Reported by Dawn ONeal, BROKER~OWNER, GRI, CRS, LTG, ePro, ASP
Updated October 25, 2009.
Current Market Rating: 2
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2
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5
Buyer's
Seller's
Current Price Trend: 3
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5
Falling
Rising
MY OPINION ABOUT MARKET CONDITIONS FOR SILICON VALLEY: October 26, 2009
SILICON VALLEY is beginning to see what looks like a market bottom. With inventory of Single Family Homes dropping approximately 44% in the last 6 months, and the median selling price increasing the last 2 months, we might be seeing a market turnaround. However, the medium-high end of the market has begun to exhibit the softness that has prevailed in the low-medium market segment for 2 years and the distressed sale activity may be increasing in the "prime" mortgage market properties. And even though the significant increase in the number of purchase offers moving into "Pending" status should be a positive sign for the market, the number of listings that are "distressed sale listings" (Short Sales and Foreclosure Sales) continues at the very high level of 54% at the end of September.
And although the 90 day statewide moratorium on foreclosures has measurably reduced the number of REO listings, that could be ending in the near future.
My advice? Although the stimulus package's Homeowner Affordability and Stability plan should be have a positive impact, it is unclear when we might begin to see the effects. That makes the current Buyer Market mindset an excellent time to "move up". Sellers are very willing to negotiate price and terms and buyers can get a very good deal with that next level home. And the "spread" between what you're selling and what you're buying is measurably smaller in this market. What you save on buying your new home will certainly exceed what you might lose on selling your existing home in this market.
For several months, the key ratio of Pending Sales to Total Inventory has moved higher, with the cumulative effect showing the Real Estate market moving from a clear Buyers Market through a neutral market into Seller Market territory. However, the large number of Short Sales can cause this key indicator to be artificially high because of the long time they stay in the "Pending" status and the high proportion that fail to close.
In addition, a very high proportion of the sales activity involves these lower priced homes so the statistics typically quoted, average selling price and median selling price, continue to show significant downward year-to-year comparisons. Although the increase in median sales price the last couple of months has reversed a year long downward trend.
For sellers, properly pricing your home is the key to attracting offers, but DO fix your home for sale. Although there have been some positive signs in the market, there is still a lot of inventory to choose from and buyers will quickly pass on homes that are not appealing and not in good condition.
The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, call me. If I can help you devise a strategy, call me. Or, go to my website www.dawnoneal.com and click on HOME SALES MARKET TRENDS at the bottom of my web page for current market stats.
If you need assistance finding a good Lender, contact me. Keep your eyes open and make solid offers and you, Buyers, will find the right house with perseverance.
SOME INFORMATION ABOUT SILICON VALLEY -
For more detailed information on specific areas of Silicon Valley, visit my website and click on "Areas I Serve" on the bottom right of my website www.DawnOneal.com
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ZIP Code: 95000 Approximate Location Boundaries: San Jose's other name for Santa Clara County
Location Characteristics: This area is the home of many high tech companies including Cisco, Intel, Sun just to name a few. A concentrated number of companies have buildings in Sunnyvale, Santa Clara and Cupertino to name 3 out of our 19 zone areas. Call me for specific answers to your questions regarding this location.
