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 Sellers’ Markets: San Jose-South (1.0); San Jose-Santa Teresa (1.0)
Sellers’ Markets: Milpitas (1.3); Santa Clara (1.4); Newark* (1.5); San Jose-Blossom Valley (1.6); San Jose-Almaden Valley (1.6); San Jose-Alum Rock (1.8); Fremont* (1.8); San Jose-Berryessa (1.9); Sunnyvale (2.2); Mountain View (2.2); San Jose-Evergreen (2.3); San Jose-Cambrian (2.3); Cupertino (2.6); Campbell (2.7); San Jose-Central (2.8); Morgan Hill/Gilroy (2.9)
Balanced Markets: Willow Glen (3.2); Los Altos (3.4); Palo Alto (3.6); Saratoga (5.0)
Buyers’ Markets: Los Gatos/Monte Sereno (6.5); Los Altos Hills (9.3)
Strong Buyers’ Market: Los Gatos Mountains (16.8)
*denotes Alameda County
