Silicon Valley Real Estate Blog

Information and updates about the Silicon Valley Real Estate Market, lifestyles, schools  and interesting facts about the communities.  

Feb. 22, 2018

Silver Creek Valley | Mortgage Rates on FIRE! Home Prices Up in Smoke?

Silver Creek Valley | Mortgage Rates on FIRE! Home Prices Up in Smoke?

 

Silver Creek is one of the most beautiful valleys in the San Jose area with beautiful scenery and rolling hills.    

There's is an abundance of open space, hiking trails, great schools and charm. Locals know that  Silver Creek is a great place to raise a family.   

While some people may say that the area is energized by new growth and rapid changes, Silver Creek somehow retains its old-fashioned charm and authenticity to provide a tranquil life for your family   

Connect with the past, present and future in Silver Creek Valley, one of the most charming neighborhood you’ll find in the San Jose area.   

Every home buyer has a wish when looking for a home, while not all of them are granted, the ‘feel good magic’ happens when they start seeing homes around neighborhoods of this beautiful valley.   

Is the people what makes this place a little different from others, It's a great place to live.   

Neighbors welcome you with open arms and share indiscriminately the beauty and charm that Silver Creek has to offer.   

Today I would like to point out specifically about  Homeownership: Mortgage Rates on FIRE! Home Prices Up in Smoke?

 

Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year.

 

What impact will rising rates have on house values?

Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop. 

However, in a good economy, rising mortgage rates increase demand as many prospective purchasers immediately jump off the fence to guarantee they get the lower rate. 

Let’s look at home prices the last four times mortgage rates increased dramatically.

 

In each case, home prices APPRECIATED and did not depreciate. No one is projecting as dramatic an increase in rates as the examples above. Most are projecting an increase of approximately 1% by the end of the year.

The last time mortgage rates increased by 1% over a twelve-month period was January 2013 (3.41%) to January 2014 (4.43%). What happened to house prices during that span? They appreciated by 9.8%.

Just two weeks ago, Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting explained:

“Mortgage rates have risen 1% or more ten times in the last 43 years, with little impact on home sales and prices when the economy was also strong…Historically, rising confidence, solid job growth, and higher wages have more than offset reduced demand for housing resulting from higher mortgage rates.”

 

Bottom Line

When mortgage rates increase, history has shown that prices appreciate (and do not depreciate) during that same time span.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”. 

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling.   

Give us a call at 408–741–9300 before buying or selling your next home. 

Don Orason, Owner — Silicon Valley Real Estate Team   

www.siliconvalleyrealestateteam.com    

 

 

Posted in Silver Creek
Feb. 15, 2018

Almaden Valley Homes For Sale | Calm Down! The Real Estate Market is NOT Falling Apart

Almaden Valley Homes For Sale | Calm Down! The Real Estate Market is NOT Falling Apart

 

We’ve streamlined and perfected the process of finding dream homes for our clients in Almaden Valley    

We know you want to spend less time looking at perhaps hundreds of homes for sale, looking all over. . .just to find that special place, allow our knowledge, experience and passion for Almaden Valley to guide you through the process of finding the right neighborhood that will fit your lifestyle. We strive in making it easier and have a direct path to help you find your dream home.    

We are also your Trusted Resource for Almaden Valley Real Estate, offering complete solutions for buyers, from financing assistance to creating innovative marketing strategies for home sellers.     

Check out the Almaden Valley Real Estate Market Report here!  

We are your neighborhood specialists and we are ready to help you..    

Today I would like to speak to you about Calm Down! The Real Estate Market is NOT Falling Apart

 

There has been tremendous volatility in certain markets over the last few weeks (for example, the stock and currency markets). When this happens, some tend to lump all of their investments together and create an almost ‘Armageddon’ scenario where everything loses value quickly and dramatically. Real estate is an investment that can get caught up in this hysteria. Does the concern about the current housing market have merit? 

Financial advisors have been warning us for months that the stock market was ripe for a “correction.” 

Experts have been questioning the value of alternative currencies for over a year. 

In contrast, here are the opinions of three major players in the residential housing market:

 

Ralph DeFranco, Chief Economist, Arch Capital Services Inc.

“It’s premature to worry about a housing bubble. The typical warning signs – excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and/or poor affordability compared to the past, and a high number of internet searches on house flipping – are not present.”

 

Liu-Down, Genworth Chief Economist

“My thoughts on many recent discussions of ‘housing bubble’ – the bar for a housing bubble is higher than just prices being above some fundamental value. There must be widespread behavior change as well such as higher levels of fraud and speculation.”

 

Fitch Report

“US home prices are on track for a 5% nominal gain for the 4th consecutive year, returning national prices to their highest level since 2007. The growth has been driven by historically low mortgage rates and unemployment plus solid population and personal income growth rates…a meaningful correction should only be triggered by an unexpected economic shock.”

 

Bottom Line

Speculation has driven certain markets over the last year. However, it has not been speculation, but instead people’s desire for homeownership, that has driven the real estate market.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

 

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”. 

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling.  

Give us a call at 408–741–9300 before buying or selling your next home. 

Don Orason, Owner — Silicon Valley Real Estate Team   

www.siliconvalleyrealestateteam.com

 

 

Posted in Almaden Valley
Feb. 8, 2018

Silver Creek Valley | Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

Silver Creek Valley | Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

 

Silver Creek is one of the most beautiful valleys in the San Jose area with beautiful scenery and rolling hills.   

There's is an abundance of open space, hiking trails, great schools and charm. Locals know that  Silver Creek is a great place to raise a family.  

While some people may say that the area is energized by new growth and rapid changes, Silver Creek somehow retains its old-fashioned charm and authenticity to provide a tranquil life for your family   

Connect with the past, present and future in Silver Creek Valley, one of the most charming neighborhood you’ll find in the San Jose area.  

Every home buyer has a wish when looking for a home, while not all of them are granted, the ‘feel good magic’ happens when they start seeing homes around neighborhoods of this beautiful valley.  

Is the people what makes this place a little different from others, It's a great place to live.  

Neighbors welcome you with open arms and share indiscriminately the beauty and charm that Silver Creek has to offer.  

Today I would like to point out specifically about  Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

 

The famous quote by Mark Twain in the title of this article can be used to describe homeownership in America today. Last week, the Census revealed that the percentage of homeowners in the country increased for the first time in thirteen years.

 

 A story in the Wall Street Journal gave these new homeownership numbers some context:

“The annual increase marks a crucial turning point because it comes after the federal government reined in bubble-era policies that encouraged banks to ease lending standards to boost homeownership. This time, what’s driving the market is a shift in favor of owning rather than renting.

‘This is market, market and market…There’s no government incentive program in sight that is having this effect,’ said Susan Wachter, a professor of real estate and finance at the Wharton School at the University of Pennsylvania, ‘This is back to basics.’”

In a separate report comparing the rental population in America to the homeowner population, RentCafé also concluded that the gap is now shrinking.

“Undoubtedly, the recession had a great impact on homeownership…However, it looks like it takes more to discourage Americans from buying a house than that.

As the years go by, it seems more and more certain that the fact that renting has seen a sudden gain in popularity is more a reaction to the economic crisis than a paradigm shift in the Americans’ attitude toward housing.”

America’s belief in homeownership was also evidenced in a recent survey by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”

 

The results:

* 43% said homeownership was essential to the American Dream

* 48% said homeownership was important to the American Dream

* Only 9% said it was not important

 

Bottom Line

Homeownership has been, is and will always be a crucial element of the American Dream.

*Pictured Above – Mark Twain’s home in Hartford, Connecticut.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”. 

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling.   

Give us a call at 408–741–9300 before buying or selling your next home. 

Don Orason, Owner — Silicon Valley Real Estate Team   

www.siliconvalleyrealestateteam.com    

 

 

Posted in Silver Creek
Feb. 1, 2018

Almaden Valley | Bidding Wars Abound… How Long Will They Continue?

Almaden Valley | Bidding Wars Abound… How Long Will They Continue?

 

We’ve streamlined and perfected the process of finding dream homes for our clients in Almaden Valley    

We know you want to spend less time looking at perhaps hundreds of homes for sale, looking all over. . .just to find that special place, allow our knowledge, experience and passion for Almaden Valley to guide you through the process of finding the right neighborhood that will fit your lifestyle. We strive in making it easier and have a direct path to help you find your dream home.   

We are also your Trusted Resource for Almaden Valley Real Estate, offering complete solutions for buyers, from financing assistance to creating innovative marketing strategies for home sellers.    

Check out the Almaden Valley Real Estate Market Report here! 

We are your neighborhood specialists and we are ready to help you..   

Today I would like to speak to you about Bidding Wars Abound… How Long Will They Continue?

 

Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase. 

In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner. 

CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price. 

“The share selling above list price was almost three times the trough in January 2008 and represented more than one-fifth of total sales.” 

Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price. 

“San Francisco had the largest share of homes—76 percent—that sold for at least the list price, and Seattle and Los Angeles followed with 63 and 51 percent, respectively. Miami had the lowest share—16 percent—of homes selling at or above the list price.” 

Increased demand during the spring and summer months, the traditionally busier seasons for real estate, will no doubt influence how many homes continue to sell over list price.

This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market. 

Realtor.com gives this advice: 

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

 

Bottom Line

Without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available. If you are thinking of selling your home, now may be the time to do so before more competition comes this spring. Let’s get together to determine the demand for your house in our area.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

 

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”. 

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling.  

Give us a call at 408–741–9300 before buying or selling your next home. 

Don Orason, Owner — Silicon Valley Real Estate Team   

 

www.siliconvalleyrealestateteam.com

 

 

Posted in Almaden Valley
Jan. 25, 2018

Silver Creek Valley | If You’re Considering Selling, ACT NOW!!

Silver Creek Valley | If You’re Considering Selling, ACT NOW!!

 

Silver Creek is one of the most beautiful valleys in the San Jose area with beautiful scenery and rolling hills.  

There's is an abundance of open space, hiking trails, great schools and charm. Locals know that  Silver Creek is a great place to raise a family. 

While some people may say that the area is energized by new growth and rapid changes, Silver Creek somehow retains its old-fashioned charm and authenticity to provide a tranquil life for your family  

Connect with the past, present and future in Silver Creek Valley, one of the most charming neighborhood you’ll find in the San Jose area. 

Every home buyer has a wish when looking for a home, while not all of them are granted, the ‘feel good magic’ happens when they start seeing homes around neighborhoods of this beautiful valley.  

Is the people what makes this place a little different from others, It's a great place to live.  

Neighbors welcome you with open arms and share indiscriminately the beauty and charm that Silver Creek has to offer. 

Today I would like to point out specifically about  If You’re Considering Selling, ACT NOW!!

 

Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!

 

How did we finish 2017?

1.- New-home sales were at their highest level in a decade.

2.- Sales of previously owned homes were at their highest level in more than a decade.

3.- Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007. 

And Bloomberg Business just reported: 

“America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.” 

And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year. 

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 9.7% from the same time last year.

 

Bottom Line

With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together to see whether that is the case in your neighborhood.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

 

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”. 

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling.   

Give us a call at 408–741–9300 before buying or selling your next home. 

Don Orason, Owner — Silicon Valley Real Estate Team   

www.siliconvalleyrealestateteam.com     

 

 

Posted in Silver Creek
Jan. 18, 2018

Almaden Valley | What Impact Will the New Tax Code Have on Home Values?

Almaden Valley | What Impact Will the New Tax Code Have on Home Values?

 

We’ve streamlined and perfected the process of finding dream homes for our clients in Almaden Valley   

We know you want to spend less time looking at perhaps hundreds of homes for sale, looking all over. . .just to find that special place, allow our knowledge, experience and passion for Almaden Valley to guide you through the process of finding the right neighborhood that will fit your lifestyle. We strive in making it easier and have a direct path to help you find your dream home.  

We are also your Trusted Resource for Almaden Valley Real Estate, offering complete solutions for buyers, from financing assistance to creating innovative marketing strategies for home sellers.   

Check out the Almaden Valley Real Estate Market Report here!

 

We are your neighborhood specialists and we are ready to help you..  

Today I would like to speak to you about What Impact Will the New Tax Code Have on Home Values?

 

Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential real estate prices will be in twelve months. 

Below is a map, broken down by state, reflecting how home values are forecasted to change by the end of 2018 using data from the most recent report.

 

As we can see, CoreLogic projects an increase in home values in 49 of 50 states, and Washington, DC (there was insufficient data for HI). Nationwide, they see home prices increasing by 4.2%.

 

How might the new tax code impact these numbers?

Recently, the National Association of Realtors (NAR) conducted their own analysis to determine the impact the new tax code may have on home values. NAR’s analysis:

“…estimated how home prices will change in the upcoming year for each state, considering the impact of the new tax law and the momentum of jobs and housing inventory.”

Here is a map based on NAR’s analysis: 

Bottom Line

According to NAR, the new tax code will have an impact on home values across the country. However, the effect will be much less significant than what some originally thought.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”.

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling. 

Give us a call at 408–741–9300 before buying or selling your next home.

Don Orason, Owner — Silicon Valley Real Estate Team  

 

www.siliconvalleyrealestateteam.com

 

 

Posted in Almaden Valley
Jan. 11, 2018

Silver Creek Valley | 93% Believe Homeownership Is Important in Attaining the American Dream

Silver Creek Valley | 93% Believe Homeownership Is Important in Attaining the American Dream

 

Silver Creek is one of the most beautiful valleys in the San Jose area with beautiful scenery and rolling hills. 

There's is an abundance of open space, hiking trails, great schools and charm. Locals know that  Silver Creek is a great place to raise a family.

While some people may say that the area is energized by new growth and rapid changes, Silver Creek somehow retains its old-fashioned charm and authenticity to provide a tranquil life for your family 

Connect with the past, present and future in Silver Creek Valley, one of the most charming neighborhood you’ll find in the San Jose area.

Every home buyer has a wish when looking for a home, while not all of them are granted, the ‘feel good magic’ happens when they start seeing homes around neighborhoods of this beautiful valley. 

Is the people what makes this place a little different from others, It's a great place to live. 

Neighbors welcome you with open arms and share indiscriminately the beauty and charm that Silver Creek has to offer.

Today I would like to point out specifically about  93% Believe Homeownership Is Important in Attaining the American Dream

 

Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:

“Owning a home remains a core element of the American Dream.”

When asked “How important a part of the American dream is owning a home?”

 

* 18% of those surveyed said it was the most important part

* 53% of those surveyed said it was very important

* 22% of those surveyed said it was somewhat important

 

Homeownership and Financial Stability 

The survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron Terrazas who, in a recent press release, explained:

“After about a two-year slowdown, rent growth is starting to pick back up across the nation…Looking into 2018, rent is expected to continue gaining.

More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.” (emphasis added)

 

Bottom Line

Owning a home always has been, and always will be, a crucial part of attaining the American Dream.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

 

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”.

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling.  

Give us a call at 408–741–9300 before buying or selling your next home.

Don Orason, Owner — Silicon Valley Real Estate Team  

www.siliconvalleyrealestateteam.com     

 

 

Posted in Silver Creek
Jan. 4, 2018

Almaden Valley | Time on the Market Drops to New Low in 2017

Almaden Valley | Time on the Market Drops to New Low in 2017

 

We’ve streamlined and perfected the process of finding dream homes for our clients in Almaden Valley  

We know you want to spend less time looking at perhaps hundreds of homes for sale, looking all over. . .just to find that special place, allow our knowledge, experience and passion for Almaden Valley to guide you through the process of finding the right neighborhood that will fit your lifestyle. We strive in making it easier and have a direct path to help you find your dream home. 

We are also your Trusted Resource for Almaden Valley Real Estate, offering complete solutions for buyers, from financing assistance to creating innovative marketing strategies for home sellers.  

 

Check out the Almaden Valley Real Estate Market Report here!

 

We are your neighborhood specialists and we are ready to help you.. 

Today I would like to speak to you about Time on the Market Drops to New Low in 2017

 

According to recently released data from the National Association of Realtors (NAR), the median amount of time a home spent on the market hit an all-time low of only three weeks in 2017. 

Strong buyer demand, a good economy, and a low inventory of new and existing homes for sale created the perfect storm to accelerate the time between listing and signing a contract. The time needed to sell a home has dropped substantially since its highest mark of 11 weeks in 2012. 

The chart below shows the median weeks on the market from 1987 to today.

 

Bottom Line

If you are a homeowner who is debating whether or not to list your home for sale, know that national market conditions are primed for a quick turnaround! Let’s get together to discuss exactly what’s going on in our area, today!

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

 

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”.

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling. 

Give us a call at 408–741–9300 before buying or selling your next home.

Don Orason, Owner — Silicon Valley Real Estate Team  

www.siliconvalleyrealestateteam.com      

 

 

Posted in Almaden Valley
Dec. 28, 2017

Silver Creek Valley | There’s More to a Bubble Than Rising Home Prices

Silver Creek Valley | There’s More to a Bubble Than Rising Home Prices

 

Silver Creek is one of the most beautiful valleys in the San Jose area with beautiful scenery and rolling hills. 

There's is an abundance of open space, hiking trails, great schools and charm. Locals know that  Silver Creek is a great place to raise a family.

While some people may say that the area is energized by new growth and rapid changes, Silver Creek somehow retains its old-fashioned charm and authenticity to provide a tranquil life for your family 

Connect with the past, present and future in Silver Creek Valley, one of the most charming neighborhood you’ll find in the San Jose area.

Every home buyer has a wish when looking for a home, while not all of them are granted, the ‘feel good magic’ happens when they start seeing homes around neighborhoods of this beautiful valley. 

Is the people what makes this place a little different from others, It's a great place to live. 

Neighbors welcome you with open arms and share indiscriminately the beauty and charm that Silver Creek has to offer.

Today I would like to point out specifically about  There’s More to a Bubble Than Rising Home Prices

 

What truly causes a housing bubble and the inevitable crash? For the best explanation, let’s go to a person who correctly called the last housing bubble – a year before it happened. 

“A bubble requires both overvaluation based on fundamentals and speculation. It is natural to focus on an asset’s fundamental value, but the real key for detecting a bubble is speculation…Speculation tends to chase appreciating assets, and then speculation begets more speculation, until finally, for some reason that will become obvious to all in hindsight, the ‘bubble’ bursts. 

I have taken to calling the housing market a ‘bubble’.” 

– Bill McBride of Calculated Risk calling the bubble back in April 2005

 

Where do we stand today regarding speculation? 

There are two measurements that are used to determine the speculation in a housing market: 

1.- The number of homes purchased by an investor and

2.- The number of homes being flipped (resold within a twelve-month period) 

As compared to 2005, investor purchases are down dramatically (from 23% to 13%) and so is flipping (from 8.2% to 5.7%). McBride explains: 

“There is currently some flipping activity, but this is more the normal type of flipping (buy, improve and then sell). Back in 2005, people were just buying homes and letting them sit vacant – and then selling without significant improvements. Classic speculation.”

 

What are the experts saying about speculation in today’s market?

DSNews recently ran an article which asked two economists to compare the speculation in today’s market to that in 2005-2007. Here is what they said:

 

Dr. Eddie Seiler, Chief Housing Economist at Summit Consulting:

“The speculative ‘flipping mania’ of 2006 is absent from most metro areas.”

 

Tian Liu, Chief Economist of Genworth Mortgage Insurance:

“The nature of housing demand is different as well, with more potential homeowners and far fewer speculators in the housing market compared to the 2005-2007 period.”

 

And what does McBride, who called the last housing bubble, think about today’s real estate market?

Sixty days ago, he explained: 

“In 2005, people were just buying homes and letting them sit vacant – and then selling without significant improvements. Classic speculation. And even more dangerous during the bubble was the excessive use of leverage (all those poor-quality loans). Currently lending standards are decent, and loan quality is excellent… 

I wouldn’t call house prices a bubble – and I don’t expect house prices to decline nationally like during the bust.”

 

Bottom Line

Speculation is a major element of the housing bubble formula. Right now, there are not elevated percentages of investors and house flippers. Therefore, there is not an elevated rate of speculation.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”.

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling. 

Give us a call at 408–741–9300 before buying or selling your next home.

Don Orason, Owner — Silicon Valley Real Estate Team  

www.siliconvalleyrealestateteam.com   

 

 

Posted in Silver Creek
Dec. 21, 2017

Almaden Valley Real Estate | Housing Prices are NOT Heading for Another Crash

Almaden Valley Real Estate | Housing Prices are NOT Heading for Another Crash

 

We’ve streamlined and perfected the process of finding dream homes for our clients in Almaden Valley  

We know you want to spend less time looking at perhaps hundreds of homes for sale, looking all over. . .just to find that special place, allow our knowledge, experience and passion for Almaden Valley to guide you through the process of finding the right neighborhood that will fit your lifestyle. We strive in making it easier and have a direct path to help you find your dream home. 

We are also your Trusted Resource for Almaden Valley Real Estate, offering complete solutions for buyers, from financing assistance to creating innovative marketing strategies for home sellers.  

Check out the Almaden Valley Real Estate Market Report here!

We are your neighborhood specialists and we are ready to help you.. 

Today I would like to speak to you about Housing Prices are NOT Heading for Another Crash

 

As home values continue to increase at levels greater than historic norms, some are concerned that we are heading for another crash like the one we experienced ten years ago. We recently explained that the lenient lending standards of the previous decade (which created false demand) no longer exist. But what about prices? 

Are prices appreciating at the same rate that they were prior to the crash of 2006-2008? Let’s look at the numbers as reported by Freddie Mac:

 The levels of appreciation we have experienced over the last four years aren’t anywhere near the levels that were reached in the four years prior to last decade’s crash.

We must also realize that, to a degree, the current run-up in prices is the market trying to catch up after a crash that dramatically dropped prices for five years.

 

Bottom Line

Prices are appreciating at levels greater than historic norms. However, we are not at the levels that led to the housing bubble and bust.

 

Source.. KCM Don Orason Blog

 

“All agents are NOT alike, We are Different … and We Want To Earn Your Business and Trust”

“The real estate market is constantly changing. I would like the opportunity to show you some of the new ways in which you are able to buy, sell and search for new homes”.

We continually invest in the latest technology to give you the most up to date information on homes for sale and the most exposure for your property when selling. 

Give us a call at 408–741–9300 before buying or selling your next home.

Don Orason, Owner — Silicon Valley Real Estate Team  

www.siliconvalleyrealestateteam.com   

 

 

Posted in Almaden Valley