Posts Tagged ‘inventory’

Intero Insider: What’s the Next Big Solution for Housing?

By Gino Blefari | September 21st, 2010 0 Comments

As expected, the countdown to the final closing days of the homebuyer tax credit has brought on more debate. Should the government create more programs aimed at boosting home sales or just stay out of it and let the market correct itself?

Many of the programs that were created to help homeowners and home buyers have been utter failures. Sure, the tax credit boosted sales while it was in place. But even now that conditions arguably are better for buyers – record low interest rates and lower prices in many areas – home sales continue to slog in many cities.

Another program may or may not help home buyers or struggling homeowners. But what happens when it ends? With the home buyer tax credit, we saw an artificial boost to the market, followed by the inevitable fall in sales as the immediate incentive went away.

So what’s next? As I’ve said in this column before, it’s all in the jobs, really. If the government really wants to help housing and homeowners then we need to think about security, incomes that are in step with mortgage payments, and a confidence in the future.

With interest rates as low as they are and the opportunities that abound for buyers today, it only makes sense that the missing key here is stability in incomes. Tax credit or no tax credit, life goes on. The reasons for buying and selling real estate always withstand the test of time – through markets good and bad. It’s a roof over your family’s head. It’s pride in ownership.

The government might do better to focus on helping those families who feel stuck – the ones who are underwater on their mortgages. They want to be owners. They have the means to pay. But they feel caught up in the waves of the mortgage mess that inflated the values of homes when they happened to buy. Another tax credit is not going to help them continue to pay a mortgage on a house they know they can’t sell without a loss.

Let’s get to the root of the problem, which isn’t necessarily home prices or the pace of sales. The real problem is a lack of stability and a lack of economic security. That’s the glue that holds together American ownership.

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Intero Insider: Don’t Miss the Big Opportunity

By Gino Blefari | August 10th, 2010 1 Comment

In this type of market, it’s best to focus on what’s working, what’s favorable, what’s reality. And when preparedness meets opportunity you get success. Whether you’re a buyer, investor, seller or agent trying to make sales, you strive to find the opportunity for success.

Distressed home sales continue to represent this opportunity. Distressed homes – those homes that are in danger of going into foreclosure or are for sale because the homeowners defaulted on their mortgage – were 32 percent of home sales last month, compared with 31 percent in May, according to a recent report from the National Association of Realtors.

What’s happening here and why should we pay attention?

In a word: inventory. Distressed properties more and more are making up a huge chunk of the inventory in many markets around the world (not just here in the U.S.). But wait! Remember that great Warren Buffet quote about when to get interested in an investment? He said:

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”

At first thought, you’d think that something that already represents a third of the market for home sales is past the tipping point. But I don’t believe that. We’ve been doing very well at Intero by studying the market and moving swiftly to seize distressed opportunities. So should you.

Earlier this summer, I spoke about distresses properties at a prestigious real estate conference in Singapore. The distressed market is nothing to run from, folks. In fact, the true real estate lovers saw this coming long ago and stashed cash accordingly.

And sure, for the average consumer, buying a distressed property is going to be a mind-boggling experience (if it even happens in the first place). But all the more reason to study the process and figure out how to make it work if you’re really interested in pursuing this opportunity. When preparation meets opportunity you get success.

You just have to remember another quote from the great Warren Buffet:

“Risk comes from not knowing what you’re doing.”

Which takes us back to that studying process and being prepared.

Where can you learn about the market for distressed properties? We have knowledgeable agents who can help. Many are specializing in this field right now for this very reason. Even so, I’d advise you to do some reading on your own as well. Take the time to choose the right agent and be sure you’re armed financially.

Just because we’re in a “slow” housing market, doesn’t mean you can’t profit in the end.

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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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