The Elephant in the Room! The Piedmont Perspective, Vol 68, September 24, 2008
What’s New?
No one got through last week without wondering where the failure of Lehman Brothers and other iconic financial institutions will personally leave us. The news seemed unrelenting on top of the government takeover of Fannie and Freddie Mac and the controversial taxpayer bail-out of AIG. All of us are waiting to see what this week will bring and whether or not that news will improve the country’s financial outlook or add to the strain . . .
Like many of you, I have just seen my family’s retirement and my boys’college funds take a substantial beating. (Ouch! ) And like you, I have worried about the long-term investment of my own home. On Friday I went to hear Leslie Appleton Young speak at the Oakland Association of Realtors. Ms. Appleton-Young is the chief economist for the California Association of Realtors and had this to say (I’m paraphrasing):
1) The decline of the market began roughly 3 years ago. Declining cycles in real estate typically last 5-6 years so we are more than half way through.
2) Investment opportunities will be abundant for those seeking to move dollars out of the stock market and into real estate – especially in the Central Valley. (Foreclosure sales are up 42% in the last three months!)
3) Foreign investors will be drawn to California’s housing market – especially cities in and around San Francisco (that’s us) due to the strength of their currency.
4) More entry-level buyers will enter the market due to increased affordability.
5) The sooner the bad debts are removed from the books, the faster liquidity should be made available and the faster the economy will experience a recovery. (“Hitting bottom quickly allows us to bounce back more quickly.”)
6) REAL ESTATE MARKETS ARE LOCAL! HEADLINES ARE NATIONAL. PAY ATTENTION TO YOUR LOCAL MARKET! (And that’s good news for those of us here in Oakland, Piedmont, Rockridge, Montclair and Berkeley. Locally, we remain relatively strong!)
Is there a silver lining?
Yes! Historically, responsible home ownership has proven a very sound financial choice and Ms. Appleton-Young expects it to remain so. The key word here is “responsible.” In hindsight, mistakes were made and many people bought homes who were not qualified. Lured by the promise of cheap money, anticipated appreciation and the desire to own a piece of the “American Dream,” banks, mortgage brokers, Wall Street and dare I say it – some realtors – all contributed to the idea that everyone could (and should) own a home. Together, it created a “house of cards” that, sooner or later, was bound to collapse. And so it has.
Let’s hope the steps taken last week and in the next few, help calm the markets and reestablish trust. In the meantime, if you have been waiting to purchase a home, you are in luck! There is real value to be found in this more affordable housing market!
Are you selling? Let’s look at this pragmatically. While you may have missed the top of the market, it is important to remember that markets are RELATIVE! You will also be buying your next home at a discounted rate.
Do we have a marketplace? Absolutely! The “fixer” on Highland Avenue received double-digit offers yesterday! (See What’s Pending?)
Now, what can I do for you?
What’s Coming?
Matt Heafey brings 48 Crest Road to market this week in Piedmont. This charming home in a serene tree-top setting offers 2bdrms/2bths, 3 fireplaces, gourmet kitchen, great room and indoor-outdoor living at its best. This cozy home lives like a penthouse and is ideal for downsizing OR for expanding (Graff conceptual plans available for a 5bdrm/3bth/3-car garage). Price: $1,049,000. Open Sunday 2-4:30. www.grubbco.com
Mindy Scott’s newest listing at 3 Maxwelton is a newly- constructed Grand Mediterranean featuring 4+bdrms/4+bths, elegant formal rooms, gourmet kitchen with great room, bonus space down, 2-car parking and stunning details throughout. New homes in Piedmont are rare and this one lives for today’s lifestyle. Price: $3,250,000. Open Sunday 2-4:30. www.grubbco.com
Anian Tunney’s beautiful Tudor Traditional at 9 Wyngaard Avenue, designed by architect, William Schirmer features 3bdrms/2.5bths, formal living and dining rooms, kitchen with family room, beamed cathedral ceiling, hardwood floors and leaded glass windows. Make time to see this stunning home. Price: $1,995,000. Open Sunday 2-4:30. www.grubbco.com
Katherine Cooper’s inviting circa 1938 listing at 125 Saint James Drive offers 3bdrms/2bths, spacious formal living and dining rooms, bonus family room down, lush front lawn and lovely woodland setting.
Price: $1,150,000. Open Sunday 2-4:30. www.grubbco.com
Dana Cohen brings to market a magnificent 5bdrm/3.5bth Tudor- style Traditional at 1100 Ashmount Avenue in Crocker Highlands. Grand formal rooms, rich architectural details, sweeping views on an expansive parcel with level lawn, patio and beautiful gardens add up to an exceptional opportunity. (Elevator and wheelchair accessible.) Offered at $1,300,000Open this Sunday 2-4:30. www.1100Ashmount.com
Did you miss 1076 Mandana in Crocker Highlands? Take heart, Kelly Deal will be bringing it back to market a week from Sunday on October 5 and I will be holding it open for her at that time. Come back and visit this newly constructed Contemporary Craftsman. With a beautiful open floor plan, this smart home is filled with high-end finishes and thoughtful details throughout.Easy living!
What’s Pending?
Just when you steel yourself for bad news, a property like 309 Highland Avenue comes along and proves you wrong. With an entry-level price tag of $795,000, buyers flocked in droves! (Many REALTORS believe it is nearly impossible to underprice a home – and I am one of them – as this result bears out. ) The seller’s low list price attracted many buyers to the table and drove the price considerably higher than asking! That’s a great result.
On the flip side, overprice a home or let greed rule the day and its easy to crash and burn. Several weeks ago, I wrote about a full-price offer my clients had written on a home in Montclair, only to have the sellers counter back $85,000 above asking! You guessed it, this home is still on the market and has reduced its asking price well below what my clients offered! Tough luck! (coulda, shoulda, woulda) . . . In the meantime, my buyers snapped up a larger home for far less and will spend the difference making their new home the house of their dreams. Smart move!
To quote Paul Harvey, “Now you know the rest of the story.”
What’s Happening?
Are you in the condominium market for yourself , your college kids or for your parents? Look no further than Michael Friedman’s large and elegant 2+bdrm/2bth condo at 670 Vernon Street in the desireable Rose Park Terra
ce. www.670Vernon.com . This sophisticated condominium near Piedmont Avenue provides luxury living in a secure building and offers a fragrant, peaceful and picturesque setting. Overlooking the rose garden from its private balconies, this wonderful condo features spacious rooms, a separate office/guest room, abundant sunlight, a fireplace, updated kitchen and loads of closet space. I can smell the roses now! Price:$595,000.
Have you been waiting for an opening at the Park Bellvue Tower? Here is your chance. Tricia Swift’s listing at 65 Bellevue Avenue #702, has returned to the market. Elegant sophisticated, serene, and perfectly appointed, this 2bdrm/2bth condo with limestone entry and halls, cherry cabinetry, gorgeous window treatments, pool and athletic club, 24-hour doorman, interior parking and round the clock security is ready to move in! Offering the best location on Lake Merritt with sweeping views of the lake, the park and downtown Oakland, this all-level living opportunity is tough to beat. www.grubbco.com. Price:$668,000. Open Sunday 2-4:30.
Finally, Tricia Swift’s darling 2bdrm/1bth Traditional listing at 102 Oakmont has been reduced to $695,000! Close to Wildwood Elementary, the Piedmont High School’s playing fields and Davies Tennis Stadium, this truly affordable home is a sweet value! Take another look! I will be holding it open this Sunday as Tricia will be at Park Bellvue Tower. Please stop by and say hello!
What’s Fun!
Mark your calendars for the 9th Annual CAP Masquerade Ball on Saturday, October 18. Child Abuse Prevention is part of EBAC (East Bay Agency for Children). This year, this fun event featuring dinner, dancing and gaming, takes place at 503 Park Way in Piedmont.
For mor details, call 268-3770.
The Piedmont Plug!
Last week, my good friend Jan Kessler, invited me to lunch at The Terrace Room at Barbary Lane Communities (also known as The Lake Merritt Hotel). Not only did we have a fabulous lunch in the pretty and polished restaurant, overlooking the lake (order the Nicoise salad, the berry cobbler and a mint spritzer – heavenly!) but her friend and proprietor, Cheryl Berger, joined us and gave us a guided tour of the recently remodeled facility. This stunning property, built in 1927 and owned and operated by Cheryl and her husband Randy for the last 21 years has a long and interesting history.
Previously, one of Oakland’s finest hotels, its current incarnation features temporary executive housing and forward-thinking senior housing. Offering well-appointed studios, one and two-bedroom apartments, a personal spa, fitness center, a restaurant, meeting rooms, housekeeping and laundry services, Barbary Lane is a totally new concept.
“Barbary Lane is a place where seniors come to live,” Cheryl proudly explains. “Because the public restaurant has always attracted Bat/Bar mitzvahs, corporate functions, and wedding and anniversary parties, the restaurant is a vital component of the life lead here, helping residents stay connected to the community.”
With a philosophy that welcomes everyone, Barbary Lane is proud of its inclusive population. Close to Piedmont and downtown Oakland, this hotel lifestyle may be the perfect fit for your aging parents who aren’t yet ready to surrender to “assisted living,” but welcome the idea of a supportive and vibrant environment!
For more information, call Dave Latina @ 510-903-3600.
By the way – I can’t think of a nicer spot for brunch!
See you next week!
THANKS FOR READING!
For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I’d love to share my real estate tips and my experience in the Piedmont community with you!
Feel free to visit my website at JulieGardner.com for more information as well.