Arn Cenedella

Archive for the 'Menlo Park Real Estate' Category

Palo Alto Menlo Park Redwood City San Carlos Market Action Index

They say a picture is worth a thousand words.

A Market Action index at 30 indicates a balanced market.

Above 30 is a sellers’ market.

Below 30 is a buyers’ market.

On the San Francisco Peninsula in the cities of San Carlos, Redwood City, Menlo Park, and Palo Alto; we were in a sellers market until about July 1, 2007. Very strong sellers market in 2005 cooling somewhat in 2006 but staying biased towards sellers until about Fall 2007 when the index dropped quickly below 30 into the 20 range and now all 4 cities are between 15 and 20.

From the shape of the graph, we appear to have hit a level point.

Are we near the bottom? Or is this just a temporary pause before we continue down?

I can tell you in the $700K to $900K, homes do seem to be selling.

I have two active qualified buyer clients in this price range – one looking San Mateo Belmont San Carlos and the other looking in Cupertino Sunnyvale – and many homes I want to show them are sold before we get there.

Is market picking up with spring quickly approaching?

Inventory Levels Palo Alto Menlo Park Redwood City San Carlos

All 4 communities saw inventory levels drop at the end of the year.

All 4 communities have seen inventory levels increase through 2009.

Palo Alto has experienced the greatest increase in inventory levels – very interesting!

Menlo Park Real Estate Friday update 2/27/09

19 new listings this week in Menlo Park

3 new pending sales this week in Menlo Park

101 active listings currently in Menlo Park

32 pending sales currently in Menlo Park

Looks like inventory will be increasing in Menlo Park – the spring rush?

Menlo Park real estate tour February 17, 2009

Here are some Menlo Park CA homes on tour for the first time Tuesday February 17, 2009.

1074 Del Norte Ave       3/2       1600sf         $965,000

2055 Gordon Ave          3/2        1900sf         $1,456,000

844 15th Ave                  3/2        1520sf          $869,000

450 Blake St                    3/2        1460sf          $1,195,000

146 Sand Hill Cir             3/2        1600sf          $1,045,000               townhouse

1030 Siskiyou Dr            4/3         2770sf          $2,188,000

12 Zachary Ct                  4/3         3150sf          $2,349,000

west Menlo Park CA tour February 10, 2009

West Menlo Park is a very desirable neighborhood close to downtown Menlo Park and Stanford University. The area within the City limits is considered “prime west menlo”.  Most homes are older ranch style home on 1/4 acre parcels. Many of these older homes are now being replaced by very large 3500sf-4000sf homes. There is also an area in west Menlo Park along the Alameda which is actually county area – near the Dutch Goose and in the outstanding Las Lomitas School District. The Menlo Park City school district is also highly ranked.

Today I will to highlight some new listings priced slightly above $2,000,000.

The first 1300 Hobart is within the City of Menlo Park boundaries and is considered prime west Menlo. This gracious ranch style home sits on a well-landscaped 1/4 acre lot and contains 3 bedrooms 2.5 baths and 2240sf in total. This home has been recently updated and shows very well. Property is listed by Margot Lockwood Coldwell Banker at $2,195,000.

The next two properties in the same price range are in the Couny area off the Alameda.

 2190 Sterling is a 3 year old house of 2,685 sf containing 5 bedrooms and 4.5 baths on a 6000sf lot. This two story home has a gourmet kitchen with center island and cathedral ceilings in many rooms. This property is listed by Kristin Cashin of Cashin Properties at $2,195,000.

The final property is located at 1316 Orange Ave., Menlo Park. This 1 year old home contains 2700sf and 5 bedrooms and 4.5 baths on a 6300sf lot. The elegant chef’s kitchen has 2 ovens and under counter Vinotemp wine storage. Property is listed at $2,199,000 by Carol Bartlett of Cashin Properties. Carol used to work for my father years ago at Cenedella and Co.

 So which do you prefer? All three houses are priced in a similar range.

Hobart has the classic west Menlo location and 1/4 acre but the other homes are larger and newer.

Just a matter of taste – please let me know what your preference is – I will keep track!

Good news for Investors – Fannie Mae rule change

Until today, Fannie Mae had a rule that they would not buy mortgages from borrowers who had five or more real estate loans – or perhaps more accurately stated – mortgages from borrows that had loans on five or more properties.

Fannie Mae changed this rule today:

Per Fannie Mae announcement 09-02:

Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.

I have recently written several posts stating my belief this is a great market for first-time buyers or for first-time investors.

This Fannie Mae rule change will make it easier for investors to make additional real estate investments.

Due to price decreases and interest rate decreases, invesotrs can now buy property in certain areas of the San Francisco Peninsula with 20% down and have a break-even cash flow. This was impossible two years ago.

In more expensive areas, the numbers are also better than they were two years ago but will require 30% to 35% down.

I have contacts with real estate brokers throughout the country – Dallas, Raleigh, Austin, Phoenix, Indianapolis, Sacramento, San Diego, and the Bid Island. If you are looking for wloer downpayments with greater cash flow, these areas are worth a look.

And do not forget, you can use 401(K) and IRA funds to purchase real estate so if you are tired of stock market gyrations, this is an option to consider.

What is happening in the Menlo Park market?

As Menlo Park contains only 1 zip code, this report will cover all areas within the City of Menlo Park – both west and east of HWY 101 and the unincorporated areas known as North Fair Oaks and the County Area along the Alameda near the world famous Dutch Goose!

Where is the market in Menlo Park headed?

The median list price in Menlo Park increased to $1,295,000.

Average price per square foot in Palo Alto 94303 increased to $695.

Average days on market increased to 104.

47% of the listings in Menlo Park have a price reduction.

The current market action index for Menlo Park is 17 – below 30 is considered a buyers’ market.

Below you will find chart showing market action index by price range over the past 6 months.

The price range is broken down into 4 quartiles:

Highest has median price of $2,350,000

2nd highest has median price of $1,549,000

3rd highest has median price of $995,000

Lowest has a median price range of $359,000

Much as we saw in the Palo Alto 94303 report where the lowest quartile price range was in the City of East Palo Alto, in Menlo Park – the lowest quartile price range is primarily homes in the Belle Haven – the City area east of 101.

The market action index for the most expensive homes in Menlo Park dropped strongly at the end of summer and into fall but then has rebounded. The middle price ranges in Menlo Park generally cooled off slightly over the past 6 months. The lowest price range started very slow in August and then has warmed up since then.

What does Zillow Q4 2008 report say about the local market?

During my 31 years in the real estate business selling properties up and down the San Francisco Peninsula, I am often asked what is so special about Menlo Park or Palo Alto or Los Altos?

Why are homes more expensive in these areas compared to San Carlos (my home for the past 23 years), Redwood City, Belmont, and Mountain View?

The data below taken from Zillows Q4 2008 reports for the San Francisco MSA and the San Jose MSA may give an answer.

On a quarter Q4 to quarter Q3 comparision:
Menlo Park home values up 1.2%
Palo Alto home values down -0.4%
Los Altos home values down -2.9%
while Mt. View is -7.1%, East Palo Alto is -16.7%, Redwood City is -8.4%, San Carlos is -7.3%, and Belmont is -9.4%.

The year to year data is similar Menlo Park up slightly, Palo Alto and Los Altos down slightly, and the other cities down a fair amount ranging from -4.9% to -37.3%.

As I have told my clients “when times are tough, the more desirable markets hold up better”.

But for those doomsayers out there, please note for EVERY CITY except East Palo Alto, the 5 year and 10 year annualized change are ALL POSITIVE. So even after two fairly tough years, home values in these San Francisco mid peninsula cities has gone up over the past 5 to 10 years.

Average increases over 10 years at about 6% per annum. East Palo Alto had a 10 year annualized increase of 5.3%.

A $500,000 property purchased in any of these cities 10 years ago – on average – would be worth $909,000 today.

Say this property was purchased with 20% down or $100,000 10 years ago, the current equity of $509,000 would represent a 17.67% return on the downpayment. This is a “broadbrush” calculation for illustration purposes.

Of course, if the market should continue down for another year or two, the 5 and 10 year annualized returns would be reduced. But I think this data does show the strenght of our local market in the worst economic conditions most of us have ever seen in our lifetimes.

The media often uses Zillow data to paint a bleak picture of the real estate market.
Using Zillow’s own data, I believe one can make reasonable arguments that our market is doing pretty good all things considered.

If there are any stock market guys out there, I would be interested to see 5 and 10 year annualized stock market returns after the current collapse.

Consider real estate in your retirement accounts. Want to learn more, just let me know.

Did you know you can buy real estate with your 401(k) or IRA funds?

With real estate values down, there are excellent buys in real estate for long-term investment – both here on the San Francisco Peninsula and elsewhere in the country. I have developed experienced real estate contacts in other areas of the country like Sacramento, San Diego, Phoenix, Dallas/Ft. Worth, Kansas City, Raleigh, NC, and elsewhere.

There are solid long-term investment opportunities available on the San Francisco Peninsula.

Would you prefer to have greater control over your retirement funds?

Would you prefer to invest your retirement funds in real estate – a tangible asset that people need for shelter?

Yes, real estate values in most areas of the country are down.
But I would submit that stock portfolios are down even more.

If you would like more information on investment opportunities and/or purchasing real estate with your 401(K) or retirement funds, please contact me for a FREE 50 page Q&A about self-directed IRA real estate investing.

I am happy to meet with you for a NO OBLIGATION consultation and explanation of the process.

New Listings in Palo Alto, Menlo Park, and San Carlos

New Palo Alto listings within last 10 days

New Menlo Park listings within past 10 days

New San Carlos listings within past 10 days

Just let me know if you need further information on any of these properties or wish to personally view the homes.