Tuesday, September 9, 2008

Housing Market Update

Buyers are in a position to heavily negotiate prices in this market. Over the past 12 weeks I have helped 7 buyers purchase property, and when there were no other offers on the home, or if it was on the market for longer than 30 days, or if it didn’t make a phenomenal first impression, my clients got amazing deals. Two of my clients purchased property which appraised for higher than they paid (instant equity).

Knowing how to negotiate is more important now as compared to prior years because sellers don’t just want the highest price. They want the buyer who will close the transaction, and the better you can display confidence in closing, the higher the chances your offer will be accepted. Conversely, while representing sellers, it is important to know how to make buyers fight for your property amongst themselves. When this is achieved you are assured that you have obtained the highest price and the greatest likelihood your buyer will close the deal.

Santa Clara County Market:

· Inventory levels falling for past 5 weeks

· Average sales at 415/week for past 12 weeks (Peak in 2005 was 550)

· The drop in supply is a seasonal change, but the increase in sales is NOT seasonal

· This indicates that the market is moving toward more competition for buyer’s and home prices edging upward

· This change is occurring very slowly, but it is a change nonetheless

The housing stats I’ve reviewed and interest rates below are showing a market trend in the direction of stabilization. Where it will go next nobody can know for sure, but if you are purchasing for the long term, now might be a great time to make that move and get in on the trend early before it fully develops.

"Our imagination is the only limit to what we can hope to have in the future."
Charles F. Kettering (1876 - 1958)

Enjoy your weekend, and if you know of a friend, coworker, family member or stranger who really wants to buy a piece of property and needs some motivation, or accountability, let me know. I’ll be sure to help them get what they want.

The table represents aggregated values based on MLS data for the specified date.

If the table above does not appear you can click here to view it over the web.