Tuesday, July 14, 2009
Silicon Valley Entry Level Real Estate on Fire
Silicon Valley Entry Level Homes are on Fire. No, this doesn't mean that San Jose homes are actually ablaze. It does mean that entry level single family housing in the Silicon Valley real estate market continues at its frantic pace. This week at our weekly sales meetings, many agents are again stating several cases of multiple offers by buyers. In one case, there were over 50 offers on a one house! On another case there were over 20 offers! Pending sales (sales where a seller has accepted a buyer's offer but has not yet closed) have now exceeded the number of homes for sale. That puts us squarely in a seller's market. One could argue (correctly so) that prices aren't what they were 2 years ago. However, I'm seeing cases in this area where banks with foreclosure properties for sale will only look at offers with large sums of cash down payments. It gives you a sense of the strength of the market when sellers start to dictate terms. I keep hearing from the press that there are more foreclosures coming when adjustable mortgages reset. But apparently the market has gotten tired of listening and is buying real estate now.