Tuesday, January 1, 2008
Oakland listings that tell the story of decline
While San Francisco pricing has held up rather well thus far and is gearing up for its coming decline in 2008, Oakland is altogether a different story. Its noticeable slide started in 2007 and has many current listings that show how bad it already has become. The following addresses surely haven't been helped by the credit crunch that began in August 2007 or the November/December holiday season, but I predict these many a short sale are indicative of things to come in 2008.
7049 Thornhill Dr is an example of a home that is ready for a price reduction after being listed for 54 days now. Purchased in April 2005 for $850k, they are already looking at a loss of $40k+ after commissions paid, and that assumes a full price offer. I personally toured this 4 bed/2 bath, 1920 sq ft home on a 1/4 acre lot in the Oakland Hills back in early December. It can use a little bit of updating here and there, but is a nice livable home with a fantastic, expansive rear deck and downsloped yard. It should see a price reduction soon.
6144 Valley View Rd is a Montclair home that was purchased for $610k back in November 2003, and has been listed for $625k for 64 days without a price reduction. Not much for pictures, but you can count on a house that begs for updating on a large 1/4+ acre lot in a nice area of Montclair. You could've pretty much bought anything in the Bay Area in 2003 and sold in 2005 or 2006 and profited $100k+, and in many cases, $200-300k+. Not anymore - oh how quickly the tide can turn.
6615 Snake Rd is an interesting listing. Listed for $674,900 and currently bank-owned, it changed hands for $865k back in March 2006. Then just 3 months ago in early October it sold for $734k. Talk about a continuous downward spiral, this home isn't even turnkey complete. It looks to be mostly remodeled and needing some finishing, but the bottom line is this: a 4 bed/3 bath, almost 1900 sq ft view home high in the Oakland Hills on a well-known street can be had for $200k less than what it sold for nearly two years ago. The previous owners who paid $865k are damn lucky they got $734k just three months ago!
There are many other listings like these, some in even worse financial shape.
Happy 2008! (as long as you aren't trying to sell a house in Oakland)