Silicon Valley 2010 Real Estate Market at a Glance
This year, the Silicon Valley Real Estate Market started with the lowest level of inventory, not seen since 2007. The market was poised for a big move up in price, if levels of inventory remained subdued. Since spring is upon us, let’s examine how the market has fared since the beginning of this year.
Due to the housing crisis and the economic impact of foreclosure on the housing market, we divided Silicon Valley Real Estate Market into three different segments. The least affected by foreclosure are the high end homes in areas such as Palo Alto, Cupertino, Almaden Valley. The middle group including Berryessa, Evergreen, Santa Clara are having their fair share of distressed homes. The group that took a direct hit of the foreclosure crisis are the low-end group of Alum Rock, Down Town, South San Jose, ect… We will examine each group.
The High End Group:Let’s look at Almaden Valley from the beginning of this year. Almaden Valley entered 2010 with 41 Active and by March 17th, the number has swollen up to 100 active listings.
The median price for single family homes, sold in February of 2010, was $949,000. The pending closed sales were all in line with a normal market for this time of the year.
SummaryIt is too early to tell if the strong buildup of inventory will be met with the equivalence of buying interest. So far, the rate of increase in inventory has been surprisingly strong. It is crucial for sellers and buyers to keep track of the pace of change and the entire dynamic forces that shape our market. Most real estate offices and their agents rely on national media to guide their local market outlook and are still waiting for the good times to come back. The reality is “Everything in real estate is Local”. The experts and talking heads on TV only know the national sales trends. However, when it comes to Silicon Valley Real Estate, WE are the ones with the facts. Our research is the best guiding tool for sellers and buyers of this market.
For Buyers and Sellers
Your decisions of buying and selling are often made by using comparables and here is how most Realtors® will present it to you. They would show you 3 sold, 3 active, and 3 pending sales comparables of similar homes. You make your decision on how much to sell or buy based on that information. This method has worked out well in the past because of the market’s low volatility. This was the trend from 1995 – 2007. Since 2008 to present time, the Silicon Valley market has experienced big swings because distressed sales, in the form of Bank Owned and Short Sales, have played crucial roles in determining what prices will do next.
The Comparables Method has an inherit flaw in this market. Allow me to explain:
On March 20, 2010, you decide to sell your home and ask a Realtor® to list your home. The Realtor® will show you 3 sold comparables. This will include the escrow closed date range from December, January, and February of this year. All comparables were in contract 30 to 60 days prior to the close date. The active and pending will do you no good, since the only available information they provide are the asking prices and the numbers of days the house were on the market. Your Realtor® also promised that he or she will sell your home at the highest price in the shortest time frame using their company name and the proprietary system invented by the franchiser. He or she also gave you his or her opinions of the local market which are based solely on things they hear from CNN or some national experts from a galaxy far away like New York City. You are about to make a decision to sell your home based on data that is, at least, 90 to 180 days old. Your decision may cost you a lot of money and time because if the market is trending higher, you may sell your house too low. If the market trend is lower, your house may not sell at all and, as time passes, you will continue to lower the price of your home chasing the market downward.
Why are We The Best Realtors® For This Market?
Silicon Valley REO was founded with a vision to change the real estate practice to better serve our client base. We are driven by the thirst for local real estate knowledge. We have the facts and, by looking at the facts, we are able to predict what will happen next. We divided the local market into three segments: High-end, middle, and low-end markets. Each segment has three categories: Bank Owned, Short Sale, and Regular Sales. We compiled the statistics of supply versus demand from each category. This gives us a picture of the direction that the market will take in the next three to six months. We update the data on a weekly basis; our research is what sets us apart from other Realtors®. The national branch offices often send their agents to attend motivational seminars to boost their confidence in their sale force. They hope to replace real knowledge with an artificial high of mental Ecstasy. Their opinions and promises may be detrimental to your wealth.Call us now to set up a confidential consultation. Let us show you the facts and you decide what is best for you. You owe it to yourself to learn what will happen to your real estate market. The least you will get out of the meeting is you will know more than your past and present Realtors®. We are just a phone call away. You can reach us at (408) 998 1300 office or (408)348- 7988 Cell.
Short Sale - Things You Should Consider!
A major concern for homeowners contemplating short sale is whether they will be personally liable for any shortfall. If, for example, Sophie Seller owes $340,000 on her mortgage loan, but sells the property for only $300,000 (less costs) in short sale, will she be obligated to repay the $40,000 shortfall? Click here for full description.
