William Louis-Grabill’s West Oakland condo has sat vacant for more than 130 days.
“I’ve known that it was kind of a unique space and that I needed to wait for the right person to come along,” Louis-Grabill said while touring the property. “A workshop makes up more than half the square footage.”
This condo is more of a loft space with open concepts in each of the rooms. One has a dedicated workspace attached to a living room area, where Louis-Grabill envisioned artists creating well into the night.
But the number of inquiries he gets is small, even after he shaved thousands off the asking price.
“I couldn’t have guessed that it would be the duration that it’s been so far,” Louis-Grabill said.
But his property may not be the problem. Adam Nousomme, a realtor at Red Oak, says many sellers are facing a complicated market, particularly in Louis-Grabill’s area code: 94612.
“Compared to where we have been the last 20-some years, it definitely has been more of a buyer’s market recently,” Nousomme said.
Experts say the area suffers from a reputation of crime and empty storefronts, and whether warranted or not, has impacted the market along with several other factors.
“Condos are really hard to sell, and so certain areas of Oakland you have a higher density of condos, and so that is kind of more showing that kind of coolness in those areas,” Nousomme said.
Higher insurance and interest rates also play a role. The average interest rate for a 30-year mortgage recently rose to 6.3 percent after a month-long decline. Nousomme said higher rates stick with customers and make them more hesitant to buy. He suggested renovating appliances or offering discounted prices as a strategy to beat the slump.
“If we see the interest rates as mortgage interest rates drop to like 5.5% I think, or even, yeah, somewhere in 5.5% I think we’ll see a seller’s market,” Nousomme added.