Posts Tagged ‘Santa Clara County’

Santa Clara Valley Real Estate Report – September 2012

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This Market is Going Nowhere
Although prices have been rising nicely since the beginning of the year, most of this is due to high end homes being bid up by the insta-aires from the recent IPOs.The bottom end of the market is being squeezed by investors out-bidding home-buying families, and the middle of the market is going nowhere because they are still underwater.The market will continue in this vein for at least the next couple of years, unless we see some drastic principal reductions.

The recent court case against the big five lenders: Bank of America, Wells Fargo, Chase, Citigroup and Ally Financial, requiring them to provide principal reductions, may quick start the market.

What should I do if I think I may qualify for a principal reduction or refinanced mortgage? Contact your lender/servicer and ask them to review your case.

If I take the money, what rights do I give up? Individual borrowers do not give up any right to sue.

As part of this deal, state attorneys general gave up the right to sue the mortgage servicers for foreclosure abuses arising out of the robo-signing scandal. However, they reserve the right to sue — or press charges for criminal behavior — if they uncover improper acts when the loans were originated or when they were securitized.

When will the new rules and bank policies be put into place? Most of them have already become part of bank policies.

When will homeowners find out if they’re eligible for a principal reduction or refinancing? The banks have said they expect to get started very quickly. The first step will be to identify borrowers who qualify for the deal.

AUGUST MARKET STATISTICS

Sales of single-family, re-sale homes took a dip last month, dropping 4.9% year-over-year.

Home inventory was off 34.4% from last August.

The median price for homes rose 14.4% year-over-year. This pushed the sales price to list price ratio to 101.8%. The median price has been higher than the year before for the past seven months. The sales price to list price ratio has been over 100% for the past six months.

The average price for homes was up 13.5% year-over-year. The average price has been higher than the year before for the past ten months in a row.

Pending home sales turned around for the first time since last November and were down 3% .

SALES MOMENTUM…

for homes dropped 2.3 points to +2.

PRICING MOMENTUM…

has been on the up-swing the past seven months. It gained 1.2 points to +2.

WE CALCULATE…

momentum by using a 12-month moving average to eliminate seasonality. By comparing this year’s 12-month moving average to last year’s, we get a percentage showing market momentum.

CONDO STATISTICS…

The median price for condos jumped 41.7% year-over-year and is now at its highest price since July 2008.

Condo inventory was down 79.6% from last July.

This is an extraordinarily tough market for buyers. It’s important to be calm and realistic. If you don’t know what to do or where to begin, give me a call and let’s discuss your situation and your options.

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Santa Clara Valley Real Estate Report – May 2012

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HIGHLIGHTS

– Market in a frenzy.

– Sales price to list price over 100% to 100.6%. Palo Alto’s sp/lp ratio was 108.6%.

– Home inventory won’t be increasing any time soon.

Low inventory and high demand are pushing the local real estate market to the extreme with buyers waiving contingencies, property inspections and even appraisals.

The last few months of multiple offers has forced the sales price to list price ratio for single-family, re-sale homes up to 100.6%, a level we haven’t seen since May 2010.

Prices have followed with the average home price now at it’s highest level since July 2008.

The high end of the market, however that is defined in a particular city, is on fire. The low end of the market is being driven by investors with cash and is also totally out of whack. The middle market, the move-up market is soft because the entry-level homeowners are still underwater.

What’s next?

That’s hard to tell because inventory is incredibly low. Home inventory is at its lowest point since December 2004. We don’t see that changing much in the near future for several reasons.

First, there is not a lot of new home building going on, which is necessary to relieve the pressure.

Second, many existing homeowners aren’t going anywhere. If they have good jobs here, where would they go?

Lastly, forget about phantom inventory. As of March, the banks owned 1,757 properties in the county. That number includes homes AND condos. There are currently 1,552 homes AND condos actively listed for sale.

Even if the banks put all their inventory on the market, it’s only five weeks worth!

We’re stuck with this market for at least the next year.

APRIL MARKET STATISTICS

As was to be expected, the largest price increases for single-family, re-sale homes were in Los Altos, up 19.7% year-over-year, Palo Alto, up 22.8%, Morgan Hill, up 17.2%, and Mountain View, up 10.6%. These are the median prices.

Even more telling is the sales price to list price ratios. Palo Alto weighs in at 108.6%. Mountain View and Cupertino were at 104%. Los Altos was 103.4%. The county as a whole was at 100.3%. Even San Jose was at 100%.

Home sales were down 3.9% year-over-year, and that’s not a function of low demand! Home sales have been lower than the year before for the past five months.

The condo side of things isn’t much different. Inventory is at its lowest level since January 2005, The median price for condos was up 22.6% compared to last April. The sales price to list price ratio was 100.9%.

This is an extraordinarily tough market for buyers. It’s important to be calm and realistic. If you don’t know what to do or where to begin, give me a call and let’s discuss your situation and your options.

Go to my on-line site SCVReport.com for the full report, plus a city-by-city breakdown.

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Santa Clara Valley Real Estate Report – September/October 2011

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– Mortgage rates reach record lows.

– Foreclosure starts surge in August.

– Prices for homes down, year-over-year, for the eleventh month in a row.

Thirty year fixed mortgage rates are down in the low, very low, 4% area.

Which is great for those who have the down payment, minimum 3.5% for FHA-backed loans and 5% for bank loans, and can qualify. Those few, those lucky few. (With all credit to Shakespeare’s St. Crispin’s day speech.)

Then there are the people who would love to refinance, but are underwater. So sorry!

Then again, this is Silicon Valley!!! Where many of the rules that apply to normal people don’t exist. Dot.com and IPO millionaires are pushing prices up in select cities, where multiple offers rule. Of course, these buyers are usually taking out jumbo loans which are about one percent higher.

Record low interest rates are having NO affect on the market.

In other news, foreclosure starts surged in August, with Bank of America leading the way by nearly doubling their initial notices of foreclosure, according to http://foreclosureradar.com.

In Santa Clara County, According to http://foreclosureradar.com, the number of bank-owned properties, called REOs, in Santa Clara County have averaged about 2,200 for the past thirteen months.

In the MLS, there are 255 properties listed for sale as REO. We are only counting active listings, not pending-continue to show, which the MLS counts as active.

There are 302 REO properties pending.

That totals 557 REO properties either for sale or in escrow. That’s only 25% of all bank-owned properties in play.

MARKET STATISTICS

Sale of single-family, re-sale homes fell 15.3% in September from August, but were up 0.4% year-over-year. Year-to-date, home sales are up 0.3%.

Condo sales followed a similar, down 19.4% from August and up 8.3% year-over-year. Year-to-date, condo sales are up 10.9%. There have been more condos sold this year than any year since 2007.

The median price for homes was down 9.2% year-over-year. This is the eleventh month in a row the median price for homes has been lower than the year before.

The median price for condos was up 0.5% compared to last September, breaking a string of twelve months in a row where the median price had been lower than the year before.

Inventory of both homes and condos continues to be weak. Home inventory was down 26.5% compared to last September: 2,154 homes actively listed. Please note, only active listings are included in this figure. Numbers from the local associations include properties that are also in a pending status, meaning they have an accepted offer, but haven’t been taken off the market.

Condo inventory was down 41.7% year-over-year.

Please remember, while statistics are nice, they will not determine the price you pay or get for a property. That will come down to you and the buyer or seller.

Go to my on-line site SCVReport.com for the full report, plus a city-by-city breakdown.

If you would like to search for properties in the Santa Clara Valley, go to my online search form at: MLS Search

If you find the Santa Clara Valley Real Estate Report useful and know someone else who might, please feel free to forward this e-mail to them. There is also a four page printable version with more articles here:
Printable Report.

Sincerely,

Andrew Hartland
Broker/Owner

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