AN EXCITING BEGINNING IN REDWOOD CITY REAL ESTATE

January has always been an exciting month in real estate.

This January, though, is quite unique. We have literally crawled out from below a
crushing economy with golden gloves on in a Rocky-like stance. Are you hearing
the tune Getting Stronger yet? The Bay Area as a whole has always been the
first one up and last one down in real estate when the economy takes a positive
or negative turn.  And so here we are, climbing again, out from under at a feverish pace to the top.

Since 2008 I have had to hear it all, from “That market was artificial” to “It will never be like that again” and everything in between. My heart sings for the homeowners that bought during that era because finally their very large investment is getting its groove back. Of course, though, if it is a “seller’s” market it is no longer a “buyer’s” market and the competition on purchases is getting stiffer every day that inventory tightens up. Two years ago, $600k would get you a nice Woodside Plaza home. Today that same home would be listed at $700k and the potential buyer would find themselves going up against 15 offers. Needless to say the house will end up selling somewhere around $800k with a buyer whose down payment far exceeds most of the competing offers.

CoreLogic , a research firm , reported that home prices rose by 7.4% in the year that ended in November. Included in that figure are short sales and REO’s. This was the largest year-over-year increase since 2006 and it has been positive for nine straight months. It's also important to note that RealtyTrac's year-end 2012 foreclosure report showed that foreclosure activity increased in 25 states. However, median home prices also increased in 25 states, which pulled 1.6 million homeowners out of negative equity in 2012.

And the Sales Prices Rise

Larger gains for housing prices are projected by Goldman Sachs in the next couple of years. And with home loan rates remaining near record lows the opportunity to buy is a reality for a lot of potential buyers.

Ok, so let’s get back to Redwood City real estate! We are currently a city full of promise and opportunity. The articles are numerous about the progress being made in Redwood City. This particular piece in The Wall Street Journal was quite impressive about start-ups being very attracted to the downtown area. In this article Bill Demas, chief executive of Turn (software company in the Alhambra building) said, "We wanted to be in a more urban location, we wanted more restaurants and bars near us." Read the article. It will make you smile.  

Expert Realtors say it's a cultural shift. The new generation of Internet executives—younger than the last generation of dot-commers—look with disdain on the trappings and responsibilities of pretentious properties. They want to bicycle, walk or take public transportation. They like living within a stone's throw of the day's entertainment.

It is only January and the market is still yawning from the holiday season. Low inventory should see some significant gains in mid to late February. Should you be patient and wait until then to buy or sell? All I can say, is that the buyers are out in force, so jump in when you can.

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