2011 Q2 Real Estate UpdateAs 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 UpdateI 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 DistrictsThe 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 SchoolsWhen 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
Just Listed 1343 Sarita Way in Santa Clara
