Benford Real Estate, Silicon Valley, Santa Clara County

Prospective home buyers in Santa Clara County will be relieved to know that for the first time in 11 months, the inventory of available homes for sale increased in January from the month prior. We finished the month with 2,576 homes available for sale, 16% more than at the end of December 2009, but down more than 50% from January 2009. That gave us a relatively stable 3.2 months of inventory based on closed sales in January, but a very low 1.8 months if determined by pending sales. That means it’s still a competitive market for buyers, especially in the lower price ranges (below $500,000). We expect to continue seeing multiple offers and sales above asking price at least until the expiration of the first-time home buyer tax credit and a significant increase in interest rates.

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of January 2010)
Total Active Listings: 2,576
Average asking price of unsold homes: $977,000
Average sales prices of sold homes: $587,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 50
Sales, year-to-date: 814
Listings expired during January 2010: 127
Average 1-year appreciation: 15.1%
Months of supply by the end of January: 3.2 (stable market)
Average 30-year fixed interest rate as of February 4, 2010: 5.01%, fees not included

Snapshots, December 2009
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95130 (San Jose-San Tomas), 1.3 months of inventory
2. 95111 (San Jose-Edenvale/Seven Trees), 1.4
3. 95122 (San Jose-East/Hillview) 1.5
Top 3 buyers’ markets:
1. 95046 (San Martin), 23.0 months of inventory
2. 95033 (Los Gatos Mountains), 17.7
3. 95030 (Los Gatos/Monte Sereno), 9.3
3 most expensive zip codes in Santa Clara County:
1. 94301 (Palo Alto-Downtown), median sales price $1,540,000
2. 94022 (Northern Los Altos/Los Altos Hills), $1,525,000
3. 95070 (Saratoga), $1,426,000
3 least expensive zip codes in Santa Clara County:
1. 95116 (San Jose-East/Central), $235,000
2. 95122 (San Jose-East/Hillview), $259,000
3. 95110 (San Jose-Central), $290,000

December was quite a competitive month for home buyers, particularly with price ranges below $600,000. It’s typical for sellers to avoid putting their homes on the market during this month, and yet prospective buyers, with time off work, will begin or intensify their house-hunts. As a result, the existing inventory of detached houses, townhouses, and condos dipped just below 2 months of supply for the first time in several years in Santa Clara County. Interest rates came up above 5%, however, creating an even greater sense of urgency for buyers, many of whom are facing multiple competing offers. If you’ve been waiting for an advantageous time to sell your house, this year might be it.

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of December 2009)
Total Active Listings: 2,220
Average asking price of unsold homes: $982,000
Average sales prices of sold homes: $630,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 52
Sales, year-to-date: 14,850
Listings expired during December 2009: 387
Average 1-year appreciation: 8.6%
Months of supply by the end of December: 1.9 (sellers’ market)
Average 30-year fixed interest rate as of January 7, 2010: 5.09%, fees not included

Snapshots, December 2009
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 94041 (Central/Downtown Mountain View), 0.4 months of inventory
2t. 95118 (San Jose-Cambrian/Almaden), 0.9
2t. 95130 (San Jose-San Tomas), 0.9
Top 3 buyers’ markets:
1t. 95046 (San Martin), 10.0 months of inventory
1t. 95033 (Los Gatos Mountains), 10.0
3. 95070 (Saratoga), 5.9
3 most expensive zip codes in Santa Clara County:
1. 94024 (Los Altos/Los Altos Hills), median sales price $1,700,000
2. 95030 (Los Gatos/Monte Sereno), $1,582,000
3. 94022 (Northern Los Altos/Los Altos Hills), $1,330,000
3 least expensive zip codes in Santa Clara County:
1. 95122 (San Jose-East/Hillview), $276,000
2. 95110 (San Jose-Central), $294,000
3. 95116 (San Jose-East/Central), $301,000

Curious about your zip code? Call Jeff: (408) 644-5175

No, that’s not a typo. In November 2008 the median and average sales prices for homes in Santa Clara County were $460,000 and $567,000 respectively. This past November, they were $540,000 and $668,000. So it doesn’t matter whether you use the median price, or the average price; either way, that’s 17 to 18 percent appreciation, county-wide, in just a year! What does that mean? It means the market over-corrected last year. It also means a nice Christmas present for folks who bought their homes a year ago. And with just 2.3 months of inventory currently, and interest rates down below 5%, home values are primed to continue increasing as we head into 2010. This will be a good year to buy a home in Silicon Valley!

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of November 2009)

Total Active Listings: 2,564
Average asking price of unsold homes: $1,034,000
Average sales prices of sold homes: $668,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 50
Sales, year-to-date: 13,591
Listings expired during November 2009: 224
Average 1-year appreciation: 17.8%
Months of supply by the end of November: 2.3 (sellers’ market)
Average 30-year fixed interest rate as of December 3, 2009: 4.71%, fees not included

Snapshots, November 2009
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95130 (San Jose-San Tomas neighborhood), 0.6 months of inventory
2. 94041 (Central/Downtown Mountain View), 0.8 months of inventory
3. 95122 (San Jose-East/Hillview), 0.9 months of inventory
Top 3 buyers’ markets:
1. 95033 (Los Gatos Mountains), 11 months of inventory
2. 95046 (San Martin), 7.8 months of inventory
3. 95070 (Saratoga), 5.2 months of inventory
3 most expensive zip codes in Santa Clara County:
1. 94301 (Downtown Palo Alto), median sales price $1,992,000
2. 94022 (Northern Los Altos/Los Altos Hills), $1,610,000
3. 95070 (Saratoga), $1,498,000
3 least expensive zip codes in Santa Clara County:
1t. 95116 (East/Central San Jose), $240,000
1t. 95110 (Central San Jose), $240,000
3. 95122 (San Jose-East/Hillview), $270,000

Curious about your zip code? Call Jeff: (408) 644-5175

A monthly report showing what it might have taken, hypothetically, for a renter to become a first-time home buyer in Silicon Valley

In October 2009:

Median sales price among San Jose condominiums under 1200 square feet: $195,000
Monthly payment, assuming 20% down, a 4.98% 30-year fixed-rate mortgage, and estimated taxes, insurance, and HOA dues: $1403.67

Median sales price among San Jose houses under 1500 square feet: $377,000
Monthly payment, assuming 20% down, a 4.98% 30-year fixed-rate mortgage, and estimated taxes and insurance: $2133.75

From the California Association of REALTORS®:

Home Buyers Win Big with Extension and Expansion of Federal Tax Credit

LOS ANGELES (Nov. 5) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today commended Congress and the Senate for its swift actions in extending and expanding the provisions of the Federal Tax Credit for First-time Home Buyers. The U.S. House of Representatives earlier today voted 403 to 12 for passage, as did the U.S. Senate late yesterday. The legislation now goes to President Obama for signature.

“Over the past several months, C.A.R., the NATIONAL ASSOCIATION OF REALTORS® (NAR), and our more than 1.2 million members have repeatedly urged congressional representatives to extend and expand this crucial piece of legislation,” said C.A.R. President James Liptak. “Today’s victory for home buyers also is testament to the role REALTORS® can play when they unite for a worthy goal.

“Although ideally the legislation sent to President Obama would have applied to all home buyers, C.A.R. applauds our federal representatives for realizing the benefits of the federal tax credit and the role it has played in the ongoing economic recovery,” Liptak said. “More than 1.4 million first-time home buyers nationwide were eligible for the initial credit. We expect that number to increase dramatically in the months ahead once this new legislation is in place.”

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 167,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Remember the headlines in October 2008? Some members of the media were predicting a depression. What a terrible time to buy a house, right? Well, that’s what a lot of people believed. But some people in Santa Clara County bought homes anyway. And now, one year later, those opportunistic few are enjoying an average of 2.6% increase in value since their purchase. Yes, it’s a fact: the average sales price in Santa Clara County, for houses, townhomes, and condos, in October 2009, was $630,000 - that’s 2.6% higher than in October 2008, when it was $614,000. That may not knock your socks off, but for anyone who could afford it, October 2008 was a great time to buy a house. And now’s not such a bad time, either.

Vital Signs: (Santa Clara County house, condos, and townhouses, as of October 2009)

Total Active Listings: 2,923
Average asking price of unsold homes: $1,052,000
Average sales price of sold homes: $630,000
Average sales price to asking price ratio of sold homes: 99%
Average market time: 52 days
Sales, year-to-date: 12,371
Expired listings, October: 289
1-year average appreciation: 2.6%
Months of supply, end of October: 2.1 (sellers’ market)
Average 30-year fixed interest rate (as of November 5, 2009): 4.98%, fees not included

What’s Hot and What’s Not in Silicon Valley: October 2009

“Months of Inventory”: The lower the number, the more likely prices there will be rising (sellers’ market). The higher the number, the more likely prices there will be falling (buyers’ market).

Strong Sellers’ Market: San Jose-Santa Teresa (0.9)

Sellers’ Markets: San Jose-South (1.3); Newark* (1.3); San Jose-Alum Rock (1.4); San Jose-Blossom Valley (1.4); Milpitas (1.6); Santa Clara (1.6); San Jose-Berryessa (1.7); Campbell (1.7); Sunnyvale (1.7); Mountain View (1.7); Fremont* (1.8); San Jose-Cambrian (1.8); San Jose-Evergreen (1.9); San Jose-Almaden Valley (2.1); Morgan Hill/Gilroy (2.3); Cupertino (2.5); Palo Alto (2.6); San Jose-Central (2.8)

Balanced Markets: Los Altos (3.2); San Jose-Willow Glen (3.3); Saratoga (4.6); Los Altos Hills (5.0); Los Gatos/Monte Sereno (5.3)

Buyers’ Market: Los Gatos Mountains (8.7)

*denotes Alameda County

A monthly report showing what it might have taken, hypothetically, for a renter to become a first-time home buyer in Silicon Valley

In September 2009:

Median sales price among San Jose condominiums under 1200 square feet: $215,000
Monthly payment, assuming 20% down, a 4.94% 30-year fixed-rate mortgage, and estimated taxes, insurance, and HOA dues: $1512.67

Median sales price among San Jose houses under 1500 square feet: $360,000
Monthly payment, assuming 20% down, a 4.94% 30-year fixed-rate mortgage, and estimated taxes and insurance: $2030.50

The Villages is unique, still somewhat a little known gem in the foothills of San Jose, California. View this snippet, produced by KRON, Channel 4.

Click on the link: 958

It’s always been a good idea to have a professional and ethical agent when purchasing (or selling) a house. But it’s become especially important in the last several months. With Santa Clara County inventory shrinking for the seventh consecutive month, and sales continuing to maintain a steady pace especially in the foreclosure market, buyers are being pressured at times to take large risks in order to reach an agreement.

In one case, the broker representing a bank-owned home asked a prospective buyer to remove an important contingency before going into contract. In another, the broker representing the seller on a short-sale asked prospective buyers to make their deposit non-refundable before agreeing to a contract. Such demands are unfair to buyers for several reasons, and probably also make the sellers a legal target should a dispute arise during the transaction.

A knowledgeable agent who is also a strong negotiator can help buyers avoid these and other pitfalls, and also help sellers avoid liability. The Benford Team takes pride in doing this for our clients every day!

And now for the vital signs:

Santa Clara County, Detached Houses and Condominiums/Townhomes, as of September 2009

Total active listings: 3,093
Average (mean) asking price of unsold homes: $1,080,000
Average (mean) sales price of sold homes: $609,000
Average sales price to asking price ratio of sold homes: 99%
Average market time: 53 days
Sales, year-to-date: 10,868
Expired listings, September: 262
1-year average appreciation: -7.9%
Months of supply, end of September: 2.4 (sellers’ market)
Average 30-year fixed interest rate (as of October 1, 2009): 4.94%, fees not included

What’s Hot and What’s Not in Silicon Valley, September 2009:

“Months of Inventory”: The lower the number, the more likely prices there will be rising (sellers’ market). The higher the number, the more likely prices there will be falling (buyers’ market).

Strong Buyers’ Market: Los Gatos Mountains (16.8)

*denotes Alameda County

A monthly report showing what it might have taken, hypothetically, for a renter to become a first-time home buyer in Silicon Valley

In August 2009:

Median sales price among San Jose condominiums under 1200 square feet: $180,000
Monthly payment, assuming 20% down, a 5.07% 30-year fixed-rate mortgage, and estimated taxes, insurance, and HOA dues: $1326.70

Median sales price among San Jose houses under 1500 square feet: $346,000
Monthly payment, assuming 20% down, a 5.07% 30-year fixed-rate mortgage, and estimated taxes and insurance: $1973.54