Tuesday, July 16, 2013
7 Metros Wit the Fastest Rising List Price
Thursday, July 11, 2013
July Real Estate Update and New Listings Announcement!
Market Update
I wanted to provide you as my clients a quick market update. In the last four weeks I have been noticing a slight slowdown in this aggressive market. Before you get excited, by slight slowdown there are still multiple offers, however homes are seeing about half as many offers than prior. Homes in certain areas are sitting longer on the market. I will continue to see if there is a sustained trend here, it is too early to tell. I have not seen this slowdown in areas with strong school districts, these areas continue to see aggressive bidding and could sustain longer due to the high value Buyer's place into strong school districts.
My thoughts are that there could be a few culprits that could be affecting Buyers:
Below are some new listings and Buyer transactions that my give you a few real world examples on what is going on in the marketplace first hand!
New Berryessa Listing 1891 Anne Marie Court in San Jose!
I am pleased to announce a beautifully upgraded
property located on a quiet court. Gorgeous kitchen with Corian
countertops on updated cabinetry, oversized kitchen island/breakfast bar
with highly desired modern open floor plan. Mahogany hardwood floors in
living/dining rooms and tiled floors in wet areas. Tiled
shower stalls with mosaic designs, dual pane windows and recessed
lighting. Solid school, Northwood Elementary with an API of 902.
I will be hosting an open house this Saturday and Sunday from 1:30PM to 4:30PM. Come and visit me if you are in the area!
More details are located at http://alanwangrealty.com/PropertyDetails?fl_hook=1721358443&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Not on the MLS, California Landing Townhome in Milpitas
Executive tri-level California Landing Townhome, 3 bedrooms, 2.5 bathrooms at 1,547 square feet in the city of Milpitas. Within a few minutes to a neighborhood park and a safe neighborhood that is a convenient jump to South Bay and East Bay. A 5 minute drive to compaines such as Cisco, Samsung, Sandisk, this is also a very livable or rentable location. This property will likely be on the market in a couple of weeks but let me know if you'd like a sneak peak as we are preparing the home for sale. Target list price is in the high $500,000's. This unit can be rented today for $2,800 or send your kids to solid schools; Pomeroy Elementary (901 API) and Thomas Russell Middle (889 API).
More details located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1722580518&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Listing at 1691 Braddock in San Jose is in Sale Pending
We had 5 total offers, 2 which were all cash offers and the property was sold in less than a week. Congratulations to my Seller on this sale!
Details located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Sale Pending 729 Chopin in Sunnyvale on the Border of Cupertino
As I mentioned areas with great schools have not seen a slowdown. My Buyers competed against 4 others even with the July 4th holiday and the competition was fierce. The winning bid was substantially over the list price with 4 being non-contingent offers. Congratulations to my Buyers who were selected as the Buyer's of choice for this lovely home! They were the 3rd group of Buyers in my 10 year career that trusted my advice and were able to go aggressive and win on their first offer, well done!
Details Located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1721487788&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Sale Pending New Home Development in San Jose
Another congratulations is in order to my clients who secured a new home development in the Southbay! This is a dream home with 4 bedrooms, 2.5 bathrooms with 2,717 square feet of living space, built from the ground up! Again Buyers were part of a priority list and were able to be selected for this lovely property. To learn more ask me for more details!
Details located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1719329239&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Real Estate and Technology Workshop for Realtors
I will be giving a talk at the Asian Real Estate Association of America at SILVAR, on how to leverage the latest technology tools for Realtors! This will occur next week July 23rd, if you are a Realtor come and join me for my insights into this arena.
Summary
I continue to have new Buyer requirement meetings, so the supply of Buyers continue to flow into the market. There is also a steady stream of houses both in re-sale and new home construction coming to meet this demand. It will be interesting to see if the bidding wars slow down or grind to a halt and when prices may start to level or even reverse direction. Generally these things won't be sudden, so I see this as a gradual event. Buyers and Seller's, keep you eyes wide open as I monitor this trend.
I wish you all a wonderful summer! I thank you all for your trust in me and your multiple referrals this year. Without you, Alan Wang Realty would not be where it is today.
I wanted to provide you as my clients a quick market update. In the last four weeks I have been noticing a slight slowdown in this aggressive market. Before you get excited, by slight slowdown there are still multiple offers, however homes are seeing about half as many offers than prior. Homes in certain areas are sitting longer on the market. I will continue to see if there is a sustained trend here, it is too early to tell. I have not seen this slowdown in areas with strong school districts, these areas continue to see aggressive bidding and could sustain longer due to the high value Buyer's place into strong school districts.
My thoughts are that there could be a few culprits that could be affecting Buyers:
- Temporary Causes
- Summer vacation and Buyers traveling during this break
- July 4th weekend holiday break
- Increased summer inventory spreading out the existing buyers
- Longer Term Causes
- Increased supply slowly meeting demand
- Aggressive price increases are pricing buyers out of the market
- Rising interest rates are also pricing buyers out of the market
Below are some new listings and Buyer transactions that my give you a few real world examples on what is going on in the marketplace first hand!
New Berryessa Listing 1891 Anne Marie Court in San Jose!
- Listed at $680,000, same price as townhomes selling in the area!
- 4 Bedrooms, 2 Bathrooms, 1,434 square feet of living space on a spacious 6,000 square foot lot
- Modern open floor plan that combines the kitchen and the dining area
- Gorgeous kitchen with Corian countertops on updated cabinets with an oversized island
- Mahogany hardwood floors in living/dining rooms
- Upgraded tiles in wet areas and bathroom shower with mosaic designs
- Recessed lighting in public areas
- Quick Access to Light Rail and Highway 680
I will be hosting an open house this Saturday and Sunday from 1:30PM to 4:30PM. Come and visit me if you are in the area!
More details are located at http://alanwangrealty.com/PropertyDetails?fl_hook=1721358443&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Not on the MLS, California Landing Townhome in Milpitas
Executive tri-level California Landing Townhome, 3 bedrooms, 2.5 bathrooms at 1,547 square feet in the city of Milpitas. Within a few minutes to a neighborhood park and a safe neighborhood that is a convenient jump to South Bay and East Bay. A 5 minute drive to compaines such as Cisco, Samsung, Sandisk, this is also a very livable or rentable location. This property will likely be on the market in a couple of weeks but let me know if you'd like a sneak peak as we are preparing the home for sale. Target list price is in the high $500,000's. This unit can be rented today for $2,800 or send your kids to solid schools; Pomeroy Elementary (901 API) and Thomas Russell Middle (889 API).
More details located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1722580518&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Listing at 1691 Braddock in San Jose is in Sale Pending
We had 5 total offers, 2 which were all cash offers and the property was sold in less than a week. Congratulations to my Seller on this sale!
Details located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Sale Pending 729 Chopin in Sunnyvale on the Border of Cupertino
As I mentioned areas with great schools have not seen a slowdown. My Buyers competed against 4 others even with the July 4th holiday and the competition was fierce. The winning bid was substantially over the list price with 4 being non-contingent offers. Congratulations to my Buyers who were selected as the Buyer's of choice for this lovely home! They were the 3rd group of Buyers in my 10 year career that trusted my advice and were able to go aggressive and win on their first offer, well done!
Sale Pending New Home Development in San Jose
Another congratulations is in order to my clients who secured a new home development in the Southbay! This is a dream home with 4 bedrooms, 2.5 bathrooms with 2,717 square feet of living space, built from the ground up! Again Buyers were part of a priority list and were able to be selected for this lovely property. To learn more ask me for more details!
Details located at: http://alanwangrealty.com/PropertyDetails?fl_hook=1719329239&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes
Real Estate and Technology Workshop for Realtors
I will be giving a talk at the Asian Real Estate Association of America at SILVAR, on how to leverage the latest technology tools for Realtors! This will occur next week July 23rd, if you are a Realtor come and join me for my insights into this arena.
Summary
I continue to have new Buyer requirement meetings, so the supply of Buyers continue to flow into the market. There is also a steady stream of houses both in re-sale and new home construction coming to meet this demand. It will be interesting to see if the bidding wars slow down or grind to a halt and when prices may start to level or even reverse direction. Generally these things won't be sudden, so I see this as a gradual event. Buyers and Seller's, keep you eyes wide open as I monitor this trend.
I wish you all a wonderful summer! I thank you all for your trust in me and your multiple referrals this year. Without you, Alan Wang Realty would not be where it is today.
Tuesday, June 11, 2013
Just Listed 1691 Braddock Court in San Jose!
Picturesque view from your living room,
greenbelt with a variety of redwood trees to complete the setting.
Adored unit with Italian ceramic tiles in the wet areas and recessed
lighting. Ample living space and a patio to enjoy the outdoors. Just a
few steps to BBQ area along with a pool and 2 hot tubs for your
enjoyment. A quick walk to Ebay and access to highways. Click here for more details!
icturesque
view from your living room, greenbelt with a variety of redwood trees
to complete the setting. Adored unit with Italian ceramic tiles in the
wet areas and recessed lighting. Ample living space and a patio to
enjoy the outdoors. Just a few steps to BBQ area along with a pool and 2
hot tubs for your enjoyment. A quick walk to Ebay and access to
highways. Open House Sat/Sun 1:30pm-4:30p - See more at:
http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes#sthash.y3oEBGWR.dpuf
icturesque
view from your living room, greenbelt with a variety of redwood trees
to complete the setting. Adored unit with Italian ceramic tiles in the
wet areas and recessed lighting. Ample living space and a patio to
enjoy the outdoors. Just a few steps to BBQ area along with a pool and 2
hot tubs for your enjoyment. A quick walk to Ebay and access to
highways. Open House Sat/Sun 1:30pm-4:30p - See more at:
http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes#sthash.y3oEBGWR.dpuf
icturesque
view from your living room, greenbelt with a variety of redwood trees
to complete the setting. Adored unit with Italian ceramic tiles in the
wet areas and recessed lighting. Ample living space and a patio to
enjoy the outdoors. Just a few steps to BBQ area along with a pool and 2
hot tubs for your enjoyment. A quick walk to Ebay and access to
highways. Open House Sat/Sun 1:30pm-4:30p - See more at:
http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes#sthash.y3oEBGWR.dpuf
Picturesque
view from your living room, greenbelt with a variety of redwood trees
to complete the setting. Adored unit with Italian ceramic tiles in the
wet areas and recessed lighting. Ample living space and a patio to
enjoy the outdoors. Just a few steps to BBQ area along with a pool and 2
hot tubs for your enjoyment. A quick walk to Ebay and access to
highways. Open House Sat/Sun 1:30pm-4:30p - See more at:
http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes#sthash.y3oEBGWR.dpuf
Picturesque
view from your living room, greenbelt with a variety of redwood trees
to complete the setting. Adored unit with Italian ceramic tiles in the
wet areas and recessed lighting. Ample living space and a patio to
enjoy the outdoors. Just a few steps to BBQ area along with a pool and 2
hot tubs for your enjoyment. A quick walk to Ebay and access to
highways. Open House Sat/Sun 1:30pm-4:30p - See more at:
http://alanwangrealty.com/PropertyDetails?fl_hook=1714295496&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes#sthash.y3oEBGWR.dpuf
Thursday, June 6, 2013
A big thank you to all of you that have wished me a happy 10 year anniversary in the business last month. What drives me in this business is to be able to help my customers attain their real estate goals. Thank you for your business and constantly referring me to your family, friends and co-workers.
Market Update
I continue to see aggressive bidding on homes with the number of offers in the double digits with aggressive over bids. Buyers are out and about and cash buyers continue to be abundant. As an example last week, a moderate townhome in Santa Clara drew 15 offers "way over list price" with 4 cash offers and 1 strong loan offer. It continues to be a Seller's market and Buyers who have the minimum 20% or less down will be unable to compete with cash or Buyers with strong down payments as the extra cash is needed to cover appraisal shortfalls. I have been advising Buyers to have at least 30% to 40% down payment in order for us to have enough buffer to really overbid and go after homes in this market. Even if you have the finances, you will also have to be able to go strong way above list price despite what any Comparable Market Analysis would say. Data is meaningless in this market, it boils down to the Buyer's maximum willingness to pay and my ability to ensure the best terms to come out on top. Seller's are wising up and starting take advantage of this market, but still there are low inventory levels. Ask me for your custom strategy that fits your needs.
Mortgage Interest Rates Rose in the Last 2 Weeks
Interest rates shot up 2 weeks ago from 3.65% to over 4% as Bernanke's statement that the Fed may ease off their buy back of bonds has spooked the market and drove rates higher. This likely was not the intention as the comments were directly towards the equity markets. Nonetheless, the result will have an effect on the real estate. My recommendations is for those buying to re-calculate with a rate of between 4% to 4.25% for a 30 year fixed and make sure those monthly payments still work. Those of you that maybe more risk tolerant, may consider a 7/1 ARM with lower rates but of course carry more risk when they become adjustable. The projections are that if rates continue to rise, more Buyers may enter the market in the short run due to the fear of missing out on the low rates, adding to an already competitive frenzy in the market. Taking a big step back, 4% or even 5% are still very low rates compared to the 13% loans in the 80's as an example.
Upcoming Listings
I am pleased to present the following upcoming listings.
1691 Braddock Court in San Jose Listing Next Week
A lovely ground floor Condominium adored by a long time owner on the border of Campbell. Italian tiled floors in the kitchen and bathrooms, recessed lighting in the kitchen and living room. Steps away from the BBQ area, pool and spa and just a walk to Ebay's San Jose campus. Generous 1 Car garage with an additional assigned carport. Spacious living space with 2 bedrooms, 2 bathrooms at 1,021 square feet. Price will be in the low $400,000's and won't last long. This property will list next week and let me know if you want to be on the priority list to view this home.
Berryessa Single Family Home Listing in July
Heavily upgraded Single Family Home in Berryessa that will be on the market in July. The property boasts hardwood floors, upgraded kitchen cabinets with corian countertops, dual pane windows, recessed lights, tiled entries and bathrooms with elegant mosaic designs. There is also a bonus section of the home that could be used as more living space. It is a 4 bedroom, 2 bathroom home with a spacious 1,434 square feet of living space on a 6,000 square foot lot. Property will be listed in the mid $700,000's.
23496 Belaire Court in Los Gatos
Congratulations to my clients that won a lovely Los Gatos property in the mountains with a view of a redwood forest to die for. An amazing property in a great location. We were able to beat out a cash buyer on this property! Specifications on the home are 5 bedrooms, 3 baths, 2,860 square feet on 1 acre of land. Absolutely lovely! Looking forward to closing on this next week.
New Home Development in Dublin
A brand new tri-level single family home with a yard, who's market value has increased 14% price increase since we signed the contract! Property specifications are 4 bedrooms, 3.5 baths at 2,557, great location and great schools. The bonus room on the third level is just what children need to safely play in an area all their own. Property has great views, ask me where this is located!
Q3 Outlook and Beyond
I do not foresee the market changing this quarter and expect the same level of Buyer competition through the rest of the year and next year as well. If you plan to buy a home, plan to go as strong as you can if you want to play in this market. We are now 16 months into the recovery in the Bay Area and the rest of the nation is really just starting to feel the recovery which you are seeing more in the news. I am often asked where I feel we are in this cycle. I do not have a crystal ball, but I am concerned how long these overbids can be sustained. I would say we are in the early to middle stages of this boom with at least 2 years of continuous upward movement left. The key factors I am concerned about are the following; possible upward movement of interest rates (which may push some buyers to lower home prices), prices increasing beyond the limits of what a 2 income family can afford, some panic that causes investors and buyers to sell off their assets thereby flooding the market with inventory. I also see new home builders that were wise to pick up land during the downturn, trying to accelerate their plans to deliver more homes to the market. There is a long lead time to prepare a parcel and build the homes, but this will provide more supply as well. My advice would be if you plan to buy, go aggressive and get a home while it's still early in the cycle as you don't want to be stuck buying at the peak. Each of our situations are different, so do contact me if you'd like a custom plan for your real estate needs.
I wish you and your families a wonderful summer and thank you for always remembering Alan Wang Realty for your real estate needs.
Friday, April 5, 2013
Q1 2013 Real Estate Update
10 Year Anniversary
Next month marks my 10 year anniversary in the business. As I reflect back at my career and what has happened in the real estate industry in that span, I have worked through 2 booms and 2 downturns. If I were to name a few key lessons I've learned, I would say first off real estate if treated with the long term perspective in mind, you will generally have an appreciating investment. However, you also must time your purchases and sales properly in order to maximize your investment at the appropriate times. For example if you panic and sell in the downturn and in turn panic and buy in an upturn, this strategy most likely won't yield stellar results. This sounds like common sense, but you would be surprised how many people are unable to capitalize. Many just follow what's called the "herd mentality." Real Estate is a hard resilient asset that people always come back to. The valley is extremely unique because it is supported by our large bay area population, a demographic that values real estate, low supply of livable land and an abundant amount of technology jobs that draw immigrants to the state. One must have the courage to buy when times are tough and the wisdom to sell when things are good. Having a long term strategy in place, with an eye for the right market is absolutely key.
Q1 2013 Market Summary
The market has moved into the realm of irrational with multi-offers so aggressive that people are taking to over $100,000 increments in their bidding for a chance to win a home in this market. My Buyers are extremely frustrated and having a tough time competing against cash buyers (primary home buyers, overseas investors and hedge funds) or buyers with hefty down payments that provide them much headroom for overbidding. It has been so difficult to deliver this message to my Buyers as I share their dream of home ownership, but without a large sum of cash most simply cannot compete with this level of competition. Buyers need to be realistic based on their means and evaluate the appropriate strategy that can win in this market. If not, I have been advising Buyers not to play in this market and wait for a more favorable market. This market has enough steam for likely another 2 years or more, it is hard to tell. However, my opinion is that $100,000+ overbids isn't a scalable approach in the long run.
Seller's this is your market so contact me immediately if you would like to sell your home! The million dollar question is where do I go if I do sell? This is of course a personalized question so contact me so we can do an analysis of your situation.
Sample of Home Activity
The following are some of the activity that I have encountered in the marketplace. This will give you a sample of what is going on in the greater market.
- Buyers offered on a San Carlos single family home that sold $300,000 over list price against 22 offers. An all cash offer is suspected though not confirmed
- Sale pending on a new home development in Dublin. We came right as the demand uptick caused the builder to increase prices every few days trying to adjust to this new demand. Congratulations to my Buyers!
- Fremont single family home my clients and I went $50,000 over list and for the first time beat out a cash offer with a strong overall offer! Congratulations to my Buyers! First client in history to heed my advice and win on their first offer
- New home development lottery against 11 other Buyers on a particular model. There were about 150 groups of people out for the lottery for other models
- Buyers offered on a Sunnyvale townhome went for over $120,000 over list price
Conclusion
The market does not seem to be slowing down in the near term. On the contrary, as predicted Buyers are escalating their behavior in an attempt to beat out of Buyers pushing prices higher and higher. Cash is king in this market, and I have been advising my clients to have at least 30% to 40% downpayment in order to have room to overbid and buffer for bank appraisals that often come short due to this aggressive market. Above all things, know yourself and your limits and it maybe wiser to wait this out until the market is more to your advantage. Seller's you may want to really gauge this market and see if you want to capitalize on this market.
Each person's situation is different, so please contact me for a personalized strategy for your real estate needs.
Regards,
Alan
10 Year Anniversary
Next month marks my 10 year anniversary in the business. As I reflect back at my career and what has happened in the real estate industry in that span, I have worked through 2 booms and 2 downturns. If I were to name a few key lessons I've learned, I would say first off real estate if treated with the long term perspective in mind, you will generally have an appreciating investment. However, you also must time your purchases and sales properly in order to maximize your investment at the appropriate times. For example if you panic and sell in the downturn and in turn panic and buy in an upturn, this strategy most likely won't yield stellar results. This sounds like common sense, but you would be surprised how many people are unable to capitalize. Many just follow what's called the "herd mentality." Real Estate is a hard resilient asset that people always come back to. The valley is extremely unique because it is supported by our large bay area population, a demographic that values real estate, low supply of livable land and an abundant amount of technology jobs that draw immigrants to the state. One must have the courage to buy when times are tough and the wisdom to sell when things are good. Having a long term strategy in place, with an eye for the right market is absolutely key.
Q1 2013 Market Summary
The market has moved into the realm of irrational with multi-offers so aggressive that people are taking to over $100,000 increments in their bidding for a chance to win a home in this market. My Buyers are extremely frustrated and having a tough time competing against cash buyers (primary home buyers, overseas investors and hedge funds) or buyers with hefty down payments that provide them much headroom for overbidding. It has been so difficult to deliver this message to my Buyers as I share their dream of home ownership, but without a large sum of cash most simply cannot compete with this level of competition. Buyers need to be realistic based on their means and evaluate the appropriate strategy that can win in this market. If not, I have been advising Buyers not to play in this market and wait for a more favorable market. This market has enough steam for likely another 2 years or more, it is hard to tell. However, my opinion is that $100,000+ overbids isn't a scalable approach in the long run.
Seller's this is your market so contact me immediately if you would like to sell your home! The million dollar question is where do I go if I do sell? This is of course a personalized question so contact me so we can do an analysis of your situation.
Sample of Home Activity
The following are some of the activity that I have encountered in the marketplace. This will give you a sample of what is going on in the greater market.
- Buyers offered on a San Carlos single family home that sold $300,000 over list price against 22 offers. An all cash offer is suspected though not confirmed
- Sale pending on a new home development in Dublin. We came right as the demand uptick caused the builder to increase prices every few days trying to adjust to this new demand. Congratulations to my Buyers!
- Fremont single family home my clients and I went $50,000 over list and for the first time beat out a cash offer with a strong overall offer! Congratulations to my Buyers! First client in history to heed my advice and win on their first offer
- New home development lottery against 11 other Buyers on a particular model. There were about 150 groups of people out for the lottery for other models
- Buyers offered on a Sunnyvale townhome went for over $120,000 over list price
Conclusion
The market does not seem to be slowing down in the near term. On the contrary, as predicted Buyers are escalating their behavior in an attempt to beat out of Buyers pushing prices higher and higher. Cash is king in this market, and I have been advising my clients to have at least 30% to 40% downpayment in order to have room to overbid and buffer for bank appraisals that often come short due to this aggressive market. Above all things, know yourself and your limits and it maybe wiser to wait this out until the market is more to your advantage. Seller's you may want to really gauge this market and see if you want to capitalize on this market.
Each person's situation is different, so please contact me for a personalized strategy for your real estate needs.
Regards,
Alan
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