Good evening everyone and welcome to Raymond’s Real Estate Update for Santa Clara County and San Jose Real Estate 2014! What a year so far as the market is again on the rise.
While the inventory contributes to the pricing here in Silicon Valley, the demand over supply is still very high even after homes have appreciated 19.97% for the first 3 months of this year. So how high will it go? That’s a great question everyone asks these days. Santa Clara County has been on the rise since we bottomed out in February 2009 when the median price dropped to $442,000. As of March 31, 2014 it hit $865,000 which happens to only be $3,000 away from a high of $868,000 in 2007.
The market is different these days. Such as the interest rates that have increased by 1-1.5% higher over last year, but still 3% lower than it was during the dot.com days. The down payment is also much different. I remember all cash during the dot.com days, the stated income days or when buyers were coming in with a 1st and a 2nd loans and only 5% of their own money. Today, buyers are coming in with ALL CASH again. At least 33% of the time with my listings last year and or 20%-50% down. The down payment in some cases has even come from the parents. I just had one that the parents gifted $200k+ to their child so that they can accomplish their dream…and guess what? It worked when I had 7 offers and their down payment was the highest. The question that most buyers ask is what difference does it make when one has 10% down and the other has 35% down…isn’t all the same at the time it closes escrow? It is…if it closes. That’s a big if during the 20-30 days it takes to close escrow as qualifications in my experienced have changed and or the lender didn’t really qualify the buyer in the first place. I can get into more of that if you want to call me at 408-655-7900. Bottom line is every seller I have dealt with has taken the highest or pretty close to the highest down payment that happens to be in line with the best terms and best price.
Inventory is still an all time low over most real estate markets we have had since 1999 in Santa Clara County. Generally we can see 1,500-4,000 at this time of the year and yet the inventory ended in the month of March 2014 at 906 single family homes available. The weather didn’t help out buyers this year as our spring started in December 2013 instead of March or April 2014. Another reason if you are a buyer and or a seller reading this you should contact me. Most these days haven’t sold or purchased during the crazy markets we are experiencing. and think of Spring or Summer being the best months to buy or sell. I can show you numbers that say something different.
Take a look at just some of the graphs below showing actual numbers for Santa Clara County Real Estate, San Jose Real Estate, Almaden Valley Real Estate, Cupertino Real Estate, Santa Clara Real Estate, Campbell Real Estate, Blossom Valley, and Los Gatos Real Estate.
Santa Clara County median price up 19.97%↑ for the 1st 3 months.
ALMADEN median price 21.5%↑ Feb.-March or 7.7%↑ over same time last year.
Cupertino median price 13.2%↑ Feb.-March or 21.3%↑ over same time last year.
Cambrian median price 8.4%↑ Feb.-March or 11.7%↑ over same time last year.
CAMPBELL median price 2.3%↑ Feb.-March or 11.3%↑ over same time last year.
SANTA CLARA median price 1.1%↑ Feb.-March or 23.5%↑ over same time last year.
LOS GATOS-Monte Sereno median 15.1%↓ Feb.-Marchor 7%↑ over same time last year.
BLOSSOM VALLEY median price 1.7%↓ Feb.-March or 8.3%↑ over same time last year.
Thanks for reading Raymond Chavez Real Estate Blog! In the mean time don’t forget to visit www.raymondchavez.com to connect with me on LinkedIn or Facebook!