The Real Estate Rumble

Posted on January 25, 2009 by Connie Miller 
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Ever since the stock market dropped dramatically last fall, the real estate market in Silicon Valley has been slow. Open houses have had few visitors. Houses for the most part have been sitting on the market with little activity. Those sellers who had a choice did not want to put their houses on the market in this environment. Buyers seemed to be either waiting for prices to drop more or to feel more secure in their employment. The market has felt stagnant. But there is a rumble that started a couple of weeks ago. Beginning the weekend of January 10th, open house activity has picked up dramatically. Offers on properties are being written and not just offers on bank-owned properties. High-end properties in areas like Saratoga and Cupertino are going under contract. Conference rooms in the best real estate firms are again at a premium.

Why? I think it is a number of factors. First, interest rates are great. Conforming, 30-year fixed rates are at their lowest in a decade or so. Even Jumbo loans are getting reasonable. Next, the holiday season is behind us – well if you don’t consider the Super Bowl a holiday. Sun is in the air and Hope is in Washington. This is more of a ‘feels like’ than anything, but it ‘feels like’ the areas most hard hit by foreclosures last year seem to be getting more healthy. The sales velocity in those areas are picking up. Even with the grim news of some layoffs in Silicon Valley, there seems to be more certainty. People know where they stand. There have always been many buyers out there. Just some of you are now deciding that the time to buy is right now. Perhaps as we approach this year of the Ox, we will find that the fortitude and hard work of educating yourself on the market last year will pay off with prosperity in acquiring good real estate this year. 2009 is sure to be an exciting year for all of us.

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