An Early Summer Snapshot of the High-End North Berkeley Market

I recently was on the listing side of two wonderful, "very Berkeley" Arts & Crafts homes in North Berkeley. Neither of them had classic floor plans, but both had tremendous amounts of original wood and wonderful period details, multiple fireplaces, updated kitchens and larger than normal lot sizes. With a bit of planning and prompting, our local paper featured these homes in the Real Estate sections during their marketing period. That special marketing, an individual website for each property with lots of photos, plus marketing to a specialized group of Arts & Crafts and period home buffs, resulted in huge attendance at the open houses.

One was priced well IMHO, based on the comments I received from agents (though numerous buyers thought it was priced too high). The sellers had followed my advice on price, as well as on presentation. The property was vacant and staged in a manner that fit the home. This home also had spectacular views, both of Mt. Tam and Marin and also a direct view of SF. We received four offers, and it closed $150K above list price.

The second home was priced a wee bit high, again IMHO. That price was driven by the financial situation of the sellers. They also continued to live in the home, but did pack away many of their possession. Though I welcomed more than 300 people during two Sunday open homes, that property received two offers, and went just $1K above list. Interestingly, that home closed today at $1.4M, in an ALL CASH sale. Until quite recently it would have been rare indeed to see cash sales at such a high amount. But as jumbo loans become more difficult to acquire, especially in a timely fashion, we’ve seen more cash sales in Berkeley in the high end.

One obviously cannot determine a trend from just these two examples. But from my experience of living and working in North Berkeley for many years, I know that the differences in behavior were somewhat predictable. Now more than ever, buyers are very sensitive to prices that they perceive to be too high, even if by only a small percentage. They also are intolerant now of deferred maintenance or even a lack of updating that they would feel to be required. Two or three years ago buyers were much more forgiving of these aspects. Buyers have read so many stories about it’s being a buyers’ market, and they want it to be so. In North Berkeley right now, the special properties are still very much in demand, and the inventory of such properties is low. As I write this, there is one new listing at just over $2M, and five listings at $1.2M or higher that have been on the market for at least three weeks. What a great opportunity for brave sellers who are willing to trust their agents and the data, rather than listening to the prevaling news of doom and gloom!

We are Rolling up Our Sleeves at Peralta Park

Berkeley Hills Realty has adopted Solano-Peralta Park. In support of our local community, Berkeley Hills has voluntarily taken on the role as Peralta Park stewards. Our responsibility includes a weekly cleanup. We are at the park every Wednesday around noon, sweeping, pruning and watering. If you are in the neighborhood (Solano Avenue @ Peralta) and want to stop by, we would love to see you.

Because of recent cuts in the city's budget, the staff caring for our local parks have been stretched thin. As a result, the city was very supportive and thankful of our efforts and even donated tools and brooms. The city also put as in touch with some key individuals who have been very responsive to our questions and have provided us with guidance along the way.

If you would like to find out how you can volunteer to care for a park near you, contact your local Park and Recreation department:

City of Berkeley
2180 Milvia Street, Berkeley, CA 94704
TEL: (510) 981-6700, TDD: (510) 981-6903, FAX: (510) 981-6710
Office Hours: Mon-Fri 8am-5pm, Email: parks@ci.berkeley.ca.us

City of Oakland:
250 Frank H. Ogawa Plaza
Suite 3330
Oakland, CA 94612
(510) 238-PARK

City of Albany:
Recreation & Community Services
1249 Marin Avenue
Albany, California 94706
Telephone: (510) 524-9283

City of El Cerrito:
7007 Moeser Lane El Cerrito, CA 94530-2392
General Line: (510) 559-7000
General Fax: (510) 528-9413

Kensington
Police Protection and Community Services District
(510) 526-4141
http://www.kensingtoncalifornia.org/parks-and-recreation

BHR Agents Maintain Pathways in the Berkeley Hills

BERKELEY, CA – June 2008—Pulling weeds can give you calluses, but when you’re maintaining one of Berkeley's hilly pathways, you feel like a community trailblazer. On a recent Saturday, several Berkeley Hills Realty agents did trail maintenance on Glendale Path in the North Berkeley Hills. The morning’s work was cool in both senses of the word.

Guided by master path maker Charlie Bowen of the Berkeley Path Wanderers Association, the BHR volunteers cleared weeds from native woodmint and Juncus rushes on Glendale Path, an unusual three-segment path that runs down from Arcade Avenue and Fairlawn Drive past Queens Road to Campus Drive.

Glendale is just one of the hundred-odd paths that link the winding streets in the Berkeley and Oakland hills. The pathways were originally laid out to join the streets, which mostly run horizontally, along the contour lines. Whether paved paths or secret trails, they are fun to use and popular with neighbors. They are also vital escape routes in case of natural disaster, so keeping them in good shape is important.

In Berkeley alone, there are some 136 paths, steps, and walkways. They appear on the excellent map published by The Berkeley Path Wanderers Association, at www.berkeleypaths.org. Oakland’s network of paths is shown on the "Walk Oakland!" map published by the City of Oakland, www.oaklandnet.com/government/opsp.html.

For a description and history of paths in both cities, see William Rodarmor's article "Paths of Least Resistance" in the Summer 2004 Berkeley Hills Realty newsletter, at www.berkhills.com.

Happy after a good morning of Glendale Path stewardship: Steve and Sandy Patel-Hilferty, Nancy Mueller, Daniel and Una O'Connell (our littlest helper), Jane Allen and Kim Brown, from Berkeley Hills Realty.

Multiple Micro Markets

By Arlene Baxter

A month ago in this space we reported on a jaw-dropping example of over-bidding in what the mass media still describes as a “buyers’ market.” A two-bedroom, one-bath home in Rockridge, listed for $799K had received 17 offers. It sold this week for $930K, 16% over list. Yesterday I was one of six agents presenting offers on a property in North Oakland, and I routinely hear of colleagues who are presenting one of three to six offers on homes. That’s unremarkable for those of us selling in Albany, Kensington, North Berkeley, Elmwood or Rockridge. What was a bit unusual in this case was that the house was just one block off a part of Telegraph Ave. with fairly high crime statistics. And only a few blocks away several homes are in foreclosure, and others have had several price reductions.

The home I presented an offer for was very charming with lovely period details and a tastefully updated kitchen, a feature that often translates into considerable interest. The overall charm, plus a full basement, tantalized my clients, despite the fact that the price seemed quite high for the location. A dozen other buyers were attracted as well. And so, to be as competitive as possible, my clients decided to do a pre-inspection. At the high-point of the market this was one of several practices used to gain some advantage in the bidding. Some other aggressive practices were pre-emptive offers, and relative offers, both of which have re-emerged this spring. Conducting inspections in advance of presenting an offer allows buyers to go in without an inspection contingency, as they’ve already truly inspected the property. It means they have also spent around $600, and they and their agent have spent another four hours or so bonding with a property that they may not be able to buy.

Within the written disclosures, items may be mentioned as “possible areas of concern.” That’s a very different perspective than when a highly knowledgeable inspector points to a roof with missing shingles and says “this roof is shot: it needs replacing.” That was the recommendation for our charming bungalow. We also were shown a leaking, rusting water heater and an ancient boiler for a radiant heat system. It needed earthquake retrofitting, demolition of a chimney and various other smaller fixes‑-some inexpensive to deal with, some that could lead to a domino effect of other requirements. So my clients backed off from what they had anticipated offering. That put them in third place out of six, evidently well behind the first two offers.

The question on everyone’s mind is Why? Why, in a general atmosphere of doom and gloom regarding the lending industry, and when increasing numbers of short sales and foreclosures are appearing on the market, are there still pockets of such strength here in the East Bay? I believe it’s a combination of factors:

1). Sub-prime loans never were much of a factor in the hotter locations

2). We have no room here to build new developments, the property types that have suffered the most in many parts of California

3). This is an area of intrinsic desirability. It is physically beautiful. It has interesting topography. Within minutes we can be in the woods of Tilden or at the Bay. And we are surrounded by mostly attractive, and in some cases positively gorgeous homes. As Realtors we have the opportunity to represent beautiful architecture, including the works of some true masters. That gives our jobs, as well as our clients, a kind of satisfaction that does not exist in the areas where foreclosures now dominate.

4). We have easy access to interesting, colorful, delicious things that are hard to find in so many areas. The large population of immigrants attracted to the San Francisco area has produced remarkable cultural diversity in our part of the East Bay. In practical terms that has resulted in the broad availability of many types of ethnic music, phenomenal ethnic cuisine at reasonable prices and celebrations from many cultures that have become now part of our experience.

5). Berkeley especially, but other academic settings within the East Bay as well, have attracted huge numbers of people who are attracted to “the life of the mind.” And finally. . .

6). It’s the wisteria. I am only partly kidding. More to come. . .

All photos copyright © Arlene Baxter 2008.

A Little Peace and Sunshine

Everyone seems to be enjoying the sunny weather lately. I ran across this recent post with some gorgeous shots of Joaquin Miller Park in Oakland:

California dreamin' on such a winter's day

On a drearier note, I saw this Neil Young quote yesterday on Rolling Stone:

"I think that the time when music could change the world is past," he said. "I think it would be very naive to think that in this day and age."

This from Neil Young, the man responsible for Rockin' In The Free World?! Young mentions the age of innovation and the need to look for answers in science, physics and spirituality, not just song. Personally, I worry that this cultural shift may have something to do with the fragmentation of communities throughout the nation (something this blog endeavors to address locally.) It may be hard for much of the country to imagine a local community rallying around the profound words of poetic war songs. But I have hope for the East Bay. We are unique. Sit-ins are not only still a possibility, but an ongoing reality. In Berkeley, for example, a community of activists has been tirelessly (over a year now) dedicated to the protection of old grove of live oak trees. Strong community is not just a way to strengthen existing ties and embrace the status quo. Strong community can also inspire revolution.

Tonight there is a protest over a Marine Corps recruiting station downtown.

The Berkeley City Council meets at 7 p.m. Tuesday at Maudelle Shirek City Hall, 2134 Martin Luther King Jr. Way, Berkeley. An overflow crowd is expected for discussion of the Marines recruiting center, which is expected to begin about 9 p.m. For those who don't get inside, the city will broadcast audio from the meeting from loudspeakers outside City Hall. See the agenda at links.sfgate.com/ZCJX.

Hop, Skip and a Jump in Property Value

Ten years ago, if an East Bay buyer could afford to be particular, first on the list was a Bay view. The primary objective of today's buyer is to be "walking distance."* This is a dynamic cultural shift. New Urbanism and the subtle move away from car culture have worked to protect home values in our pedestrian centers. "Quality of life" now respects the value of what's at your doorstep. Locally, neighborhoods surrounding Piedmont Avenue, Grand/Lakeshore, Rockridge, the Gourmet Ghetto, Westbrae and Solano Avenue have more cachet than ever.

Discover your home's walk-ability score at walkscore.com. Enter an address and the site will tell you what is nearby (gr0ceries, libraries, cafes...) and attribute a Walk Score. See how our office rates as mapped by Walk Score on the sidebar to the right (scroll down.)

*Note: As Realtors we don't advertise properties with the words "walking distance," in keeping with Article 10 of our Code of Ethics, as we don't intend to discriminate against non-walkers. We do advertise, "shops nearby." "Rolling distance" is more inclusive and extends the local amenities to the larger realm of all amenities within bicycle distance.

Halloween Children's Art Contest

Haunted House Images Wanted

Bring Your Child’s Entry to:

1714 Solano Avenue, Berkeley 94707 · 510.524.9888

Any Materials may be used · Size restricted to 8 ½” x 11”

Artwork must be received by October 29, 2007, 4:00 p.m.

(Please sign your monsterpiece. On the back print your name,
grade in school, your school, and your phone number.)

Great Prizes from Our Local Haunts:

The Mechanics Bank, Chicago Title Company, Old Republic Title Company,

Payn’s Stationary, Sweet Lotus, Jamba Juice, Five Little Monkeys, & A Child’s Place

Prizes awarded in three age groups:

Grades; K-1, 2-3, and 4-5

OPEN HOUSE: October 31, 2007

Berkeley Hills Realty (1714 Solano Ave.) · Winners will be posted

All are welcome from 2:15 - 4:00 p.m. for tricks and treats!

Can We Know It All? Introducing the New California MLS Alliance

East Bay Regional Data has just announced, "in an unprecedented cooperative effort, ten MLS organizations in California have signed a joint data sharing agreement forming the new California MLS Alliance, a new MLS gateway providing agents and brokers with a single source for accessing real estate information throughout California." Now East Bay agents have access to 2.5 million active listings and off-market properties throughout the state, including; Alameda, Contra Costa, El Dorado, Lake, Marin, Mendocino, Merced, Napa, Placer, Sacramento, San Francisco, San Joaquin, San Mateo, Solano, Sonoma, Stanislaus and Yolo counties.

This provides great access to outlying real estate trivia. However, more is not always better. We believe in quality representation and take pride in our local expertise and area knowledge. The merit of our personal business lies in Alameda and Contra Costa counties, specifically; Albany, Berkeley, El Cerrito, Emeryville, Kensington, Oakland, Piedmont and Richmond. We know East Bay real estate and will provide unparalleled service here. We also know our limits. We would no sooner represent a Seller or Buyer in Napa than we we would attempt to fix your automobile. We are acquainted with many reputable agents throughout California and can confidently recommend the appropriate expert for any outlying community. If you or anyone you know needs some sound real estate advice, let us guide you where we know best, and refer you for the rest.

Good Fences Make Good Neighbors? (revisited)

My last post has a stealthy link to a Robert Frost poem called Mending Wall. Published in 1914, Frost questions the artificial construct of a privacy wall. Today someone sent me a link to a SF Gate article that brings back the radical notion of doing away with fences in our Bay Area backyards.

Taking down the fence had another outcome: She established a more communal relationship with her neighbors. No longer playing in tree houses, Westberg, Pettler and their neighbors share barbecues, garden tips and a glass of wine at sunset, all accomplished without the formality of front doors.

We have examples of overwhelmingly successful boundary-breaking in our East Bay neighborhoods. The article mentions one area in North Berkeley around Mariposa and there is another popular South Berkeley communal backyard nicknamed, the Meadows. The logic is particularly adaptable to our neighborhoods, where small lots can be expanded by open minds. Experience tells me that expanding verdant outlooks will also increase a property's value in the real estate marketplace. What do you think? Can you imagine tearing down your own backyard fence?

The Rehabilitation and Restoration of the Piedmont Way Project

Today the Berkeley Association of Realtors hosted a Membership Luncheon on The Rehabilitation and Restoration of the Piedmont Way Project. A grass roots organization, the Friends of Piedmont Way, has formed a partnership with the City of Berkeley and the University of California at Berkeley to rehabilitate and preserve one of Fredrick Law Olmsted's signature curvilinear parkways. Located along Piedmont Avenue, the parkway runs through the neighborhood originally know as the Berkeley Property Tract. The ambitious four part restoration marks a trend toward embracing landscape architecture for its important historical significance in conjunction with the existing movement to preserve land marked buildings.

The Piedmont Way Project was Fredrick Law Olmsted's first residential commission drafted in 1865. Olmsted is one of our country's first famous landscape architects, who's numerous accomplishments include New York City's Central Park and the Capitol Grounds in Washington D.C.

Olmsted envisioned a roadway sheltered from the sun and wind by "an over arching bowery of foliage."

Over time, the street scape has deviated from Olmsted’s original vision as a result of development, the addition of overhead power lines, road repairs and maintenance, and the removal of original flora.

Through a 100% volunteer effort, Friends of Piedmont Way has come a long way toward getting the project off the ground. This fledgling needs your help to fly. Donations and volunteers are needed to see the project to its fruition. Go to www.piedmontway.org for more information on how you can help recreate a historic greenbelt.