We hope that you and your family are having a wonderful summer and had an excellent 4th of July weekend! July 4th is always a time to reflect on this wonderful nation that we live in. The key take away is that because of the freedom that we have, we are blessed with endless opportunity to pursue our dreams. So in as long as we work hard and keep ourselves focused towards our dreams, the possibilities are endless. We are thankful for a country that enables us.
Market Shift in Progress
Buyers we know it has been a frustrating time over the last 3 years and even more frustrating in 2015 as competition accelerated. We are pleased to announce that in the month of June, we have observed a slowdown in the Silicon Valley real estate market in certain pockets. Now before you get too excited this does not mean that we immediately start offering $100,000 under the list price. The market has slowed down as far as the amount of offers coming in are fewer and competition is less though many are still high in quality, prices are selling towards their previous high but not going over those previous baselines. We have been seeing that homes in the $2M range have been initiating price drops which is unheard of in the last 3 years. We have also been noticing homes in and around the $1M mark have also seen less activity as well. New home builders once very confident are seeing homes left after a Saturday release where as there are typically camp outs and long wait lists. Homes under $1M especially those under $600,000 continue to see a flurry of activity likely due to their affordable price points.
There are a few explanations for this slowdown. The first is just the seasonality of summer, Sellers tend to sell in the summer, thereby flooding the market with more supply and creating more competition, while Buyers are taking time off to travel and occupied with the hustle and bustle of summer camps and time with kids they are taking a break as well. The second possibility is that this is the beginning of a longer slowdown that will cause prices to level rather than their aggressive week to week increases as they have been over the last 3 and a half years. This was always un-sustainable in our opinion. Also on our minds is the Federal Reserves increase of interest rate which maybe coming end of this year. It is too early to tell, but we will continue to monitor and provide an update as we see more as to which direction that this maybe trending. Tied in with the first possibility of the summer slowdown is that the market picks back up in the fall which is possible as well.
Buyer and Seller Advice
We don’t know how long this slow down will last, but if you have been looking to buy it maybe a good time to re-enter as competition is less and we maybe able to get some below list offers accepted or at the least have less competition. If you are a Seller likely you are pleased with your price gains. It maybe a good time to exit as this market has been going on for some time and the question is did we just pass the peak? We can't see into the future, but we know the gains that you can take off the table right now. Contact us for your personal analysis on your specific market.
We are excited to present 2 new listings in San Jose and some upcoming ones as well! Both properties will have Open Houses this Weekend from 1:30PM to 4:30PM come join us!
- 53 Mirabelli Circle in San Jose – This is a lovely unit right in the heart of North San Jose. Walking distance to Cisco, Samsung, @First shopping center, Levi’s Stadium and Great America is steps away. Companies such as Flextronics, Polycom and Broadcom are within biking distance. Top floor corner end unit, bright, updated move-in ready great location for a primary or investment home
- 1265 Sundown Lane in San Jose – So many of our clients dream about living in a Single Family Home with a yard space, yet so many are priced out of that dream. We are pleased that 1265 Sundown Lane in San Jose is for that Buyer who does not want the hassle of updating a home and wants to just move right in. Sundown has been meticulously maintained and updated with an open floorplan, updated cabinets, generous use of granite, laminate and bamboo hardwood. Too many upgrades to list come by to take a look
Contact us if you’d like an early preview on any of these properties.
- 2284 Avila Avenue in Santa Clara – Is available off market. Owner poured her heart and soul into this property raised ceilings, slate, quartz, refinished hardwood floors, new bathrooms, this home was taken down to the studs and re-done. If you are interested let us know!
- San Jose Single Family Home – 3 Bedroom, 1 Bathroom, 1338 Square Feet on a large 9,533 square foot lot. Large bonus room between the garage and kitchen (permits unknown). Many upgrades done, updated cabinets and granite countertops and bathrooms, tiled floors. Target List Price in the $600,000’s
- Santa Clara Condominium – 1 Bedroom 1 Bathroom Condominium in Santa Clara 716 square feet. Great investment or a primary home to stop paying rent and have appreciation potential and tax benefits. Target List Price in the high $400,000’s
Thank you for all your trust over the years! Have a great rest of the summer!