Homescopes

Let’s take a look at inventory levels for single family homes in Palo Alto, Menlo Park, and San Carlos over the past 12 months.

As we can see, the number of homes for sale in Palo Alto, Menlo Park, and San Carlos dropped during 2009 reaching a low right around the holiday season where many homeowners just take their homes off the market.

Since the first of the year inventory levels have increased:

Currently, there are about 90 homes for sale in Palo Alto and Menlo Park and about 50 homes for sale in San Carlos.

What is striking is that the number of homes for sale March 1, 2009 compared to March 1, 2010 is that in all three cities, current inventory is much less than 12 months ago.

Inventory in Palo Alto has dropped from 135 to 90.

Inventory in Menlo Park has dropped from 130 to 90.

Inventory in San Carlos has dropped from 85 to 50.

This bodes well for our real estate market. When inventory drops, buyers are competing for fewer properties.

We are starting to see multiple offers in Palo Alto, Menlo Park, and San Carlos especially in the “entry level price range” - $1.2M and below for Palo Alto and Menlo Park and $1M and below in San Carlos.

Let’s take a look at the Market Action Index for Palo Alto, Menlo Park, and Palo Alto.

A value above 30 indicates a sellers’ market. A value below 30 indicates a buyers’ market.

As you can see the market action index has increased steadily over the past 12 months. What was a very “cold” market - ie poor for sellers - 12 months ago has “warmed” significantly over the past 12 months. It still is a buyers’ market but much less so than 12 months ago. If the Market Action Index continues to improve at the same rate, we will see a balanced market in about another 18 to 24 months. Of course, no one can predict the future and many things can either accelerate or reverse the trend of the past 12 months.

The market action index in Palo Alto has increased from 18.5 to 21.5.

The market action index in Menlo Park has increased from 17.5 to 21.0.

The market action index in San Carlos has increased from 16.5 to 20.5.

Let’s look at price per square foot in Palo Alto, Menlo Park, and San Carlos.

The median price per square foot has decreased minimally in all three cities.

So what’s my overall take?

Prices certainly has not yet started to jump up but the market is getting stronger - inventory has dropped and the market action index has increased. We are setting the stage for a solid market moving forward.

As a buyer, I would not be in any great hurry to buy but we are near the bottom. So keep looking and when you find a house you like that you can purchase at a good value, go for it.

After 32 years in the local real estate market, I can tell you when the market turns upward, it turns upward QUICKLY. Interest rates certainly are headed up. So don’t make a “panic” purchase as many did in 2004 and 2006 but be realistic.

Another excellent REO opportunity has come on the market in the Belle Haven area of Menlo Park.

1150 Hollyburne Menlo Park is a 2 bedroom 1 bath home listed by New Light Realty at $287,500.

Unlike many REOs, this home is actually in pretty good shape with an update kitchen and bath. Yards and fencing are in good shape. New laminate floors have been installed. Some fresh paint and maybe some new carpet in bedrooms and this home will be in move in condition.

Click here for more info

Here are a few videos of the property.

Call me if you would like to see this property and learn more about these opportunities.

Another excellent REO opportunity has come on the market in the Belle Haven area of Menlo Park.

1150 Hollyburne Menlo Park is a 2 bedroom 1 bath home listed by New Light Realty at $287,500.

Unlike many REOs, this home is actually in pretty good shape with an update kitchen and bath. Yards and fencing are in good shape. New laminate floors have been installed. Some fresh paint and maybe some new carpet in bedrooms and this home will be in move in condition.

Click here for more info

Here are a few videos of the property.

Call me if you would like to see this property and learn more about these opportunities.

STATS FOR LAST 7 DAYS

new listing 2, price reduced 1, sale pending 0,  sold 1

new listing         1935 Oak Cir, $625,000, 2 br 2 ba, 1,176 sf

                               1919 Hopper Way, $695,000, 2 br 2 ba, 1,069 sf

price reduced  137 Vineyard Cir, $795,000, 2 br 2 ba, 1,154 sf

new pending

new sold            2 Burgundy Way, $615,000, 2 br 2 ba, 1,218 sf

median prices, average days on market

current for sale             24 med price $937,450; avg days on market 159

current sale pendings   0 med price $000,000; avg days on market 0

sold in last 6 months   14 med price $627,500; avg days on market 161

STATS FOR LAST 7 DAYS

new listing 3, price reduced 1, sale pending 0, sold 0

 new listing      n/a, $1,050,000, 3 br 3 ba, 2,713 sf

                              1767 Stockton St, $1,385,000, 3 br 2 ba, 1,700 sf

                              1800 Adams St, $2,495,000, 3 br 3 ba, 2,932 sf

price reduced 839 Charter Oak Ave, $998,000, 1 br 1 ba, 782 sf

new pending

new sold

median prices, average days on market

current for sale             79 med price $1,545,000; avg days on market 164

current sale pendings   3  med price  $875,000; avg days on market 214

sold in last 6 months    34 med price  $827,500; avg days on market 164

STATS FOR LAST 7 DAYS

new listing 3, price reduced 3, sale pending 1,  sold 0

new listing         203 Wapoo Ave, $309,900, 3 br 4 ba, 1,82 sf

                               1139 Mitzi Dr, $35,900, 3 br 2 ba, 1,26 sf

                              n/a, $650,000, 3 br 2 ba, 1,760 sf

price reduced  1445 Lake St, $154,906, 2 br 2 ba, 1,089 sf

                              1443 Lake St, $245,000, 2 br  ba, 1,269 sf

                              1718 Reynard Ln $495,000, 2 br 2 ba, 1,564 sf

new pending    2017 Tablerock Ct, $499,000, 3 br 2 ba, 1,318 sf

new sold

median prices, average days on market

current for sale            54 med price $1,037,000; avg days on market 247

current sale pendings   4 med price $462,000; avg days on market 34

sold in last 6 months   11 med price $335,000; avg days on market 129

It might be because short sales have been around, (this time,) long enough for us to kinda get used to the fact that it’s going to take time.  The last one I did in Walnut Creek took 3 months from start to finish.

Well, I’m here to tell you that it’s really not any easier, except for a few very smart banks and Equator.  Equator may be the Holy Grail of short sales.  A few banks are taking it our for a test drive.  Every one’s waiting patiently.

If you are contemplating listing your home on a short sale or buying a short sale, do the home work.  Talk to a real estate professional or 2! 

Sellers, the faster you can sell your deficient home, the faster you can get your credit improved and move on.  Buyers, there sure are a lot of great looking homes out there that are short sales.

I had the pleasure of touring a fantastic new listing in White Oaks about 2 blocks away from my home since 1986.

335 Pearl Avenue is listed by an old family friend, Jean Rigg of Menlo Realty.

This 3 bedroom 2 bath home is listed at $997,000 and contains 1690 sf of living space.

Hardwood floors, open beamed vauled ceilings, very ample room sizes - you should see the bathrooms!

Offers will be presented Friday Feb. 26 at Noon.

I would expect this property will recieve multiple offers like many other San Carlos homes priced under $1,000,000 have recently.

Here are a few pics:

The property is on a corner lot so it does not have a large rear yard.

Other than that, it is n excellent house with good bones and in good condition.

Let me know if you would like to take a look at this home.

To search for other San Carlos homes, click here.

While reading posts on the approximately 20 blogs I subscribe to, I came across a post By Jeff Brown on Bloodhoundblog.com that made my blood boil and I am certain yours will do so also after viewing this. The video is the work of  ThinkBigWorkSmall who I will subscribe to when I am done with this post. Here is a quote from Jeff Brown’s article which will give you a sense of the deal, maybe it should be called theft, One West Bank received when it purchased Indymac Bank from the FDIC in March 2009.

I know the FDIC went out of its way to issue a Press Release, denouncing the guys at Thing Big Work Small.  I know those guys fairly well (had a few beers with them at the CAMB convention this summer).  The FDIC denounced the video as “factually incorrect”, a day after it came out…then…

One West Bank, who bought the IndyMac portfolio for $1.55 Billion, earned 1.57 billion in its first year of operation.  Now Jeff, youi’re a bright guy…what kind of bank earns 100% ROI in one year?

Here is the video from Jeff Brown’s post, but you click on ThinkBigWorkSmall link above and go directly to their site.