As the 2007 real estate market begins to wind down for the year, we are still seeing multiple offer market for the cities with the high-end publc schools. While, overbids are not as crazy as in previous years, we are still seeing that it takes a good price with little or no contingency and solid financing to "win" a median priced single family home in these areas. In Cupertino, we are still seeing some properties receiving 20 offers the first week they hit the market. I recently sold a townhome in Cupertino in a week for over asking price with no contingency. In contrast, I have a nice newer home for sale in the Willow Glen where the schools are average, and it has been sitting on the market for over 3 months. Even in Sunnyvale, we are seeing a split market with the west side doing very well but the east side with the more affordable properties being very stagnant.
The principles for a solid real estate market in this area are pretty straightforward
1. Limited number of new homes being built ( less speculators/lower inventory)
2. Elite public schools
3. Good job market with high paying jobs
4. Desirable place to live with good weather
I expect to see the split market to continue through next year.