Benford Real Estate, Silicon Valley, Santa Clara County

Wishing all of you a Happy Holiday season! Just wanted to give you the latest market update on Santa Clara County before Christmas.

At the end of November there were 6250 houses, townhomes, and condos on the market, the lowest number since February although slightly higher than November 2007. There were 800 closed sales in November, also a little higher than this time last year. Yes, indeed, there were more sales! This is most likely due to increased affordability. The median home price, among single family homes, townhomes, and condos, in the county, was $466,000 in November, down 37.8% from a year ago. It’s certainly a great time to be in the market to buy a house, with 7.8 months of inventory county-wide.

Here’s a look at local markets. Numbers in parentheses represent months of inventory based on closed sales. The higher the number, the more it is considered a “buyer’s market.” The lower the number the more of a “seller’s market.”

Balanced Markets: Palo Alto (4.7); Mountain View (5.1)

Buyer’s Markets: Santa Clara (6.1); Blossom Valley (6.2); Cambrian (6.3); Alum Rock (6.5); Sunnyvale (6.7); South San Jose (7.2); Cupertino (7.4); Central San Jose (8.0); Evergreen (8.3); Milpitas (8.3); Berryessa (8.4); Almaden Valley (8.6); Willow Glen (8.9); Morgan Hill/Gilroy/San Martin (9.0); Los Altos (9.9); Campbell (10.2)

Significant Buyer’s Markets: Santa Teresa (12.4); Los Gatos Mountains (13.0); Los Gatos/Monte Sereno (17.1); Saratoga (24.0); Los Altos Hills (24.0)

Here’s a link to a great blog entry I came across recently. It captures the essence of what I’ve been saying since before the market downturn: The decision to buy a house or condo should not be based on the state of the economy, but on whether you are personally and financially ready to make a long-term investment in real estate. Regardless of the market conditions when you buy or sell, history tells us that the longer you own property, the more likely it is that it will appreciate in value during your ownership.

Click here to find out why the best time to buy a house depends not on the economy but on you, and only you.

By the way, if purchasing is still beyond the near future for you, financial advisors and mortgage planners are an invaluable asset. We’ve worked with some very courteous and reliable professionals in these and other industries. If you’d like a referral, we’d be happy to put you in touch.

For all the talk about the financial crisis, October was a pretty stable month for the Santa Clara County housing market. It’s still a bit of a buyer’s market at 6.7 months of inventory. The number of homes for sale at the end of the month was down slightly to 6666, from 6724 at the end of September. The number of pending sales was virtually unchanged, and the number of closed sales was exactly 1000, down noticeably from September’s 1130. This may be in part due to longer escrow periods related to pre-foreclosure or foreclosed homes, and in part due to sales falling through for financing reasons or simply because the buyers are changing their minds.

Remarkably, even though high-priced parts of the valley that were significant sellers’ markets at the beginning of 2008 have slowed down, lower-priced parts of the valley that were significant buyers’ markets have picked up slightly. This is probably because conforming loan interest rates have remained relatively low while jumbo loan interest rates have increased significantly. The county as a whole is still less of a buyers’ market than at this same time a year ago.

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 October 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.

Balanced Markets: Cupertino (3.4); Mountain View (4.3); San Jose-Cambrian (4.5); Sunnyvale (4.8); Palo Alto (5.0); San Jose-Blossom Valley (5.3); Los Altos (5.4); San Jose-Berryessa (5.5); San Jose-Santa Teresa (5.5)

Buyers’ Markets: Milpitas (6.2); Campbell (6.2); San Jose-South/Seven Trees/Edenvale (6.9); San Jose-Evergreen (7.1); San Jose-East/Alum Rock (7.4); San Jose-Almaden Valley (7.4); Saratoga (7.6); Santa Clara (7.8); San Jose-Willow Glen (7.8); San Jose-Central/Downtown/Burbank/Rose Garden (8.4); Morgan Hill/San Martin/Gilroy (9.7); Los Gatos (11.0)

Significant Buyers’ Markets: Los Altos Hills (17.0); Los Gatos Mountains (19.0)

All of Santa Clara County combined: 6.7 months of inventory

No, you probably won’t see that headline in the newspapers while all the media attention is focused on the turmoil in the credit market. But the facts are that in Santa Clara County, at the end of September there were about 6700 homes for sale (down 300 from August), and 1500 pended sales (up from August). There were about 1000 closed sales, which is down about 200 from August, but that makes it about 6.4 months of inventory, which is a better-selling market than the same time a year ago. What about next month? Nobody knows what will happen tomorrow, but we can tell you there are opportunities out there, and as long as you’re looking for them, we’ll give you the facts.

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 September 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.

Balanced Markets: Sunnyvale (3.1); Cupertino (3.5); Palo Alto (4.1); Mountain View (4.2); Los Altos (4.2); San Jose-Cambrian (4.4); San Jose-Santa Teresa (4.7); San Jose-Blossom Valley (5.5); Santa Clara (5.6); Saratoga (5.8)

Buyers’ Markets: Campbell (6.0); San Jose-Berryessa (6.1); San Jose-Central (6.9); Los Gatos (7.2); San Jose-Almaden Valley (7.4); San Jose-Alum Rock (7.5); Milpitas (7.8); San Jose-South (7.8); Morgan Hill/Gilroy (8.6); San Jose-Evergreen (8.7); San Jose-Willow Glen (9.1)

Notable Buyers’ Markets: Los Gatos Mountains (16.0); Los Altos Hills (16.0)

Charts and graphs (Click to enlarge)

Ken Sotelo, a mortgage banker with Private Mortgage Advisors, supplied us with this very enlightening graph depicting the rise and fall of mortgage interest rates over the last four decades. Current events in the banking industry may feel depressing - that is, until we remember how high interest rates were in the early 1980’s! 18.5%?? As they say, the grass is always greener on the other side. In every market there is opportunity to be found by those who seek it. This one is no exception. (Click on the image to enlarge it).

Within walking distance of Vinci Park and Vinci Park School*, this Berryessa home has been lovingly well taken care of over the years by the original owner. The neighborhood is quiet, yet has nearby access to 880, 101, and 680, allowing for a convenient drive to many Silicon Valley employers and shopping centers. The mature trees and patio in the backyard provide a shady sanctuary. The workbench and cabinets in the garage will help you keep your home maintained and organized. And the roomy 4 bedroom, 2 bathroom floor plan with living, dining, and family rooms plus a fireplace will make you feel right at home! *Broker cannot guarantee enrollment in any particular school, and recommends consulting with local school districts for questions regarding schools.

You’ve probably heard the news regarding Fannie Mae and Freddie Mac: both of these government-sponsored enterprises were placed into conservatorship by the Department of the Treasury. This allows the Federal Housing Finance Agency to take up to an 80% stake in each of them. If needed, the government can add capital to both enterprises to maintain their financial well-being. While the long-term effects of this remain to be seen, for now it seems to have resulted in increased consumer confidence and lower interest rates.

In the local real estate market, recent trends have continued through the month of August: the number of pending sales in Santa Clara County increased to 1642, while the inventory dropped to just over 7000. Closed sales were down just a bit at 1146, but because of the number of pending sales, we are optimistic that the market will continue moving toward equilibrium and soon start to recover. Significantly, none of the local markets we track within the county had more than a year’s worth of inventory, a condition which we have not seen since 2007.

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 August 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 (2.1); Palo Alto (2.4); Los Altos (2.4); Mountain View (2.9)

Balanced Markets: Sunnyvale (3.1); San Jose-Cambrian (3.8); Milpitas (3.9); San Jose-Almaden Valley (4.0); Santa Clara (4.5); Saratoga (4.8); San Jose-Santa Teresa (5.1); San Jose-Berryessa (5.8); Los Altos Hills (6.0)

Buyers’ Markets: San Jose-Blossom Valley (6.1); Los Gatos (6.1); San Jose-Willow Glen (6.8); Campbell (6.8); San Jose-Evergreen (7.0); San Jose-Central (7.5); Morgan Hill/Gilroy (8.8); Los Gatos Mountains (9.6); San Jose-South (10.4); San Jose-Alum Rock (11.5)

Countywide: 6.0 months of inventory

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?