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.
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
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