Since Cupertino has been such a competetive market for the past 5 years, sub-prime mortgages have not had much direct impact on this area. Basically, if you had 100% financing, it was very difficult to compete with other buyers to buy homes in this area. Thus I would expect Cupertino's strong real estate market to continue into 2008. In addition there would seem to be a big enough backlog of buyers to keep things going for a while. The house that got 20 offers a week or so ago means that there are at least 19 other buyers looking for a home in the 1.3 million dollar range. With employers such as Apple, Google and Cisco still hiring at a rapid pace, we should still see an inflow of people into the area.
The one factor that could hurt the area in the long run is if traditional feeder areas to Cupertino such as Milpitas and Evergreen see a significant slow down in their markets, the number of move-up buyers could be reduced in Cupertino. However, I do not see Cupertino getting any worse than being a normal real estate market in 2008.
Cupertino inventory stats for 2007
Low Inventory (1/8/07) - 38 single family homes
High Inventory (9/24/07) - 81 single family homes
Current Inventory - 71 single family homes
Average percentage of homes getting into escrow each week
1/1 - 6/1 25%-40%
6/1 - 8/20 20%-25%
8/27 - 9/10 10%-15%
9/17 - present 15%- 20%
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