Archive for April, 2008
April 29, 2008
Normally, when you see listings on Redfin, or anywhere else for that matter, the first image is of the front of the home. This is not always the wisest thing to do, particularly if the front landscaping, paint job, fencing (aka curb appeal) isn’t in good condition. I often wonder what they are trying to hide when that photo goes MIA, but not today. I totally forgot I was supposed to be seeing the front of the home of today’s Daily Stat leader, I was so enamored of the interior. But then again, I am a sucker for those older homes with built-in cabinetry and crystal glass knobs, little alcoves and niches strategically placed, and a kitchen table and benches that are like sitting in your own diner booth. I’ll bet there is even an ironing board behind one of the kitchen cabinet doors. Yes, it’s just that cute. But it’s not for everyone. Rather small, at 840 square feet, it has only 2 bedrooms and 1 bath and is on an itty-bitty lot of 1,742 sf. Built in 1928, it has had upgrades, such as plumbing, electric, etc., and surprisingly enough, it is not a short sale or bank repo, On the market 7 days, it is listed at $369,950. Maybe a good fit for a college student?
Recent Sweet Digs Posts:
Assessor’s Phones Ringing Off the Hook With Tax Reduction Requests
Berkeley Home Price Reductions Are Kicking in Faster
Founder of Top U.S. Homebuilder Says We Are Nowhere Near Bottom
MidPeninsula: Saltworks Development Project
Another Oakland Condo Auction
April 29, 2008
One silver lining in the dark housing crisis cloud is that many homeowners will pay lowered property taxes. But county officials all over California are finding it difficult to keep up with the reassessment demand.
The most famous property tax reduction went to Larry Ellison, who received a $3M cut in property taxes on his Woodside estate. But he is not alone. According to the San Francisco Chronicle, 41,000 homes bought between 2005 and 2007 in Santa Clara County have been reassessed. And a notice is soon to be sent out to 450,000 Santa Clara County home owners to let them know they are eligible to apply for reassessment. Alameda County is reviewing the assessments of 65,000 homes now, and Contra Costa County receives 500 calls per day from homeowners requesting reassessment.
Although homeowners are happy with the cuts, county officials worry that less revenue coming in will mean cuts in services for the government groups dependent on property taxes for continued support. School districts, already targeted for government cuts, will also feel the pinch. At present, I can find no projections of the impact of lowered property taxes on California schools - but the writing is on the wall.
One thing is for sure - we have not yet begun to feel the trickle down impact of the housing crisis in California!
April 29, 2008
That’s how it feels to me as I peruse the Sunday open-house list or scan the Redfin data of homes on the market. I have seen homes reduced after barely two weeks on the MLS.
Here’s my pick of this week’s reductions that caught my fancy:
285 Stonewall Road (pictured above): This home isn’t for everyone, but someone is going to fall in love, grab it and refuse to let go. Designed by architect Max Jacobson in the 1980s, it was ahead of the curve in having a thermal sink heat system. It is very “Zen” with a dedicated meditation space and soaking tub. It also has several decks overlooking the Claremont hills; a professional office and walk-in pantry. Its price is down from $1,250,000 to $1,175,000.
250 The Uplands: I had to write about this one as I visited it over the weekend and fairly swooned at how gorgeous it was. (The agent’s photos don’t do it justice, you need to see it in the flesh.) I know, I know… its price is stratospheric, but that’s part of the fun of open-housing. It’s all fantasy land. The setting is glorious (although not the location on a treacherous bend on the street—not to be attempted lightly by foot); the proportions are magnificent, the finishes are sumptuous and all in all I could move in tomorrow if someone could just see fit to give me $3,395,000 (down from $3.6 million after 53 days on the market). It last sold for $2.1m in October 2001. One visitor from San Francisco said he thought the city had nothing to compare with this house. A celebrity literary couple were also viewing it at the same time as I was there so you might have to act quickly if you want to snap this one up.
780 Spruce Street: This 4/3.5 powder-blue mid-century modern with fabulous Bay views comes in at $365/sq ft after being reduced from $1,125,000 to $1,075,000 after just 23 days on the market. I haven’t seen inside this one but it looks like it has some nice features—floor-to-ceiling windows, granite worktops, wood-beamed ceilings, large decks—and it’s a spacious 2,985 sq ft.
April 29, 2008
Eli Broad, the “B” in KB Home, was quoted yesterday at a conference in Beverly Hills as saying, among other things, that he expects prices to drop another 20%:
“I don’t think we’re anywhere near a bottom in housing. We’re going to have a big inventory of unsold, unoccupied homes that’s going to take three or four years to clear out.”
“People were using their home equity as really an ATM machine. They were spending more money than they were earning by taking equity out of their home. That couldn’t go on indefinitely. We’re now paying a price for that.”
What Broad is saying is nothing new or exciting, but it is news to hear something so deeply pessimistic from someone in his position. Though I do take exception — as do some readers over at Calculated Risk, one of my favorite blogs — to that last quoted sentence. He says “we” are now paying the price. This coming from a man who has made billions from the low-quality tract homes Kauffman & Broad became known for before the name change to KB Home. I don’t know about you, but I just don’t see him paying much of a price now compared to what he has accumulated. He was worth nearly $6 billion according to Forbes in 2006 - could be much more now since homebuilders saw near-record profits into 2007.
So how does this relate to the San Francisco or Bay Area real estate market? Well, it does and it doesn’t. As most know, KB Home and the big homebuilders don’t build in San Francisco, at least nothing I have ever known about. They build in suburbia and stack homes pretty much on top of each other as much as they can. But factors that are largely affecting suburbia and the outlying areas all over the country are also having effects on cities like San Francisco - highly-leveraged mortgages, resetting interest rates now and in the future, and the current recession almost all economists now believe started in December of last year.
Will every city see a 20% drop in prices from here? No, of course not. Some will see more, some less. I don’t see San Francisco as a whole declining more than 20%, other than some of the outlying areas in the southern and western districts, and possibly the condo supply issues looking in downtown/SOMA.
But the fact remains that a billionaire homebuilder founder is calling for these big declines and that speaks fairly loudly to me. At least this billionaire isn’t like fellow RE billionaire Sam Zell, who said yesterday that existing commercial real estate prices will be just fine.
April 28, 2008
Most of the Peninsula knows that there is an ongoing project to turn the old Leslie Saltworks (more recently owned by Cargill), into something more beneficial to the community. This 1,400+ acre property, located on the east side of Highway 101, currently houses commercial and industrial businesses, but is primarily undeveloped, having been used for over 100 years in the mining of salt.
For two years, DMB Associates has been working toward finding a balanced use for this property, doing public outreach. They have held holding community events, invited feedback through a variety of methods, and have posited different ideas in the community. The three schools of thought have been:
- No Development: Allowing the land to return to a marshland and become open space
- Mixed-use Development: Partial housing/commercial development, with some open space
- All Development: Utilizing the entire property with residential and commercial buildings
Public input has resulted in the decision to use a “50/50 Balanced Approach.” What this means is that 50% of the land will be developed for the community, leaving 50% of the land for marshland, open space, and parks. As a result of this decision, DMB Associates has put together a list of “Ten Commitments” that they will abide by in moving forward in the development of this property:
- Preserving at least 50 percent of the site for open space and restored wetlands habitat — while utilizing up to 50 percent of the land for a mixture of developed uses
- Building a broad array of housing and addressing the issue of housing affordability for working families and fixed-income seniors, with at least 15 percent of the homes offered at below market prices
- No high-rises
- Supporting and assisting with the city’s downtown revitalization goals
- Facilitating a transit linkage between downtown, the Saltworks site, and the proposed ferry terminal
- Reducing flood control problems in the Bayside area
- Creating a smart growth transit-oriented development that embraces renewable energy, water conservation and innovative green-building practices
- Creating a minimum of 50 acres of new public parks and recreation areas, including a large sports complex and community and neighborhood parks
- Bringing Redwood City back to the Bay, by establishing new Bayside opportunities, like a public aquatic center and Bayfront restaurants, and connecting the gap in the San Francisco Bay Trail
- Presenting a plan that is economically sustainable and self sufficient, with NO new costs to Redwood City taxpayers
I am impressed with the literature I have received on this project, and glad to see that the residents of Redwood City have chimed in to make their opinions heard. I like the fact that housing for lower income wage earners and affordable senior housing might become available as a result of this project. And while this project will take a decade to come to fruition, its careful planning will be worth the wait.
If you have yet to chime in on this subject, and want to contribute your two cents on this plan, you can do so directly, by going to this form on the website and providing your thoughts.
April 28, 2008
Another Downtown Oakland condo development near Chinatown is up for auction this coming weekend. Meritage Metropolitan Living is putting 30+ condos in their Jade building up for bid. Jade has 6 floors of condos: “townhome style” condos on the first floor and “regular” condos on all other levels. Minimum bids start at $259,000 for a 1bd/1ba (previous asking price: $403,000 to $473,000 for 1/1 depending on square footage) and go up to $369,000 for a 2bd/2b.5ba 1554 SF “townhome”-esque condo on the 1st floor (previous asking price $713,880). HOA fees range from $395-$474. The auction will be held on Sunday May 4th, 2008, at Marriott Oakland City Center, at 1pm. See here for Redfin reader queries on buying/bidding for Oakland condos. There’s also an interesting thread about Oakland condos on popular foodie and lifestyle website yelp.com.
For information on the Jade Auction see:
Auction Information Center: 10am-6pm
1511 Jefferson St., Oakland, CA 94612
Call toll free 1-888-548-8883
Or Call Local 510-832-3895
Email jade@acceleratedmp.com
April 28, 2008
Interestingly enough, today’s Daily Stat leader is another one of those Under $100,000/per bedroom properties in an outlying area. Recently, these have been located around Vacaville, but this time we are headed north to Santa Rosa. Unfortunately, the hot property is a contingent sale, so I hesitated to write about it, not wanting to get your hopes up for something that probably will not be available to you. So, I did a little homework and found similar large-sized homes, long on market, with multiple reductions that might be of interest. And there is a lot to choose from.
In total, I found 54 homes that had 4 or 5 bedrooms, had been on the market for more than 90 days, and were under $500,000. Prices started at $219,000 for a 4/3 on a substandard lot the southwest part of the city, and price per square foot ran from $164 to $308. Here are my top three, one in each $100,000 price range:
$200,000 Price Category
2715 Aztec Street: This is a 4 bedroom, 2 bath home in Northwest Santa Rosa. On the market 210 days, it has undergone three price reductions for a total of $60,000 or 18.5%. The home is located on a cul-de-sac on a standard-sized lot with no landscaping. Interior photos consist of one: the kitchen. At $230/sf, it is lower than comparable listings and comparable sales. All three home estimates have it valued much higher (by $75,000 to $168,000).
$300,000 Price Category
How about a brand new home? Woodbridge Classics is a new community in Northwest Santa Rosa with several homes available for purchase. Technically, these are townhomes, but are built much more like attached homes, with two homes joined together, rather than a whole row of the same. The one I chose is located at 2376 Sophia Drive and is a 4/2, 1,343 sf Craftsman-inspired home. Originally priced at $416,990, it has been reduced 5 times with reductions totaling $65,000 or 15.5%. Currently priced at $351,990, it has a small yard, smallish garage, and sits iin an area that is being developed by builders, which may or may not be a good thing.
$400,000 Price Category
There were quite a few homes in this price range, although many had an “undisclosed” location. I ended up choosing the one I liked the best, based purely on the front view photo. Currently listed at $450,000, 2747 Desert Rose Lane is a two-story Southwest stucco style home with 4 bedrooms and 2.5 baths. The home, built in 2000, has some character and sits on a corner lot near Pear Blossom Park. Two price reductions have taken place in the 285 days on market, for a total of $77,900 (15%). Price estimates all over the map: Zillow came in at $454,000, eppraisal at $616,760, and cyberhomes at $386,694 (for an average of $485,818).
Recent Sweet Digs Posts:
South Bay Fixer-Uppers, On Craigs List This Week
Marinites are the Wealthiest in the State
Optimism or Hopeful Illusion?
Sweet N’ Low: Three New Berkeley Listings For Under $400/Sq Ft
Novato Homeowners’ Downfall Could Be Your Gain
It Took 250 Days But They Finally Sold Their House
SF and Daly City: Signs of Distress= Your Chance to Make a Sweet Deal
Foster City: Ranch 99 Lands on My Radar
April 27, 2008
One result of the recent pricing plunges appears to be that owners are no longer putting as much work into homes before placing them on the market - probably because the ROIs of yesterday are just not there any longer. Doing a search for fixer-uppers yields about twice as many as were available this time last year.
One hidden gem on Craigs List is located at 572 Halsey Ave in San Jose. It is a three bedroom, two bath home with a pool and spa, and 1150 square feet of living space. The ad doesn’t say WHAT needs fixed, but the yards could use some work from the outside photo. It is offered at $515K and is a short sale.
The master bath was an addition performed without permits, so this would merit a trip to the building department for any interested buyers. There is also a detached game room that was built with all necessary permits.
Another cute little rancher listed as an FSBO fixer-upper is located on 2325 Forbes Ave in Santa Clara. It is small, with just over 1000 square feet, 3 beds and one bath. However, it is ideally located in the center of Silicon Valley and has both hardwood flooring and a fireplace, along with a two car garage. Once again, the ad doesn’t tell us what needs fixing! This property is offered at $625K, probably due to its location.
A third property worthy of note doesn’t list an address, only that it is a 3/2 in the Cambrian area of San Jose that needs TLC. It is 1185 square feet and is listed at $549,900. It sits on a 6300 square foot lot and has fruit trees in the back yard. It also has a two car garage and inside laundry - which is a plus.
The Cambrian area is known as one of the nicer sections of San Jose, and is close to major freeways, shopping, and lots of interesting restaurants.
April 27, 2008
According to the 2006 joint tax returns filed by Marinites, the Marin IJ reported that its residents had the highest median income in the state. 
“Couples filing joint returns in the county reported a median income of $116,626, up 8.1 percent from 2005.”
The increase in the median income of Marin residents surpassed the rest of the state - which grew at just over 5 percent from 2005. Looks like Marinites are always just ahead of the pack, in income, home prices, spending, etc.
The runner up counties are also in the bay: “Santa Clara County ranked second with $95,457 and San Mateo County followed at $95,394.” Interesting, Marin was more than $20K above second place, making more than 20% more of its southern bay area neighbors.
Still, at $116,626 - it seems far from enough to afford your average median priced single family Marin home, which had been hovering between $800K-$1Million. But, the notional amount (over $100K) seems like a good income to me. Which reminds of a recent column I read in the SF Gate where readers raised a snafu when columnist Debra J. Saunders considered those who made $200K to $250K “rich.” Apparently, many readers didn’t think so.
So how about you Sweetdigs readers out there? Marinites make the most of anybody in the state, yet the income level would hardly support a $800K home with 20% down. Are Marinites “rich?”
April 27, 2008
I am back from my two weeks vacation on Bonaire, a small island off the northern coast of Venezuela. I couldn’t resist looking at the housing market in Bonaire. There is everything from shacks to grandiose villas. For example: Single family home – 5bdrm/8baths - $3,900,000
The main living room has 20 foot vaulted ceilings that open through custom made French doors to a large balcony overlooking the ocean and pool. The deck surrounding the pool reaches almost to the sea, where, a few steps away, a ladder provides direct access for scuba diving and snorkeling. It includes a full bathroom with shower, changing rooms, and a complete kitchen area with refrigerator, ice maker and BBQ grill. The main level of the home features a state of the art European kitchen, including granite countertops and floor to ceiling custom cabinets. The main level has two spacious master suites with vaulted ceilings and full baths. The guest level has a private entrance and includes two large bedroom suites, each with a full bath. It features its own spacious living room as well as its own balcony for relaxing or entertaining. The pool level has a large one bedroom apartment with full bath suitable for guests or a full-time caretaker. The five bathrooms in the main house have double vanity sinks, imported marble tile, shower stalls and a full-sized bath. The floors are finished with inlaid marble borders and hardwood moldings throughout. The windows are custom made from mahogany and other hardwoods. The pool deck is finished with imported travertine marble. A private elevator serves all three levels of the home, including the pool. This home has 900+ sq. meters of living space, including 534 sq. meters of inside living space, plus 350 sq. meters of covered outdoor living space on the upper and lower terraces. The pool deck provides approximately 200 sq. meters in additional space. The oceanfront lot is approx. 3500 sq. meters. Thanks to shared ownership in the green zone which runs between the adjacent lots, the owner has additional privacy.
Of course it makes our cream of the crop here in the Bay Area look way overpriced, but then you have to stop and think of all the little (some big) things that would jack up the price of living in Bonaire. Everything, I mean EVERYTHING has to be shipped in. Water, all building supplies, all foodstuff, etc. has to be shipped or flown in. And it’s not cheap to do so.
And forget about having a nice car there unless you plan to keep it parked in the driveway for show. There are very few paved roads, no traffic signals, no lines painted on the road, and no real driving rules. Most of the roads are dirt and gravel and full of chuck-holes.
Mind you I much prefer the Caribbean to the Pacific ocean. The Caribbean is a heck of a lot warmer than here and a much prettier color. Going over the Dumbarton bridge when I got back almost made me gag at the site of the bay. I miss the deep blue and light aqua colors of the Caribbean. But it feels good to be home where I have unlimited shopping and find ecstasy whilst driving on smooth paved roads. Ahhh!
REAL ESTATE TERMINOLOGY:
Et Ux - Abbreviation meaning and wife.
