South County Sales Week of August 13 - 20, 2008
Date: Wednesday August 20, 2008Posted in: real estate, Morgan Hill, South Santa Clara County, buyer's market, San Martin, Gilroy, statistics, listings, pending sales, housing market, average price
How many south Santa Clara County resdential listings went from active to pending status this past week? In the towns of Morgan Hill, San Martin and Gilroy, there were a total of 41 listings that went under contract last week! That is a very healthy number and shows that buyers are finally getting the message to take advantage of this market.
Of these 41 sales, the list price ranges were as follows:
$200,000 - $500,000 = 27 sales
$500,000 - $800,000 = 9 sales
$800,000 - $1,200,000 = 2 sales
$1,200,000 - $2,000,000 = 3 sales
This is indicative of our lowering median and average prices in the south county due to the low price range of what is selling. It is interesting to note that out of these 41 residential sales last week, only one of the sales was a townhouse/condo.
Tune in next week to see how we fare in sales in the market!
Should We Sell or Buy First?
Date: Tuesday July 22, 2008Posted in: multiple offers, home, buyer's market, housing market, seller's market
I often have clients ask, “Should we find the house we want to buy prior to listing our house on the market?” And the answer depends on what the real estate market is doing. For example, we currently have a buyer’s market with a large number of homes listed. So, instead of jumping into a purchase that is contingent on the sale of the buyer’s home, it is much better to sell the home first. This is because it could take many months and possible price reductions until the home is sold. Not only will there still be a good supply of homes available for sale when the home is sold, but the person who has already sold their home has much more leverage in the negotiation process in their next purchase.
Now consider the seller’s market we had a few years ago. There were few homes available for purchase and those that came on the market were often sold very quickly with multiple offers. In that kind of market, it’s advisable to find a desirable, affordable house and put in an offer that gives you time to attract a good offer on your current house.
Also keep in mind that if you’re selling high, you’re probably buying high and if you’re selling low, you’re buying low. Don’t try too hard to time the market when you are buying and selling in the same type of real estate market.
The Basis of Wealth
Date: Thursday June 12, 2008Posted in: real estate market, real estate, real estate buyers, buyer's market, wealth, Theodore Roosevelt
I bet you’ve heard the saying, “Buy low, sell high.” Well, this is a “buy low” kind of real estate market we are in and now is the time to take advantage of it. I am working with a few clients looking in the $200,000 to $300,000 range and they are thrilled to have the opportunity to purchase in this “buy low” real estate market.
An interesting quote from President Theodore Roosevelt: 
“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
What was true at the beginning of the last century is still true today.
Isn’t it ironic?
Date: Monday May 5, 2008Posted in: real estate, multiple offers, Morgan Hill, real estate buyers, buyer's market, San Martin, Gilroy, MLS, median price
Several years ago, home buyers:
- were desperate to buy anything that could hold up a roof
- would offer well over list-price, especially when competing with other offers
- would purchase the home in as-is condition
- would have no contingencies in the contract
Fast-forward to 2008. Buyers are now paralyzed. It’s ironic because:
- there is a record amount of inventory to choose from
- sellers have dropped their list prices, and in many cases by hundreds of thousands of dollars
- interest rates are still low
- sellers are accepting terms that meet the buyer’s needs
Here in south Santa Clara County, average and median prices are below the average and median prices of single family homes during the fourth quarter of 2004. Currently for Multiple Listing Service (MLS) Area 1 (Morgan Hill, San Martin and Gilroy), the average price of a single family home is $723,004 and the median is $660,000. In 2004 Q4, the average was $734,250 and the median was $668,000. Just for reference, the peak average price for MLS Area 1 was $917,811 in the third quarter of 2006. And the peak median price for MLS Area 1 was $805,000 in the second quarter of 2006.
If you are contemplating a real estate purchase, now is a great time to buy in south Santa Clara County!
