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.

How to cut the number of strategic defaults?

How to cut the number of strategic defaults?

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DSnews reported – An alarming number of homeowners see strategic default as a viable option should their home continue to depreciate. Almost half of the homeowners participating in an online poll from Housing Predictor say they will walk away from their mortgage obligation if falling home values persist.  See Full Story

I have a theory.  The current model of doing loan modifications for people that are behind is fine.  HOWEVER, the banks are rewarding the people who are NOT making their mortgage payments while the ones that are diligently continuing to pay their mortgage are pretty much getting forgotten or given short shrift.  Homeowners that are current see the inequity of this. They think “To get any help I must give in and go delinquent”.

So the result is MORE people in default.  The situation of defaults only worsens.

Banks should be courting those people whose mortgages are current and who have a high interest rate on their loan(s).  It would be an act of good will and excellent public relations for the banks.  The homeowners who get the refinance into a better mortgage would become more of a loyal customer and they would be saving thousands per year on interest payments.

An example:  Take someone with a $400,000 loan at 6%.  Their payment would be approx $2400/mo.  Now refinance that party into a new 4% loan and they would be saving $500/mo or $6000/yr.

Sure banks might consider principal reductions as well and that is another topic for later.

I recognize that saying this might seem simple and for the banks it is an accounting nightmare BUT the more you reward bad behavior the more you get bad behavior.  The more you reward good actions, the more others will do good actions.

What do you think?

Pat Chadwell, Broker
Certified Distressed Property Expert
Realty World – Residential Specialists
408.927.6565 ext 11
www. patchadwell.com

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