2011 Q3 Real Estate Update
Looking back at Q2 of this year, real estate activity was already equaling that of the entirety of 2010. What is even more amazing is that Q3 has kept me busy beyond what I had imagined and there is no end in site. The bottom line is that Buyers are buying and not enough Seller's are selling. Real Estate in the Bay Area has been on fire to date.
Micro Economy Santa Clara County
We are in the heart of technology and this sector is leading the US economy. Anything social was getting funded this year with most of them founded in the Silicon Valley. A foreign investor told me that it seemed that the United States showed activity in New York, Los Angeles and the Bay Area while the rest of the United States is stagnant or in decline. I would agree with this assessment. We live in a unique pocket with Buyers and Sellers taking advantage of the low interest rates across the country to fuel this micro economy that we all live in. We have always had low supply in the Bay Area and there are new migrants of Tech workers arriving here for work everyday with the dream of home ownership. With the upcoming Technology IPO's there will be more money flowing around the valley and real estate will be on the top of minds.
Analyzing Single Family Homes in Santa Clara County, since December of 2010 there has been a non-stop tight race between Pending and Active home sales. Recently Pending homes have been exceeding Active homes which explains the overall low inventory level of homes I've been seeing. Analyzing Condominiums and Townhomes, since February of this year Pending homes have been exceeding Active homes again showing a clearing out of inventory in that class of homes as well.
Overall low supply and high demand is causing the return of multiple offers and I had to stand in line at a new home development on the release morning. It's not the year 2000, but it is slightly reminding me a little of those days.
Macro Economy United States
The US downgrade and concerns on Europe are causing much uncertainty in the market place. The stock market has been in a free fall so we'll have to see how this shakes out. However, there is good news, I've seen interest rates go further downward in the last few weeks. An article today stated that interest rates are the lowest in 50 years. Also the Fed has indicated it will keep rates low as well to try to send some security to the marketplace. The question specific to the valley is how will factors of the Macro Economy affect Venture Capital funding into technology start-ups and ultimately affect companies looking to liquidate and enter the public market place. Also how does consumer spending as well as enterprise spending affect companies in the valley from a Revenue and Cash Flow perspective. This will all trickle down into how much the average worker like you and I have to spend on housing. I do wish our politicians would be able to compile and execute a viable solution to our debt problem but it it not looking as if this is the case.
Hidden Jewels
- There is a subdivision of 4 new homes I've been watching for over a year. It's located in Mountain right on the border of Varsity Park/Los Altos border going between $1.15M to $1.4. The schools are Mountain View schools though but an opportunity nonetheless. Let me know if you are interested before they are released.
- There is a new Townhome development in which I really like the 3 and 4 bedroom models in the middle of the Bay Area, ask me about them!
- There is a new Santa Clara townhome development that I am keeping an eye on, ask me for more details
Top Award in June
Again it is thanks to your trust and referrals that Keller Williams awarded me the Top Associate in Closed Volume, Closed Units and Written Volume. Thank you for all your support over the years and I continue to look forward to supporting you in your Real Estate needs.
Home Sales in Q3
I always like to give my clients real data from the market so you can gauge for yourself how things are going.
- 717 Madrone in Sunnyvale - Beat out 7 offers and did not overpay! It's all about having the right strategy that varies per home
- 107 Holly Terrace in Sunnyvale - Bank owned foreclosure sold to my Buyers under the comparable prices, picked up after another Buyer decided not to proceed
- 1343 Sarita Way in Santa Clara - This listing was in Sale Pending when the kitchen caught fire and we had to re-model and repair the inside. The local mailman went beyond the call of duty and saved the day! Check out the video! http://sanfrancisco.cbslocal.com/category/watch-listen/video-on-demand/?autoStart=true&topVideoCatNo=default&clipId=6079667. Happy to say that after all the re-modeling and coordination, the home is now SOLD!
- New Home Development (x2) - Most popular plan in this new community sold to 2 sets of my Buyers. One home was part of a first phase release which typically always have the best prices, we moved fast and secured the home. The second home I had to stand in line for 2 hours before opening on release day and beat out at least 3 other interested parties in line for that exact unit
Conclusions
There is a-lot of uncertainty in the global economy over the last few weeks which is some cause for concern. Up until that point, Bay Area real estate was recovering nicely in Santa Clara County especially homes close to companies. Inventory remains generally low. We will have to monitor how the Macro Economy affects our Micro Economy. My advice if you have a stable job take advantage of the low rates and get out of that increasing monthly rent. If you are a homeowner call me so I can assess where your home is at and whether you should hold steady or sell at this time.
Again thank each and everyone of you for your business over the years and all the referrals you have entrusted me.
Sincerely,
Alan
Thursday, August 18, 2011
Thursday, June 2, 2011
Keller Williams 3 Top Agent Awards!
3 Top Awards Last Month
Again it is thanks to your trust and referrals that Keller Williams awarded me the Top Associate in Closed Volume, Closed Units and Written Volume. Thank you for all your support over the years and I continue to look forward to supporting you.
Just Listed 1343 Sarita Way in Santa Clara
3 Bedroom, 2 and a half bath Townhome with 1,845 square footage. Largest floor plan just steps from the pool quietly situated near the center of the community. Elegant kitchen with newer cabinetry and granite counter tops. Pergo floors through out the property and as well as two-toned paint. Spacious backyard and ample parking for entertaining guests.
I'll be hosting an Open House Saturday and Sunday from 1:30PM - 4:30PM. Come visit me!
Click this link for further details:
http://alanwangrealty.com/PropertyDetails?fl_hook=1494628562&show_description=yes&show_address=yes&presented_by=yes&show_virtual_tour=yes
Sold Single Family Home in Menlo Park
Congratulations to my clients who closed a lovely home in Menlo Park. 3 bedroom, 2 and a half bedroom home build from the ground up. For more new home developments ask me for more details!
Wishing everyone a happy June and as always let me know if you have any real estate needs.
Regards,
Alan
Again it is thanks to your trust and referrals that Keller Williams awarded me the Top Associate in Closed Volume, Closed Units and Written Volume. Thank you for all your support over the years and I continue to look forward to supporting you.
Just Listed 1343 Sarita Way in Santa Clara3 Bedroom, 2 and a half bath Townhome with 1,845 square footage. Largest floor plan just steps from the pool quietly situated near the center of the community. Elegant kitchen with newer cabinetry and granite counter tops. Pergo floors through out the property and as well as two-toned paint. Spacious backyard and ample parking for entertaining guests.
I'll be hosting an Open House Saturday and Sunday from 1:30PM - 4:30PM. Come visit me!
Click this link for further details:
http://alanwangrealty.com/PropertyDetails?fl_hook=1494628562&show_description=yes&show_address=yes&presented_by=yes&show_virtual_tour=yes
Sold Single Family Home in Menlo Park
Congratulations to my clients who closed a lovely home in Menlo Park. 3 bedroom, 2 and a half bedroom home build from the ground up. For more new home developments ask me for more details!
Wishing everyone a happy June and as always let me know if you have any real estate needs.
Regards,
Alan
Tuesday, May 31, 2011
Wonderfully Located Upgraded Townhome in Santa Clara for a Great Price!
Largest upgraded floor plan just steps from the pool. Elegant kitchen with newer cabinetry, granite counter tops, pergo floors and two-toned paint. Location, Location, Location! Quietly Positioned at the Center of the Community Steps From the Pool!Property Highlights
- Kitchen Upgraded With Granite Counter tops and Newer Cabinetry
- Pergo Hardwood Floors Throughout
- Elegant Two Toned Paint & Recessed Lighting in Key Areas
- Walking Distance to Award Winning Schools
- Spacious Backyard for Entertaining Guests
- HOA Dues of $421 Include Water, Exterior, Pool and Front Yard Maintenance
- Convenient access to 101, 237 and Lawrence Expressway
http://alanwangrealty.com/PropertyDetails?fl_hook=1494628562&show_description=yes&show_address=yes&presented_by=yes&show_virtual_tour=yes
Saturday, April 23, 2011
2011 Q2 Real Estate Update
2011 Q2 Real Estate Update
As we approach the end of Q2 this year, I wanted to send on my latest update on the real estate market. As predicted in my 2010 year in review, this year has unfolded as forecasted. Buyers have moved on homes in spades since the New Year. I spent some time in my loan processors office and they have so many files which is clear evidence that our local market is picking up on the buying side. I remember a processor saying that "this is the last year to buy," I fully agree with this statement for you deal hunters out there.
Within my own client base, 1 home closed earlier in the year, 3 of my clients closed on their homes in the last 2 weeks with 2 more homes are in pending and will be closed in the next 2 months.
If you are a Buyer I would suggest not waiting too much longer! Spring has begun and there are fewer homes during this time and Buyer's are starting to emerge. The summer will bring more homes but also more Buyers who will look to move their children during this time to match the summer holiday.
Santa Clara County Inventory Update
I did a study of the trends since the recession over the last few years. I discovered that the Santa Clara County market recovered in May 2009. This is we when the Active homes met the Pending homes and from that inflection point onward, Actives and Pending have maintained a normal distance between each other whereas prior the Active homes were much higher than Pending homes. Inventory was clearing up until May 2009 which is consistent to how busy I was after May 2009 and idle prior to that point in time.
Market Update on Homes in Great School Districts
The old cliche of "Location, location, location" continues to hold true. Homes in Great School Districts are simply on fire overall. A Cupertino home a few weeks back sold with 10 offers and another with 17 offers! Part of the reason is that agents may price homes lower than the comparable prices, the other part is simply the demand driving homes prices onward and upward. Homes that are heavily upgraded and in move-in condition, will generally sell with more offers than a home that needs to be re-done. Either way multiple offers will be prevalent. Ask me how to win these homes, I've won 2 already and we didn't overpay. I've been able to differentiate my clients to beat out multiple offers, ask me how!
Good Elementary Schools
When I say good, I mean schools in the upper 800 API's to possibly lower 900's. There has been slightly a few more homes in these areas that have been on the market. It is unclear why, but if elementary schools are your focus at this time in your life, this maybe an opportunity for you to have your kids get through elementary school, build up equity, save money to make your next move into a better school district if that is your goal down the line.
Market Update on Homes With No School Districts
I've noticed that homes without supporting schools have been fairly slow. There maybe opportunity here for you if you are not looking for schools at this time.
Macro Economy
As the Fed's Quantitative Easing 2 comes to a close, there are questions as to whether the Fed's will possibly raise interest rates. With rising pricing overall, there are inflationary concerns with the rate as low as it is. Even with low rates, the rest of the country's real estate market is still in shambles. We are in a micro-economy here where the job market is strong, led by the Tech industry who are hiring for the latest wave of the Social Web. There is another side that says once Quantitative Easing 2 ceases that our economy will falter due to the amount of debt and money press that has been occurring. There is no crystal ball so anything is possible.
Interest Rates
Rates have calmed slightly from their rise in December. My clients have seen rates from 4.875% to 5.25% of late. It is unclear what the fed's will do to the lending rate which eventually will hit mortgages in the longer term. That being said, even a rate of 6% would be much better than the 12% my parents paid in the 80's for their mortgage.
New Home Development Phase 1
Ask me about a new home development with homes starting at $1.5M for homes from 2,700 square feet homes with 8,000 square foot lots in a great area! Get in on the first phase, prices will rise after each sale in a great community of 50 homes. Schools are in the upper 800's.
Highlights From Recent Transactions
Recently Sold & Pending Homes
- 1390 LLOYD WY, Mountain View, CA 94040 - SOLD! Single Family home in Mountain View Varsity Park area at the Los Altos border. Home required a re-model but still had one more over bid that beat us in price but I had other ways to differentiate my clients that put us in a winning position. As I mentioned a home not upgraded will not draw as many bidders as a re-modeled home. Still pleased to get this home in a great location with Los Altos Schools! An example that just because another competitor has more money, there are other things that could make a greater difference depending on the situation. - Property Details
- New Home Development, Mountain View's Varsity Park! - SOLD! My clients moved into this wonderful new home development in the sought after Varsity Park going to Los Altos Schools. There is only one more model left ask me where and I can negotiate for you.
- 1684 MARCO DR, San Jose, CA 95131 - SOLD! If you don't need schools right now, this is a great example of an opportunity for you. Over $30,000 under comps, where you can get a Single Family Home re-modeled within 25 years of age for $562,000! A brand new townhome development within 2 miles was selling for $510,000 and for $50,000 more we got a Single Family Home what a great value!
- New Home Development, Sunnyvale, CA 94089 - SOLD! A brand new Townhome bought in the first phase and subsequent prices have increased. Again I always like to get my clients in the first release so you can ride the incremental price increases thereafter! Ask me where this is and if this would fit your family!
- 10535 FELTON WY, Cupertino, CA 95014 - SALE PENDING! A Single Family Home Rebuilt 2 years ago sold for the same price as comps of the same size that are 40 to 50 years old! That is immediate value! I had to competed with 3 other offers but came out on top again due to being knowing how to differentiate my clients better and not overpay.
- New Home Development, Menlo Park, CA - SALE PENDING! This home will close in the month of May as the home was bought during a down market and has already sold out.
Closing Thoughts
Many people ask me high level questions about real estate, but the truth is it always depends. It depends on where you own your house, how much you want to spend and what your values are. Once I analyze those components that make up your dream, I can tie those back to the reality of the market and your budget most importantly. Schedule an appointment with me to explore those dreams and let me help you or someone you know who has real estate needs. Here's to a great Q2 , Q3 and onward!
Again thank you all for your trust and referrals in my 8th year in the business!
Regards,
Alan Wang
As we approach the end of Q2 this year, I wanted to send on my latest update on the real estate market. As predicted in my 2010 year in review, this year has unfolded as forecasted. Buyers have moved on homes in spades since the New Year. I spent some time in my loan processors office and they have so many files which is clear evidence that our local market is picking up on the buying side. I remember a processor saying that "this is the last year to buy," I fully agree with this statement for you deal hunters out there.
Within my own client base, 1 home closed earlier in the year, 3 of my clients closed on their homes in the last 2 weeks with 2 more homes are in pending and will be closed in the next 2 months.
If you are a Buyer I would suggest not waiting too much longer! Spring has begun and there are fewer homes during this time and Buyer's are starting to emerge. The summer will bring more homes but also more Buyers who will look to move their children during this time to match the summer holiday.
Santa Clara County Inventory Update
I did a study of the trends since the recession over the last few years. I discovered that the Santa Clara County market recovered in May 2009. This is we when the Active homes met the Pending homes and from that inflection point onward, Actives and Pending have maintained a normal distance between each other whereas prior the Active homes were much higher than Pending homes. Inventory was clearing up until May 2009 which is consistent to how busy I was after May 2009 and idle prior to that point in time.
Market Update on Homes in Great School Districts
The old cliche of "Location, location, location" continues to hold true. Homes in Great School Districts are simply on fire overall. A Cupertino home a few weeks back sold with 10 offers and another with 17 offers! Part of the reason is that agents may price homes lower than the comparable prices, the other part is simply the demand driving homes prices onward and upward. Homes that are heavily upgraded and in move-in condition, will generally sell with more offers than a home that needs to be re-done. Either way multiple offers will be prevalent. Ask me how to win these homes, I've won 2 already and we didn't overpay. I've been able to differentiate my clients to beat out multiple offers, ask me how!
Good Elementary Schools
When I say good, I mean schools in the upper 800 API's to possibly lower 900's. There has been slightly a few more homes in these areas that have been on the market. It is unclear why, but if elementary schools are your focus at this time in your life, this maybe an opportunity for you to have your kids get through elementary school, build up equity, save money to make your next move into a better school district if that is your goal down the line.
Market Update on Homes With No School Districts
I've noticed that homes without supporting schools have been fairly slow. There maybe opportunity here for you if you are not looking for schools at this time.
Macro Economy
As the Fed's Quantitative Easing 2 comes to a close, there are questions as to whether the Fed's will possibly raise interest rates. With rising pricing overall, there are inflationary concerns with the rate as low as it is. Even with low rates, the rest of the country's real estate market is still in shambles. We are in a micro-economy here where the job market is strong, led by the Tech industry who are hiring for the latest wave of the Social Web. There is another side that says once Quantitative Easing 2 ceases that our economy will falter due to the amount of debt and money press that has been occurring. There is no crystal ball so anything is possible.
Interest Rates
Rates have calmed slightly from their rise in December. My clients have seen rates from 4.875% to 5.25% of late. It is unclear what the fed's will do to the lending rate which eventually will hit mortgages in the longer term. That being said, even a rate of 6% would be much better than the 12% my parents paid in the 80's for their mortgage.
New Home Development Phase 1
Ask me about a new home development with homes starting at $1.5M for homes from 2,700 square feet homes with 8,000 square foot lots in a great area! Get in on the first phase, prices will rise after each sale in a great community of 50 homes. Schools are in the upper 800's.
Highlights From Recent Transactions
Recently Sold & Pending Homes
- 1390 LLOYD WY, Mountain View, CA 94040 - SOLD! Single Family home in Mountain View Varsity Park area at the Los Altos border. Home required a re-model but still had one more over bid that beat us in price but I had other ways to differentiate my clients that put us in a winning position. As I mentioned a home not upgraded will not draw as many bidders as a re-modeled home. Still pleased to get this home in a great location with Los Altos Schools! An example that just because another competitor has more money, there are other things that could make a greater difference depending on the situation. - Property Details
- New Home Development, Mountain View's Varsity Park! - SOLD! My clients moved into this wonderful new home development in the sought after Varsity Park going to Los Altos Schools. There is only one more model left ask me where and I can negotiate for you.
- 1684 MARCO DR, San Jose, CA 95131 - SOLD! If you don't need schools right now, this is a great example of an opportunity for you. Over $30,000 under comps, where you can get a Single Family Home re-modeled within 25 years of age for $562,000! A brand new townhome development within 2 miles was selling for $510,000 and for $50,000 more we got a Single Family Home what a great value!
- New Home Development, Sunnyvale, CA 94089 - SOLD! A brand new Townhome bought in the first phase and subsequent prices have increased. Again I always like to get my clients in the first release so you can ride the incremental price increases thereafter! Ask me where this is and if this would fit your family!
- 10535 FELTON WY, Cupertino, CA 95014 - SALE PENDING! A Single Family Home Rebuilt 2 years ago sold for the same price as comps of the same size that are 40 to 50 years old! That is immediate value! I had to competed with 3 other offers but came out on top again due to being knowing how to differentiate my clients better and not overpay.
- New Home Development, Menlo Park, CA - SALE PENDING! This home will close in the month of May as the home was bought during a down market and has already sold out.
Closing Thoughts
Many people ask me high level questions about real estate, but the truth is it always depends. It depends on where you own your house, how much you want to spend and what your values are. Once I analyze those components that make up your dream, I can tie those back to the reality of the market and your budget most importantly. Schedule an appointment with me to explore those dreams and let me help you or someone you know who has real estate needs. Here's to a great Q2 , Q3 and onward!
Again thank you all for your trust and referrals in my 8th year in the business!
Regards,
Alan Wang
Tuesday, March 8, 2011
Real Estate Industry Survey
Fellow Realtors and real estate enthusiasts. I'd appreciate some help in filling out a survey for my MBA course. The survey link is here, please forward this onto your real estate contacts. I appreciate all of your help!
Survey link: http://tinyurl.com/4lg8ntf
Survey link: http://tinyurl.com/4lg8ntf
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