A Perspective on Real Estate Prices

 A Perspective on Real Estate Prices: this is a graph that I created and have been updating for over 25 years now.

Prices have been fairly stable in 2023, going down slightly from 2022.  But these are median prices of Single Family Residences for the US, California, the 9 counties of the SF Bay Area, and the County of Santa Clara.  

This is not always the same story for townhomes/condominiums:  median prices have usually gone up a bit from 2022 to 2023, in the Bay Area Cities.

Click on the graph to see larger.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?

California Program Helps You Pay For Your First House

 

Applications open April 3 for California program that helps pay for your first house

Source: KQED

When it rolled out last year, the California Dream for All Shared Appreciation Loan program – a loan application for first-time homebuyers – exhausted its approximately $300 million of funding within 11 days. That prompted some changes this year for when the down payment assistance program reopens for residents on April 3. The state has about $250 million in the fund, which is expected to assist between 1,600-2,000 new applicants, according to the California Housing Finance Agency (CalHFA). 

“The program is designed to help those who may not have had the benefit of generational wealth in buying their first home,” said CalHFA Spokesperson Eric Johnson. Under the program, the state will put down up to 20 percent of the cost of the home, or up to $150,000. The money gets repaid when you sell the home, plus 20 percent of any appreciation in the home’s value. Applicants must be California residents making up to 120 percent of the area’s median income, as well as a first-generation homebuyer, meaning that their parents do not own a home in the United States. 

Read the full article here.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?

 

Want a largely risk-free California home purchase? Own it for 12 years

 

Want a largely risk-free California home purchase? Own it for 12 years  

 Source: Lake County Record-Bee

Buying a home is generally a long-term investment, but how long does one need to keep a home in order to increase one’s odds of seeing the price increase? This op-ed discusses analysis by a Southern California business columnist, Jonathan Lansner, of home price trends in the state since 1987.  

He found that while the majority of one-year, two-year, four-year, or even eight-year periods yielded price increases, 30 percent of one-year periods saw prices fall, and 27 percent of four-year periods also showed decreases. Even owning a house for eight years wasn’t foolproof because 21 percent of eight-year periods saw prices decrease (while 79 percent saw prices rise, even as much as 61 to 214 percent). Since 1987, Californians who owned a home at least 12 years saw no price declines, and the average price gain was 94 percent. There’s no guarantee that this historical trend will predict the future, but it reinforces the benefit of thinking long-term.

Read the whole article from Jon Lansner (jlansner@scng.com) Orange County Register.  

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?

 

Feb 2023 Update on the Silicon Valley Real Estate Market

Latest stats on the Bay Area real estate market.

The Take-Away:
Year-over-year prices have adjusted: prices have fallen about 15% from the highs of the market in April 2022, and then started to go back up a bit: prices have stopped falling and are now quite well sustained as a whole.  However the picture is different locally depending on how desirable the location is, or the size of the home - since the pandemy larger homes are more desirable.  The premium locations continue to draw multiple offers and experience an active market.  Good pricing is as always key to a good sale.

View Web Version

Trends At-a-Glance for Santa Clara County Trends At a Glance Jan 2023 Previous Month Year-over-Year Median Price $1,529,000 (+4.4%) $1,465,000 $1,688,890 (-9.5%) Average Price $1,932,710 (+9.4%) $1,767,070 $2,041,660 (-5.3%) No. of Sales 262 (-35.9%) 409 429 (-38.9%) Pending 869 (+1.9%) 853 902 (-3.7%) Active 533 (+8.3%) 492 389 (+37.0%) Sale vs. List Price 98.9 (+0.2%) 98.7 113.7 (-13.1%) Days on Market 34 (+7.8%) 32 14 (+142.6%) Days of Inventory 61 (+69.1%) 36 27 (+124.4%)

Market Barometer

Prices and Sales Days of Inventory

Sales Year-to-Date Sale Price/List Price Ratio

Market Overview Home Sales Prices Mixed   The median sales price for single-family, re-sale homes rose, month-over-month. It was up 4.4% from December. It was down 9.5% compared to last year. The average sales price for single-family, re-sale homes was up 9.4%, month-over-month. It was down 5.1% year-over-year.  There were 262 homes sold in Santa Clara County last month. The monthly average since 2000 is 987. The sales price to list price ratio rose from 98.7% to 98.9%.  As of February 5th, there were 533 homes for sale in Santa Clara County. The average since January 2000 is 2,703.  It took thirty-four days to sell a home last month. That is the time from when a home is listed for sale to when it goes into contract.   The median sales price for condos was flat 9.4% compared to last January. The average sales price gained 0.9% year-over-year. Condo sales were down 52.8% year-over-year. There were 110 condos sold in December. The sales price to list price ratio rose from 99.2% to 99.4%.  As of February 5th, there were 247 condos for sale in Santa Clara County. The average since January 2000 is 757.  It took an average of thirty-three days to sell a condo last month.   If you are planning on selling your property, call me for a free comparative market analysis.

 

Warm regards,

Francis C. Rolland
Coldwell Banker - Los Altos
- Serving you since 1985

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Americans Misinformed on The Housing Market

 Source: The Hill

Americans who are planning to purchase a home in 2023 are woefully misinformed about the nation’s mercurial housing market, even as millions of them prepare to buy homes, according to a survey by NerdWallet. On average, they hope to spend $269,200, which falls more than $100,000 short of the median home price, which was $388,100 in December, according to the real estate brokerage Redfin. Home prices crossed the $269,000 threshold sometime in 2013, Federal Reserve statistics show. 

Two-thirds of those surveyed said they expect an imminent crash, however, real estate economists do not. Lawrence Yun, chief economist for the National Association of Realtors, forecast an average sale price of $385,800 this year, about the same as last year. Redfin predicts a 4 percent drop: bad news for sellers, but hardly a crash.   

See the whole article here.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?

About 1/3 of US Home Purchases Were Paid in Cash

 About one-third of U.S. home purchases were paid in cash.

Nearly one-third (31.9%) of U.S. home purchases were paid for with all cash in October, according to a report from Redfin. That’s up from 29.9% a year earlier and the highest share since 2014.

All-cash home purchases increased in 29 of the 39 metros in Redfin’s analysis from October 2021 to October 2022. They increased most in Riverside, Calif., where they rose to 38% of all home sales from 19.2%. The lowest share of all-cash purchases was in the West coast market, especially in the Bay Area of California. Just 14.3% of home purchases in San Jose and 16.5% in Oakland were paid in cash. 

Source: National Mortgage Professionals

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?

Guide to Buying Your First Home

Down times are excellent times to be buying a home.  

Some of my clients were not bothered buying their first home in the worst of time, like at the worst of the last crisis.  With hindsight, they are the smart ones now.  Yes the market has slowed down, and prices are back to what they were last year, but so what? Buying a home is for the long term.

I always remind my clients: as long as you can afford comfortably the home you buy, you have a fairly
stable job, and you know you can find a new job should you lose your current one, then any time is good.  If you know you may have to sell in one or two years, then it may be best to continue renting until you are more sure of your situation.  Otherwise, why continue paying a mortgage - your landlord's mortgage?

This being said, buying a house requires a significant amount of money and time. The journey isn’t always easy, but when you get the keys to your new home, it can be one of the most rewarding feelings ever. 

Knowing the home-buying journey, what tools are at your disposal and creating relationships with experts who can help you get the job done is the key to getting there.

 Here is a link to this nice article, a recap of what to think about.  Source: House Logic

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Francis

Silicon Valley real estate

Tre

nds: Local prices and graphs.

How much is your home worth?

Conforming Loan Limits are raised to $1,089,300 !

 Conforming Loan Limits are raised to $1,089,300  by the Federal Housing Finance Agency, and this is a big deal for home buyers in California.  

Why is it so?  because "jumbo loans" which amounts would be higher than the "conforming loan limit" are less flexible in their conditions.  This means that buyers can qualify more easily as they seek to purchase a California home, which is often much higher than the previous limit of $970,800 in high cost areas.  This nationwide figure needed to adjust to the price level that is more common in California.

“C.A.R. [the California Association of Realtors] applauds the FHFA for its continued commitment to homeownership by increasing the conforming loan limits. The higher limits will help make homeownership more accessible to Californians across the state and provide homebuyers with more financing opportunities,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “This year in California, nearly one out of every four homes sold between $1.25 million and $2 million were purchased by first-time homebuyers,” Branchini said.

C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) both have long advocated for loan limits that reflect an area’s cost of housing. As a result of C.A.R.’s and NAR’s efforts, areas with high median home prices have benefited from a loan limit above the national conforming loan limit.

Source: California Association of Realtors

Like my updates? Subscribe to my Blog! Thank you for reading,

Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?