Fremont Real Estate Blog

Notices of Default in high-end zip codes are running higher than lower priced neighborhoods. More here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/11/08/MNMC1ABRBC.DTL&feed=rss.business -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA, CPA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pwky Suite B3 / Fremont, CA 94538 Main 510 388 2436 / Fax 510 431 9046 My Bio: http://sunilsethi.com/about_me.htm Personal: http://www.sunilsethi.com My blog: http://fremontrealestate.blogspot.com/ LinkedIn: http://www.linkedin.com/in/fremontrealtor CA DRE#: 01173766

The under $400k market is still bustling. The multiple bids started around February when rates were at their lowest, and I thought it would have cooled down by now, but it hasn't. Inventory of homes available remains low. The number of bids a h0mes gets is anywhere from 5 to 40. I was looking at a home in Union City's Pioneer district priced at $339,000. While I was waiting for my client to show up, another buyer asked if I could let them in. I said, sure. As soon as I walked in, I recognized immediately the property was a money trap, and possible health hazard. I said, I wouldn't let my buyer purchase this property. Besides the stench of urine and feces , the property needed a new kitchen, new bathrooms, wood on the exterior in many spots, new flooring, possible a new roof (based on the water marks on the ceiling), and I'm certain the pest report would have plenty of items. This buyer however was adamant it was worth at least $350,000 in it's current condition. I...

Here’s a chart of cost per sqft of a entry level single family detached home in Mission San Jose. Mission San Jose’s entry level homes have dropped 25% based on the last close on 339 Ohlones St, Fremont compared to when this neighborhood peaked in 2007, early 208 for about $840/sqft. These homes are between 950-1050 sqft homes that built in the 1950s. The only attraction to buying these homes is that they homes are associated with the schools with Fremont’s Mission San Jose District (Mission San Jose High School, Hopkins Middle School, Chadbourne Elementary, Gomes Elementary, Mission San Jose Elementary, Mission Valley Elementary), which are considered the best in the state. Unfortunately, anyone buying isn’t guaranteed admittance into these desirable schools, which is why the value of these homes is dropping in addition to, general market factors. This holds truw for most of Fremont’s school with an API greater than 900. So where should you buy. Give me a call, we can talk about it.

this article on the risk of high-risk borrowers was published on Sunday. In general I am worried about the excess easy lending that took place in the sub-prime market. In the last 5 years sub-prime lenders we're offering loans to anyone with a pulse: 1 day out of bankruptcy - "no problem", mortgage lates - "no problem", in foreclosure - "no problem". Bankers with their loose guidelines were no worse than a prison warden who decided to hand out guns to every murderer upon completion of their term. However real estate pricing is determined locally. Palo Alto will always be Palo Alto. Similarly, Fremont's Mission School District is rated the top ten in the state, and the homes in its district are scarce. I'm not seeing price deterioration in prime neighborhoods but I am scared about the less desirable communities. I expect further price erosion in outlying areas (Tracy, Stockton, Modesto, Merced , Bakersfield, Redding ) neighborhoods with l...