Effects of a hot housing market

Real Estate Agent with Chris Alston (Keller Williams Realty, Silicon Valley, California) 01338415

The San Jose Mercury News (In the heart of Silicon Valley), is showing that San Jose will be the nations hottest market in 2018 based on a Zillow report.  They believe we will see an increase in values of about 8.9%.  San Francisco to show 3.8%.


So why are the prices going up up up?  Talk to 10 economist, and you fall asleep, right? But put it this way, a homeowner in Silicon Valley must have a reason to sell. If they are moving out of state, then it is a no brainer that they will sell.  But if they are not leaving the area, where do they go?  If they sell and buy in this market, they have to compete with all of the other buyers...  So they end up staying put, and not wanting to sell.  This leads to a further reduction in available inventory, which then leads to an increased demand and prices for a smaller pool of homes.  

Lets consider it from a home buyers perspective...  You are pre-approved to buy a home valued at $900K, with a $3,650 monthly payment, but you decide to wait.  In one year, that home would now be valued at close to $1,000,000.  The loan would have to be larger, and your new payment would be $4,500 (or you cannot qualify for the new increased amount).  The cost of waiting for a buyer, is being priced out of the market. 

Making sense of all of this is what we do best.  Let's talk about how we can help you navigate this market.  Whether you are buying or selling, we're here.

Posted by


Chris Alston


Home sales and purchasing specialist

Keller Williams Realty, Cupertino

19400 Stevens Creek Blvd, Suite #200

Cupertino, CA 95014


408-850-6956 fax




Find me on:

Photobucket Photobucket Photobucket  











This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Real Estate Market Trends
California Santa Clara County
1st Time Buyers
Keller Williams Active Rain Worldwide
Posts to Localism
housing market
market update
real estate

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Chris Alston

Silicon Valley, California
Ask me a question
Spam prevention

Additional Information