As a planned community, Foster City has apartments, condos, townhouses and single family homes all over the city. This week we’re looking at the market report for what our MLS calls Class 2 homes, or Condos and Townhouses. Last week there were 43 homes on the market ranging between a low of $455,000 and high of $1,298,000. The median price was $715,000 and this was likely a condo that has 2 bedrooms and 2 baths. Townhouses are generally larger and cost at or above the median price. We saw 4 units absorbed, meaning they either sold or went off the market for some reason.
How long are these on the market?
Condos usually take longer to sell in a down market and right now the average days it takes to sell a class 2 property is 72. This is still within what I consider to be a normal market, meaning it’s taking less than 90 days to sell.
How Many are there?
Inventory is such that there’s a good selection to look over. Townhouses almost always sell faster than the condos because they allow someone to enter into home ownership and get the Foster City schools for much less than it would cost them to buy a detached single family house. Currently, the least expensive single family house on the market in Foster City is listed for less than a townhouse that sold within 11 days and was a significantly larger property.
When looking at this chart, keep in mind that the spike in price way back in 2007 was likely for one or more of the condos at Promontory Point, a luxury development sitting at the entrance to Foster City on Hillsdale Blvd. These are also the highest priced condos for sale today, at over $1.2 million. Most condos and townhouses are selling in the mid-$700,000’s and prices have been up there for a while.
The best way to know what’s going on with the market is with the Market Action Index as this is an indicator of the supply and demand in the market. Foster City’s condos and townhouses sits at 20 in Altos Research’s chart. The red line, at 30, is the division between a Buyer’s Market and a Seller’s Market. We are currently in a Cool Buyer’s Market and have been there for a long while. The dramatic drop last year was due to a change in the algorithm used by Altos for data measurement. We are also bouncing along the bottom or the market, not totally at the bottom, but a little above it. We’ve been there a long time and probably will be there a while.
So, what does all of this mean to you? If you are considering buying your first home, it’s a great time to do so. The tax credit the Uncle Sam and co