Posts Tagged ‘Propertyshark’

SANTA CLARA MARKET STABILITY

 | Comments Off on SANTA CLARA MARKET STABILITY

Ohlone/Chynoweth–Almaden (VTA)

Ohlone/Chynoweth–Almaden (VTA) (Photo credit: Wikipedia)

 

 

For about 3 years we have suffered through the craziest Real Estate Market I have seen in the 25 years I been a Broker here in Silicon Valley. During much of this period properties would be Listed Wed, Open House Sat and Sun, offers accepted Tue/Wed and Sold by Thu, after an average of 24 offers (the record I know of  was 79 offers on a nice 3 bed, 2 bath in South San Jose). This drove prices up a a ridiculous rate.

This was the inevitable result of a wave of overseas investors stocking up on “Cheap” California Real Estate, a surge of well qualified 1st time buyers, and historically low interest rates.

This excess of Buyers (DEMAND) led to a shortage of properties for sale (SUPPLY)

There are 3 significant results of this great Sellers Market:

1. The virtual disappearance of SHORT SALES, and REO (Foreclosure) properties for sale. The rising prices have rescued many homeowners from the UPSIDE DOWN (Negative Equity) situation they had fallen into.

2. A restoration of the Laws of SUPPLY and DEMAND. Over the past 7 years many people were forced to postpone their retirements when most of their Home Equity vanished, and they had to hunker down till the market improved. The rising prices are  allowing them to restart their long term plans to retire and move out of the area.

3. A significant number of MOVE UP BUYERS who got stuck in small houses despite the arrival of small children are now able to get prices which allow them to move up to a more suitable house. They are selling to  buyers who are helped by the huge number of special FIRST TIME BUYER PROGRAMS now available from  City, County, State, and Federal sources. These are greatly enhanced by the fantastic interest rates.

Now here we are in early 2015 and things have returned to something close to normality with inventory for sale, and ready and qualified Buyers pretty much in balance in most of the valley. The exception to this is in those areas with the top rated schools where the boom times are still hot although on a lesser scale.