Silicon Valley Real Estate Market Update

My past few blogs have been focusing on the current market here in Santa Clara County.  I continue to follow the market closely.  2011 is off to a great start and I am (along with some of my peers) forecasting a 15% to 20% increase in overall sales volume for 2011 over 2010.  I anticipate that prices in Santa Clara County will remain mostly flat/stable/slightly rising with a 1-3% plus or minus variation depending on specific market areas.  We are already experiencing a much improved market in 2011. 

Sales Absorption (properties under contract):  As of January 2011 26.7% of the active listings were under contract which is up significantly from 16.6% in January of 2010.  This is the highest percentage of active listings we have seen under contract in over 2 years.  It is suggested that when the percentage of properties under contract is at 25% that is the mark of equilibrium in the Bay Area Real Estate Market; i.e., this is the point of balance where we are no longer in a buyer or a seller’s market.  The “playing field” is equal. 

 If you are thinking of buying and/or selling a home, now is a great time.  Interest rates are still at an all-time low and realistic pricing.  I am here to answer any questions and help you with ALL your real estate needs.

College Park/Rose Garden Short Sale – Open House – Saturday January 29th

Charming College Park Bungalow

Here is an opportunity to own a charming bungalow priced below market. 

2 bedrooms – 1 bathroom / 1,122 square feet on 5,000sf Lot

Separate Formal Dining Room, Arched Doorways, Large Living Room with Fireplace, Oversized Detached Garage, much more. 

List price:  $469,000

San Jose, California #1 City for Home Values in 2011

I came across this great article provided by Forbes Magazine which indicates San Jose, California, as the number 1 city out of 10, to expect property prices to rise in 2011.  Click on Forbes Magazine to read article.

A Bit of Real Estate News

I host an open house almost every weekend.  The one question I get consistently is:  “how is the market?” 

The local real estate industry is forecasting a 15%+ increase in overall sales volume for 2011 over 2010.  I have a friend in the mortgage banking business that is forecasting a 20% increase.  I anticipate that prices will remain mostly flat/stable with a  1-3% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis.  Overall, we expect an improved market in 2011.

 On a national level, NATIONAL ASSOCIATION OF REALTORS® Chief Economist Lawrence Yun is forecasting 5.2 million existing-home sales in 2011, up from 4.8 million last year. He also expects modest improvement in prices—a rise of about 1 percent this year on a national basis. That would be the first in what Yun says will be a series of small but steady gains in the years ahead that will eventually bring home sales back to a period of normalcy.

On the State level California Association of Realtors Economist Leslie Appleton-Young forecasts “home prices will rise 2 percent this year.”  She goes on to state “there is little chance of home prices returning to their previous peak levels anytime soon.  “We are in a slow-moving recovery with prices stabilized at the moderate and low-end.”

I also want to take this opportunity to thank you for referring your friends and family to me whenever they are in the market to sell or buy a home.  You can be assured that I will work hard and treat them with the utmost care and professionalism.   

Rent vs. Owning

 As always, buyers are looking for the best price on a home to buy.  However, even though mortgage interest rates have been inching upwards again, they are still near historical lows.  In essence, the cost of the home over the 30 year loan will be influenced by the interest rate.  Now is a great time to start building equity and taking advantage of the fabulous interest rates. 

If you are currently renting, you are probably asking yourself is homeownership possible?  What do the numbers look like?  Below is an Rent vs. owning example.  *Tax bracket may be more or less.  Please consult your CPA for accuracy. 

Sales price:               $450,000

Current Rent:          $     2,300

 Estimated monthly Cost of Owning:

 

1^st Mortgage Amount LTV           80%                $360,000 loan

Principal and Interest Payment (5% interest rate)   $1,933

Property Taxes Santa Clara County 1.25%                      469

Homeowners insurance approx.                                          80

 TOTAL MONTHLY PAYMENT:                                                                  $2,481

 Less:

            38% tax bracket monthly savings*                   $  748           

            Monthly Equity Build                                            $  433

SAVINGS:                                                            $1,181

Effective Mortgage Payment                                          $1,301

Monthly Savings (Cost of Buying) $999

VISIT MY OPEN HOUSE SUNDAY, JANUARY 9

Please come visit me on Sunday, January 9th.  I will be holding open a a fantastic home in the sought after Thousand Oaks neighborhood.  The home is an exceptional value.  In addition it is situated on a corner lot with a tree-lined street.  Welcome Home. 

4111 Glenmont Drive, San Jose, CA 95136 – between Almaden Expwy and Pearl off Branham Avenue.

3 bedroom – 2 bath

1486 square feet

$499,850

Happy 2011!!!

Did you make a New Years’ Resolution?  Every year it seems we all make the same resolutions:  lose weight, get in shape, focus on business, focus on the family more, get organized, blah, blah, blah. 

This year instead of making several “resolutions” that I probably won’t keep, I have decided to focus on one resolution; to focus and enhance all my relationships both business and pleasure.  I would love to hear what your resolutions are. 

As we begin 2011, I wish you the best year ever and look forward to getting to know you all better and on a deeper level.

July 4th 2010 – Where to See Fireworks

Central Park in Santa Clara  July 4th All City Picnic – Breakfast, entertainment, music, carnival games, face painting, swimming, food.  Live music by the Hitmen will begin at 3:00.  Fireworks display at 9:30pm.  All city pic-nic. 

Cupertino - 10am Parade starting at Memorial Park with family concert to follow; 6:45pm musical entertainment at Creekside Park, Hyde Middle School or Sedgwick Elementary. Fireworks begin at 9:30pm.   San Jose Municipal Stadium – home of the San Jose Giants

San Jose July 4th Fireworks Celebration – 95.3 KRTY’S All-American Country Jam – concert featuring Country Music Artist Chris Cagle and a performance by Ash Bowers. Sunday, July 4, 2010. Home of the San Jose Giants – 588 East Alma Avenue, San Jose, CA. 408-297-1435.

Shoreline Amphitheatre  – The 24th Annual 4th of July Fireworks Spectacular - featuring the San Francisco Symphony and music from Wicked, Rocky, West Side Story, Peter Pan, Titanic, Raiders of the Lost Ark, Star Wars and many more! 4-pack of Reserved Seats are only $79! Tickets at LiveNation.com

Morgan Hill - Morgan Hill Independence Day, Inc. – 5K run and one-mile walk at P.A. Walsh School, family bike ride at Coyote Creek Trail, car cruise and parade in downtown Morgan Hill, fireworks at Morgan Hill Community Park. Sunday July 4, 2010. Festivities begin with one-mile walk at 8 a.m, other events to follow.

Home Buyer Tax Credit Most Likely Extended to September 30, 2010

The House of Representatives passed a stand-alone bill yesterday extending the closing deadline for the federal home buyer tax credit to Sept. 30, 2010; which has also been approved by the Senate.  President Obama is expected to sign the bill.

If you are first time home buyer, the State of California also has tax credit that you can participate in. 

Los Gatos California * Jazz On the Plazz 2010

I love summer in Silicon Valley.  There are many outdoor concerts, street dances, community festivals and various County fairs.  I want to share a few events that are coming up.

 Los Gatos Jazz on the Plazz 2010 – every Wednesday night 6:30 to 8:30 beginning June 23, 2010 through August 25, 2010.  Bring a lawn chair and a pic-nic and make sure to arrive early for the best seat.   Visit the Jazz on the Plazz website  for the performance line up.