Benford Real Estate, Silicon Valley, Santa Clara County

July appears to have maintained a stable environment for the Santa Clara County real estate market. There was a slight decline in the number of closed sales, but this was counterbalanced by a slight increase in the number of pending sales. The overall number of homes on the market remained virtually unchanged. The median price of closed sales was down to $645,000, and the supply of homes countywide was about 6.4 months’ worth of inventory, meaning that for now the market is still slightly favoring buyers.

Here’s a look at the local markets within Santa Clara County. Figures represent months of inventory based on closed sales during the month of July 2008, using data from MLSListings, Inc. The lower the number, the more favorable the market is to sellers; the higher the number, the more favorable the market is to buyers.

Sellers’ Markets: Palo Alto (1.7); Cupertino (2.2); Mountain View (2.9)

Balanced Markets: Sunnyvale (3.3); Los Altos (3.4); San Jose-Almaden Valley (4.5); Santa Clara (4.6); Campbell (4.7); San Jose-Santa Teresa (5.1); San Jose-Cambrian (5.1); Saratoga (5.6); Milpitas (5.9)

Buyers’ Markets: Los Altos Hills (6.3); San Jose-Blossom Valley (6.4); San Jose-Berryessa (6.6); San Jose-Willow Glen (6.7); Los Gatos (7.1); San Jose-Evergreen (7.4); San Jose-Central (10.4); Morgan Hill/Gilroy (11.1); San Jose-South (12.0)

Significant Buyers’ Markets: San Jose-Alum Rock (14.7); Los Gatos Mountains (20.3)

Countywide: 6.4 months of inventory (slight buyers’ market)

This gorgeous 4 bedroom/3 bathroom home in the Dry Creek area of San Jose, has one bed and bath downstairs, perfect for guests or office. The curb appeal is amazing with an inviting waterfall in the front. The back yard is a place to relax in with the solar-heated pool and redwood pool deck, another new patio deck, and many fruit trees: limes, tangerines, tangelos, grapefruit and crab apple. This house has air conditioning, a built-in indoor BBQ, dual pane windows, a bay window in the living room, French doors, elegant garage studio for a home office or workshop (can be removed), decorative porch columns, recessed lighting, alarm system, gas stove, more! Check out the virtual tour.

What does it take to be a VIP?

It’s simple! All you have to do is refer a seller, buyer, or residential investor to the Benford and Benford Team. EASY!

We work by REFERRAL. That means while other agents are going door to door, making cold calls, spending money on ads in obscure newspapers or on grocery carts, we are spending our time helping our clients with their transactions, and spending our money on special client events and items of information that is more meaningful to our VIPs than grocery cart ads or large billboards.

So…WHOM DO YOU KNOW? REFER US to people who are ready to buy, sell, or purchase investment real estate. Refer us to people who want someone to be with them throughout the transaction, to check on them from time to time after the transaction, and who can continue to be a trusted advisor whenever questions pop up. Refer us to people who want their agent to be dedicated, experienced, caring professionals. Refer us to people who want trained agents who understand the real estate market, who know how to negotiate, and are up-to-date with current real estate law. Refer us to people who will come back to you to say thank you!

We have a large group of VIPs. They are very special people, some of whom are pictured here. Will your picture be next?

The Santa Clara County housing market reached a turning point in June, as the number of homes for sale declined after increasing monthly since December. It is typical for the housing inventory to peak during the summer. While this is a modest decline from 7417 to 7219, it reminds us that the supply of housing is not infinite. Meanwhile, the number of closed sales dipped marginally but pending sales continue to increase in pace. Sellers still need to market and price their homes competitively, but buyers who are waiting for further market declines before making a purchase face an increasing risk of missing the bottom of the market. Nobody knows exactly when property values will begin climbing again, but missing the mark by a few months is insignificant compared to the long-term appreciation seen over periods of 10 or more years!

Here’s a look at the local markets within Santa Clara County. Figures represent months of inventory based on closed sales during the month of June 2008, using data from MLSListings, Inc. The lower the number, the more favorable the market is to sellers; the higher the number, the more favorable the market is to buyers.

Sellers’ Markets: Palo Alto (1.4); Los Altos (1.8); Cupertino (2.3); Mountain View (3.0)

Balanced Markets: Sunnyvale (3.5); San Jose-Almaden Valley (3.7); Santa Clara (4.6); Los Gatos (5.0); San Jose-Willow Glen (5.5); San Jose-Cambrian (5.5); Campbell (5.7); San Jose-Santa Teresa (5.7); Los Altos Hills (6.0)

Buyers’ Markets: San Jose-Blossom Valley (6.7); Saratoga (6.8); San Jose-Berryessa (7.1); Los Gatos Mountains (7.6); San Jose-Evergreen (8.7); Morgan Hill/Gilroy (9.3); Milpitas (9.4); San Jose-Central (9.7)

Significant Buyers’ Markets: San Jose-Alum Rock (14.9); San Jose-South (16.6)

Countywide: 6.6 months of inventory (slight buyers’ market)

Recently, the California Association of Realtors reported a major increase in the percentage of households which could afford to buy an entry level home. Well, we’ve got some more news: When affordability is on the rise, sales follow! Last month, we reported that buyers were out shopping in April as evidenced by the decline in months of inventory based on pending sales. This month, we’re pleased to report that many of those buyers are now homeowners, as there were 1136 closed sales in Santa Clara County in May, a 24% increase from the month before! The pending sales were up too, at 1552, the greatest number seen in over a year. At the same time, the number of homes on the market remained virtually the same, taking some of the pressure off home sellers.

A hot stat: There were 6.5 months of inventory based on closed sales at the end of May, down from a peak of 11.7 in January. We consider a buyers’ market to be anything above 6. Nobody knows when we’ve hit bottom until it’s already happened. But since pending sales have been increasing, it may not be too long before Santa Clara County is out of the slump.

Here’s a look at the local markets within Santa Clara County. Figures represent months of inventory based on closed sales during the month of May 2008, using data from MLSListings, Inc. The lower the number, the more favorable the market is to sellers; the higher the number, the more favorable the market is to buyers.

Sellers’ Markets: Cupertino (1.7); Los Altos (1.9); Palo Alto (1.9); Mountain View (2.2); Sunnyvale (3.0)

Balanced Markets: Los Altos Hills (3.3); Saratoga (3.9); San Jose-Almaden Valley (4.1); San Jose-Cambrian (4.3); Los Gatos (4.8); Santa Clara (5.1); Campbell (5.5); San Jose-Santa Teresa (6.0)

Buyers’ Markets: San Jose-Willow Glen (6.8); San Jose-Berryessa (7.2); San Jose-Blossom Valley (7.4); Milpitas (7.9); San Jose-Evergreen (8.2); San Jose-Central (11.2)

Significant Buyers’ Markets: Morgan Hill/Gilroy (13.4); Los Gatos Mountains (17.5); San Jose-Alum Rock (18.1); San Jose-South (19.7)

Click on images below to view graphs and charts.

This is a beautiful home! Fresh interior and exterior paint, new carpet, dual pane windows, newer roof, newer appliances, baths fixed up…all ready for the new owner to move right in. Even the back yard is pristine, waiting for the new owner to landscape. This is a wonderful house with 4 bedrooms, large family room, as well as living room and separate dining room.

Combined single family and townhouse/condominium inventory in Santa Clara County broke the 7000 mark in April. Fortunately the number of pending sales has also been increasing. In April, 1363 sales contracts were signed and reported to the MLSListings, Inc. listing service, the most in any month since June of 2007. The number of closed sales remained pretty flat, probably because transactions, once opened, are taking longer to close. But the good news is that there are buyers out there shopping, so those sales will be closing eventually.

A recent headline in the San Jose Mercury News proclaimed “Record-low number of Santa Clara County homes sold in March.” The truth is, the number of sales opened last month according to MLSlistings.com was 1107 - the highest number for any month since July of 2007! Furthermore, it is the third straight monthly increase in sales, and nearly double the amount from December of 2007. Is the Mercury lying? Technically, no. The article was referring to the number of sales during any month of March, of any year - not the number of sales ever in a month. The news media tend to look at the glass as half-empty, and yes, the effect can be very deceptive. Our friends in the press need to make a living just like everyone else, and let’s face it - dramatic, negative news sells. But the Benford and Benford Team are here to give you the cold, hard facts and to remind you not to get stressed out by the headlines. Oh, by the way - the monthly supply of inventory based on closed sales dropped to 9.0 months countywide, down from the January peak of 11.7. Dramatic? No, but this signifies an improvement in the marketplace. The Merc didn’t tell you that, did it?

Here’s a look at Santa Clara County markets as they performed in the month of March. Monthly inventory is based on closed sales and active listings according to MLSlistings.com. The higher the number, the slower the sales. A healthy market has between 3 and 6 months of inventory.

Sellers’ Markets: Palo Alto (1.9 months of inventory); Cupertino (2.3); Mountain View (2.7)
Balanced Markets: Los Altos (3.5 months of inventory); Saratoga (3.8); Sunnyvale (4.1); San Jose-Cambrian (4.7); Campbell (5.2)
Buyers’ Markets: Los Gatos/Monte Sereno (6.3 months of inventory); San Jose-Willow Glen (6.5); San Jose-Almaden Valley (6.7); Santa Clara (6.7); San Jose-Berryessa (8.5); San Jose-Blossom Valley (9.4); San Jose-Central (10.6)
Significant Buyers’ Markets: San Jose-Evergreen (12.7 months of inventory); Los Altos Hills (13.7); San Jose-Santa Teresa (13.8); Milpitas (16.6); Morgan Hill/Gilroy (20.9); Los Gatos Mountains (22.0); San Jose-South (36.9); San Jose-Alum Rock (46.7)

Countywide: 9.0 months of inventory - buyers’ market

Sales in nearly all parts of Silicon Valley slowed down in January. There were only 306 closed sales of houses or condos in the month, down from 510 in December. However, the number of pending sales edged up. The median price dropped for the second straight month and at $740,000, was about equal to what it was a year prior.

A look at the local markets within the county, in terms of months of inventory (the ratio of active listings at the end of January to the number of closed sales during January). Area boundaries are defined by MLSListings multiple listing service:

Balanced Markets: Los Altos (3.3); Palo Alto (3.4); Saratoga (3.5); Cupertino (3.7); San Jose-Almaden Valley (4.8); Mountain View (5.8)
Buyers’ Markets: San Jose-Cambrian (6.2); San Jose-Willow Glen (8.0); Sunnyvale (8.9); Los Altos Hills (9.0); Los Gatos Mountains (9.0); Santa Clara (9.2); Campbell (9.9); Los Gatos/Monte Sereno (10.5); San Jose-Blossom Valley (11.2)
Clear Buyers’ Markets: San Jose-Berryessa (13.5); Milpitas (14.0); San Jose-Central (16.8); San Jose-Evergreen (18.0); San Jose-Santa Teresa (32.0); San Jose-South (35.6); Morgan Hill/Gilroy (38.8); San Jose-Alum Rock (68.0)

Much has been made of the rise in mortgage interest rates from below 6% to about 7% in the last two years. But in the context of the last 35 years, this change is just a blip on the radar. In fact, from 1972 until the middle of 2002, interest rates had never been as low as they are now. These favorable rates, combined with a soft market in many parts of Silicon Valley, make this an ideal time for qualified buyers to purchase their dream homes.

*Graph created from data provided by Freddie Mac (http://www.freddiemac.com).