I don’t have hard figures, and it varies case by case, but generally speaking you can get the same % appreciation from the lower end of a premium market. I would still not want to settle for anything less than a 5000 sq. ft. lot, and make sure to check the schools.

Thanks for the info. Yes, I agree with lot sizes < 5000 sq ft. being undesireable for many, but, I do believe there will always be a need for them. They are usually starter homes, and also for people who want to downsize and don’t need or want a big yard.

On the other side of El Camino, we’ve seen much higher prices for homes, and more interest as well during open houses, but even these seem to be coming down in price.

Just out of curiousity, do you have any hard figures on what the real estate appreciation rates are in the Burlingame area? Does it vastly differ from Hillside to the other side of El Camino? I’m just wondering, because if the appreciation rates are roughly the same, between 8-9% CAGR, then I’ll just opt for the lower priced homes. No sense in putting down a huge amt. of equity to qualify for the new conforming loan limit and lower rates when I can use that money to invest in other vehicles.

I think you’re being disruptive now.

Appreciate the detailed info. Here are some rules of thumb regarding lot size:
1. Anything under 5000 sq. ft. is undesirable.
2. Ideally, lot size should be a greater than 6000, but in some areas 5000-6000 is acceptable.

The two properties you found have extremely small lot size. Therefore, it should be no surprise that there’s a lack of interest. The original list prices were way too high.

If you go on the other side of El Camino (away from CalTrain), and look for houses on standard sized lots, I doubt you’ll find any softness in prices.

1) Down the street from us on Capuchino is a house in foreclosure. 2bed/1ba, 5750 sq ft. lot, small house, in need of quite a bit of work, went from 900k in late Dec. (based on what the realtor told us), to 850k, and has just been reduced again to 799k.

2) This home was listed a month ago for open house:

http://www.greenbanker.com/brochure/1400sanchez.pdf

And was removed from market when there was a lack of interest. The owner decided to pursue the sale on her own, but, since then, we haven’t seen any buyers. The price was listed at 995k. I believe, based on other lots in the area, this will have to be drastically reduced to 850k.

Here’s another house nearby where we lived that has been on the market for about 5-6 months now:

http://www.maryelliottproperties.com/site/?ct=mls.details&id=184482&area_id=2116

New house (4 years old), small lot, nice area… went from 1.688k, to 1.488k, to 1.388k. We talked with the realtor on the house and she said they might reduce the price again. Looking at similar homes in the area, this house will need to come in at 1.1 million, considering it’s a new home.

Many homes in the area have been reduced in price by about 100k. I can’t speak for the Eastside, or Hillsborough areas, but around Hillside and these parts, we have seen prices down by about 10% since I started noticing many price reductions 5 months ago.

We just came back from a set of open houses in Belmont and noticed many of the homes listed with price reductions.

Are you looking to buy right next to 101? What price range are you talking about? Any example of a house that’s still on the market? A link would be nice.

If prices are coming down, then clearly you are looking at junk houses. Real Bay Area homes only go up!

It’s definitely a buyer’s market out there.

Yes, yes, yes! The best time to buy is now! You’re a buyer, so go buy!

If prices were going up, then you also must buy NOW because you will be priced out forever.

It’s definitely a buyer’s market out there.

Burbed,
Did you start printing certificates for RealEstater so that he can display them on his office wall. And on glass window, next to properties with “Sold” signs, with label “As Featured On Burbed.com“.