Diversity of local real estate helps region weather slumps in market.

How’s the market?

Realtors are always asked this question and it’s impossible to answer in one sentence.

Oakland real estate covers a very wide area, from Berkeley to San Leandro and from Skyline Boulevard to the Bay.

Because of its size, the Oakland market composed of many “mini markets,’ each of which seems to have a life of its own.

While this situation makes for a very interesting real estate career, it makes any blanket statement about “the market” inaccurate.

For instance, one could ask ‘how’s the market’ in the fire area, but even there we have great variety. Townhouses in Hiller Highlands seem to be sclling briskly, while some of thc really large detached homes in the Montclair / Rockridge areas are taking longer to sell.

Creative elements

Some builders added creative elements to their projects which have not resonated with potential buyers as was hoped. Unusual floor plans and elimination of yard space in favor of house space have revealed an unexpected traditional bias among buyers. While architects saw a chance to make an original statement with out-of-the ordinary materials, shapes, and flow of space, buyers are asking for hardwood floors, easy-to-navigate floor plans, and yards with grass for swing sets.

Other builders seem to have captured an elusive something that’s allowed their homes to sell immediately. Obviously we have a new market for Oakland, and it’s still adjusting.

On the other hand, the fire area has welcomed a number of buyers returning from Contra Costa. County who say they have found more interesting homes here want to be closer to jobs, like our climate better, and are tired of the suburban experience. They have spent upward of a half million dollars on their new homes. (more…)

Many are drawn to the unique neighborhoods

There are certainly many people in the Bay Area who believe that Oakland is populated exclusively by folks who can’t afford to live anywhere else. Or aren’t smart enough to realize how terrible off they are.

Suburbanites (some are my dear friends) look on us with pity and shake their heads at the nightly news broadcasts which detail robbery, murder and mayhem on the streets of Oakland. To live here is to be more or less constantly on the defensive about your choice of location, and to be mad and saddened at the stubbornness of our problems. To live in Oakland is to routinely meet with rock solid convictions that there’s nothing excellent to be had here.

How then to clarify the approximately 1,800 home buyers who took on mortgages here in 1993, thus promising to live at least for the near future in this city of contradictions ? Surely they all knew of Oakland’s awesome reputation.

Interviewing some of my own clients revealed fascinating perspectives.

Many of Oakland’s new residents are first-time buyers who do approach our town with trepidation, having heard the worst from friends and family (none of whom have ever lived in Oakland; many have never visited). High crime, terrible neighborhoods, uncaring, hostile neighbors, terrible schools, all await the home buyer native enough to consider Oakland.

And yet, shown the neighborhoods in their price range, whether Maxwell park, the Laurel, the Glenview , the Oakmore, or Crocker Highlands , prospective home buyers are unfailingly surprised and delighted with what’s available to them.

Many searched diligently in other areas before coming to Oakland, leaving this town as a last resort. If lucky enough to come upon a Realtor who knows about the neighborhoods here, they will learn what many of my clients did: we have more affordable, fascinating, stable, centrally located neighborhoods than any other city within driving distance.

What brings first-time buyers to Oakland? The past years saw interest rates at historic lows, enabling hundreds of buyers to get into their first home. Lenders encouraged this new clientele  by offering low down payment and low interest rate packages. When interest rates were lowest , buyers could go with 3-5 percent down payments and start out with a 3.25 percent interest rate. These variable loans can adjust up two percent every year (and probably will) with a cap of 9.875 percent. People who are comfortable with the probability of their payments going up took advantage of these loans to buy “more house” in better neighborhoods.

The low interest rates combined with reduced prices made a huge difference to my clients, Amelia and Jim. We looked diligently for several months until the home of their dreams came within their reach in the Grand Avenue area. By that time they understood the loan process and had seen many areas of Oakland . They were ready to go forward with confidence. Amelia says, “We really fell in like with this house and this neighborhood. Initially we looked in Berkeley and found it too expensive, so we came here. What started out as fiscal choice as we fell in like with our house and our Rose Garden neighborhood.”

Jerry and Wendy, another young couple, found themselves able to afford a lovely Craftsman bungalow  in the Glenview. The came from San Francisco, where there was no possibility they could have bought a house. In Oakland, we found a house which needed some work — drainage, interior paint, floors refinished. After exhaustive inspections and much agonizing, they chose to go ahead and buy, because they liked both the house and the neighborhood. I felt the projects to come for them would not be beyond their capabilities. The price was a real stretch for them, but they’re glad the did it. Spending every weekend painting walls has replaced trips away and movies for the time being, but they did manage to go camping this summer.

Jerry says, “I like living in this city. My co-workers in San Francisco say, ‘you must live high in the Oakland hills if you like it so much,’ but I tell them, no, I live on a hill in Oakland, but it’s pretty close to the flats. My neighbors are just fantastic… we were welcomed when we went in, and this month everyone’s trading apples and plums from their backyard trees. I have coffe with my elderly neighbor down the street  every morning before I walk our new dog. Oakland turned out to be just fantastic for us. I’m proud to live in Oakland now.”

‘Everything is so simple here. You can drive 10 minutes, park, and delight in yourself, no hassles.’

— FRANK, A JOAN DARK CLIENT

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