The invitation to participate in this real estate market has been circulating for a couple of years. Buyers came to the party in full force in 2012. Sales prices have increased 11% in Los Altos and 14% in Los Altos Hills for 2012. Will 2013 see the sellers come? Inventory is the lowest I’ve ever seen and if supply and demand are forces striving for balance, then sellers should be coming to the party. Just as there was pent up demand for buyers waiting for the best time to come back into the market (2012), that pent up demand for sellers has been just as strong. Sellers weren’t ready to down size when the national news was only negative. Since October the national news has reported a housing recovery and sellers are starting to look at the few sales in their neighborhoods and if they are in Silicon Valley they are shocked by the increase in prices. The lack of new construction for single family homes and the increase in employment in Silicon Valley, combined with low interest rates, has created a party atmosphere that sellers should be enticed to join. I predict the sellers are going to find this party too good to miss.Read More
I can’t believe I’m actual writing positive news about the real estate market. There has been a deluge of negative information the past few years. Many have chosen to tune out the market because the news has been so depressing. I am upbeat about real estate in 2012 for the Bay Area. Here are a few reasons why.
First of all we have jobs in this area. The tech industry is strong and fortunately many of these companies are based in the Bay Area. Secondly we have record low interest rates. The average 30 year fixed mortgage rates have been below 4%. Also, the market has stabilized to some extent with an improved economy and finally, first time homebuyers are coming into the market competing with investors.The only complaint I have is that the inventory is too low.
Homeowners have been reluctant to put their properties on the market with all the negative news. As they see the bidding wars in their neighborhoods, that may soon change. It is not uncommon to see multiple offers on properties in key areas. The Peninsula has historically been a desirable market for buyers with reasonable commutes and top rated schools. Now that buyers are back it is getting competitive.
The numbers are starting to look better. Los Altos’ average home prices are up 8% over 4th quarter of 2010 and up 3% in Los Altos Hills. Santa Clara County has stayed flat in the same period. I am cautious about the real estate market but there is reason to feel optimistic, finally.
Carol Sangster is a realtor with Alain Pinel Realtors in Los Altos. She can be reached via email at firstname.lastname@example.org or by phone at (650) 254-5255.Read More