Last week Foster City has 68 condos or townhouses for sale. Wowza! And, the number is increasing. Good for the buyer, bad for the seller. Pricing is flat, good for the seller and bad for the buyer and the average number of days it’s taking to sell is going down, again good for the seller. The Median Price was $649,000 and the least expensive condo on the market was listed at $300,000 even. The most expensive was $1,025,000 at Promontory Point and that poor owner is competing against a bank owned priced well below their list price. This median priced condo is around 1428 square feet and has 2 bedrooms and 2 bathrooms.
Prices may be flat but half of all listed Class 2 properties in Foster City (class 2 is the MLS terminology for condo or townhouse) have seen price reductions. Buyers should be happy as this means sellers should negotiate.
Let’s look at what’s going on across the spectrum on price. Since Foster City is a planned community, even the properties are planned to be within certain price points. Quartile One features the most expensive properties – generally Prmontory Point and large townhouses. Quartile Two are those below, generally all townhouses, Quartile Three and Four are small townhouses and all the rest of the condos around town. What’s interesting is the top and bottom of the market are taking the most time to sell.
Realtors are asked regularly if the market is at the bottom. When you look at the chart above for Foster City Condos and Townhouses, you can clearly see prices were at bottom last year and have been bouncing along above that point ever since. The past couple of weeks have been up and may stay that way or even move up more. I say this because we are beginning to see multiple offers on properties and that means prices may keep the move upwards. One would expect the see a correlation between price and market conditions but someone forgot to tell this to the Peninsula. Prices are still a little out of whack in comparison to the number of homes on the market and the market condition.
The $64 Thousand dollar question is always “how’s the market” and it’s still a strong Buyer’s Market. The market conditionn says we are in a strong Buyer’s Market, and have been here for about 2 years. So why isn’t the price reflected in this? Good question and one with no real simple answer, but simple economics of supply vs. demand keep prices up even in a Buyer’s Market. What this does offer you as a buyer is the opportunity to negotiate over price. Seller’s are finally expecting this and are more and more willing to do it. This final chart says it all. Inventory is at an all time high over the past 2 1/2 years. Competition breeds better prices and selection. If you’ve been on the fence about buying your first home and can’t afford a house, condos and townhouses are still the way to go. Foster City has outstanding schools, easy commutes north, south or across the bay, great weather, and with historically low interest rates now is the time to act. Believe me when I say we don’t expect to see rates as low as they have been for much longer. The Fed will take care of it so don’t wait. We’re here to help you. Click the button on the left and leave us a message.