I hope you and your family are having a wonderful start to the new year. I wanted to send a quick market update even before my usual Q1 update since there is so much that has changed since last year that you should be aware of real time.
November and December Re-Cap
In my previous update, August to October was actually a very slow market for Seller’s. Buyer’s were exhausted from 2 and a half years of price bidding wars and many were priced out of the market. However, November and December with the seasonal drop in inventory, coupled with the Federal Reserves signaling of rising rates created a flurry of demand once again and kick started our local market. Also interest rates have actually fallen in those months with 30 year fixed rates dropping back below 4%. Silicon Valley buyers have become very bullish on neighboring cities especially in Sunnyvale with all the planned commercial real estate and higher growth planned for the area.
January and February picked up where we left off last year. Inventory levels are even lower than the Thanksgiving and Christmas months and interest rates have actually fallen in anticipation of the mid year rate hike signaled by the Federal Reserve. Homes are seeing 10 to 20 offers consistently. Single Family homes remain popular though in the prime locations are out of reach for most. Buyer’s have finally adjusted to this fact and are going further out of the prime locations and competing for homes further. What is interesting is that I have seen a re-focus to Condominiums and Townhomes from those that wish to stay close to prime locations and be close to work. Buyers have realized that Single Family Homes are out of reach so they are lowering their expectations and focusing on this class of homes. Inventory of Condominiums and Townhomes are even lower than Single Family Homes in Santa Clara County.
If you have been contemplating selling your home and felt that you missed the window last year, you now have a second chance where multiple offers are guaranteed in most locations. The key issue to monitor is that inventory is increasing week by week with upcoming Spring and Summer inventory, this advantage may not last long. There is also quite a large amount of New Home Construction inventory coming online as well. Also if you don’t want the hassle of prepping your home for sale, we have a long list of qualified and financially strong Buyer’s that can buy your home with little hassle. Ask me for a custom strategy for your home.
Many of our clients have been losing out against 10 to 20 other competitors on homes this month. Do not be frustrated as the Spring and Summer inventory comes more of those Buyer’s should be in homes and there maybe more choices for you. The caveat is that prices will continue to increase so the sooner you can get in the better.
The one item that could put a stall in this boom are interest rates. Even a quarter point increase in rates could price many people out of an already high priced market. The tech sector does remain strong and as long as the stocks continue to have good returns, the downpayments will be there for many.
Listings and Upcoming Listings
As our clients you get the sneak peak on listings on the market. Let me know if you would like a private showing of any of these homes.
- 514 N. Cascade Terrace Sunnyvale – Lovely Townhome conveniently located off W Fremont and Sunnyvale Saratoga. Open house this weekend from 1:30PM to 4:30PM. Excellent schools Nimitz Elementary (870 API) and Cupertino Middle (935 API). Offers due Wednesday at 10AM
- Lafayette Street and Memorex Drive, Santa Clara – This Single Family Home is being re-done, target on the market is March. Available pre-market at a discount if an investor or primary home owner wants to manage this project to the end. Property being expanded and fully re-done with high end upgrades
- Race Street and Eugene Avenue – Re-modeled home with a basement that was fully re-done. Major upside potential for a rental or an investor
- 580 San Remi Terrace in Sunnyvale – Listing is the pulse of this new market. We had 25 disclosure packages downloaded and 14 offers! Another Townhome down the street had 12 offers and similar results
I wish you all a great start to the New Year. If you have been contemplating a real estate move, let’s schedule a strategy session to discuss how we may be able to help you make your real estate dreams into action.
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