Market Statistics November 5, 2013

2013 Q1-Q3 Market Update

Since 2009, we’ve seen the local market increase annually, and 2013 was no different.  The average sales price of single-family homes in Santa Clara County rose 19% (Los Gatos 7%, Los Altos 9%, Saratoga 11%, Palo Alto 16%, Mountain View 17%, and Sunnyvale 19%).  San Mateo County rose 24% (Menlo Pk 15%, San Carlos 17%, San Mateo 18%, Redwood City 20%, Burlingame 21%, and Hillsborough 25%). This rapid rise in price was driven by low inventory, historic low interest rates, and abundant buyers who had the financial backing to bid up list prices, significantly over the asking price in most cases.  So what should you do if you or someone you know are thinking of selling or buying….here are my thoughts:

Sellers:  There is no better time than now since it’s a seller’s market.

Dollar HousesBuyers:  Don’t despair and don’t try to time the market.  Although prices have increased, the prices in 2012 are about the same as the 2008-peak level, so the double-digit growth this year is the net growth over the past 5 years, so it’s not that exorbitant. If you’re buying for the long-term, then it’s a good time to buy.

Investors:  Yes prices for multi-unit properties have gone up but so have the rents!  Rental properties are excellent options to diversify anyone’s investment portfolio, and real estate has some excellent tax shelters that does not exist elsewhere.