Bay Area REBlog

When first time home buyers purchase entry level homes, that allows the entry-level homeowners to sell and move-up to a mid-level, move-up market.  By purchasing those homes, the move-up market is able to sell and ultimately purchase homes in the luxury arena.  It’s a much-needed domino effect that will have significance in our market’s rebound.  The numbers released over the last two weeks are showing that the process has already begun.

I know it’s difficult to view the drop in property value as a positive thing.  But the fact is that though the ride was nice in the big real estate boom of the early 2000s, we couldn’t sustain those types of record appreciation levels without eliminating certain consumer niches, including first time home buyers.  Now that levels are back within range, the first time home buyers are once again able to reenter the market which is why we are seeing such a strong surge in sales in that level.

It’s just a matter of time before we weed through the remaining banked owned inventory and we should begin to see prices stabilize.  Once we see that, the remaining areas of the market should begin to see an upswing, too.

Here’s an excerpt from the The Wall Street Journal: “Whatever the March numbers say, there are good reasons to think that home sales will improve as the spring selling season gets underway. Anecdotal reports suggest that low mortgage rates and an $8,000 first-time home-buyer tax credit are coaxing buyers back into the market. And while foreclosures are set to rise as banks begin to move on delinquent homeowners, that actually could boost home sales as banks auction homes for whatever the market will bear.”

The market is without a doubt changing and we may finally be seeing the end of the great housing challenge of the 2000’s.  I’m sure we are all up for that.

Thanks to Rick Turley, President, San Francisco Bay Area, Coldwell Banker Residential Brokerage for providing this information.

Here are some statistics for our market:

Mountain View - 21 homes closed escrow last month – highest price $1,325,000 - 4 bed / 2 bath on Tulane, lowest price $520,000 – 3 bed / 2 bath on S. Rengstorff.

Los Altos - 10 homes closed escrow last month – highest price $1,920,000 – 4 bed / 3 bath on Mt. Hamilton, lowest price $1,050,000 – 2 bed / 1 bath on Mundel Ct.

Sunnyvale – 35 homes closed escrow last month – highest price $1,200,000 – 4 bed /2 bath on Ticonderoga Dr, lowest price $ $247,500 – 3 bed / 2 bath on Hiddenlake Dr.

Palo Alto - 23 homes closed escrow last month – highest price $4,050,000 – 5 bed / 4+ bath on E Greenwich Pl, lowest price $815,000 – 2 bed / 1 bath on Middlefield Rd.

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