Funny Tales in Lamorinda Real Estate

30 12 2011

With the year winding down, I thought that a bit of Lamorinda real estate levity might be in order.  Some might think that real estate in Lamorinda is serious business.  Most of the time it is, but there are some funny moments that are worth remembering, even if they didn’t seem humorous at the time.  Here’s my top 5 list in no particular order:

  • Landmines in Lafayette real estate — We were meeting with a prospective listing client who wanted to show us her yard via a trip out to a deck and down some stairs to the lawn.  She failed to warn us that the stairs and the lawn were her beloved dog’s favorite poop repository, and I ended up stepping in it with both of my Allen Edmonds dress shoes by the time I reached ground level.  To make matters worse, the people never ended up listing their house.  My sacrifice was in vain.
  • Room for the entire family — Sticking to the same theme… we had waited months for a client to be ready to show us their home.  These were fastidious, sophisticated, professional people who were always meticulously groomed.  Upon viewing their home for the first time, we found that they had dedicated a large room to their two dogs.  Well, the dogs lived in the room as you’d expect they would without frequent access to the outdoors.  Arggghhh!  We recommended that the house be vacated, the floors and joists replaced to remedy the odor problem, followed by an interior “facelift” and staging.  It sold and the entire family found a new home.
  • How to increase listing traffic for the male buyer — I was showing a client a gorgeous Lafayette view home when I noticed that he was spending an undue amount of time staring beyond the patio railings at what I thought was the incredible view of Mt. Diablo.  Upon walking over to him, I realized that the view he was taking in was of the three young women, sunbathing nude at the pool below.  It was pretty hilarious as I tried to subtly alert them to our presence as they scrambled to gather the closest clothing items.  “Excuse us!… Is it alright to come on down?”
  • An entrepreneur or simply afternoon recreation? — I made an appointment to show a client a large Lafayette estate property, and was told that the “owner” would be on premises to “keep an eye” on things.  We showed up and were greeted by a woman wearing an ultra-tight dress that might be suitable for a night at the clubs, but not for an afternoon at home in Lafayette.  Upon reaching the master bedroom, we found a large 4-poster bed with a large mirror mounted inside the canopy.  My clients called me into the closet where they found a huge assortment of provocative outfits, the largest collection of stiletto heels we’ve ever seen, and various other related accessories.  I’ll leave the details to your imagination.  Who says life in Lafayette isn’t exciting!?
  • Stuck — A number of years ago, my wife was previewing a vacant property for a client, and needed to use the home’s restroom.  When she attempted to open the bathroom door to exit, she found that the knob was not working and that the door was stuck shut.  She had left her cell phone in the car, so calling for help was not an option.  After about 20 minutes of desperate banging on the door, it miraculously opened! 

Perhaps the most important lesson from all of this is to never lose your sense of humor.





The Case for Stabilized Prices in Lamorinda Real Estate

18 12 2011

My post from earlier this week displayed statistics suggesting a favorable relationship between inventory and demand across most price segments in the Lamorinda real estate market.  Since markets are driven by the relationship of supply and demand, the local stats seem to be suggesting that we may have reached the point of price stabilization in Lamorinda.  This past week, national data was released that is very supportive of what I’m seeing in our market.

According to Corelogic, an independent provider of financial and market data, “many housing statistics are basically moving sideways.”  The Corelogic stats suggest an emerging trend of price stabilization when one removes distressed sale transactions from a given market area.  In the case of the Lamorinda real estate market, there are very few distressed property transactions, therefore even a stronger case can be made for the stabilization of our market.

Early in the housing downturn, non-distressed properties were falling in price at at the same rate as bank-owned, distressed properties.  Not wanting to hold inventory longer than they had to, banks quickly cut prices to move foreclosed homes.  The downdraft in prices took non-distressed properties along for the ride.  That appears to be changing as consumers differentiate between distressed and non-distressed real estate.  In fact, according to an article in the Wall St. Journal, “…while price declines are resuming, they are not yet falling from one-year ago for non-distressed homes. In fact, during the first nine months of 2011, prices of non-distressed homes remained relatively stable, with year-over-year declines between 2% and 3%.”  This is on a national basis, and analysts at Barclays Capital called this “the most important trend in the housing industry right now.”

Taking this a step further, Barclay’s housing analyst Stephen Kim stated, “a distressed home is increasingly being seen as a poor substitute for a non-distressed home….bifurcation between distressed and non-distressed homes will only widen with the passage of time.”  To a large extent, I have seen this in the Lamorinda real estate market, with buyers shying away from the small handful of distressed properties that we’ve seen hit the market.  They are often in poor condition, and with a bank’s limited disclosure obligations, the buyer must be extraordinarily careful during their due diligence period.

The greatest stabilization in Lamorinda real estate will be found in the sub-$1.2M price segment, with progressive softening as one moves up-market.  Once the market re-awakens from its seasonal winter hibernation, I am expecting a fairly robust spring market.








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