Archive for the ‘General’ Category

Real Estate Report – March 2018

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Prices Set New Highs for the Second Month in a Row

Prices for both single-family, re-sale homes and condos set new all-time highs in March.

The median price for homes has been higher than the year before by double-digits ten months in a row. The average price was up by double-digits for the ninth consecutive month.

The median price for homes rose 27.8% over last March to $1,450,000.

This is also the 73rd month in a row the median price has been higher than the year before.

The average price for homes rose 22.8% to $1,745,230.

The median price for condos gained 27.9% to $900,000. Notably, the median price for condos has been higher than the year before every month since July of 2011!

The average price for condos was up 26.9% over last March.

Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains at triple digits: 112.4% for homes and 116.1% for condos.

The ratio has been over 100% for homes since March 2012 and for condos since April 2012.

Homes and condos are flying off the shelf. It is taking only sixteen days to sell a home, on average. Condos are taking nine days.

All this is due to an incredible lack of inventory. Since January 2000, Santa Clara County has averaged 94 days of inventory. Last month it was eighteen.

Condos have averaged 87 days since 2000. Last month it was twelve.

As of April 5th, there were 516 homes and 124 condos for sale in Santa Clara County.

Real Estate Report – February 2018

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Prices Set New Highs, Again

Prices for both single-family, re-sale homes and condos set new all-time highs in February.

The median price for homes has been higher than the year before by double-digits nine months in a row. The average price was up by double-digits for the eighth month in a row.

The median price for homes rose 27.5% over last February to $1,380,000. The previous high was set in December.

This is also the 72nd month in a row the median price has been higher than the year before.

The average price for homes rose 25.4% to $1,663,540.

The median price for condos gained 24.1% to $831,500. Notably, the median price for condos has been higher than the year before every month since July of 2011!

The average price for condos was up 26.0% over last February.

Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains at triple digits: 112.4% for homes and 112.9% for condos.

The ratio has been over 100% for homes since March 2012 and for condos since April 2012.

Homes and condos are flying off the shelf. It is taking only seventeen days to sell a home, on average. Condos are taking eleven days.

All this is due to an incredible lack of inventory. Since January 2000, Santa Clara County has averaged 94 days of inventory. Last month it was twenty-seven.

Condos have averaged 87 days since 2000. Last month it was seventeen.

As of February 5th, there were 538 homes and 123 condos for sale in Santa Clara County.

Santa Clara County Stats – February 2016

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Year-Over-Year

  • Median home prices increased by 1.3% year-over-year to $940,000 from $928,000.
  • The average home sales price dropped by 4.6% year-over-year to $1,210,850 from $1,268,870.
  • Home sales fell by 13.6% year-over-year to 458 from 530.
  • Active listings fell 17.4% year-over-year to 1,467 from 1,777.
  • Sales price vs. list price ratio fell by 1.5% year-over-year to 103.5% from 105.1%.
  • The average days on market fell by 1.8% year-over-year to 31 from 31.

Compared To Last Month

  • Median home prices improved by 4.6% to $940,000 from $898,252.
  • The average home sales price rose by 11.4% to $1,210,850 from $1,087,020.
  • Home sales down by 10.5% to 458 from 512.
  • Active listings increased 35.2% to 1,467 from 1,085.
  • Sales price vs. list price ratio increased by 0.8% to 103.5% from 102.6%.
  • The average days on market dropped by 17.1% to 31 from 37.

Real Estate Report – February 2016

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Multiple Offer Offers

The sellers’ market continues to rage in Silicon Valley. Multiple offers are the norm, especially in desirable neighborhoods, which are those defined by:

  • Low-crime,
  • Good schools,
  • Stable, long-term residents,
  • Neighborhood amenities, such as parks, libraries, tennis and/or basketball courts, and curb appeal,
  • Short commute times and/or public transportation, among other things.

When deciding to buy a home in a multiple bid environment, there are some things buyers must do and some things they can do to increase the chances of winning the offer war.

First, all–cash offers are hard to beat, with no need for appraisals and the ability for the buyer to close quickly.

Yet, they can be beat.  First, don’t just get a pre-approval letter, get a pre-approval letter on steroids.

That kind of pre-approval letter will include some words from the lender verifying that you are a well-qualified buyer. Have the mortgage broker or agent provide some financial information about you and your offer. Also, have your mortgage broker take as much of the loan through the process as possible.

Reduce the loan and appraisal contingency time by pre-ordering an appraisal, this is more probable with smaller banks, direct lenders or mortgage brokers. You can then tell the seller, when you present the offer, the appraisal has been scheduled.

Next, get your inspections done early. Spending a few hundred dollars to get the inspections done within days of having your offer accepted shows the seller you are serious.

The cash buyer is going to expect a discount because he/she is paying all cash. You need to beat their offer.

Lastly, make yourself known to the seller. Write a letter letting the seller know who you are, why you like the home and what your intentions are. It doesn’t always work, but it’s another arrow in the quiver.