Wednesday, September 16, 2009

Santa Clara County Prices are on the Rise!

Prices are On the Rise!
After years of county-wide depreciation, home prices are finally rising.  The rise in price is an indirect correlation with days on market, signaling that prices are on the up and up.

The real estate market is soaring! We have had a surge of activity in homes priced below $500K.  Looks like we hit rock bottom about 6 months ago, further evidence that the market is on the way up.

Zillow Falls Short Again…
Many buyers and sellers have been raving about Zillow and their appraisal services.  I spoke to my real estate appraiser about Zillow to test the accuracy of their claims. Here are his research findings. He found out that Zillow is off by an average of 11.9%, or $82,348!  Always remember to use a trusted adviser when making financial decisions.

Inventory has dropped 500 homes/mo. for the past 5 months.

November 30th is the Deadline for $8,000 First Time Home Buyer Tax Credit. Click here to learn more.

I sold the large 2 bedroom 2.5 bathroom townhouse priced at $419,000 near Santana Row. Check it out at

Market ReCap
Average sales price for the Santa Clara County was at $692K for the month of August! Time on the market is shortening rapidly, this signals multiple offers. Below is the chart of sales in all cities East of Highway 880. If you look closely you will find 13 consecutive months (OVER A FULL YEAR) of demand exceeding supply. The market in the county is running strong, and the time to buy is now!
For Comparison: Again sales West of Highway 880 exceed new listings.

Current Prediction
Fewer properties will be coming on the market through the end of 2009. Buyers will continue to receive great deals due to the threat of rising interest rates and losing out on the $8,000 tax credit.  These factors will play a larger role than the threat of prices going down, continuing to drive prices up.

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

Enjoy the rest of your week and as always I welcome referrals from friends, co-workers or family members looking to buy a piece of property.  I am also happy to provide sound unbiased advice at any time. You can rely on my integrity and follow-through.

pix-data"Mistakes are the portals of discovery."
* James Joyce (1882 - 1941)