Real Estate 2010 Year in Review
I wanted to wish you and your families a Happy New Year! I first and foremost wanted to thank each and every one of you for your trust in your own transactions as well as your referrals. It is because of you that I am able to sustain this business through very difficult economical times.
The first question I am typically asked is the status of the Bay Area real estate market. Most people expect a pessimistic answer but they are often surprised by my reply. I continue to see 2 markets; areas with good school districts and areas without. Many of my clients have been competing for homes in Los Altos, Cupertino and Mountain View and each time I have been met with 5 to 10 offers on these homes extending beyond the list price. Even homes with high API elementary schools have been competitive, with low overall inventory levels for these locations. On the other hand homes not supported by schools have generally seen less activity especially town homes and condominiums.
Interest rates saw some lows down to 4.5% for conforming jumbo loans, but have now increased in the last 2 weeks closer to 5%. It will be interesting to see what interest rates will do in the New Year but still very attractive interest rates nonetheless. It is unclear why the mortgage rates are on the rise, some are tying this to the recent action by the feds that Ben Bernake calls "Quantitative Easing" which was supposed to help the economy but maybe having the opposite effect on rates. We will look towards 2011 to see what the rates do.
The Bottom Line
The bottom line is that if you are living in one of these locations supported by a great school district it is a sell opportunity. If you are looking to buy in one of these locations, don't expect a deal, come in strong on terms, price and be able to close fast. If you are living in a location that is not supported by schools or in a condominium or townhome, I would generally say hold for now, unless you have a ton of equity we can evaluate your situation. If you are a Buyer that is looking to purchase in a non-school supported area or a townhome or condominium, this is a great buy opportunity. These are general trends I am seeing, be sure to meet with me to analyze your particular home situation.
Buyer's will continue to pursue homes in good school districts as they always had, however most recently my Buyers of the second market have began to inquire on homes. I expect that in 2011 both markets will continue to purchase real estate and lead the Bay Area market through a slow recovery.
2649 Media Way in San Jose - Multiple offers sold to my Buyers
1104 Castleton Way in Sunnyvale - Sold $50,000 under list price to my Buyers
608 Angus Drive in Milpitas - Listing sold with multiple offers
3436 Chemin de Riviere in San Jose - Multiple offers sold to my Buyers
20211 Merida Drive in Saratoga - Listing sold with multiple offers
309 Homewood Lane in Menlo Park - Negotiated a low price for my Buyers
593 Angus Drive in Milpitas - Listing sold pre-market to my Buyers
Marilyn Drive in Mountain View - Negotiated a great price and package for my Buyers
Here's to 2011!
If you, your family or friends have any real estate needs please don't hesitate to contact me. I am always ready to assist you in any way possible. I wish you a prosperous 2011!
Happy New Year!