It sure feels as if we have hit the bottom of the market in the Bay Area, namely Santa Clara County for this particular blog. Inventory has not been this low since May of 2007, almost exactly 2 years ago! My buyers are running in to more and more multiple offer situations on a continuous basis. It seems to be true for the ‘affordable' price ranges. And, ‘affordable' price range varies on area, city and neighborhood. For example, in East, South, and barely ok areas of downtown San Jose, the ‘affordable' price range of $325,000 for a single family home is very hot and tends to yield multiple offers for a home in a decent neighborhood. And, in the Cambrian, Blossom Valley, and Santa Teresa area, the ‘affordable' price range of $425,000 for a single family home tends to yield multiple offers. In the Cupertino, Mountain View, and Sunnyvale in the good school districts, for an ‘affordable' single family home under the $1million mark seems to be hot. In Campbell, North San Jose, Milpitas, Willow Glen, and Santa Clara, the ‘affordable' price range of $525,000 in a good neighborhood seems hot. And, in any semi decent area of Palo Alto, Los Gatos, Los Altos, and Saratoga, a single family home in any even semi decent location wouldn't last a day under $1million. The luxury home pricing does not seem to be as hot of a market from what I see.
And, of course, this is just a wide example. Even within an area price ranges drastically change. For example, Willow Glen has million dollar neighborhoods as well as $500,000 dollar neighborhoods, so the information I provide are just a few examples of hot pricing in the areas, but not to say the million dolllar areas are going for $500,000. Also, Evergreen and East San Jose, for example, have a wide variety of neighborhoods and price ranges depending on location. The East Valley Foothills is fairly expensive, but the King and Story area is quite the opposite.
My business is typically a good indication of the market trends based on how much new business and phone calls that I receive from marketing, referrals, and past clients. Also, indicators from my own listings and the volume of calls I get from potential buyers for my own listings. And, in the last month or so, I am getting many new calls and emails for especially first time buyers and also many more calls on my own listings.
There are also government incentives to buy this year and I believe that first time buyers want to take advantage of those opportunies, as well as the VERY low interest rates, and great first time buyer programs with very little money as a down payment. Buyers seem to realize that this is the time to buy and they seem to all be realizing this at the same time. The home prices are low, the interest rates are low, there are tax incentives to buy this year, and just in general, a variety of reasons in which most people want to be homeowners as oppposed to renters, which there is no value at all to renting a home, except for a roof over your head.
Now, the interesting thing about a time when buyers all decide at once that it is a good time to buy actually drives down inventory and in the end drives up home prices. So, if you are thinking of buying a home, sooner than later may be a good time to ensure that you lock in a good price, a good interest rate, and can take advantage of some or all of the government incentives. I really do know see prices in the ‘affordable' ranges dropping any lower at this point. They have already dropped quite low and I see no indication that they will actually get any lower at this time.
Of course, my opinion, it subject to change, but for today, May 6, 2009, that is how I feel 
Comments(0)