Market Update:The REAL Scoop

Bank-owed homes are throwing the overall market stats, what you read/hear in the News is not exactly the correct picture. Here's the real scoop on the market...

MARKET UPDATE

• April and May have seen a dramatic pick up in activity under $900,000. At the lowest end we are seeing and have been seeing for the last 2 months multiple offers - as clarification, I mean anywhere from 10-30 offers on one property. There are many cash-heavy players out there right now - tough times for an entry point buyer.

• First Time Buyers Stay Tuned. We are in a mini-market. Banks are holding their inventory of homes, they WILL be coming in 60 days. They will NOT flood the market but this should offer some relief, and hope, for FHA-approved and conventional first time buyers with little money to put down. (This is info that is not widely known, not even in the real estate community, if it was buyers wouldn't be bidding up homes like crazy. Your advantage!)

• Investors Gear Up. Bank owned homes are coming to the West side. Albeit the majority are still in South and East San Jose we will see opportunities in Cambrian, Campbell, Santa Clara, Willow Glen - dare I say Los Gatos (we have a few now!).

• Attention Stat Lovers: This week in Santa Clara County there were 272 Notice of Defaults issued (homeowners not paying their mortgage), 14 homes sold by court auction, and 329 homes went back to the banks (foreclosed). Last year our numbers were roughly half at this time of year. To put the volume into perspective, we have had year to date just over 5,300 bank-owned homes, last year, there was a total of 5,748. Wow!

• Attention SELLERS: If you haven't realized it yet after reading the last few bullets, this is your opportunity to get the HIGHEST POSSIBLE PRICE. Low inventory plus strong demand has created a GREAT time for sellers. Properties are moving, particularly as you go down in price range. List now! In 60 days the market will be back to "normal."
  

April 2009 Santa Clara County Closings - Broken Down by Type to give you the TRUE picture
1. Short Sales
96 SOLD Average Sale Price: $471,304 % of Last List Price Recvd: 98.5% % Original List Price Recvd: 84.7% (meaning it sold for 15% less than original list)

2. REO (Bank Owned Homes)
451 SOLD Average Sale Price: $389,032 % of Last List Price Recvd: 99.9% % Original List Price Recvd: 93.8% (highest demand for this category)

3. Regular Sales
409 SOLD Average Sale Price: $849,338 % of Last List Price Recvd: 93.7% % Original List Price Recvd: 88.9% (Great justification for going in low on your offer in the upper price ranges)

**If you are interested in learning more about the REO/Short-Sale market and the upcoming opportunities, Intero Los Gatos will be offering a seminar in early July. I will post the information soon.**

Hope this is helpful. Always appreciate your feedback/requests for information.

Tracy Pina