Monthly CAL Real Estate Stats were out. Median CAL home price in 2007, dropped from 445K to 405K, about 9%, Sacramento and Central Vally suffered the most foreclosures among the State. The average existing home sales in the last month of December, 2007, dropped 14% compared to one year ago. But there is one county, Santa Clara, was not affected by the overall bad news and sub-prime crisis. The County, actually had an average appreciation of 10%.
So, what does this tell us?Since the beginning of 2007, every night’s financial or National news were filled with negative information of Real Estate. The sub-prime problem really affect most of the nation, but over all, our business in Santa Clara was not affected much.
For one: We have not seen price dropped yet. The entire county is enjoying from3% to 10% appreciation in 2007.
Two: from Novemver to now, there are not a lot of listings on the market, which traditionally are the slow months for real estate. And also that sub-prime problem is not HERE.
We had a very strong last year in the Valley, job market posted ever robust strength. Hiring in most high tech companies and VC had been pouring in for new ideas and researches.
We cannot prevent the media broadcasting bad news, because that’s the nature of their business. But – you can help by turning off the TV sets.
We cannot prevent sub-prime problems to hurt real estate because the roots needed to be traced back when interest rates were in their phenominally low territory. But- Silicon Valley people are too smart to let bad credits ever slipped into their portfolio. I won’t say our housing market is trouble – free, but, to the least I’ll say: Real Estate market is a LOCAL MARKET, the national figures do not represent the LOCAL figures — I have long stated this in my blog on June 26, 2007.
What about this year’s market? Well, it really has not started yet, it’s really very hard to say. So, just sit tight and wait after the Superball!