As Wall Street Plunges, Expect More Super Homes to Hit The Market

I can’t decide whether I feel sorry for investment bankers or not.

All the investment bankers I know work their butts off: putting in such long hours, often including evenings and weekends, that their personal lives are more or less in tatters. Non-existent social life, strained marriages, kids who don’t recognize them… you know the sort of thing.

But the one thing these people have — or at least had — in common was wealth. We’re talking serious money with  numbers on their end-of-year bonuses most people don’t see in a lifetime.

Now many of the banks are falling like pin bowls on a strike out  — Lehman being only the latest in a string of collapses. A key reason, according to NPR’s business expert, is that these bankers “made a lot of dumb decisions”. Which begs the question: why were they being paid so much money?

But this is not a economics blog, and the reason I bring up this subject is that with investment bankers losing their livelihoods, you can expect to see more super high-end homes coming on the market. The following listings may have come about as a direct result of Wall Street’s meltdown:

The question is: who is left out there who can afford to buy them?

5654 Margarido Drive is described as a “majestic” English Tudor style 4/ 4.5, 4,300 sq ft home in Oakland’s Claremont Pines neighborhood. Designed by E Geoffrey Bangs, it includes professionally landscaped gardens with hot tub, an au-pair suite, butler’s pantry and library. (And, as you know, libraries are de rigueur these days.) Price: $2,400,000 ($558/sq ft).

40 N Hill Court is a “stunning” contemporary 5/3.5, 5,390 sq ft home with views in Oakland’s Hiller Highlands ‘hood. It boasts dramatic architectural details, 16 ft ceilings, walls of glass, and ebony hardwood floors (but, rather suspiciously, no photos on its listing). Price: $2,695,000 ($500/sq ft). Worth noting that it last sold in August 2007 for $2,175,000.

720 Channing Way, near Fourth Street in West Berkeley (pictured above), is a 3/1.5 converted machine shop which oozes post-industrial style, and would probably suit a seriously creative artistic type rather than a creatively serious investment banker. There are curved glass-brick walls, 15-18 ft ceilings, and ample room to carve out an artist’s studio/gallery, offices, or even a restaurant — the commercial kitchen is already in place. Price: $2,400,000 ($578/sq ft).

Oakland Summer Sales Round-Up

With summer officially coming to a close in the next week, I thought I would look back over my postings from the period from May-August and see what’s sold, what’s still on the market and what’s still fuzzy. The good news is there are still sales happening, by golly. The bad news is that there appears to be more homes still sitting on the market as well as homes that have been pulled from the market (and not necessarily because they’re pending, although some might be).  While some (hopefully, many?) of the “Off Market” listings may be in escrow, I’m guessing that a number of them have been pulled by their owners/realtors in order to re-price, re-market and re-introduce them later.  Still others (not necessarily those below) may be going into foreclosure.

Sold

4661 Park Blvd. List: $769,900 Sold: $760,000 (June) see “Oakland Price Reductions”
638 Brooklyn List: $539,000 Sold: $515,000 (August) see “Oakland Price Reductions”
4132 Balfour Ave. List: $900,000 Sold: $890,000 (June) see “Oakland and Piedmont New Listings…”
1837 E 15th St. List: $529,000 Sold: $500,000 see “Oakland New on the Market”
313 Warwick Ave. List: $799,000 Sold: $775,000 see “Oakland New on the Market”
1088 Clarendon Crescent List $995,000 Sold: $950,000 see “Oakland New on the Market”
2459 E 21st St. Sold: $207,500 see “Oakland and Emeryville Foreclosures for Sale”
2266 E 20th St. 2/1 Sold: $330,000 (June) see “Oakland and Emeryville Foreclosures for Sale”
2343 Mastlands 4/3 List: $699,000 Sold: $680,000 see “Oakland and Emeryville Foreclosures for Sale”

Off Market, Status: Pending? Waiting? Going into Foreclosure?

9043 Broadway Terrace 4bd/3.5ba List: $1,895,000 see “Oakland and Piedmont New Listings…”
3700 Lundholm Ave. 3/2 $429,900 see “Oakland: Bank-Owned Listings”
2754 Kingsland 4/2 List: $354,900  see “Oakland: Bank-Owned Listings”
3287 Arizona St. List: $548,000 see “Let’s Compare in the Laurel”
3251 Wisconsin St. List: $569,000 see “Let’s Compare in the Laurel”
3812 Harbor View Ave. List: $590,000 see “Let’s Compare in the Laurel”
1115 Dartmouth St. 5/1 List: $899,000 see “Albany on the Market”
904 Jackson St. 2/1.5 $595,000  see “Albany on the Market”
918 Taylor St. 2/1 List: $875,000 see “Albany on the Market”
1108 Kains Ave. 4/3 List: $825,000 see “Albany on the Market”

Still On the Market

954 Kains Ave. 3/1 List: $600,000 Reduced twice from $700,000 and $650,000  see “Albany on the Market”
891 61st St. 3/1 (Foreclosure) $279,900 see “Oakland and Emeryville Foreclosures for Sale”
825 30th St. 2/1 (Foreclosure) $249,990 see “Oakland and Emeryville Foreclosures for Sale”
Lower Laurel see “Let’s Compare in the Laurel”
3046 Georgia St.  2/1 List: $250,000 see “Let’s Compare in the Laurel”
3531 Laurel Ave. 2/1 List: $289,900see “Let’s Compare in the Laurel”
3425 Suter St. 2/1 List: $329,000see “Let’s Compare in the Laurel”
3801 Brown Ave. 2/1 List: $399,900 see “Let’s Compare in the Laurel”
10782 Hellman St. 4/2 $433,900 Chabot Park see “Oakland: Bank-Owned Listings”
1401 Excelsior 3/1 $519,900 Lower Glenview/Bella Vista see “Oakland: Bank-Owned Listings”
1065 55th St. 2/1 $319,900 see “Oakland Price Reductions”

Rockridge Listings: True Urban Grit or Escape In The City?

Lots of activity in Oakland’s Rockridge neighborhood at the moment — and I’m not referring to hold-ups in restaurants or fresh goat meat finding favor on the menu at Oliveto’s.

By my calculation, there are about 15 new listings in this area — and I mean the Rockridge heartland, not including lower Elmwood or upper Rockridge, but taking a slightly more relaxed approach to the boundaries than Redin does.

Given that a combined freeway and BART train line runs straight through Rockridge, it can be difficult to find a home here where noise, not to mention air quality, isn’t a contributing factor. There may be an argument for embracing the urban grittiness of it all rather than try to fight it — in which case, 5635 Miles Avenue might be of interest to you. There is no doubt that you couldn’t be better placed if you commute by BART, for this 2/1, 1,274 sq ft one-level home is spitting distance from the tracks. Cute on the outside with a British Racing Green exterior, the interiors have seen better days, however. Price: $718,000 ($564/sq ft).

Further away from BART, but smack on a busy arterial road, 5766 Claremont Avenue looks good inside and out (and on the day I visited the street noise was muted — presumably a result of the 3/2 home’s double paned “tilt back” windows). I liked the classic Craftsman features — including a remarkable brick fireplace — and the generously sized master bedroom. The garden is tiny but perfectly landscaped. Price: $889,000 ($466/sq ft).

And then for something completely different. For it appears possible, after all, to escape the travails of city life while remaining at its very core: 391 Clifton Street (pictured above), a 2/1 shingled Craftsman, has all the feel of a weekend beach house, although it’s barely 600 meters away from Rockridge BART station. Set back on a large lot, there’s a Bohemian chic aspect to this little (756 sq ft) home which will suit anyone looking for a private retreat. There’s fashionable concrete countertop in the kitchen, a newly remodeled bathroom and a huge subarea with potential. Price: $599,000 ($792/sq ft).

Other Rockridge listings:

5616 Kales Avenue:  2/1 bungalow above Broadway described as “clean and crisp”: $799,000.

5321 Miles Avenue: 2+/1.5 unit with “rainforest” garden and passive solar energy: $535,000.

5641 Oak Grove: Big 5/1.5 house on a big (6,000 sq ft) lot that needs a little TLC: $899,000.

Check out more listings, as well as comprehensive Rockridge facts and figures, with Redfin’s Neighborhood Overview tool.

Where Did Summer Go?

It’s hard to believe summer is coming to an end already. I keep trying to blame it on just getting older but I’m not really convinced about that anymore. I think we all live life much faster nowadays. I think the computer generation and instant information access makes it all move faster.

Even though the end of summer is here mosquitoes still abound. I have a small pond in my backyard that I ALWAYS keep mosquito fish in. And the fact that Alameda County (most counties probably do this) mosquito abatement will deliver them and place them in your pond or fountain for free makes it mandatory in my book. I don’t want mosquitoes biting me and maybe transmitting West Nile Virus to me or my family. I also want to be a responsible neighbor and make sure my neighbors are all safe as well.

So if you have ANY type of water feature on your property please, please take advantage of this service. And spread the word (better than spreading West Nile Virus) throughout your neighborhood about this service. Also, if there are any vacant houses that you know about report them to the county mosquito control staff. The staff that delivers the fish is very cordial and more than willing to answer any and all of your questions.

You do have to treat your pond or fountain water with something that will remove chlorine. But this can be found at any pet shop, hardware store or plant nursery. The chlorine will definitely kill the mosquito fish. I found this out the hard way by not treating my pond water and the day after I had a few mosquito fish placed in my pond they were all dead. This does make me wonder why it is considered okay for us to drink the water but it kills other living things. A definite pet peeve of mine! “Sure it’s safe – drink up – but don’t look at the dead fish floating in the same kind of water out in your pond. C’mon, they’re just fish.” Doesn’t make sense, but that is a whole other topic that I won’t go into here. Let’s just suffice it to say that I have a theory that humans are actually the aliens on this planet. We’re the inhabitants that are continuously producing products and chemicals that do not naturally exist — like plastic, etc. No need to worry about aliens landing here – we’re here!

And I must say that even though I felt very guilty about having more mosquito fish placed in my pond, because I feared being scolded for killing the last ones, the guy just smiled and asked if he had just delivered some previously. When I sheepishly smiled and said “yes” he just said okay, here’s some more fish for you. Whew!!

Granite Countertops Passe – Readers Choose the New Sexy Amenity

Yes indeed, we have a winner! In fact, several! Last week we ran a contest to see who could guess what the new sexy amenity is, replacing the now-ubiquitous if-not-tired granite countertop. After a number of excellent guesses (more on that latuh), Jackie nailed it, guessing that the answer is C*L*O*S*E*T*S.

“Giant closets have become the new granite countertop,” Carol Lloyd proclaimed in an SF Chronicle article last week, citing and once again proving that size does matter. Because these are not, as they say, your  mother’s closets. Oh no.

Readers of Apartment Therapy, the real estate blog with the juciest photos (at least in my eyes), surveyed its readers, who agreed that a larger closet is “very very sexy.” We’re talking six-foot closets, designer closets, his-and-her room-sized closets.

Meanwhile, reader Debbie suggested that the new sexy amenity is custom concrete countertops, and after checking these out, I can see why she (and Sweet Digs Fearless Leader Susan Brady) like ‘em. Alexandra V. voted for quartz countertops, which she saw on David Bromstad’s show. (Big thanks to Los Angeles Apartment Therapy blog for the juicy photos of celebrity closets.)

10 Ways To Save Big Bucks When Sprucing Up Your Home

I recently did some research into remodeling my kitchen. The ballpark estimate for the work, which included moving a half bathroom and refitting all cabinets and appliances, was $100,000.

I can’t help thinking this is bordering on the absurd. Sure it could be done for that amount, and no doubt it would end up looking pretty darn fabulous. But in these straitened times, it’s become a point of pride, as well as a budgetary necessity, to score serious savings when doing up your home — whether ahead of a sale, or after you’ve just moved in.

There is always a way to make significant savings if you are prepared to do the research and know where to look. The made-over kitchen above, for example, cost just $6,000. (My Sweet Digs colleague Susan Brady will be interested to hear that, given that she is embarking on a kitchen remodel right about now.)

Sourcing used fittings, and fixing rather than buying everything new, tick environmental boxes too: why not help the planet as well as your bank balance?

Hat tip to Apartment Therapy and This Old House, therefore, for most of the ten tips below on how to work wonders on a budget:

1. Perform prep work before the contractor performs the actual work — sweat equity pays.
2. Buy cheaper products at places such as restaurant supply stores and Ikea, and then have them cut to size. (The granite countertops in the kitchen shown above are from Costco, for instance.)
3. Avoid reaching for the credit card and ordering from high-end stores and peruse Craigslist and EBay instead. (The Bosch pro-style range in the kitchen above was bought on Craigslist for $700 and was still under warranty — it would have been $2,000 new.)
4. Buy embossed, paintable wallpaper (from as little as $10 a roll at Lowe’s) and use it as a faux tin ceiling (like the one pictured right) to hide cracks and unevenness.
5. Salvage items from dumpsters outside houses being demolished (after obtaining permission).
6. Look for house-parts recycling centers in well-heeled zip codes. A growing number of them now stock gently used high-end appliances from the likes of Viking and Sub-Zero.
7. Knock $500 or more off the $2,500 average installed price of a granite countertop simply by choosing a square edge instead of a much more expensive bullnose or other curved detail.
8. Tap your contractor’s sources. When it comes to things like flooring, ask them if they have odds-and-ends stock left over from other jobs.
9. Use the experts astutely. If your project is relatively small, you may not need the full services of an architect, for example. One design consultation may be enough to produce sketches you can hand to your contractor.
10. Repair rather than replace: we live in a society used to built-in obsolescence (don’t get me started on I-Pods), but it needn’t be that way with your house or what’s in it. Fix and repaint the stucco rather than installing a whole new siding; a fresh lick of paint on a chest of drawers found at the flea market will cost a fraction of the cost of a spanking new one from Pottery Barn.

[Photo credits: Kitchen Jurgen Franck/This Old House; embossed ceiling Apartment Therapy.]

Berkeley’s “Little Secret”: New Housing Construction Downtown

An August post on Curbed SF highlighted the fact that the sassy San Francisco real-estate site rarely writes anything about Berkeley.

Why not? “Well people, ’cause Berkeley builds squat, that’s why,” was the curt explanation provided, thus making it clear that “only the new would do” for the San Francisco-centric editors.

Do an archive search for “Berkeley” on Curbed, and you will find dozens of results, however — but they all fall into two neat categories: eating and tree-hugging. Well. Nothing new there then.

But there is new residential construction slated for Berkeley, as I reported back in July. The Charles Hotel/conference complex, to be located downtown, on Center Street, will include about 50 residential units.

And now, as Curbed acknowledges, there is the advent of Arpeggio (pictured above), a mixed-use development to comprise 143 condos, as well as new rehearsal space for the Berkeley Repertory Theater. (Arpeggio: “the playing of the notes of a chord in quick succession instead of simultaneously” — don’t you love the names they choose for new-builds?).

Arpeggio will rise up nine stories, an anomaly in a city which to date has placed height restrictions on new developments, and will also be sited on Center Street.

A report in San Francisco Business Times suggests this is just the tip of the iceberg. Berkeley is apparently pushing for more mixed-used development near public transportation to encourage people to get out of their cars:

“The Arpeggio project will fit right in for the future vision of our downtown,” said Debra Sanderson, the city’s land use planning manager. “It’s sort of a little secret that (there’s) been all this housing construction in Berkeley. We’ve had more projects approved in the last five years than we had approved in the previous 50.”

It looks like Curbed SF may have to strain its neck to look eastwards more often in future — CurbedBerkeley anyone?

[Photo credit of Arpeggio: Curbed SF.]

Berkeley: Homes With Good Bones Testify To Architects’ Skills

A few new Berkeley listings caught my eye this weekend. The first, 148 Stonewall Road, a level-in 2-bedroom house in the hills above the Claremont Hotel (pictured above), is going for a rather astonishing $857 per square foot ($1,100,000). I decided to hike up there to see whether it could justify that price tag.

The truth is that I think it just about can. Even though this is only a 1,283 square foot home, it offers something many larger homes do not: namely a good vibe. It was designed in 1962 by architect Reece Clark and, although there has been minimal updating, the architecture, with its liberal use of wood paneling and plate glass, has stood the test of time. There are sweeping views of the Bay from a vertiginous deck, soft breezes keep the open-plan living area cool on sweltering days, there’s a new expensive bridge driveway and some charming landscaping on the front decks that lead to the entrance. A bonus is that, if you don’t mind a bit of a climb on the way home, you can walk the 0.4 miles to the local Peet’s for a morning coffee.

Another architect-designed home is up for sale across town at 959 Miller Avenue. David Stark Wilson’s work is highly regarded in the Bay Area, not least because of the quality of the homes he designed in the Oakland hills after the 1991 firestorm. A home he built last year (above left) won acclaim for its striking modern lines and use of sustainable, fire-resistant materials and was included in Metropolitan Home’s Design 100 list this year.

959 Miller, a 4/3.5, 3,106 sq ft home (above right), was built in 1990, and leans more towards traditional Mediterranean with some contemporary aspects. It has three floors of living space, an indoor/outdoor flow, views, and a level entry from the driveway. Price: $1,695,000 ($546/sq ft).

The 2-bedroom home at 1228 Monterey Avenue is worth investigating because, although it needs some work, the neighborhood is desirable –near BART too  — and the price is a reasonable $685,000.

Lastly, 6450 Mystic Street: this 2/2 Craftsman on the Berkeley/Oakland border, near Chabot Elementary School and College Avenue, has some good things going for it, including a huge bay window in the living room on the front, a peaceful location at the end of a cul-de-sac, and a bonus third bedroom and bathroom created by converting a garage. Price: $875,000 ($646/sq ft).

[Photo credit David Stark Wilson home, left: David Stark Wilson.]

Home Prices To Bottom Out By Late 2009 But Some Can’t Wait

Not surprisingly, many homes that go up for sale in Berkeley are taking longer to find buyers and selling for under original asking prices. My guess is that only homeowners with little choice in the matter are choosing to put their houses on the market now.

For all of those out there, whether seller or prospective buyer, reader David flags up this recent prediction: “Credit Suisse agrees that we’re about 2/3 to 3/4 of the way through the price declines nationwide, and the bottom will be here around late 2009-early 2011.”

His advice to buyers: “Rent for a year or two, decide on [the] ‘hood, and buy at the bottom.”

The lists below show home sales in Berkeley for September 7 and August 31.

1708 Oregon Street (pictured right), a 3/2, 1,841 sq ft home, was on the market for $559,000 in February. At the time I described is as being one the best value homes for sale given that its price per square foot was a minimalist $304. Nevertheless, it took more than six months to sell and then went for 8% under asking at $515,000.

2436 Stuart Street, a 3/2 brown-shingle between Telegraph and College, appeared on the MLS in April last year, priced $859,999. It was back on in December, a short sale, priced $667,000 — a 22% price plunge in 8 months. At that point reader Tunguska, who had visited the house both times it hit the market, reported that “There is a horrible slope towards the NE corner, no driveway, and it was a rental property at the time so the condition was poor. I saw it again after “renovation”, not much improvement, just some new tile.” It sold this week for $555,000, a whopping 35% drop in 15 months.

When SFR’s are Converted to Multiplexes: Should I be Upset?

 It all started kind of gradually. First I noticed one house on a corner half a block from my house (pictured below) that had been vacant for months. Then contractors and builders started coming over a period of time: they redid a staircase here and converted a basement there.  When they were finished, I realized what had once stood as a single family home had become a multifamily unit. The I saw another house on the opposite end of the street undergo this transformation (pictured right). Then another. And now one more. There are at least four homes in a 2-block radius from my bungalow that have been converted from single family residences into duplexes or from duplexes into multiplexes. When the first one went up I didn’t think much of it. Even after the renovation it remained vacant for months and I assumed they were having a hard time renting it. Then several months ago a bevy of tenants moved in (it is a 3-unit building now). As I watched the three other buildings steadily being converted while the housing market took the mother-of-all-belly-flops, I began to grow more and more anxious: would these new aparment buildings cause my first house to drop its value even further? Would my home become difficult to sell someday due to all the rentals surrounding it? Will the owners manage the properties well? It also made me a little angry: what right does whoever is developing these units have to do so in a neighborhood that’s struggling to keep its value above water anyway? After all, chances are they’re not living here. I imagined that they were somewhere far away, like Dublin. Or San Jose. Then again, I could be wrong. Maybe property values won’t drop (at least, not due to these new units). On the bright side, the units are brand new and look relatively tasteful (though gargantuan) from the outside.  As long as their landlords keep them up, I suppose they could add to our neighborhood and not take away from it the way a vacant, blighted house can.  But ideally I’d like to see the blighted SFR’s become renovated and then sold (affordably) as SFR’s. (And likewise, if it’s a blighted duplex, renovate and remain a duplex, not become a megaplex). Should I dream on? Let me know your thoughts.