Silicon Valley – Lots of competition for well-priced homes in popular areas. The market is picking up, especially under $2 million. In Los Altos, more buyers are getting ready to move, trying to beat the Facebook crowd. Speaking of FB, see my next Blog) Multiple offers are happening in half of the sales. Creating inventory continues to be the biggest challenge in Los Gatos. The same story is echoed in Palo Alto, where inventory is almost as low as in 2005 – with extreme demand. Buyers are competing for homes under 500K. Sellers who feel the market has improved and now they can ask more don’t sell. However, buyers are willing to pay top dollar for “turn key remodeling.” In Saratoga, even though we’re experiencing multiple offers below the $2.5 million level, the inventory remains very low. Managers are encouraging agents to tell their sellers that this is the time to place their homes on the market. We’re experiencing many multiple offer situations. Anything below $3,000,000, if priced correctly, seems to be selling fast. Buyer’s agents seem to be frustrated as there are 5 to 15 offers on each property. This is the time for agents to concentrate on getting listings as they are gold in a market like this.
SF Peninsula — Sales activity is on the rise and there is a definite positive attitude in the buyer’s market. Five to seven offers on Burlingame, San Mateo, Belmont and San Carlos properties are becoming the norm. Buyers are waiving contingencies and appraisals after going through four or five tries to buy a property and losing out. There are also a many cash buyers, which adds to the frustration of those trying to buy with conventional financing. The luxury end of the market is also picking up. We are seeing the early Facebook/tech company etc. buyers coming to Hillsborough and in many cases making cash purchases. Coast side realty agents are enjoying the overflow from the Peninsula with all their multiple offers. This overheated market continues to be short on inventory and long on buyers. All the buyers who have been ‘sitting on the fence’ for the past 18 months have now all jumped off at the same time. Realtor compare it to stock market anticipation. In Palo Alto, extraordinarily low inventory is resulting in numerous multiple offers. It’s a very frustrating market for buyers and agents alike. Woodside and Portola Valley are not experiencing the frenzied activity that we are seeing in Palo Alto and Menlo Park. Price points are higher and sales are slower. The higher the price, the more cautious the buyer. Many younger buyers want more urban, close to town and transportation locales. In Redwood City, the few open houses in the area had had an amazing amount of people through. San Carlos properties are selling very quickly usually with multiple offers. Redwood City seems to take a little longer but if priced correctly in a good location homes are also getting multiple offers but usually not as many. Belmont inventory is also low but again if priced right in a good location they are also selling. The main drive seems to be affordable money and lack of inventory. San Mateo inventory levels are dropping lower and lower. Buyers are out there as multiple offers indicate. The high-end market is also improving.
2012 home sales in the Bay Area were up in January. Several key economic reports showed surprising gains. And even the long job market turned in positive numbers in the initial weeks of the new year.
Bay Area home sales in January jumped to their highest level for the month in five full years, according to DataQuick, the La Jolla-based real estate research firm. A total of 5,479 new and resale houses and condos sold in the nine-county region during the month, up 10.3 percent from January 2011. This marked the seventh straight month of year-over-year sales gains.
DataQuick attributed the improvement to:
o lower home prices,
o record-low mortgage interest rates,
o a surge in investor purchases and
o an improving economy.
While the jump in sales is encouraging, the firm cautioned that activity was still tilted heavily toward distressed sales in many Bay Area markets. As a result, the median sale price dipped 2.8 percent from the previous month and 3.6 percent from a year ago.
Even more encouraging for the housing market, the labor market is steadily improving. Initial weekly unemployment claims fell 15,000 to 358,000 in a new report by the Labor Department. And the four-week average fell to its lowest level since April 2008, the period before the financial crisis. Finally, the unemployment rate has dropped to a three-year low of 8.3 percent.
Most analysts agree that in order to have a self-sustaining recovery in the housing market we first must have a significant turnaround in the job market. There are indications with improvements in recent months that could be happening at long last.
While all of these economic and employment reports give us reason for optimism, we can’t ignore the fact that the housing market still faces some challenges before returning to normalcy.
Sales have rallied in the new year, but we’d like to see the mix of homes selling move more towards the center of the market and become less reliant on distressed sales. That’s happening in many communities, but far from all.
Should you not wish to see your name and photo in a LinkedIn advert you can take the following action:
1. Place the cursor on your name at the top right corner of the screen. From the small
pull down menu that appears, select “settings”
2. Then click “Account” on the left/bottom
3. In the column next to Account, select the option “Manage Social Advertising”
4. Finally ensure that the box “LinkedIn may use my name and photo in social advertising” is unticked.
5. and Save
If you wish to inform your own connections you can do so easily:
Simple: Via Inbox – > Compose message in Linkedin, you can send a message to 50 connections at once. All whom will appreciate being informed.
I’m Nino Gaetano, a 3rd generation Bay Area native/resident, realtor and grandson to one of Portola Valley/Menlo Park’s pioneering families(Skrabo-Croatia). I attended St. Raymond’s School, Menlo-Atherton High School and then Washington State University – majoring in Cultural Anthropology and Sociology. I have 14 years of real estate experience and am an evolving expert in local & national markets. I brokered the largest real estate transaction in Portola Valley town history. I have a wealth of industry knowledge, respect among colleagues and am a recognized industry leader in creative technology and marketing homes through the Internet.
My blog is going to address real estate topics of interest. Topics that are of interest to you on a daily basis. I also want my blog to be an Internet location that will on occasion, entertain you by providing you with tips about everything from the ways of the Internet to perhaps an interesting recipe.