December 31, 2008

$1374 per square foot in Palo Alto – the last house of the Year!

2326 HANOVER St, Palo Alto, CA 94306 | MLS# 80845686
2326 HANOVER St Palo Alto, CA 94306
Price: $1,195,000


Beds: 2
Baths: 1
Sq. Ft.: 870
$/Sq. Ft.: $1,374
Lot Size: 6,250 Sq. Ft.
Property Type: Detached Single Family
Style: Spanish
Year Built: 1928
Stories: 1
View: Neighborhood
Neighborhood: College
County: Santa Clara
MLS#: 80845686
Source: MLSListings
Status: Active
On Redfin: 34 days

I thought I’d close out the year on a happy note with this great find from Burbed reader Steve.

At $1374 per square foot, this 2/1 tear down exemplifies the best of the Real Bay Area. This house is the shining beacon of hope in these dark and difficult times. It is the landmark that all other houses can aspire to. It provides hope, and a glimmer of what’s to come.

Like a fine champagne, this amazing Palo Alto house sits, waiting for you to savor it. Go for it. Let’s wrap up 2008 in style.

Comments (19) -- Posted by: burbed @ 5:30 am

19 Responses to “$1374 per square foot in Palo Alto – the last house of the Year!”

  1. Justin Sane Says:

    Onward and upward! 2009, here we come.

  2. sw Says:

    I don’t get values in the College Terrace neighborhood at all. Most of the houses around here are falling apart since the owners only care about the rental income from students. There is much better bang for the buck in other areas (if that term can be applied in Palo Alto at all).

  3. madhaus Says:

    This place reminds me of a crapbox featured here in Redwood City that also looked like a concrete castle. And only in Palo Alto would a 6250 square foot lot be called “deep.”

    No wonder the angry renters call it Shallow Alto.

    I love the use of the term “deferred maintenance” as if it were a positive thing.

    Happy New Year, everyone, from Southern Florida where Case-Schiller for Miami is down 21 percent. Today’s NY Times has a photo of a lovely home in SF for sale, and captions it as one of the hardest hit real estate markets in the country. And for a boots on the ground report from this retirement community, they’ve had to cancel all sorts of club events like brunches and dinners because so many of the residents’ portfolios have been halved by the stock market follies, but fixed costs are the same. And this is a place for folks with money, so even they’re hurting.

  4. WillowGlenner Says:

    sw- same here. College terrace is not a good area. I would rather be in Barron Park than ct.

  5. bob Says:

    The report on SF surprised me a bit. SF was only down roughly 6-8% less than a year ago. Now its close to 31%, which is amazing considering the weakest market in the US was Phoenix, but it was actually pretty close to SF at 32.7%.

    Look at these charts. Pretty amazing.

  6. anon Says:

    “I love the use of the term “deferred maintenance” as if it were a positive thing.”

    MH, it is a positive. Why do you think the asking price is so low?

  7. SiO2 Says:

    Bob, those are interesting.
    It annoys me that Case-Shiller SF doesn’t include the larger city of San Jose. Or that there’s no C-S for SJ, but there is for the smaller cities of Tampa and Detroit and Charlotte.

    One very interesting graph is the 3-tiered graph. This confirms my previously-unsupported beliefs. The bottom tier zoomed up (150 to 275) and is now zooming down. The top tier crept up (150 to 180) and is now creeping down. I have seen some lower prices in “Fortress” areas but not the 50% reductions seen in the Central Valley. Presumably because the “Fortress” did not see the same increases previously.

    Of course I have no idea what will happen wrt employment next year and that effect on “Fortress” areas. I guess employment will decrease, but don’t know by how much.

  8. Joe Says:

    IMHO, employment and fear of unemployment will be a significant driving force in lower home prices next year across all tiers.

    All industries will feel this downturn, even industries that are supposedly insulated from a recession. I work at a major medical device company in the South Bay and they recently announced a pay freeze for all exempt employees for at least the 1st half of 2009. This is very much inline with many other companies (HP, Motorola, etc.) and there will be many more to come.

    Not to mention all the companies laying off their workforce. I was recently speaking to a good friend of mine who works at Cisco Systems and he says the company is posed to let go of most of their contractors in 2009. These contractors make big bucks too and I would assume they’d be hard pressed to find that kind of money elsewhere in this job market. Wonder what will happen to their homes?

    Other acquaintances of mine are fearful of their jobs and say once they loose their job, they will not be able to hold onto their homes.

    All these anecdotal accounts lead me to believe the home depreciation and foreclosures will be much greater in 2009 for the Bay Area than in 2008.

  9. bob Says:

    Exactly right Joe. It really does come back to jobs and incomes. In areas that have already been hit hard, he vast majority of the people living in them worked in jobs like construction, retail, and other non-professional level jobs, many from industries that have had massive waves of layoffs and downsizing. The same couldn’t be said for the RBA where up until recently startup and tech business insulated at least some of the pain. Now that this same event is happening in the RBA with layoffs and downsizing, I’d expect to see a repeat, though not perhaps as severe, in those areas.

    The case-Shiller report was for Oct, which means we were barely into the initial shock of the plummeting economy. The numbers for Nov and Dec will likely be much worse and show some weakness in previously unaffected areas.

  10. madhaus Says:

    SiO2, there is indeed Case-Schiller for San Jose, it’s just that they don’t give it away for free.

    bob, Joe, I am not looking forward to 2009 at all for anybody around here. But the nice thing about being pessimistic is if I’m wrong, then I’m delightfully surprised.

  11. nomadic Says:

    I looked at the street view for this house…

    Rememberrrrrrrrrrrrrrrrrrrrrrrrrrrr………THE ALAMO!

    Happy New Year everyone!

  12. nomadic Says:

    On the economic front, the downturn here is having serious ramifications in China and trade finance is collapsing. Not to mention the damage that the high savings rate of Chinese citizens inflicts on their domestic economy.

    This is an interesting article:

    One tidbit I never knew:
    Chinese factories are allowed to import equipment while paying little or no duty provided that the equipment will only be used to produce goods for export; obtaining approval to switch the same equipment to making goods for the domestic market can take two years and requires the payment of much of the import duties that were previously avoided, a payment that many factories cannot afford.

  13. WillowGlenner Says:

    Thanks for the article nomadic. Reading about the trade imbalances with China in this recession leaves me with a strange feeling. Last night on the news they had an interview with some factory owner in China and he said that Chinese workers felt betrayed by their government and the US government for this recession since they did nothing wrong. While I sympathize with the Chinese working class, the fact is the US as a nation does not owe China an economy. This dumping of all these cheap asian goods has to stop.

  14. nomadic Says:

    Chinese workers felt betrayed by their government and the US government for this recession since they did nothing wrong.

    Oh, boo-hoo! They can join the legions of others who are saying the same thing around the globe these days.

    I agree that China needs to develop its own economy. It’s good that Washington is pushing for that too; however it’s a little scary to think what China (as a major debt holder of the US) could do if they got really pissed off.

  15. zanon Says:

    All: So is college terrace still part of the RBA? If all the owners care about is rental income, then the answer has to be “no”, since in RBA rent does not matter, it’s all appreciation. Help me out here!

    WG: China will retaliate by refusing to buy US bonds. That may have some impact on interest rates.

  16. Look Behind You Says:

    Joe, I’m 100% with you on your prediction. I’ve heard the same thing about contractors being let go at Cisco, as well as a similar rumor about Google. Things are going to get VERY ugly by mid-2009. I cannot believe all the people I know that were affected by layoffs in the past 3 months who have decided to simply ride out the holidays and not even START looking for work until their “package” runs out. So here’s what’s gonna happen: more companies will announce layoffs in early 2009, and then by late Spring, you’re going to have double the amount of folks looking for work. And, double the amount of forclosures.

  17. Alex Says:

    There’s no rumor regarding Google. Most of their hires in the past few years have been contractors and they’ve recently gotten rid of many of those contractors. You just don’t hear about it unless you work there or know someone who does. More terminations to follow.

  18. DreamT Says:

    “double the amount of folks looking for work. And, double the amount of forclosures.”
    But of course. Math 101.

    May 2009 be the year most of you enjoy what you have, rather than denigrate what you don’t. Happy new year!

  19. Real Estater Says:

    House has gone pending.

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