Archive for the ‘Saratoga’ Category

Hot or Not? Silicon Valley Market Trends

By Dawn Thomas | September 25th, 2009 0 Comments

Hot or not?  How is the real estate market these days in Silicon Valley?  Here’s the latest snapshot for the West Valley.

One closely monitored real estate measure is a market’s “inventory” – the number of months it would take to sell everything that is currently on the market.    The “heat” of a real estate market is often described as:

  • Cold – 6 or more months of inventory (a “buyer’s market)
  • Neutral – 3 to 6 months of inventory  (a “balanced” market)
  • Hot – less than 3 months of inventory (a “seller’s” market)

Based on these definitions – it looks like the market is warming up in Silicon Valley!

Silicon Valley Market Snapshot (as of September 1, 2009)


City
# Active
on Market
 #
Pending
Sales		 #
Closed
Sales		 Months
Supply
(Inventory)		 Average
Sales
Price		 Sales Price vs.
List Price
(%)
Santa Clara 76 128 56 1.12 $609,054 98%
San Jose 1110 1997 605 1.17 $540,550 96%
Sunnyvale 107 98 66 1.60 $708,832 96%
Cupertino 105 52 37 2.19 $1,161,895 95%
Campbell 119 79 37 2.16 $670,612 96%
Willow Glen 184 119 55 2.45 $769,212 92%
Mountain View 60 39 20 1.88 $879,950 95%
Palo Alto 91 54 29 2.07 $1,483,068 91%
Los Altos 78 32 27 2.36 $1,787,086 92%
Saratoga 143 41 31 4.33 $1,598,459 94%
Los Gatos 188 48 33 5.22 $1,431,736 87%
Los Altos Hills 65 17 4 4.33 $2,238,750 96%

Santa Clara County Totals

2398

2987

1043

1.52

$703,160

95%

Call us for a more detailed analysis of real estate market conditions in your neighborhood in Silicon Valley!

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Shadow Inventory of Foreclosed Homes-Fact or Fiction?

By Russ Boyd | August 28th, 2009 0 Comments

You may have heard media stories of a so called “shadow inventory” of foreclosed homes that banks are holding off the market. According to a story in the San Francisco Chronicle, Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures said, “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market.” He went on to say, “California probably represents 80,000 of those homes.”
The story suggests that there will soon be a torrent of bank owned homes flooding the market. I’m not here to second guess the data reported in the Chronicle article or the data compiled by RealtyTrac, however, I continually marvel at how media stories differ from everyday life experience. In the Bay Area, the inventory of homes for sale has been decreasing for many months and at the same time the number of sales has increased as has the median price.
According to bay area sales activity, in San Mateo County, the median price is up for the seventh month in a row, the number of homes for sale is down 25% from one year ago and the number of days on the market average down to its lowest point since September of ‘08.
In Santa Clara County, the median price is up for the sixth month in a row, the number of homes for sale is down 40% from one year ago and the number of days on the market average is down to its lowest point since March.
For Alameda County, the median price is trending up since the low in March, the number of homes for sale is down 49% from one year ago and the number of days on the market is down to its lowest point in a year.
In Contra Costa County, the median price is up for the sixth month in a row, the number of homes for sale is down 51% from one year ago and the number of days on the market is at its lowest point in a year.
A basic market fundamental is supply and demand. Keep in mind that a market in balance is considered a six month supply of homes for sale. For the four counties above, the highest is San Mateo County with 2.75 month of inventory and the low is Contra Costa County with 1.75%.
Shadow inventory or not, I can confidentially report that there is every indication that what we need in the Bay Area is more inventory. Multiple offers are common and, although qualifying for a loan takes, well, qualifications, there appear to be plenty of qualified buyers eager to buy in the Bay Area.

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The Value of Fixer Uppers

By Steve Ricketts | August 5th, 2009 0 Comments

All home buyers are looking for value, and to most this means getting the largest home for the lowest price. For many buyers this translates into purchasing the renowned ‘fixer-upper’.

So what exactly qualifies a home as a ‘fixer-upper?’

There’s a wide range of subjective credentials, as some homes may only need new paint and carpet, while others may need more extensive repairs to their foundation, roof, plumbing, or electrical systems, etc.

While on your search for the right home, remember to be realistic on accomplishing the repairs – who will do it? Will it be you, or will you be hiring a contractor? Estimate how much the repairs will cost with, and without, professional help. Does it make your purchase worth it? If you have to hire an expensive outside contractor you may not see the potential value of buying the home in the first place.

If you choose to buy a home requiring repair it is especially important to work with a licensed REALTOR, due to so many potentially expensive issues you may be confronted with. Your agent will walk you through the details of the property and termite inspections, and help guide your decision-making process based on your own ability to repair the home.

Your REALTOR should also be able to recommend the best vendors in your area, based on their past experience and company recommendations, in case you need further help on your project, or even just some quality advice. Choosing the wrong people to help repair your home can be very costly in both time and money.

Once escrow has closed, and keys are in your hand the fun begins! With the economy as it stands today many home owners with fixer-uppers are turning to “sweat equity”, or do-it-yourself repairs, to enhance their home value.

You will find savvy home owners doing most of the work themselves with friends and family lending a hand. A method of making the project more pleasurable and less of a chore for your invited helpers is to make a party out of it! Offer pizza, drinks, music, etc. to motivate your crew. Offer out-of-town friends and relatives the chance to be your first few guests in your new home. Or, make this a great excuse to call old friends you haven’t seen in awhile. Make your home improvement projects a community effort.

You will be amazed when you are finished. Not only have you repaired and remodeled your new home, you will probably find that you have also built stronger relationships with family and friends.

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If There Ever Was a Time to Buy, This Is It!

By Russ Boyd | July 25th, 2009 0 Comments

Five Reasons Why Now is the Perfect Time to Buy-

  1. Low Mortgage rates – Bankrate.com recently reported, that mortgage rates are at their lowest point ever in their survey taking history. They have been conducting rate surveys since September 1985. The national average for a 30-year fixed rate mortgage is very near 5%. This is great news for buyers.  If you read or listen to the news, you will see that refinancing has increased dramatically.  Why do you think this is? Any further rate drops are likely to be minimal.  One thing that you can count on, when rates begin to rise, they go up much faster then they go down.  The current interest rates alone, is a really good reason to consider purchasing a home.
  2. Housing Prices –  Everyone knows that housing prices are down in most regions.  Do you think prices are going to continue to decline?  Perhaps, but most of the decrease is now reflected in today’s prices.  The number of sales and median prices have been rising steadily in the Bay Area since the first of the year. Multiple offers have become very common in the lower price range.  See for yourself at BayAreaMarketMetrics.com.  Now you have two good reasons to buy.
  3. Seller Motivation –  Due to the current market conditions, it is pretty easy to identify motivated sellers.  In many instances, you can easily find a motivated seller by looking at the property description. Look for keywords such as: “motivated seller,” “make an offer,” or “must sell.”  Be sure your agent is on the lookout for consistent price reductions. If you like the property and the seller is motivated, then you should seriously consider making an offer.  If you don’t, chances are someone else will and you will have missed your opportunity.  Don’t let that happen to you.
  4. Tax Advantages –  Current tax law allows homeowners to deduct interest paid on mortgages and the amount of paid property taxes. If you are paying rent, you do not qualify for these deductions. The Federal and California State governments are also offering incentives.  The most widely publicized are the Federal $8,000 first time home buyer tax credit and the California $10,000 tax credit for a new home purchase. This makes a great opportunity even more incredible.  For find out if you qualify for one or both of these home buyer tax credits, check with your Realtor®.
  5. Timing – You must have heard the expression “buy low and sell high,” right? It might even be your mantra. As with any investment, it is ideal to purchase when prices are low rather than at their peak. However, if you are waiting to purchase a home because you believe prices will continue to drop, you will likely miss out of an ideal opportunity. The time to “buy low” is right now. Once everyone comes to the realization that prices may already be at their lowest point, then you can rest assured that buyers will jump in and start buying. In the lower price range multiple offers are becoming more common.  Remember, the best deals will be the first target.

Now you know, this is a great time to buy a house.  There is plenty of inventory, interest rates are low, house prices are down, sellers are motivated, you can take a tax deduction and you may qualify for up to  $18,000 in tax credits. The timing is perfect. You have nothing to lose and so much to gain.

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Great time to buy investment real estate? Depends.

By Mario Pinedo | July 22nd, 2009 0 Comments

In the single family home market, prices are down significantly. Interest rates are also at close to all-time lows.  So, yes, all indicators are pointing to a great buyers market.

The apartment market is different altogether. First time buyer financing is harder to get and also due to many foreclosures making homeowners into tenants, there are far more renters in the marketplace than normally would be. Therefore, rental rates are up and vacancies are down. Most apartment owners are happy and not very motivated to sell.  Read: no good deals here.

The one opportunity I see is in the duplex – fourplex market. Here there has been financial trouble because of the loose financing that occurred. Compare this to the financing of apartment buildings above 4 units, which has always been very conservative. There are short sales and bank owned foreclosures to be had in the duplex – fourplex market.

With rents healthy… yes, this is indeed a good time to buy a home.

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Protect Your Investment & Pick Your Home Inspector Carefully

By Theresa Wellman | June 4th, 2009 1 Comment

house1Today with many of the homes available for sale being REOs and short sales, there is even more to watch out for. Typical REOs and short sale homes had owners who did not take care of their homes or worse yet, left damage. So choosing a thorough property inspector is an essential piece of a home purchase process.

Why Can’t You Do It Yourself?

I know, now that you are getting your own home, you want to care for it and desire to know its ins and outs. The inspection period when buying a home is not the time for this. Even the most experienced homeowner lacks the knowledge and expertise of a professional home inspector (Do you inspect 2-3 homes per day as your job?). An inspector is familiar with the elements of home construction, proper installation, maintenance, building codes and home safety. He or she knows how the home’s systems and components are intended to function together, as well as why they fail. Above all, most buyers find it difficult to remain completely objective and unemotional about the house they really want, and this may have an effect on their judgment. For accurate information, it is best to obtain an impartial, third-party opinion by a professional in the field of home inspection.

How Do You Choose a Home Inspector?

1. Work with your real estate agent’s recommendation.

a. Agents who have experience in the business can tell a thorough inspector from one who just breezes through a quick checklist. Agents do not get anything from recommending one inspector other than piece of mind that a professional is looking at the home. If a property inspector misses something, there could potentially be a lawsuit and no experienced agent wants to risk that.

2. Check your local ASHI (American Society of Home Inspectors) chapter for recommendations in your area. It is very important that your inspector be aware of the area and what is normal for local homes or what items to look out for. Be wise making one of the largest investments in your life and hire a qualified home inspector!

Any other recommendations on how to find a good inspector?

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