Sales are being constrained by rapidly declining inventory of available homes which has dropped to the lowest level since March of 2006.
The first time home buyer tax credit of $8000 has been extended and higher income buyers can qualify. The program has also added existing homeowners to the incentive offering a tax credit of $6,500.
These incentives are expected to jump start the market in 2010 but the requirement to be in contract by April 30th may increase competition for the available homes.
Tuesday, December 1, 2009
Tuesday, August 11, 2009
July Market Update
Sales of single family homes reached 1265 in July in Santa Clara County, the highest number in over 3 years, and the average price increased to $713k.
Homes selling for less than $600k were 50% of the market and the inventory of homes in that price range was 1.2 months. This is down from a 5 month supply in January.
Homes selling for over $600k were 50% of the market. That is up from 24% in January, and the inventory of unsold homes in this price range has dropped from 15 months to approx. 3 months.
Wednesday, June 3, 2009
May 2009 Real Estate Activity, Santa Clara County
May was the best month for real estate in Santa Clara County since mid 2007.
- New pending sales of single family homes of over 1755 was highest since mid 2004.
- New closed sales of over 1000 are highest since June of 2007
- Total inventory of available houses in the county was 3375, down 25% from the high in mid march.
- Interest rates have edged up and may go higher. Loan officers are recommending to Lock rates because they don't expect they to drop.
- New pending sales of single family homes of over 1755 was highest since mid 2004.
- New closed sales of over 1000 are highest since June of 2007
- Total inventory of available houses in the county was 3375, down 25% from the high in mid march.
- Interest rates have edged up and may go higher. Loan officers are recommending to Lock rates because they don't expect they to drop.
Thursday, May 7, 2009
APRIL MARKET UPDATE-SANTA CLARA COUNTY
April sales of single family homes in April were 962 units, up 35% from 2008. However, 58% of the sales were foreclosed, bank owned, or short sales. 753 of the sales were homes with list prices under $750k and the median price was $421k, down 21% from last year.
For homes with list prices over $750k, 209 units were sold, down 43% from April 2008. The median price was $975k, down 11% from 2008.
The average selling price of homes over $750k was 5% lower than list, and for homes under $750k they were down 2%
For homes with list prices over $750k, 209 units were sold, down 43% from April 2008. The median price was $975k, down 11% from 2008.
The average selling price of homes over $750k was 5% lower than list, and for homes under $750k they were down 2%
Tuesday, April 28, 2009
Market Update-April 29, 2009
Inventory of available homes in Santa Clara County peaked in mid-march and has been dropping steadily since. This is earlier than the normal cyclical drop. What is new is the inventory of bank owned homes and short sales has been dropping since the first of 2009. The bargain hunters have been taking advantage of these distressed offerings which has caused the median prices to drop sharply.
The new conforming loan limit of $729,750 has finally come about and open houses have been very busy since early April. The number of multiple offers in the $700s and $800s is picking up as well.
The new conforming loan limit of $729,750 has finally come about and open houses have been very busy since early April. The number of multiple offers in the $700s and $800s is picking up as well.
Tuesday, December 9, 2008
New Real Estate Actions for 2009
Stimulus Programs and Interest Rates
Since Thanksgiving interest rates have dropped a full point to 5.5% on thirty year loans up to $625k. Rumors of additional reductions to 4.5% are being considered for home purchases only (no refinancing) and for loans only up to $417k. These won’t be finalized until after the inauguration.
There are currently considerable incentives to buy down the rates. One point may get you a 1% lower rate.
Since the mortgage market is changing weekly, if you want current news, please call me.
Conforming Loan Limits:
Mortgage Loan limits for conforming (non-Jumbo) loans have increased. In the past, any loan over $417,000 was considered a Jumbo Loan and had higher interest rates. In 2009 the conforming limits will be $625,000. This is true for both new loans and refinanced loans. (This limit was temporarily increased to $729,500 until the end of 2008.). With the increased loan limits, historically low loan rates, and incredible opportunities in the market, this is an excellent time to buy a home at a very enticing price and terms.
Capital Gains Tax Exclusion on the Sale of your Home:
There are also changes to the capital gains tax exemption on the sale of your home. The rules allow for an exemption of $250,000 per person (or $500,000 if filing jointly) for a home lived in as a principal residence for two of the previous five years. For most people selling their homes, there will be no change from what has been the law for nine years. In the past, however, even if the home was occupied as a rental property for the remaining three years, you could still claim the full $250,000 ($500,000) deduction to your capital gains. Starting in 2009, the deduction will be pro-rated based on the percentage of time the home was actually used as your principal residence. Using the above example, your exemption could be reduced by as much as 60%. Furthermore, if the property was involved in a prior 1031 exchange before this sale, there are additional new limitations and restrictions on your write-off.
Please consult with your tax advisor to determine your best options. Meanwhile, if you or a friend is thinking of buying or selling a home, or simply has a real estate question, please call me. I will give you the respect and professional service you deserve.
Since Thanksgiving interest rates have dropped a full point to 5.5% on thirty year loans up to $625k. Rumors of additional reductions to 4.5% are being considered for home purchases only (no refinancing) and for loans only up to $417k. These won’t be finalized until after the inauguration.
There are currently considerable incentives to buy down the rates. One point may get you a 1% lower rate.
Since the mortgage market is changing weekly, if you want current news, please call me.
Conforming Loan Limits:
Mortgage Loan limits for conforming (non-Jumbo) loans have increased. In the past, any loan over $417,000 was considered a Jumbo Loan and had higher interest rates. In 2009 the conforming limits will be $625,000. This is true for both new loans and refinanced loans. (This limit was temporarily increased to $729,500 until the end of 2008.). With the increased loan limits, historically low loan rates, and incredible opportunities in the market, this is an excellent time to buy a home at a very enticing price and terms.
Capital Gains Tax Exclusion on the Sale of your Home:
There are also changes to the capital gains tax exemption on the sale of your home. The rules allow for an exemption of $250,000 per person (or $500,000 if filing jointly) for a home lived in as a principal residence for two of the previous five years. For most people selling their homes, there will be no change from what has been the law for nine years. In the past, however, even if the home was occupied as a rental property for the remaining three years, you could still claim the full $250,000 ($500,000) deduction to your capital gains. Starting in 2009, the deduction will be pro-rated based on the percentage of time the home was actually used as your principal residence. Using the above example, your exemption could be reduced by as much as 60%. Furthermore, if the property was involved in a prior 1031 exchange before this sale, there are additional new limitations and restrictions on your write-off.
Please consult with your tax advisor to determine your best options. Meanwhile, if you or a friend is thinking of buying or selling a home, or simply has a real estate question, please call me. I will give you the respect and professional service you deserve.
Monday, November 10, 2008
Real Estate Update, October 2008
With an abundance of foreclosure, bank-owned, and short sale properties on the market in Santa Clara County, closed sales of single family homes in October were up 37% from October 2007.
Of the 5,100 single family homes on the market, over 42% are distressed Bank-owned or short sales.
Of the closed sales in October priced OVER $750k, the number of units sold were down 34%, and the median price of $998k was down a mild $8% from October 2007
Of the closed sales in October priced UNDER $750k, the number of homes sold were up 180%, and median price of $471k was down 28% from October 2007.
Of the 5,100 single family homes on the market, over 42% are distressed Bank-owned or short sales.
Of the closed sales in October priced OVER $750k, the number of units sold were down 34%, and the median price of $998k was down a mild $8% from October 2007
Of the closed sales in October priced UNDER $750k, the number of homes sold were up 180%, and median price of $471k was down 28% from October 2007.
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