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.