Well you are hearing it here first, some very exciting sales this week:
The Mossbrook Eichler had something like 18 packages out which turned into 7 offers. It ended up at about $1.7m — yes, $300k over list price and where 2 doors down I just sold in January a brand new rebuild Eichler at $1.556m. Crazy?!
The Fairorchard Willow Glen Eichler, which was completely updated (with Blomberg sliders by the way) had offers that pushed it up to $1.75m where the highest sale in that neighborhood was about $1.5m last year. Crazy?!
So, what I think is happening is the ripple effect. People who were thinking they could get into Sunnyvale or Cupertino around $1.8m+/- have accepted that won’t happen, so they are being pushed to their next tier choice which will be Mossbrook and Willow Glen. That means they have a lot more ability to drive up prices in those areas from $1.5 to where we see them now. Is it sustainable? Probably. Just because one person offers $1.75m for Fairorchard doesn’t mean there is another one who will do it again on the next house, but it does make a statement.
Just my take on it.