September Inventory Seen Rising in the Valley

inventory3

September housing inventories in Silicon Valley seen gradual increasing trend in September.
Class 1 – Single Family Home, week of 9/7, 498 units, week of 9/14, 577 units, week of 9/21, 614 units.
Class 2 – Condon/Townhomes, week of 9/7, 114 units, week of 9/14, 140 units, week of 9/21, 148 units.

Pending and close numbers also seen rising in September.
Pending (status 2-5):     9/7,  290,  9/14, 320,  9/21, 350    (See chart 2nd block, Sales, status 2-5)
Closing (status 5 only):  9/7, 206,  9/14, 211,   9/21, 250     (See chart 3rd block, Closing, status 5 only)
These numbers suggested that the market is still very active and busy.  No signs of slowing down. In fact, the Fed made the decision last Thursday of not raising interests, this is an extension for home buyers, especially those who were battered in the Spring due to fierce multiple bidding wars and scarcity of inventory in the market. This is the perfect time for buyers who waited, the first-time buyers, re-locators and buyers with limited down payments.

Start shopping for your next, (1st) home now, you never know, you may find your dream home much easier this time of year.

Jin Chen
REALTOR,
Member of Silicon Valley Association of REALTORS
Phone:650-207-1421
Email: jchen@referralrealty.com
http://www.realtorjin.com

http://www.homesnap.com/Jin-Chen-1

Santa Clara County Median Home Price Hit 960K in April

The spring housing steam has kept on going!
The median home sale in Santa Clara County reached $960,000 for single family homes, and for condo and town homes, the median price is $565,000.
These numbers have gone up from the March median from $930,000 for single family homes. For condo and town home, actually there is a break from March’s number of $665.000.
Inventory crunch is still the problem in the Valley. That’s why the price remains robust. The trend is likely to continue into the summer. Multiple bids plus none contingencies offers have become norms in housing purchase process. The main factor keeps this trend climbing are the favorable interest rates. The lending market is still sending its friendly gesture to the consumers. Although the threat of raising interest rate was a concern at the Fed meeting in March, but this aspect had once again been played down until June meeting.

30-year conforming loan ($417,000) keeps at 3.75%. And jumbo loan ($625,000) at 3.875%. Jumbo loan, up to 2 million is 4%, for the week of 5/18.

Please check my website http://www.realtorjin.com or mobile app http://www.homesnap.com/real-estate-agents/Jin-Chen-1

Peninsula/South Bay Rent Control Cities and Information

Rent Control

East Palo Alto
For partially exempt rental units, the owner must provide the tenant with a written notice of this Ordinance on a form prescribed by the City at the commencement of any tenancy, can only evict tenant for very limited purposes, and not harass tenants. All non-exempt units for rent in East Palo Alto must abide by all provisions of the rent stabilization ordinance, including the above portions. The ordinance includes restrictions on the maximum allowable rent at two different levels for tenancies commencing on either January 1, 2006 or July 15, 2009, requires annual registration of rental units and certification of maximum allowable rent (includes a fee of $234 per unit for 2011), restricts the allowable increase in the rent amount, and allows for the rent to be reset at the market rate at vacancy.

Los Gatos
Annual increase limited to 5 percent per year or 70 percent of CPI. 10 percent increase is allowed if rent hasn’t been raised for 24 months. Applies to tri-plexes or larger (Per Costa-Hawkins, units built after 1995 are exempt). Vacancy decontrol. Pass-through increases is allowed provided owner justifies increase through specific formula. There is an annual registration fee for rental units that fall under the ordinance.

San Jose
Applies to units built before Sept. 1979, 8 percent annual rent cap, 21 percent if no increase for over 24 months. Vacancy decontrol. Increase on or after anniversary only. Pass-through increases is allowed provided owner justifies increase through specific formula. Registration fee is required for rental units at two rates depending on whether they were built before or after 1979.

Source from Silicon Valley Association of Realtors (SILVAR)
http://www.silvar.org

 

 

Silicon Valley April Median Home Price over $900K

The housing market in Silicon Valley, which is in Santa Clara County, is unstoppable!!! According to MLS LISTINGS data, the median single family homes sold for $907,751 in April. It is about 11% up from the end of 2013. If this is the speed of market is going, we may reach $1,000,000 by year end!

Here are some key figures of housing composite:

Median Price (SFH):  April, $907,751 VS March $852,000
(unsold) Inventory index: 2.2%
Median-time-on-the-Market: 18.4  days VS 35 days in California VS 77  days National
(First-time home buyer) affordability: 21% VS 45%  California
Unemployment rate: 6.1% VS CA 8.1%, VS National 6.3% 
Interest rate: 4.5% (30 yr fixed),  2.45% (5 yr ARM)

**Sources from CAR, BusinessNews**

California Association of Realtors has published housing data by the County, If you are interested in finding out the graphic analysis, here are the links:
http://www.car.org/marketdata/marketupdate/
Santa Clara County:
http://www.car.org/3550/pdf/econpdfs/Santa_Clara_03-14.pdf

 

 

 

 

 

 

http://www.car.org/3550/pdf/econpdfs/Santa_Clara_03-14.pdf

2013 Silicon Valley Real Estate Market Report + 2014 Market Forecast

The end of 2013 is fast approaching; I hope you all have had a great year! This year, the real estate business in Silicon Valley and Bay area is a HOME RUN! Never in my realtor career had seen such significant surge and turn around. Thanks for the economy growth in our area, we are truly lucky and blessed to live here!
Let me show you some statistics in different areas such as inventories, prices, employment, and interest rates. These four areas are the true essences affect our market.

Let me show you some statistics in different areas such as inventories, prices, employment, and interest rates. These four areas are the true essences affect our market.

Inventory:
Active inventory, Single Family and Condo/T-houses for sale
October 2010 inventory 4590 homes for sale
October 2011 inventory 3076 homes for sale, a 33% reduction in inventory
October 2012 inventory 1337 homes for sale, a 56% reduction from 2011, 71% reduction from 2010
October 2013 inventory 1765 homes for sale, a 32% increase from 2012, 62% reduction from 2010

Total number of single-family homes sold and closed escrow in Santa Clara County in a 12-month period from November 1st to October 31st of the following year are as follows:

2009

2010

2011

2012

2013

Total closed sales

11,308

11,460

11,248

11,920

12,373

Distressed Sales (Bank Owned & Short Sales)

5,705

50.50%

4,115

35.90%

3,998

35.50%

3,476

29.20%

1,440

11.64%

Sales under $500K

5,450

48.20%

4,217

36.80%

4,551

40.70%

4,147

34.80%

2,033

16.43%

Sales Between $500K to $1M

4,349

38.50%

5,023

43.80%

4,600

40.90%

5,122

43.00%

6,642

53.68%

Sales Between $1M to $1.5M

1,067

9.40%

1,524

13.30%

1,375

12.20%

1,531

12.80%

1,982

16.02%

Sales Over $1.5M

590

5.20%

850

7.40%

838

7.40%

1,254

10.50%

1,812

14.64%

 

Median Price: (The Median Price is the middle point of all the homes that sold in the month)
Here are the median single family home prices since March 2009, the recovery is obvious.

March

October

October

October

October

October

 

2009

2009

2010

2011

2012

2013

Median Price

$450,000

$593,000

$641,500

$549,000

$691,000

778,500

 

Employment:

  SANTA CALRA COUNTY CAIFORNIA NATION
2011 9.5% 12% 9%
2012 7.9% 10.1% 7.8%
2013 6.4% 8.7% 7.3%

 

Interest Rates: have moved up about 1% from their lowest point. Here is a sample of rates as of first week of November 2013 with zero points:
Loans under                       $417K = 4.25% (conforming loans)
Loans between                   $417K to $625K = 4.5% (Jumbo conforming)
Loans above                      $625K = 4.9% (Jumbo loans)

Good news 1: Inventory is staying relatively low with high demand; we will see higher prices in 2014.
Good news 2: Interest rates are still near their lowest point and many buyers are scrambling to take advantage of them.
Good news 3: Higher rental rates and increasing employment numbers are causing a huge demand for homes.
CONCLUSION:
The employment in Silicon Valley is in high gear and is better than any other area. Again, high tech is the engine that is powering our employment growth. There is a lot of expansion going on with high tech companies such as Apple, Google, Facebook, LinkedIn, Twitter and many others. We are seeing more hiring and relocations to our area this year than in the previous year, again.
We anticipate 2014 will have a higher number of sales, appreciation rates is in the range of
 5% to 10%, and relatively low interest rates going in to the New Year.
There you have it! It is very hard to explain to the rest of the nation why California is the place to be. The above numbers speak themselves!
I hope the statistics provide you a quick glance of the Valley real estate business of 2013. Should you have any questions on this letter or you need statistics in specific areas and markets, please give me a call or write an email. I will be gladly providing you with free information. At the same time, if you know anybody who is ready to sell and buy real properties, please refer me a client. I am always ready to help people and family with their needs.

Wishing you and your love ones Merry Christmas and a prosperous 2014!

Jin Chen REALTOR, REFERRAL REALTY
Specialized in Silicon Valley residential, investment and RE marketing
650-207-1421 (c)   408-610-9572 (v)     Email:
jchen@referralrealty.com  BLOG: Realty Matters

Risky Business – Part Two

How High is not too High?
In today’s market, there is no doubt that bidding asking price is wasting time. But after analyzing COMPS, buyers always feel puzzled, pressured and tensed, “How high will this go?”, “How much higher should I put down?”. This is especially true after being defeated in several previous biddings.
There are several ways to bid in multiple situations and protect yourselves:
1. Have your representative check out with seller agent before the offer deadline of EXACTLY the offers seller side has received in hand. The more your agent find out the “war situations”, the better is for you to react.
2. Figure out the increment of the bid according to the number of estimated offers seller may have.
The closer your offer compared with the top other competitors, the more chance you will be in the “semi-finals”.
3. Create clauses to increase your chance of winning. You want to get into the game first, then excel others in the “semi-finals” – counters. I have seen all kinds of clauses buyers create to differentiate from all bidders, such as: “will add x percent more than the highest bid, but not exceed x dollar amount”; “Upon acceptance, I will increase x dollar amount of deposit”, are just few examples.
4. Once buyer entered the “semi-final” field, buyer actually has more control of the situation. Because the price range is clearer, buyer can decide whether to go or forgo with the bid.

The price definition: a willing seller wants to sell and an able buyer wants to pay.