Is the Cupertino California Real Estate Market still a good investment?
By Arpad Racz
We all remember the recent days when the real estate market in the S.F. Bay Area was booming. No sooner did a house go on the market, and there were multiple offers and properties were regularly selling over asking price. In the start of 2006 the market was quite good, as housing inventory increased in May however, the market started slowing down considerably, and has affected the greater Bay Area market.
Cupertino and some other cities have tended to withstand the slowdown better than other areas, due in most part to Cupertino’s unique draw. Cupertino’s draw includes in a large degree the great schools, technology focused workplaces, parks and recreational opportunities with the foothills nearby, and a rural feel, while still maintaining the vibrant entrepreneurial spirit that makes this area so great. These factors fuel the demand for Cupertino as a destination, and the supply of homes in this area is limited, helping to stabilize the home prices and counteract the overall market trend.
As an investor looking to purchase real estate, one looks for these factors to optimize stable equity growth and stable rental income, and many have invested in Cupertino for these exact reasons. An investor looking to buy rental property would benefit from renters focused on Cupertino for the right schools or proximity to Silicon Valley jobs. A builder or property rehab specialist would look to invest here for a profit that is easier to calculate due to less volatility in an uncertain real estate market.
As a homebuyer, the focus is equally on the schools and jobs, since most homeowners look at their home as an investment as well as a place to live, and more and more buyers analyze their purchase with an investment mindset. The demand for homes in the area is still quite steady, and homebuyers are even considering buying teardown properties with larger lots to achieve their goal of homeownership. These teardowns and land-value properties, such as the one at 10260 Orange Ave., seen at http://www.aracz.com, right down the street from Monta Vista High school can offer proximity to the best schools and allow a buyer to really build the home to their own liking from the start.
Investors and homebuyers will continue to evaluate destinations on what an area has to offer, and with Cupertino’s great mix of benefits it will be a likely choice for many.About Arpad Racz
Arpad is a Broker with Altas Realty and is a native of Cupertino. Please feel free to contact him with your real estate questions.
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