QUICK UPDATE:

The units sold in October 2008 v. October 2007 were up 57%. Most of that activity happened in homes under $500k, short sales and REO (Real Estate Owned by the bank after foreclosure or how you would want to call it “Real estate Opportunity”) In addition, the 1 million plus range seems to be moving better than the deep-freeze we were in from October 10 to the end of October. During the last 5 weeks buyers are buying 1 million dollar plus homes at a faster rate than in September - October. It’s a great opportunity to upgrade from smaller homes which lost relatively less to larger, more expensive home.

WHAT IT TAKES TO SELL IN THIS MARKET:

Price and condition of the home become even more critical than in the past. Homes that are still selling are either priced more aggressively or upgraded and in good Condition. The homes that are priced well and remodeled are attracting the most attention and getting sold faster.

Of course location is of utmost importance. Being in a good school area improves the saleability of the house immensely.

WHO IS BUYING TODAY?

Relocation Folks; First Time Homebuyers; Investors in anticipation for appreciation for under 400K market; Move-up Buyers making a lateral move; Folks that have been sitting on the sidelines for a few years; Folks at all price points that have been pushed out of the market by multiple offers over the last 4-5 years

Investors:

If you are planning to buy a short sale, check with your real estate lawyer. There are too many law suits going around due to innocent mistakes or not knowing the laws and regulations.

QUICK RATE UPDATE: please note, the actual rate that you can get depends on your credit history and down payment amount.

30 Year Conventional 6.000% @ 0 pts up to $417,000

30 Yr Agency Jumbo 6.375% @ 0 pts up to $729,750

5/1 ARM Super Jumbo 6.125% @ 0 pts up to $4M

A new home owner called Len Tillem on his Radio talk show today. He bought a house close to San Thomas Expressway for about $800k. The seller wrote in his disclosure that there was no traffic noise so he assumed that it was quiet. He claimed that he only saw the place during the weekend and it was quiet. Now that he moved in he hears the traffic all the time and he is angry at the sellers and the real estate agents. He thinks that he should have paid less for his property or not buy it.

He is rightfully just to be angry at them. It should have been disclosed to him. The agents should have warned him that being close to a freeway there will be noise.

An advice to any buyer who purchases a new property. Always visit the property at all hours of the day. You are going to live there and spend many hours at your new home. Listen to the noises in the area. Some people are sensitive to noises and smells and will be miserable if they hear water, or traffic, or airplanes, or trains, or even dogs barking. You are investing so much money. For many of you this is your largest expense, invest a little time, it doesn’t even cost money. Go there, get out of your car and stand there or walk around the place. Talk to the neighbors. There is always a nice neighbor who would love to tell you everything about the neighborhood. Drive to your work place from that house and drive back as though it was your home. This way you’ll avoid aggravation and live happier in your new home.

The world economy is shaky; the Dow Jones Index lost 504 points in one day, and looking at the candidates to lead the most important country in the world is not encouraging. The papers predict a grim economic future; prices are dropping in most of the U.S. People are having a hard time getting loans and banks continue to ask for more proof of work verification and available funds to close the deal. It all sounds so depressing, so how come housing prices in our area are still holding strong? I still see multiple offers. So many people check the open homes during the weekend and show real interest. Two weeks ago a 3br 1525 s.f. house was sold in Sunnyvale, in the Santa Clara school district; just on the East side of Wolfe. It was sold for $82k over asking price. It was not significantly improved (an Ikea kitchen with Formicas counter tops and bathrooms with vinyl floors) but the sellers removed some walls and the yard was very pretty and spacious. A 3 br town house in Sunnyvale, just north of Fremont Ave near Mary Ave was sold with 4 offers over asking price and a similar one was sold for a higher price with 2 offers.
The prices in the Cupertino school district area have not increased since the crazier period in February-March this year when people offered 10-15% more than asking price. Now they either negotiate around asking price, or if there is competition (Yes, it still happens) they add 1-3%. If you compare today’s sold prices to what was sold in March 2008 the prices have decreased.
As of today there are 75 homes for sale in Palo Alto - the most expensive priced at $29,850,000, which has been on the market for 381 days. The cheapest house in Palo Alto is priced at $799,950.
Los Altos and Los Altos hills have 114 homes for sale in. The longest listing time on the market at that area is 405 days.
Mountain View has 63 homes for sale in - the most expensive is $4.4M for a small house on a huge lot (40,386 s.f.). The longest listing time in MV is 97 days.
Sunnyvale has122 homes for sale in, with one home at 216 days on the market. There are only 14 homes for sale in Sunnyvale in Cupertino school district.
Cupertino has 106 homes for sale with one home on the market for 390 days (the sellers surprisingly raised the asking price). Out of these homes 84 homes belong to the Cupertino school District.
Saratoga has 128 homes for sale, the most expensive priced at $12M. One home has been on the market for 763 days, asking $6.6M.
The inventory is growing very slowly these days, as it does every autumn. September is the beginning of fall and most sellers prefer to sell in the spring. However, people still have to move or need to sell.
This graph represents the whole Santa Clara County. It shows how the inventory slows down and more homes get into contracts. Many foreclosures, short sales and REO are selling faster. Investors and home owners use the opportunity to own homes with relatively low prices. Please feel free to ask me if you are not familiar with any of the terms I used. I am always happy to hear from you.

In California the Real Estate Broker is responsible for pre qualifying the buyers, finding a suitable house/property that will fit the needs and budget of the buyer, negotiate the best price and terms, write the contract which is the purchase agreement, coordinate with the lender to get the best loan, inspect and check the property with professional inspectors, follow up and make sure all needed work be completed as per the contract, pay attention to every detail and educate the buyers through the process, walk through the check the property before releasing the down payment funds, check the closing statement and follow up with the home warranty and advice for many years to come. For Sellers, the Broker has to help decide on a marketable price, help prepare the house like a bride for her wedding day, do all property inspections, help the seller fill up all the disclosures, market the house and advertise in all possible ways, hold open house every weekend until the house sells, show it whenever needed, help maintain the house clean and tidy, choose the best suitable buyer, negotiate the best price and terms, check the lender and follow-up with every step of the sale process, and the contract and help deliver the house clean and ready to the next owners.

There are many other roles a broker has that are not written, like staging, moving furniture around, decorate with fresh flower arrangements, and be a real friend.

With the new situation of the mortgage companies and banks that are going under, like Indibank this week and who knows who is next on the list, there is a feeling of uncertainty. Buyers are afraid to remove loan contingency because their lender might change terms at the last moment or even go under, leaving the buyers with no loan, risking their deposit check of 3% of the sale price, which is a considerable amount of money in our area. Until about 1985 the contract enabled the buyer to have loan contingency up to the final approval of the loan or the funding day. It is still the case in other states like Texas and Louisiana but not in the bay area. Here, the seller gets mad and asks the buyer what rights he has to expect the seller to hold his property off the market while he waits for his loan to get approved without jeopardizing his deposit check. Maybe it’s time to change this condition and give the anxious buyer some peace of mind.

The Real estate market is more balanced these days. There are more negotiations and less bidding wars. Some extraordinary homes still sell with multiple bids but most homes are being sold after a few weeks on the market and tight negotiations. Sellers still insist on their prices and buyers are more cautious. Many buyers wait to see what will happen with the banking industry, but others still buy homes especially in the preferred areas with the good schools.

Sunnyvale CA is one of the largest Cities in the Silicon Valley, next to San Jose, Cupertino, Santa Clara, Mountain View and Los Altos. About 140,000 people enjoy the stability, the clean air, clean environment, abundance of parks and recreation facilities, beautiful community center and senior citizen center, great schools and fantastic Police & Fire department who shows up in less than 5 minutes when called.

The elementary schools in Sunnyvale attend 3 school districts according to geographic boundaries. Sunnyvale has 4 elementary schools that belong to the Cupertino School District

You can click on the link and view the location. Montclaire, West valley, Stocklmeir and Nimitz

Cupertino Union School District elementary Attendance Boundaries

The kids from the Northern neighborhoods, North of Fremont Ave attend Sunnyvale School District

Some of the schools are as good almost as prestigious as Cupertino schools. Cherry Chase Elementary

and Cumberland Elementary

are very desirable. Columbia middle school is known for the high math achievers. A high percentage of kids who attend Columbia middle finish Algebra before they get to high school. The school received grant from Juniper, a high tech company nearby.

The kids on the East side neighborhoods of Sunnyvale, East of Wolfe Road attend Santa Clara School District in Sunnyvale. Laurelwood Elementary is one of the best elementary schools in that area. The day care before and after school hours enables working parents to leave their kids at school after hours or early in the morning , knowing that they are in good hands.

In a meeting with Larry Stone the Santa Clara County assessor he explained that home prices are determined by the designated school for that property. There could be a considerable price difference between homes in the same street or adjacent street, just because they belong to a different school. The Real estate market is affected directly by the schools. While most of the country is affected by the mortgage market and prices are going down, Sunnyvale is holding tight. The prices are solid. Until now you can still see multiple offers and high home prices.