The Silicon Valley Real Estate Market Continues to Increase in Value!

The Silicon Valley Real Estate Market like most real estate markets Nationwide has come a long way since the collapse that began in 2008 and lasted through 2011. Unlike other real estate markets around the country you are very fortunate to live in the Silicon Valley Bay Area California, if you do. Lets face it, this is where all of the high paying jobs are. Technology companies and social networking companies line the streets of  Silicon Valley such as Google, Apple, Cisco, Facebook, Microsoft and Twitter, just to name a few. And with limited amounts of available housing to go around, Buyers with jobs earning high salaries, and interest rates remaining at historic lows, Real Estate prices will continue to Increase in Value.

Still we cannot lump the entire Silicon Valley Real Estate Market into one neatly wrapped box. Real Estate has been and always will be a market within a market. What I mean by this is that Real Estate Markets and price valuations will always differ from County to County, City to City, and Neighborhood to Neighborhood. Many factors enter the equation when a particular Buyer is searching for their first, or next home. Proximity to the job or jobs, proximity to freeways and shopping, and one of the major factors is proximity to great school districts. All of these very important "must haves" on a Buyers wish list have a huge impact on any properties price valuation. These "must haves" will almost always supersede a newly remodeled kitchen or bathroom. Updating and remodeling a property can occur at any time, moving a particular property to a different location is another story.

Updated Kitchen of a "Luxury Million Dollar Estate" Sold by Joe Carrero

Below are statistics of available and pending condominiums/townhomes and single family homes from November 2010 versus November 2013 in Santa Clara County and San Mateo County. It is very apparent in this data that the supply of housing remains very low, while the demand remains very high. If this continues, and I do not foresee it not continuing, Home Prices will continue to increase in Silicon Valley, albeit maybe not as dramatic as the way prices increased as we were just coming out of the recent recession. However, Homeownership Nationally is still only at 65.3% based on the third quarter U.S. Census Report released on Tuesday November 5th, versus Homeownership at its peak of 69.2% in 2004.

Santa Clara County

Single Family Residential                Condos/Townhomes

   Available / Pending                        Available / Pending

11/11/13                              1101           1262                               416            533

 

11/08/10                              2978           2683                              1349          1054

 

San Mateo County

Single Family Residential                Condos/Townhomes

   Available / Pending                        Available / Pending

11/11/13                              583            521                                134            193

 

11/08/10                             1484           816                                516            237

 

 

Graph Courtesy of U.S. Census

 

If you would like a Price Evaluation of Your Property, or a Property that you are considering Purchasing, please contact Joe Carrero for more information at his Official Real Estate Web Site: www.InteroCarrero.com Or simply email Joe at JCarrero@InteroRealEstate.com

 

Joe Carrero

Silicon Valley & Bay Area 

Real Estate Specialist Since 1995

 

If you enjoy reading my Silicon Valley Real Estate Blog, please recommend me on Google and recommend me to your friends on your Social Networking Profiles. Thank You! JC

Janet Yellen: New Federal Reserve Chair Person Testifies on Capital Hill Today

While Wall Street has been leaning toward the prediction that the Fed Policy of low interest rates and QE will soon be coming to a close sooner rather than later due to some recent better than expected economic data such as the jobs report last Friday November 8th, the Newly to be confirmed Federal Reserve Chair Person, Dr. Janet Yellen, explained in detail and defended the Feds Policy of low interest rates and monetary easing into the near future.

Dr. Janet Yellen 

Janet Yellen testified today on Capital Hill that the Feds policy was "the surest path to a more normal approach to monetary policy". For the struggling Real Estate Markets Nationwide that are still in recovery, this is Great news and led most to believe that any talks of interest rates hikes were not on the horizon for the foreseeable future. As a result the Equities Markets rallied higher, and interest rates trickled lower.

This is Great News for the Real Estate Markets as Interest Rates are at, and appear to be remaining, at Historically Low Levels, for now.

  

Janet Yellen on Capital Hill 11/14/13

Courtesy of CNBC Business News

 

If you are planning on Selling a Property or Buying a Property, please contact Joe Carrero for more information about his services at his Official Real Estate Web Site: www.InteroCarrero.com  

Joe Carrero

Silicon Valley & Bay Area 

Real Estate Specialist Since 1995 



The Official Silicon Valley Real Estate Blog of Joe "Intero Carrero"

Welcome to the INTERO CARRERO Silicon Valley Real Estate Blog!

I have created this Real Estate Blog to further inform you the public of the latest up to date information and data that is moving the Real Estate Market in the Silicon Valley Bay Area. I began selling Real Estate in the Silicon Valley Bay Area in 1995 and I have been witness to many ups and downs in the Real Estate Market, as well as many changes.

I first witnessed the rise and fall of the now historic and infamous "dot com" days when companies that were nothing more than a pipe dream were being funded by overzealous investors and Wall Street, even though many of the companies had yet to prove that they were even capable of making money, let alone being profitable. Of course at the time no one was the wiser and prosperity was blooming.

One of the collateral effects of the "dot com" days were Buyers that had just landed relatively new jobs in Silicon Valley becoming Millionaires in droves at rapid paces. These same Buyers were then competing for the limited amounts of available housing in the Bay Area, and they were purchasing homes at over asking prices until it was almost ludicrous. At the peak of this "boom", I remember most all Real Estate Purchase Contract Agreements almost looking the same; All Cash, No Contingencies, "As-Is" and Close Escrow whenever the Seller wants to. And if the Seller wants to live in the home after the Close of Escrow, Buyers were saying no problem, the Seller can rent back at no cost to the Seller. And if the Seller wants more money, Buyers were also saying no problem, how much more?! It is no secret that the Sellers of properties during the mid to late 1990's were in the drivers seat; selling their homes was like hitting the California Lottery! And this was while Interest Rates for New Purchases for a 30 year fixed mortgage were at 6.5% - 7.5%. This was actually considered low! But all good things must and eventually do come to an end. Just as the World was preparing for the New Millennium, the Year 2000, the Stock Market was at its peak, the Real Estate Market was at its peak, and shortly thereafter, for a lack of better terms, it crashed.

The upcoming next five years were challenging for the Real Estate Market in Silicon Valley; companies were going out of business, employees that were now unemployed were moving out of the area, Real Estate prices were very high and Sellers had, understandably so, become accustomed to the "Cal Lottery Sales of Their Homes" so they were not adjusting to prices coming down. Then to make matters even worse, 9/11 happened.

As the Fed Chairman at the time, Mr. Alan Greenspan, was watching and absorbing all of this news and data, he began a rapid fire mission of the reduction in Interest Rates to try to save the Markets. And, as with all market cycles, things eventually calmed.

 Alan Greenspan

During 2005 through 2008 we once again were witness to another cycle of rising Real Estate prices and prosperity, due to the also now infamous and even more notorious, "sub prime" and "creative" lending days. Since this market cycle is fresh in most everyone's mind, I will not elaborate for the sake of brevity.

Which brings us to now; November 2013. The stock market is at all time highs, Real Estate prices are still on the rise, interest rates are at Historic lows, and inflation is almost non existent.

I have Sold properties in more than 25 cities throughout the Entire Silicon Valley Bay Area; condominiums, town homes, single family homes, raw land, commercial property, multi family dwellings, luxury estates and more. I have been witness to many things while selling Real Estate in the Silicon Valley Bay Area during my 18 plus years of Experience. While I am not an Economist nor do I claim to be one, one major fact that stands out in my mind that cannot be denied is; although the Markets of the World, both Equities and Real Estate, go through cycles of good times and bad times, ups and downs, when the dust settles prices are most always HIGHER!

Real Estate is and always has been in my life time, A Great Long Term Investment!

If you are planning on Selling a Property or Buying a Property, please contact Joe Carrero for more information about his services at his Official Real Estate Web Site: www.InteroCarrero.com

Joe Carrero

Silicon Valley & Bay Area 

Real Estate Specialist Since 1995