Well you are hearing it here first, some very exciting sales this week: The Mossbrook Eichler had something like 18 packages out which turned into 7 offers. It ended up at about $1.7m — yes, $300k over list price and where 2 doors down I just sold in January a brand new rebuild Eichler at $1.556m. Crazy?! The Fairorchard Willow Glen Eichler, which was completely updated (with Blomberg sliders by the way) had offers that pushed it up to $1.75m where the highest sale in that neighborhood was about $1.5m last year. Crazy?! So, what I think is happening is the ripple effect. People who were thinking they could get into Sunnyvale or Cupertino around $1.8m+/- have accepted that won’t happen, so they are being pushed to their next tier choice which will be Mossbrook and Willow Glen. That means they have a lot more ability to drive up prices in those areas from $1.5 to where we see them now. Is it sustainable? Probably. Just because one person offers $1.75m for Fairorchard doesn’t mean there is another one who will do it again on the next house, but it does make a statement. Just my take on it.
If you’re reading this blog then I’ll consider you to be in a “special access club”. We had a great turnout for our Vanderbilt Eichler open house which converted into 6 offers. Saving the suspense of “hey, guess what it sold for” — it went to $2.1m. Obviously we are extremely pleased by our diligent efforts of detailed home preparation and exclusive marketing, but to me this is also a signal from the market that a well presented Eichler will draw a lot of interest. The market is still solid and sometimes very competitive. The Hoods Point Highlands Eichler had 5 offers, mostly coming in for that uniquely private lot and view. But in the case of 1315 Lennox it seems the market is rejecting it since they can’t buy an offer… This weekend is the San Mateo Highlands Eichler Home Tour. Make sure you come by to see me in person “The Eichler Guy” ha! I’ll be hosting a wonderful Eichler at 1755 Lexington Ave, and I’ll have a few handouts you might enjoy. This is a fantastic opportunity to meet homeowners, designers, architects, and get ideas for your next (or dream) project. Bonus if you can tell me what are the 2 other houses on tour that we helped with some staging furniture!
Spring is in full swing as witnessed by 60 new listings for the Friday Tour alone! I presented an offer this week on a Saratoga home listed at $2.4m. It had 7 offers and final price went $2.7m+ — showing that the market is still very competitive and 10%+ over list price offers is still happening with regularity no matter the price point. The inventory is finally coming on market now due to better weather so let’s get out there and find something great! We had a very good reception at this week’s Broker Tour for our Vanderbilt listing. Make sure you come see me during the open house this weekend!
Our housing market is still very healthy. Last week we had 8 offers on our Brahms Sunnyvale townhouse listing, 2 of which were all cash. The White Plains fixer upper in the Highlands had 5 offers this week. While we are “balancing” back from a heavy sellers market, it is best characterized as a very healthy market. Buyers have a good chance to get what they want with slightly less competition than we had a year ago, and sellers have a solid market to get very respectable offers.
We just put 151 Brahms Way (a Sunnyvale Townhouse) on the market so I’ll be hosting open house this weekend if you want to stop by and chat about the market. 56 new listings just for the Friday tour alone so as you can see, the nice weather is finally bringing out some sellers. The raise in interest rates might have some buyers jumping into action so it will be interesting. I have seen so many new apartment complexes under construction these last couple years finally now coming available, so that may keep a damper on rental rates (supply/demand). I am seeing some softness in single family home rental rates, should see if that makes buyers complacent for a while or if they realize it’s just plain more affordable to own!
Solid activity continues to be the trend as our Spring selling season gets underway. All the Sunnyvale Eichlers that flooded the market around Remington and Hollenbeck are now Pending. The others sold well over list price and, as predicted, the totally tricked out Edmonton listing set a new record for Sunnyvale, going over $2.6m! It’s also quite a surprise (and annoying) that we do not have any Highlands Eichler’s yet to come on the market this year! Some have sold off-market so we cannot say that nothing has sold, but I feel demand is building. We’re only a couple months away from the Eichler Home Tour (May 6 and 7) showcasing this incredible community. Eichler Homes Realty is proud to be a sponsor of this event. The Highlands neighborhood of San Mateo has the largest contiguous collection of Eichler homes in the nation. The Home Tour is a fabulous opportunity to preview ten Eichler homes. In fact, I will be hosting one of these homes. Tickets are on sale now at www.eichlerhometour.org Hurry – this event is expected to sell out. All proceeds from this event go to the San Mateo Highlands Elementary PTA.
Since I get so many questions at open houses and in the days following, I decided to post a comment about our recent open house weekend at 619 W Remington. The weather was terrible, but that did not discourage people from coming out to see this home. At least 50 groups through each day even in the rain. It was a unique opportunity for buyers because they got to see 585 W Remington, a complete fixer at $1.348m that needs to be gutted and rebuilt, and compare it to our Remington all done at $1.528m. Yes, there are now 4 Active Eichler listings on Remington — who could have predicted!? So, buyers have choices for the first time in a long time. Each of these homes represent a different price/condition offering. But it’s hard to argue that both of these are the best options for an entry level Eichler in Sunnyvale. Most people were first time buyers, attracted to the Eichler aesthetic, schools, and price. But I have to tell you, of all the questions and comments I had, there was one person who asked if it was easy to take out the big glass windows and just fill it with solid wall. Uh… -Mark
It’s finally Spring! Well that’s what we believe here as our Bay Area Spring starts right after the Super Bowl. 34 new listings on market for the Friday tour is the highest this year so there is your proof! Interesting to note is that several of the new listings this week are re-lists of homes that did not sell last year — that’s right, there are many homes in Palo Alto and Los Altos Hills that did not sell last year.
This week we saw the Friday tour (Mountain View, Los Altos, Palo Alto) offer only a handful of new listings, mainly due to the impending Super Bowl Sunday — yes, that’s right. Our local real estate spring market officially starts right after the Super Bowl! We launched our Mossbrook Eichler on the market this week and response has been very strong! If you saw the “before” photos you might notice we only did some color changes to get a very dramatic difference. Come see us at this weekend’s open house! Also, I’m delighted to share with you that I was featured in a blog article for SFGate: “Eichlers Are The Classic Cars of Modern Homes – With a Collector’s Premium to Match“. I was interviewed by a journalist who asked some questions about how Eichler buyers see the market and how they differ from non-Eichler buyers. Hope you think it’s an interesting read.
No new Eichlers on the market this week. However, there are signs that the market is beginning a slow awakening from the winter hibernation. Last week on the Friday tour (Mountain View, Los Altos, Palo Alto) there were 22 new listings. This week there are 29 new listings. I believe the endless rain, Trump inauguration, and rising interest rates may be playing into another slow week. After all, who wants to be hosting a Broker Tour or Open House in a torrential downpour? Several very attractive tear-down lots have also come on in Palo Alto so will be very interesting to see where those go.