Whether you are a first time buyer or seller, or have been through multiple transactions, you might be surprised by how quickly the real estate market changes in Los Altos, Palo Alto and surrounding communities. You need hard-hitting historical data, current market analysis, and insider experience to stay informed and succeed in these real estate markets.
As a service to their clients, Jeff Stricker and Steve TenBroeck of Alain Pinel Realtors provide regular market analysis and commentary. You are invited to read the entries below, add your comments, ask questions or contact them directly.
Does it pay to be a long-term owner of real estate in Santa Clara County? According to DataQuick statistics it does. Cumulative 10-year appreciation (1997-2007) for the county was 168% or an average of 11% annual appreciation. At that appreciation rate a property doubles in value every 7 years. Add in leverage and tax benefits and your return on cash invested would be off the chart. You might say better than Google-like returns! Jeff Stricker
Pricing high-end homes (over $2.5 million) is difficult at best, given the variability of the features of each home, buyers’ personal preferences, and subjectivity. Each home is usually unique in characteristics. The exact value to potential buyers of those characteristics is unknown. As a result, only approximations can be used to compare two high-end homes. This is why appraisers consider a 10% range of value to be “accurate” and the closest one can come to divining fair market value.Jeff Stricker
The official start of the spring home selling season began February 4 with the passing of the Super Bowl. There was an immediate increase in listing activity across many areas as typically happens each year. Low loan rates and more homes for sale equals a great opportunity for buyers. Please note: Product selection and the ability to hold 7-10 years are critical at this stage of the market cycle.Jeff Stricker
Accurate pricing of a home for sale has become important again. In red hot markets homes will receive multiple offers and the price will be bid up to market value. In a more balanced market multiple offers are not a certainty and a home can be sold for less than current market value. Of course, overpricing it will cause a home to sit and not sell in any market. Now, more than ever, pricing it right matters! Jeff Stricker
Will the Fed drop in interest rates equate to a drop in mortgage rates? Not necessarily. Lenders are primarily concerned with inflation. If they feel that a move increases the chance of inflation moving higher they may actually increase loan rates on a decrease by the Fed. That is exactly what happened when the Fed reduced rates by .75% last week.