South County Sales Week of October 8 - October 14, 2008
Date: Wednesday October 15, 2008Posted in: Morgan Hill, South Santa Clara County, San Martin, Gilroy, statistics, residences, listings, pending sales, housing market, list price
I don’t know if it was the uncertainty and fear of the economic turmoil last week or the typical Fall slow down in the market, but we had slow sales week in the south Santa Clara County area of Morgan Hill, San Martin and Gilroy. My money is on economic concerns and their paralyzing effects. There were 17 residences that went from active to pending status. Of these, 16 were single family homes and 1 was a condo/townhouse.
Of these sales, the list price ranges were:
$200,000 - $500,000 = 8 sales (47% of total)
$500,000 - $800,000 = 7 sales (41% of total)
$800,000 - $1,200,000 = 2 sales (12% of total)
$1,200,000 - $2,000,000 = 0 sales
As of October 14, 2008, there are 739 residential listings active on the market in the Morgan Hill, San Martin, Gilroy area, and 234 pending residential listings. Therefore, 24% of the listings are pending under contract as of this date.
Tune in next week for an update on the number of sales in South Santa Clara County!
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!
Chasing that Elusive Downwardly Adjusting Market
Date: Saturday June 28, 2008Posted in: real estate, multiple offers, listings, housing market, pricing, list price
In conversations with home sellers here in south Santa Clara County, it is important to remind them of the potential of loss in equity in this downwardly adjusting real estate market. Sellers still want to “test the market” by pricing their homes a little higher than the latest comparables are indicating that they should be priced. After the “test” confirms that they are priced too high, they will then lower their list price. This is called “chasing the market down.” Every day a seller chases the market, they may be losing equity.
An important concept to understand in this type of real estate market is that the most competitive price often sells first. The seller who sells first is the seller who jumps the market and is the most competitively priced. That seller receives the highest possible price at that point in time.
The homes that are selling quickly in south Santa Clara County are the homes that attract the attention of buyers and Realtors alike due to their aggressive pricing. These homes are receiving multiple offers and often are selling for over list price. The sellers in these cases sell early during the adjusting market and have more options later. They can stop chasing and relax.
What is Your Home Worth?
Date: Wednesday June 18, 2008Posted in: Sellers, price, real estate, listings, housing market, pricing
The seller sets the price of the home but ultimately the buyer determines the value. My job is to supply you, the seller, with facts about what has sold recently and what is for sale now. This information will help you make a decision on pricing your home. There are five essential ingredients that comprise the formula for a successful sale of your home:
- Marketing: Multiple Listing Service, internet exposure, yard signs, advertising, etc.
- Location: Views, neighborhood, schools, traffic, accessibility, etc.
- Condition: Maintenance and amenities
- Market: Competition, economy, interest rates, mortgage availability
- Price: The #1 most important factor in the sale of your home
The consequences of improper pricing are painful. Too low and you literally give away money that should have been in your pocket. Too high and your home will sit unsold for months, developing a reputation of a problem property.
Remember:
- What you paid for your property does not affect it value.
- The amount of money that you need to get out of the sale of your property does not affect its value.
- What you think it should be worth has no affect on value.
- What your neighbor says your property is worth does not affect it value.
- An appraisal does not always indicate what your property is worth on the open market.
What does determine the value of your property? The value of your property is determined by what a qualified, informed, ready, willing and able buyer will pay for it.
Benefits of Proper Pricing
- Faster sale: The proper price gets a faster sale, which means you save on mortgage payments, real estate taxes, insurance and other carrying costs.
- Less inconvenience: As you may know, it takes time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle. Proper pricing shortens market time.
- Increased salesperson response: When Realtors are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
- Exposure to more prospects: Pricing at market value will open your home up to more people who can afford it.
- Better response from advertising: Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
- Higher offers: When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
- More money to sellers: When a property is priced right, the excitement of the market produces a higher sales price in less time. You net more due to the higher sales price and lower carrying costs.
South County Pending Sales Continue to Rise
Date: Wednesday May 21, 2008Posted in: real estate, South Santa Clara County, San Martin, Gilroy, statistics, contract, residences, listings, pending sales, interest rates
For single family residences, the percentage of pending sales to active listings in the south Santa Clara County region continues to grow - which is great news for serious real estate sellers. In our area of Morgan Hill, San Martin and Gilroy, the proportion of pending listings to overall listings on the market began the year 2008 at 7%, a remarkably low number. But that percentage has continued to increase from 7% in January, to 9% in February, to 10% in March, then to 14% in April and at the beginning of this week, May 19, 2008, we have 15% of our listings pending. The actual numbers are 148 pending sales and 834 active listings for a total number of 982 overall listings on the market.
This rise in the percentage of pending sales reflects the ideal marriage of low prices, low interest rates and motivated sellers. Buyers are finding that it may not make sense to wait any longer….
