Santa Clara County’s Active Real Estate Inventory is Miniscule

silverlake small frontWe have the lowest active inventory since 2006 when I started tracking local statistics.  The total of active single family homes, townhomes and condos was just 555 on January 2nd!  That is in a County with over 1.9 million people!  No wonder prices have been steadily increasing.   Last year was also low with 20 more than this year.  To give you some perspective – in 2008 there were more than 6000 listings. 

The number of active single family homes was 449 and condos/townhomes were 106. The number of active homes is about 45% lower than last month.

The number of homes and townhomes/condos that went into contract in December was 760. It was made up of 546 single family homes and 214 condos/ townhomes. The pending sales were down about 34% from November, due to the lack of inventory. 

December saw more closings than in November.  November was the first month that felt the effect of the new lending requirements rolled out in October.   The number of closed sales in December was 1133 (816 were single family homes and 317 were condo/ townhomes).  The closed sales were up 13% from last month and up 15% from last year’s figure. Find out more market conditions in specific areas in Santa Clara County.

What does this mean to you? If you are a buyer, you need to be ultra prepared and have a knowledgeable Realtor to guide you. As a seller, you can reap the rewards of this good market. How much your home sells for can be very improved with proper guidance on how to prep and market your home.

I am daily in the trenches with real estate. I have been through 31 years of ups and downs in Real Estate.

Understanding your options both in Real Estate and lending is critical now as guidelines have changed making the real estate market fluid. Want to know your options? Call me!

For more information on this local market, go to my website – Pat@PatChadwell.com 

Pat Chadwell,
Broker, CRS, ePro, SRES, CDPE, CIAS, SFR.
I have 31 years helping clients with their Real Estate needs.

Stop rental scammers – 3793 Justine Dr, San Jose CA 95124

Stop rental scammers – 3793 Justine Dr, San Jose CA 95124

Okay – now is your chance to report the low-lifes that are trying to scam you out of your hard earned money.

I am the listing agent at this home 3793 Justine Dr.  No, this home is not for sale.  I have had 3 potential renters call me to find out if the Rental Ad from both Craigslist and Trulia was for real.  The scam artist is sounding very convincing.

Have this happened to you?

Leave the scammers email address, copy of their email, phone #s in comment section.  I will put pressure on them to go somewhere else.

For Craigslist – You should also report them using this link – http://sfbay.craigslist.org/cgi-bin/emailForm.cgi

More data is available at – http://www.craigslist.org/about/scams – Including where to file a Federal complaint.

Take action!  I could love to get your comments.

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Seniors are moving less

Seniors have been moving less.

Often the biggest source of retirement funds for seniors is the equity in their homes and reduction in equity was significant in the last few years for many.  I find some seniors are waiting to recoup the money they “lost” (which could be a long time depending on the location of the home).

While it is true some seniors are now underwater with their mortgage, most seniors have lived in their home for years.  From the 2011 AARP Housing Profile – 25.4% of seniors own their home free and clear, 46.1% own a home with a mortgage, & 26.9% rent.

Recently some seniors have found themselves with children and grandchildren moving in when they lost their jobs.  This offers some benefit to the senior if the others help with maintenance and care of the home or senior’s needs.

While the economy has been slowing up the moves, there still is resistance to making a big change that has always been present –

  1. Some seniors are in good health and do not feel a need to make a change yet.
  2. Others feel uncomfortable just thinking about making a change after all the years in the home.
  3. Some do not know their options or where to start.

For the 1st group – Well done & Carry on!

For the 2nd & 3rd group – I would recommend enlisting the help of a knowledgeable Realtor, especially one trained to assist Seniors (Senior Real Estate Specialist).  The Realtor can give you an idea of what your home might be worth and offer suggestions for your next home or refer you to someone in the area that you might consider moving to.

Another task is consulting someone trained to help with moves.  For a good guide on moving go to http://www.nasmm.org/education/guide_to_relocating.cfm

For help in organization and your paperwork, I would suggest a local businesswoman who owns Exit Stage Right.  She has been working for years with seniors and their families.  www.exitstageright.com.

Have more questions?  Need some guidance?  Comment here or call.

Pat Chadwell, broker
Realty World – Residential Specialists (San Jose, CA)
Senior Real Estate Specialist
408-927-6565 x 11 (direct)
http://www.patchadwell.com

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If we had double the inventory we could have easily done double the sales

The real estate market in Santa Clara County has been HOT!!   We have a very low inventory of only 1659 homes and condos/townhomes.   Investors, first time buyers and move up buyers and sellers are out in full force. I recently had an open house with 125 attendees in 3 hours and this was on a blustery day. The rapid change really started in the last 2 months.

So here is the Sales Statistics Update Report. Remember we have a population of 1.8 Million people. 

If we had double the inventory we could have easily done double the sales.

For area specific market conditions in San Jose area – check out my updates – http://realtytimes.com/rtmcrmember/patchadwell

Pat Chadwell, broker
28  years experience
Realty World – Residential Specialists
www.patchadwell.com
855.927-6565

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What can a rehabber do?

Fixer Upper in Dorena

The Santa Clara County real estate market has heated up so much in the last 2 months.

There have been many properties especially at the lower price range in San Jose that are getting 30+ offers. The resulting sales price might not work now for the “rehab and sell” investor.

Some of the reasons why?

1) First time buyers are usually willing to pay the most for these properties as they will live in them and fix over time. First time buyers are out in droves now. In this segment of buyers 1st time buyers) there is a backlogged demand for homes. After all they, as a group, have not been “in the market” for the last 4-5 years while they wait for the bottom to hit. Well, the bottom was yesterday.

2) The “rent-to-hold” investor is just going in and lightly improving the place, getting a tenant and not trying to resell – they will pay more for the home and the rental figures are making it a smart investment.

Until not that long ago if you compared 3 homes that were the same in all respects but one was a short sale, one was an REO (bank owned home) and one was a regular sale, there was a decent difference in sales price between the groups.  Now, due to many buyers in the market, the difference is getting less and less.

So that makes it more difficult to get the numbers the rehabber (aka FLIPPER) needs to make a profit.

What can a rehabber do?  If you can pare down on profits and also “hope” that the prices will continue to rise, you might be successful in securing a property. But that is “IFFY” and not necessarily a smart business model.

It is an interest problem.  Do you have a comment?

Pat Chadwell, broker
Realty World – Residential Specialists
www.patchadwell.com
408.927.6565 x 11 (direct)

The real estate market has heated up so much in the last 2 months.

There have been many properties especially at the lower price range that are getting 30+ offers.  The resulting sales price might not work now for the “rehab and sell” investor.

Some of the reasons why?

1) First time buyers are usually willing to pay the most for these properties as they will live in them and fix over time.  First time buyers are out in droves now. In this segment of buyers 1st time buyers) there is a backlogged demand for homes.  After all they, as a group, have not been “in the market” for the last 4-5 years while they wait for the bottom to hit.  Well, the bottom was yesterday.

2) The “rent-to-hold” investor is just going in and lightly improving the place, getting a tenant and not trying to resell – they will pay more for the home and the rental figures are making it a smart investment.

Until not that long ago if you compared 3 homes that were the same in all respects but one was a short sale, one was an REO and one was a regular sale, there was a decent difference in sales price between the groups.  Now, due to many buyers in the market, the difference is getting less and less.

So that makes it more difficult to get the numbers the rehabber (aka FLIPPER) needs to make a profit.

What

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