Homes in these 10 ZIPs spend the least
time on the market.
For sale signs haven't been lasting long in
Redwood City, an affluent suburb of San Francisco
populated with million-dollar homes, waterfront
marinas and the corporate headquarters of tech
companies like Oracle and Electronic Arts.
That's particularly true in 94065 ZIP code, where
listed properties on average last only 40 days.
Prices are down 15%, but homes are moving.
Why? Even though the area's median home price is
a relatively high $1.07 million, Redwood City is
considered entry level among Silicon Valley's luxury
neighborhoods; in neighboring Atherton and
Burlingame, the median price is $4.1 million and
$3.7 million, respectively. What's driving the price
disparity? In this area of the country, higher-end
sellers are less willing to drop their prices, while
less affluent ones may want to cash in their chips
and get out.
"People are saying if you don't have to
sell, don't sell," says Heather Fernandez, vice
president of marketing at Trulia.com, an online real
estate marketplace. But in Redwood City, she says,
"You've ended up with people in circumstances
that they're more interested in moving that house
and more willing to negotiate."
Blame, in part, incomes. Median earners in
Redwood City take home $73,000 a year, according to
the Census Bureau. The median age there is 35. In
Atherton, just two miles away, the median age is 45,
and median incomes fall above the $200,000 mark, at
which the Census stops counting. That means that
those living in Redwood City might be forced to sell
low, while those in Atherton, in all likelihood,
have larger nest eggs and are more able to wait out
the market.
Behind the Numbers
Our list of fastest luxury movers, which includes
Woodmere, N.Y., (11538), Coral Gables, Fla.,
(33146), Palo Alto, Calif., (94303) and Great Neck,
N.Y., (11021) in the top five spots, comes from the
Forbes Luxury Housing Index, which tracks the 500
most expensive ZIP codes in the country using real
estate statistics provided by Altos Research, a
Mountain View, Calif.-based research firm. While the
complete index currently averages 115 days on the
market, the 10 fastest-selling ZIPs average only 66
days.
But before you start calling a housing market
turnaround, it's important to understand why homes
are selling quicker in these 10 areas. Another big
reason--beyond price drops--is that non-motivated
sellers are opting to pull their homes from the
market, leaving only those sellers eager to
negotiate for a deal and buyers with less inventory
from which to choose.
"It has to do with a lot of the lower
quality homes coming off the market," says
Jonathan Miller, president of Miller Samuel, a
Manhattan-based appraisal firm. "In a
high-priced market like Great Neck, the lower days
on market just shows the willingness of people to
pull things off the market rather than take a price
cut."
Transactions occur when realistic sellers stay in
the marketplace. In places like the Rockridge
neighborhood of Oakland (94618), which sits atop the
hills and has views of the San Francisco and the
Bay, sellers are moving properties for 15% to 20%
price cuts, and doing so quickly. Homes there are
selling in an average of 67 days.
For neighborhoods at median price points around
$1 million, like Larchmont, N.Y., (10538), or Great
Neck, N.Y., (11020), Miller says that sellers should
expect to continue to negotiate downward this spring
selling season, as further cuts would bring prices
within range of new federal loan limits, a stimulus
for sales.
Loans above $729,750 are considered jumbo and are
available at a 6.5% 30-year fixed interest rate,
according to HSH Associates, a Pompton Plains, N.J.,
research group. Conventional loans are currently
being offered at a 5% average interest rate for 30
years, which would save buyers a substantial amount
of money on their mortgage and, as a result, can tip
the balance of a sale.
"With a 20% down payment, a $915,000 home
fits within the $729,750 Federal Housing
Administration loan limit," says Miller.
"And the disparity between availability of
conventional financing and jumbo financing will
affect a lot of these markets."
America's Top-Selling Luxury
Neighborhoods
1. 94065
Redwood City, Calif.
Median price: $1.07 million
Average days on market: 39
In the community of Redwood Shores, near the
greenbelt and the lagoon, this four-bedroom,
two-bathroom home was built in 1998 and has cherry
floors, a chef's kitchen with granite counter tops
and a family room complete with a fireplace and
water views. It is listed for $1.08 million through
Coldwell Banker.
2. 11598
Woodmere, N.Y.
Median price: $761,211
Average days on market: 51
Woodmere is in Long Island, about 10 minutes away
from the beach fronts of Atlantic and Long Beach.
Built in 1966, this five-bedroom,
three-and-a-half-bathroom home is off Peninsula
Boulevard, one of the city's main streets. It is
listed for $749,000 through Century 21.
3. 33146
Coral Gables, Fla.
Median price: $897,169
Average days on market: 53
A Tuscan-style villa in Coral Gables, this
2,809-square-foot home has three bedrooms and two
bathrooms, complete with 10-foot ceilings and arched
doorways. Outside, there is a pool with a waterfall
for those hot Florida summers. It is listed for
$895,000 through Esslinger-Wooten-Maxwell Realtors.
4. 94303
Palo Alto, Calif.
Median price: $1.3 million
Average days on market: 61
This modern home was built in 1956 and has four
bedrooms and two bathrooms, as well as 2,000 square
feet of interior space. The floor-to-ceiling windows
fill the home with natural sunlight, especially from
the rear windows and backyard patio. It is listed
for $1.29 million through Intero Real Estate
Services.
5. 11021
Great Neck, N.Y.
Median price: $1.41 million
Average days on market: 66
This 2,779-square-foot, four-bedroom,
three-and-a-half-bathroom Colonial sits on three
acres of green space, including a spacious back yard
and deck. There is a two-car garage that connects to
the home through the kitchen and a fully furnished
basement. It is listed for $1.54 million through
Laffey Associates.
Source: Real
estate statistics provided by Altos
Research and are the basis for the Forbes
Luxury Housing Index, which tracks the
500 most expensive ZIP codes in the country.
Click
here to see the full list of America's
Top-Selling Luxury Neighborhoods.
