Strong Market…Right Now - Page 2

Experts differ on price stability—but agree Eichlers are a hot commodity to begin 2020
  Fridays on the Homefront
A view overlooking the Eichlers of Burlingame. Photo: David Toerge

One local who said that prices have dipped recently is Palo Alto Eichler specialist Monique Lombardelli of Modern Homes Realty, stating that home prices in that town have decreased about nine percent of late.

“If you want your money out [of your home], you should do it sooner rather than later because prices are coming down,” predicts Lombardelli, attributing the trend mostly to available housing inventory that she said has tripled in some areas of San Francisco and the Peninsula.

  Fridays on the Homefront
Monique Lombardelli of Modern Homes Realty.

Eric Boyenga of the Los Gatos-based Boyenga Team warns Eichler shoppers not to expect continuance of that situation, noting, “Every year, there’s less and less owners willing to let go of their Eichlers.”

Speaking generally, Boyenga said, “The market in the [Silicon] Valley is tied totally to NASDAQ and tech.”

All three local realtors pointed to a continued strong job market as a driver for housing demand in the South Bay, with Pierce predicting a bump in her region stimulated by the impending completion of a new Facebook campus in Burlingame.

The San Mateo agent said other events that could affect local markets range from interest stimulated by the San Mateo Highlands’ first Eichler home tour since 2017, scheduled for October 2020, to uncertainty stemming from the upcoming November election and possibility of war with Iran.

  Fridays on the Homefront
Eric Boyenga of the Boyenga Team.

The 2020 forecast by the California Association of Realtors predicts home prices and sales volume both will rise statewide as compared to 2019, though volume will still be lower than 2018. It also suggests that most 2020 homebuyers in the state will be ages 23 to 38, the group popularly called Millenials. Pierce agreed with that analysis, but Lombardelli said most of her buyers are the slightly older Generation X.

“The people buying Palo Alto Eichlers are families with kids and Boomers looking to downsize,” said Lombardelli, who bills herself as ‘the Eichler lady.’ “Millenials are going toward [buying] smaller condos, and a lot of Millenials are renting.”

All three realtors said December was more robust for them in 2019 than 2018, sending them into the new year with optimism.

“It will carry into the second quarter [of 2020],” said Boyenga, predicting a “really unbelievable,” active winter market. Noting potential influence from the prospect of war and an election, he added, “After that, all bets are off.”