagine it's pretty worrisome, wondering if or when prices are going to start slipping. I'm glad you posted, and if there's something you'd like to see me write about, feel free to let me know!

    David, I agree that marginal properties will drop first. I imagine we both agree that marginal neighborhoods will do the same? Something I'm interested in: do you think prices will return to their former heights anytime in the next 20 years?

    I'm thinking this is a lot like the dotcom bust you referred to. Not just a normal real estate cycle where prices got high and now are cycling back down, but a period where prices defied reality and will never be that high again. What do you think?

  • Red

    The highly desirable places will just drop slower, and maybe not as far. Happened that way in 1990 to 96. Eventually the price slope is just too steep; if a place almost as nice but just a little further out is $100000 less, then guess what I'll buy?
    Many can't justify paying $700 a sq ft when you can find $150 sq ft new homes within (painful) commute distances.

  • David

    Strong fundamental reasons? You mean like the house not being worth the initial ask?

    Heidi, I'm sure you lived through the boom, and if you didn't, you can be sure that c*** like a 2/1 across from a trailer park sold, and probably sold for $500K. I saw pathetic 2 br houses selling for $700K in 2005. That's an "up" market.

    This is a "down" market. Therefore, marginal properties are getting axed first. But don't worry, "nicer" properties will get cut too.

  • Heidi

    Price drop in El Cerrito: Please before you make blanket statements about real estate... Go and look at the properties. 5804 Avila: Very noisy and right across the street from a TRAILER PARK. Yes a real live trailer park. Yes location, location, location is the fundamental of real estate. Go back and look at each of these properties and you will find strong fundamental reasons for the price reductions not relating to a down market.

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