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March Silicon Valley Real Estate Market Comments

Here are my observations of the most recent February transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website.

> General Market Observations and Comments -- The amount of homes (single family and condos and townhouses) available for sale, after a short spurt, continue to languish at low levels and have actually turned back down! As buyers enter the market, they have fewer choices and we see many instances of multiple offer situations with sale prices much higher than list prices.

First Time Buyers - What to Buy a Home with a 3 1/2% Down Payment? -- You can! These FHA loans have current rates of 3.875% with no points! The downside -- they are increasing their mortgage insurance premiums next month.

For February, Santa Clara County's median price for single family residences, half above and half below or the middle transaction, increased to $530,000, up 1.9% from $520,200 in February 2011. San Mateo County's median price stood at $580,000, down 2.5% from $595,000 the same month a year ago.

For condos/townhouses, Santa Clara County's median price was $310,000 in February versus $295,000 the same month a year ago, representing a 5.1% increase. For San Mateo County, the median stood at $376,000, down 3.3% from $389,000 in February 2011.

Sales (my definition is closed transactions), increased in each county. For Santa Clara County, closings increased 35% for single family residences to 918 from 679 the same month a year ago and increased 32% for condos/townhouses to 413 from 313 in February 2011. In San Mateo County, closings increased 46% for single family residences to 370 from 252 in February 2011 and increased 44% for condos/townhouses to 117 from 81 in February 2011.

Thanks for reading my blog. I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.

February Silicon Valley Real Estate Market Comments

Here are my observations of the most recent January transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website.

> General Market Observations and Comments -- The amount of homes (single family and condos and townhouses) available for sale, after a short spurt, continue to languish at low levels. The most interesting thing about this trend toward fewer homes on the market is twofold: one, this occurs every year but this time the level is at its lowest since 2005; and two, the portion of lender-controlled homes (short sale and bank-owned) has diminished but with lower inventory of regular transaction homes, the portion of lender-controlled listings are larger.

Mortgage rates continue to hover in the high 3% to low 4% range. Since most buyers need a loan to purchase a home, mortgage rates are a major consideration in the decision and ability of the buyers to purchase. I continue to advise those buyers who purchased even last year to refinance their "low" 4 3/4% loans and lock in a high-3% loan rate for the long haul.

For January, Santa Clara County's median price for single family residences, half above and half below or the middle transaction, stood at $489,900, down 6.6% from January 2011. San Mateo County's median price stood at $575,000, no change from the same month a year ago. In addition to the seasonal aspect where prices typically decline in off-peak season selling periods, the mix of homes available are made up of a higher portion of lender-controlled transactions (short sales and bank-owned). Furthermore, the smallest homes sell during these off-peak periods which also impact prices.

For condos/townhouses, Santa Clara County's median price was $271,444 in January versus $265,000 the same month a year ago, representing a 2.4% increase. For San Mateo County, the median stood at $317,500, down from $371,250 in January 2011.

Sales (my definition is closed transactions), increased in each county. For Santa Clara County, closings increased 23% for single family residences and 40% for condos/townhouses as compared to the same month a year ago. In San Mateo County, closings were 27% higher and condos/townhouses were 17% higher than the levels in January 2011.

Don't hold your breath! The state attorneys general mortgage deal with the five banks totaling $25 billion is great for those borrowers. Right? Well, after the government gets their squeeze of $2 billion (for what you ask), the remaining $23 billion will take an estimated one to three years to find its way to borrowers. Why so long? The government has to write the rules first. By the way, the latest figure I've seen regarding the amount of mortgages associated with homes where the values are "under water" was between $700-800 billion! I call that a drop in the bucket.

Thanks for reading my blog. I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.

Lunar New Year Events - 2012

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January Silicon Valley Real Estate Market Comments

Here are my observations of the most recent December transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website.

> General Market Observations and Comments -- The amount of homes (single family and condos and townhouses) available for sale continued their downwards trend in December. The most interesting thing about this trend toward fewer homes on the market is twofold: one, this occurs every year but this time the level is at its lowest since 2005; and two, the portion of lender-controlled homes (short sale and bank-owned) has diminished. Inventory, or the number of homes available for sale (supply) resembles what it was in December 2005. Many of will recall that the real estate market was super active then with almost no lender-controlled listings.

Still the case is a bifurcated market condition. Homes available for sale have a median days on market of about 70 days whereas those homes that closed escrow have a median days on market of less than 35 days. Homes priced well and in good condition, sell quickly and get the most activity (i.e., higher prices, quicker sale). Overpriced homes or those in poor locations or in poor condition (bank-owned or short sale homes are mainly in this category) stay on the market far longer.

Mortgage rates remain very favorable for buyers in the range in the high 3% to low 4% area. Since most buyers need a loan to purchase a home, mortgage rates are a major consideration in the decision and ability of the buyers to purchase. Even with lowered sales figures, escrow companies seem to be busy with loan refinance or refi activity. I've advised those buyers who purchased last year to refinance their "low" 4 3/4% loans and lock in a high-3% loan rate for the long haul.

For December, median price for single family residences, half above and half below or the middle transaction, stood at $530,000, a slight decrease from November and down about 1% from December 2010. Not too much you can make of this as the mix of homes is in constant change mode. Better to look at a smaller area or even neighborhood to get an idea of the price trends. When you do this analysis of various areas, we find prices actually increased a bit in a range of 4-8%!

Got that "love" note from your landlord or property manager yet? Rents have been impacted by demand from those who lost homes to foreclosure, new family formations and an improved employment picture in Silicon Valley. So much so that rents have increased about 12-15% from last year. Any end in sight? I don't think so as available homes to rent which has been steady in recent times will go up a bit as there are some developments of apartments going. The amount is insufficient to offset the increased demand that has and is taking place. Time for investors? That's what I've been saying for a while now.

Thanks for reading my blog. I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.

Sunnyvale Community Services - Annual Christmas Center Auction

Dear Friend,
As you may know, I serve on the Board of Directors and am Treasurer of Sunnyvale Community Services.  Our mission is to prevent homelessness and hunger in our local community.

I’d like to personally invite you to:

·         Sunnyvale Community Services’ (SCS) annual holiday auction

·         5-7:30 p.m. Thursday, December 1^st

·         Location at SCS, 725 Kifer Road, Sunnyvale

The SCS auction features delicious food and beverages, as well as the chance to bid on exciting gifts, all donated by local businesses and friends of SCS!  Auction items include platters of home-made cookies; gift certificates to local restaurants and businesses; gift baskets in diverse themes; tickets to A’s, Giants, and Sharks games; vacations in Cancun and Sonoma County; wine and olive oil tastings; a red Radio Flyer wagon filled with toys; Leslie Lawton’s Luscious Limoncello; a hiking and camping adventure; jewelry; electronics; and group dinners hosted by community leaders!

100% of all proceeds go to provide food and financial support during the holidays and throughout the year.  You can do your holiday shopping and help others at the same time by joining in this fun community event!

For a list of auction items, please visit our website: www.svcommunityservices.org
 
Admission is free, but we ask that you bring a bag of non-perishable food or a new unwrapped gift to donate.  SCS is especially in need of canned meals, peanut butter, gift cards for teens, and gifts for children ages 7-11.  This is a festive night of food, friends, helping out, and having fun, and I would personally love to see you there!
 
If you can’t make it to the holiday auction, you can still help local families by making a financial gift to SCS.  We’re striving to raise more than $500,000 during the holiday season to serve more than 7,000 individuals in the coming year.  Every dollar donated makes a difference, helping to keep struggling families housed and fed.  For example, a gift of $50 keeps a family sheltered for one night, and $1,000 buys 300 jars of protein-rich peanut butter!
 
To donate to SCS or learn more about our services, our clients, or how our funds are used, please visit www.svcommunityservices.org .  I would be delighted to talk with you further about our work. You may also contact Marie Bernard, Executive Director at Sunnyvale Community Services, at 408-738-0121.

Best Wishes for a healthy and happy Holiday Season!

To life's best,

Tom

Tom McEvoy, MBA

Realtor® / Seniors Real Estate Specialist® / Broker Associate

408-830-0092

RE/MAX Santa Clara Valley

1530 Parkmoor Avenue, Suite B

San Jose, CA 95128

DRE #01275853

email: Tom.McEvoy@remax.net  

web: www.ThomasMcEvoy.com

blog: http://behindtherealestatescenes.blogspot.com/  - Market updates and more!

Member, Board of Directors and Treasurer, Sunnyvale Community Services  (www.svcommunityservices.org ) – A non-profit dedicated to preventing hunger and homelessness.

Perfect First Home in Serene Santa Clara Neighborhood

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1746 Oswald Place, Santa Clara, CA 95051

3 Bedrooms, 2 Full Baths, 1,283 SF Living Space on 5,670 SF lot

Offered at: $552,000

Home features several improvements but waiting for your personal touch/décor. Formal entry opens to great room, open floor plan with hardwood floors and cozy, wood-burning fireplace. Fresh interior paint and newer updates in kitchen, baths. Backyard with spacious patio, perfect for entertaining and your family gatherings. Peaceful, away from San Tomas and El Camino traffic.                                                                                                        Santa Clara Schools: Bowers Elementary; Cabrillo Middle; Wilcox High School.

    SEE OUR VIRTUAL TOUR AT:  http://www.circlepix.com/home/ 8X32FE

Open Houses:

39th Annual Sunnyvale Community Services Holiday Affaire

Please join us at this special annual event sponsored by Sunnyvale Community Services (SCS).  Many items including ornaments, quilts, baked goods, jams, knit and crocheted items, jewelry, gifts and more will be available.  100% of the proceeds benefit SCS.  We thank the SCS Auxiliary for donating their time, energy and creativity to make this happen each year!

WHERE: Sunnyvale Community Services, 725 Kifer Road, Sunnyvale, CA 94086

WHEN: Saturday, October 22nd from 9:30am to 3:30pm

Sunnyvale Community Services is a non-profit organization with a mission to prevent homelessness and hunger in Sunnyvale.  I am a proud member of the Board of Directors and Treasurer of SCS.

Wonderful Birdland Sunnyvale Home with Cupertino Schools

New on Market...

1657 Heron Avenue, Sunnyvale, CA 94087 // List price: $758,000

both days 1:30pm - 4:30pm

Features: 3 bedrooms, 2 full baths, 1,417 SF of living space, lot 6,300 SF

Home features several improvements but ready for your personal touch/décor. Living room with freshly finished hardwood floor and cozy, wood-burning fireplace. Step-down family room with fireplace. Fresh paint, flooring and some new windows. Professionally landscaped new front yard. Large backyard with spacious patio, perfect for entertaining and your family gatherings. Award winning Cupertino schools including Stocklmeir Elem., Cupertino Middle; Fremont HS.

For additional information or to arrange a showing, please call:

Tom McEvoy, MBA

Realtor / Seniors Real Estate Specialist / Broker Associate

RE/MAX Santa Clara Valley

408-830-0092

DRE#01275853

 Copy this link and Take a Virtual Tour: http://www.circlepix.com/home/N4BHJK

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July Silicon Valley Real Estate Market Comments

Here are my observations of the most recent June transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website.

> General Market Observations and Comments -- Closings continue to increase in both counties but the level remains below the average of the past ten Junes. The "market" seems like it is bipolar. There is one portion of well-priced, good condition homes that sell quickly and those others which are over-priced or have other issues like poor condition that linger on the market for a long time. Inventory, or the number of homes available for sale (supply) has increased but it, too, continues to grow at a slower rate than the ten-year average.

Buyer demand continues to point to single family residences (SFR) and away from condos/townhouses. This is especially evident for First Time Buyers as well as Investors. About a third of all transactions are for all cash. I continue to advise buyers that if there is a preference for the life-style of a condo or townhouse, there are better buys possible and buyers can have more advantages than sellers. Yes, condos and townhouses have homeowner association dues, of course, that often cover additional ownership features and benefits (e.g., utilities, pool/spa, exercise rooms, and the like) but the owner doesn't have to worry about mowing the lawn!

Of the 1,128 Santa Clara County single family homes that closed escrow in June, 50% sold in 22 days! One of my closings last month was a Sunnyvale home on the market just six days. It sold comfortably above list price. Another of my closings, a Santa Clara home in a nice neighborhood sold in about a month for 6% under list price.

The northwest quadrant of Santa Clara County continued to be the hottest market area, as was the case last month. The area comprises the cities of Mountain View, Los Altos and Palo Alto. This area had the lowest DUI reading in Santa Clara County of just 37 days, clearly a seller's market. Next door, Sunnyvale and Cupertino had a DUI of 50, balanced to seller's market. Some of us are calling this the "Facebook" effect. By contrast, the DUI for the expensive Los Altos Hills is 153, clearly indicating a buyer's market.

Days of unsold inventory (DUI) for Santa Clara County by price range is interesting. Overall, the DUI reading was 60, up slightly from last month of 58. The DUI for homes priced under $450,000 was just 35 days; those priced from $450,000-600,000 was 59 days; those priced from $600,000-750,000 was 74 days; from $750,000 to $1 million was 66 days; from $1.0 million to $2.5 million was 74 days; from $2.5 million to $5.0 million jumped to 225 days and finally, those priced above $5.0 million was 1,330 days! Clearly, the higher priced homes in both counties may have to undergo more aggressive price concessions to move in this bipolar market environment. One of my clients leased a new, never-been-lived-in Hillsborough home a bit more than two years old that the owner tried to sell ever since he completed the construction. List price was $4.8 million and the home never had a price adjustment during the entire time on the market!

Days of Unsold Inventory is an indicator I use to gauge whether the market is a Buyer's market, Seller's market or what we call a Balanced market. In Santa Clara County, the Buyer's market are for those areas above 90 DUI a Seller's market would have a DUI reading under 45. Balanced markets are those in between.

Mortgage rates remain very favorable in the range in the high 4% to about 5% range. Since most buyers need a loan to purchase a home, mortgage rates are a major consideration in the decision and ability of the buyers to purchase.

Thanks for reading my blog. I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.

CA DRE# 01275853

June Silicon Valley Real Estate Market Comments

Here are my observations of the most recent May transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website.

> General Market Observations and Comments -- Closings increased a bit more in May than in April but continues to be less than the average May over the past ten years. Inventory, or the number of homes available for sale (supply) has increased but it, too, continues to grow at a slower rate than the ten-year average.

Demand continues to point to single family residences (SFR) and away from condos/townhouses. My advice for buyers: if you prefer the life-style of a condo or townhouse, there are better buys possible. Yes, they have homeowner association dues that often cover additional ownership features and benefits (e.g., utilities, pool/spa, exercise rooms, and the like) but the owner doesn't have to worry about it.

As for the available homes for sale -- we're seeing a bipolar market. Homes priced well and in good condition, sell quickly and get the most activity (i.e., higher prices, quicker sale). Overpriced homes or those in poor locations or in poor condition (bank-owned or short sale homes are mainly in this category) stay on the market far longer and eventually sell with lower prices or as "fixer uppers" or "fix and flips".

As was the case last month, one of the hot markets was the area comprising the cities of Mountain View, Los Altos and Palo Alto. This area had the lowest DUI reading in Santa Clara County of just 37 days, clearly a seller's market. Next door, Sunnyvale and Cupertino had a DUI of 50, balanced to seller's market. Some of us are calling this the "Facebook" effect. By contrast, the DUI for Los Altos Hills is 153, clearly indicating a buyer's market.

Days of unsold inventory (DUI) for Santa Clara County by price range is interesting. Overall, the DUI reading was 58. The DUI for homes priced under $450,000 was just 35 days; those priced from $450,000-600,000 was 59 days; those priced from $600,000-750,000 was 74 days; from $750,000 to $1 million was 66 days; from $1.0 million to $2.5 million was 74 days; from $2.5 million to $5.0 million jumped to 225 days and finally, those priced above $5.0 million was 1,330 days! Clearly, the higher priced homes may have to undergo more aggressive price concessions to move in this bipolar market environment.

Days of Unsold Inventory is an indicator I use to gauge whether the market is a Buyer's market, Seller's market or what we call a Balanced market. In Santa Clara County, the Buyer's market are for those areas above 90 DUI a Seller's market would have a DUI reading under 45. Balanced markets are those in between.

Reversal for Reverse Mortgages -- Wells Fargo, following Bank of America's lead a couple of months ago, announced they were leaving this market. This means that the two large banks controlling 50% of this market left! This does not bode well for the future as less competition means even higher rates and fees, something not pleasant for the consumer. Reverse mortgages were inherently high-cost items to begin with and in the past I've recommended clients being extremely careful of them. In theory reverse mortgages were good but more difficult certainly in practice.

Mortgage rates remain very favorable in the range in the high 4's. Since most buyers need a loan to purchase a home, mortgage rates are a major consideration in the decision and ability of the buyers to purchase.

Thanks for reading my blog. I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.