Santa Clara County Real Estate Market Update October 09
Santa Clara County Market Update October 2009
Aug 2009 to Sep 2009 0.9 % 8.9 % 0.6 % INVENTORY CLOSED SALES MEDIAN SALE 2335 1066 $565,000
Sep 2008 to Sep 2009 INVENTORY CLOSED SALES MEDIAN SALE 53.1 % 2335 1066 $565,000 18.6 % 5.8 %
Initiated & Closed Sales A significant percentage of initiated sales are taking much longer than normal to close or they are falling through.
Interest Rates Interest rates on conforming, 30 year fixed mortgages are still near 5%. Act quickly to lock in these low rates!
Timing the Bottom? <ul><li>The true cost of home ownership for buyers with mortgages is their monthly mortgage payment. </li></ul>October 2009 Purchase Price = $565,000 20% Down = $113,000 Mortgage = $452,000 30-Year APR = 5.0% Monthly Payment = $2,426 October 2010 ? Purchase Price = $508,000 20% Down = $102,000 Mortgage = $406,000 30-Year APR = 6.0% Monthly Payment = $2,434 1% increase in interest rates offsets 10% decrease in purchase price
Thirty Second Update <ul><li>Market conditions vary by area and price range </li></ul><ul><li>Inventory is less than half of what it was a year ago </li></ul><ul><li>September closed sales were the highest since 2005 </li></ul><ul><li>Median sale price lower than 2008, but appears to be leveling off after increasing due to market shift </li></ul><ul><li>30-year fixed rates are still right around 5% </li></ul><ul><li>All real estate is local, especially in this market, which area and price range are you interested in? </li></ul>
More Talking Points <ul><li>46.6% of listings sold for more than asking price </li></ul><ul><li>Many of the REO bargains have been snapped up by all cash investors and first time homebuyers </li></ul><ul><li>Foreclosure activity remains high, but it isn't clear whether banks are holding "shadow" inventory </li></ul><ul><li>Median asking price of $818,000 indicates high end market is saturated and selling very slowly </li></ul><ul><li>Gap between initiated sales and closed sales indicates that many deals are falling through </li></ul>
About Me <ul><li>Everything you need to know about buying or selling a home can be found by visiting my website at HeideWolfReid.com . </li></ul><ul><li>As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground. </li></ul><ul><li>Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. </li></ul><ul><li>I go the extra mile to help you achieve your goals. </li></ul><ul><li>Call or email me today! </li></ul>Heide Wolf-Reid ALTERA REAL ESTATE 1125 Meridian Avenue San Jose, CA 95125 Phone: 408-667-9298 Email: [email_address]