Wednesday, March 12, 2014

March Silicon Valley Real Estate Market Update

For February in Santa Clara County for single family residences, there were a very low number of closings which would have set a new low except for February 2008 (before the financial crisis!). Closings in one month are more times than not, sales the previous month so these were in large measure indicative of January's slower activity. As we look at inventory, the amount or supply of single family residences available to purchase in Santa Clara County stood at 776, the second lowest February other than the 721 reached in 2000!

All the while, the Silicon Valley real estate market continues to be rather slow but gaining speed as it usually does this time of the year. Last month, I noted that we saw continued buyer demand to prop up prices and I advised buyers to buy quicker rather than later for this purpose. For February, that translated into a record median price of $801,000, an increase of 12.3% from the same month a year ago. Where else can you reap an average 1% a month return on your investment? I believe this demand will continue and probably increase as we get into the strongest portion of the selling year (after Super Bowl Sunday to just before Memorial Day weekend).

I see higher prices ahead with somewhat stable mortgage interest rates. Last month there were 65.6% of the sales with sales prices greater than list prices, second highest since February 2005 (an extremely hot real estate market). Additionally, the average sale price to list price ratio stood at 104.3%, higher than the 103.9% for the same month a year ago and means that the average sale took place at better than 4% higher than list price. This continues to indicate to me that there is ample buyer demand to further push up prices in the near future as activity usually increases as we go deeper into spring. Also, when we see a sale price higher than list price it infers that there were multiple offers — otherwise why would a buyer offer more!

Silicon Valley real estate trends continue to be positive and we should see higher prices in the future. Mortgage rates have trended higher but have fallen slightly and are currently in the low to mid-4% range. The gains in the stock market help supply of the down payments for some buyers to afford the prices and most buyers using loans decide upon a fixed rate mortgage with 20% or more down payments. Along with this, almost one-third of the closings were cash transactions.

For questions, comments on the Silicon Valley real estate market or update in your neighborhood or your target area you are considering, please contact me and I’ll personally respond to assist you with the current market dynamics. Thanks for reading!

Friday, February 14, 2014

Silicon Valley Real Estate Market Update

For January, as compared to previous Januarys, we had very low closings and would have set a new low level except for January 2008 (before the financial crisis!). Closings in one month are more times than not, sales the previous month so these were in large measure indicative of December's slower activity. As we look at inventory, the amount of single family residences available to purchase in Santa Clara County, this did in fact set a record low for a January at just 715. All the while, the Silicon Valley real estate market continues in its slower pace as it usually does this time of the year, we see evidence of buyer demand sufficient enough to firm and otherwise increase prices. Keeping in mind that smaller homes sell during the holiday season (less family-related activity), as 54% of the closings have a sale price greater than list price with an additional 12% of sellers obtaining full list price. In San Mateo County, the number is 61% of the single family residence closings that had a sale price greater than list price. These indicate that there is ample buyer demand to push up prices in the near future as activity increases into the early-Spring season. As mentioned in the past, a sale price that is greater than list price infers that there were multiple offers -- otherwise why would a buyer offer more! Historically, the Silicon Valley real estate market shifts more toward a seller's market after Super Bowl Sunday -- the last "holiday" of the season. This certainly appears to have taken place. Matter of fact with the above ratios, it may not have ever ebbed too much from last year's high level of activity! Prices, as measured by the median price or the middle transaction, have been choppy to flat with a few exceptions. Santa Clara County median price for a single family residence stood at $739,000 in January, a slight decrease from the month before but more importantly up 11.8% from the same month a year ago. This is a scant $1,000 lower than the January record median price reached in January 2007! Remember to compare year over year as it eliminates the seasonality factor we experience each year and the annual shift to smaller homes that sell during the holidays with their resultant lower prices. Newspaper and internet accounts of price movements tell you that you should look at the month-to-month variations which is patently false (perhaps they sell more papers with the scary headlines!) and don't bring up the fact that smaller homes sell during this time of year. In San Mateo County, the median sales price reached $1,010,000, also up nicely from the same month a year ago. Silicon Valley real estate trends continue to be positive and we should see higher prices in the future. Mortgage rates have trended higher and are now in the low to mid-4% range, employment in the valley is higher for well-paying jobs in high-tech, biotech, etc which increases the demand for housing especially when the major employers encourage employees to live closer to the campus otherwise they pick you up in a wi-fi bus so you start working as soon as you get on board! The stock market gains also are a contributing factor as gains help with higher down payments and even cash transactions. Last year cash transactions accounted for about one third of all transactions! Hot market areas in Santa Clara County are the Los Altos-Palo Alto area as well as the Cupertino-Sunnyvale area. Each one has a median days on market of just 9! This means that half of all the closings were sold in an incredible 9 days. The coolest market area in Santa Clara County was the East, Central and South San Jose area with a reading of 30. For San Mateo County, the hottest market area is the Bay Cities area comprising Belmont, Burlingame, Milbrae, San Carlos and San Mateo followed closely by Redwood City and Foster City with median days on market of 12. The coolest market area remains the San Mateo Coast of Half Moon Bay, El Granada, Moss Beach and Montara with a reading of 66. I track the different market areas to understand the latest dynamics in the market because county-wide averages don't help sellers or buyers. This also helps me to advise clients on the most appropriate strategy to employ to sell at the highest possible price the market will bear or for a buyer to obtain the most house for their money while still being able to purchase a home without overpaying. That said, of the last nine buyers I have helped in multiple-offer situations, my buyers have prevailed in seven of them! For questions, comments on the Silicon Valley real estate market or update in your neighborhood or your target area you are considering, please contact me and I’ll personally respond to assist you with the current market dynamics. Thanks for reading!

Friday, January 24, 2014

Lunar New Year - 2014

horse 2 download
Happy New Year! OK, Happy Lunar New Year! In the Chinese calendar, the longest chronological record in history dating back to 2700 B.C., this year marks the lunar year 4712 -- Year of the Horse. The first day of the lunar year is January 31, 2014. For the Tet Vietnamese New Year it will be the same, Year of the Horse! 
Famous people born in the Year of the Horse include: Katie Holmes, Josh Hartnett, Mena Suvari, Ashton Kutcher, Jerry Seinfeld, Harrison Ford, Oprah Winfrey, John Travolta, Cindy Crawford, Jackie Chan, Denzel Washington, Barbara Streisand, Paul McCartney, Rembrandt, Leonard Bernstein. 
Here are selected local events celebrating the Lunar New Year in Santa Clara and San Francisco counties.
Silicon Valley/San Jose/Santa Clara County:
Saturday, February 8, 12:00-4:00pm - Children's Discovery Museum special programming, 180 Woz Way, San Jose http://www.cdm.org/new#lunar 
Sunday, February 9, 12:00-4:00pm - Children's Discovery Museum special programming, 180 Woz Way, San Jose http://www.cdm.org/new#lunar
Saturday, February 22, 1:00-4:00pm - Chinese New Year Celebration, Santana Row Park, San Jose http://www.santanarow.com/events/chinese-new-year-celebration
San Francisco/San Francisco's Chinatown:
Saturday, January 25, 10:30am, mini procession/ribbon cutting, Chinatown/Grant Avenue
Saturday, January 25, 10:00am-8:00pm, Flower Market Fair, Chinatown/Grant Avenue
Sunday, January 26, 9:00am-6:00pm, Flower Market Fair, Chinatown/Grant Avenue
Friday, January 31, Chinese New Year, Vietnamese Tet
Saturday, February 8, 10:00am-4:00pm - Basketball Jamboree, Betty Ann Ong Recreational Center - San Francisco (www.chineseparade.com/parade_events.asp?pEvent=basketball_jam)
Saturday, February 8, 7:30pm - Miss Chinatown USA Pagent, Palace of Fine Arts, San Francisco (www.chineseparade.com/pageant.asp)
Sunday, February 9, 8:00am start, registration begins at 7:00am, 36th Annual Chinese Chamber of Commerce & Chinatown YMCA 10K/5K Run/Walk, Chinatown/Sacramento and Grant www.ymcasf.org/Chinatown
This event comprises a 10K or 5K run or walk and raises funds for the YMCA's youth and teen programs. The event expects 2,000 participants and 300 volunteers. For more information or to register, please go to (www.ymcasf.org/Chinatown) or call 415.576.9622
Friday, February 14, 6:00pm-Midnight, Miss Chinatown USA Coronation Ball, San Francisco Hilton and Towers. Tickets: 415-982-3000
Saturday, February 15, 5:15-8:00pm, Southwest Airlines Chinese New Year Parade http://www.chineseparade.com/calendar.asp
San Francisco's Chinese New Year Parade began in 1860 and was named by the IFEA to be one of the top ten parades in the world! It is also one of the few remaining night illuminated parades in the country. Since 1958 the parade has been organized and directed by the Chinese Chamber of Commerce.
Chinese New Year Festival and Parade, Market and Second Streets to Kearney and Jackson. Check out "Gum Lung", the 201-foot-long Golden Dragon! (www.chineseparade.com/)  Can't be there?  Watch or DVR it on KTVU Fox Channel 2 or KTSF Channel 26 (Chinese broadcast) on Saturday, February 15, from 6:00-8:00pm.
Saturday, February 15, 10:00am-4:30pm - Chinatown Community Street Faire, Chinatown - San Francisco (www.chineseparade.com/parade_events.asp?pEvent=community_fair 
More Than A Hundred Years of the Chinese (Lunar) Calendar (1912 to 2031) --
The Chinese Calendar names each year after an animal and legend has it that a person born under a certain animal will display traits of that animal. I was born in the Year of the Tiger. What sign are you in the Chinese 12-year calendar cycle? Look up in the table below what year you were born and the corresponding animal.
Rat: 1912 1924 1936 1948 1960 1972 1984 1996 2008 2020
Ox: 1913 1925 1937 1949 1961 1973 1985 1997 2009 2021
Tiger: 1914 1926 1938 1950 1962 1974 1986 1998 2010 2022
Rabbit: 1915 1927 1939 1951 1963 1975 1987 1999 2011 2023
Dragon: 1916 1928 1940 1952 1964 1976 1988 2000 2012 2024
Snake: 1917 1929 1941 1953 1965 1977 1989 2001 2013 2025
Horse: 1918 1930 1942 1954 1966 1978 1990 2002 2014 2026
Ram: 1919 1931 1943 1955 1967 1979 1991 2003 2015 2027
Monkey: 1920 1932 1944 1956 1968 1980 1992 2004 2016 2028
Rooster: 1921 1933 1945 1957 1969 1981 1993 2005 2017 2029
Dog: 1922 1934 1946 1958 1970 1982 1994 2006 2018 2030
Boar: 1923 1935 1947 1959 1971 1983 1995 2007 2019 2031
Gung Hey Fat Choy! Happy Year of the Horse!
Chúc Mừng Năm Mới! Happy Tet 2014 - Year of the Horse!

Saturday, January 18, 2014

Silicon Valley Real Estate Market Update

As we enter 2014, we found that the inventory of available homes to purchase fell to a record low! Just 523 single family residences were on the market at the New Year. This broke last year’s record low of 585. All the while, the Silicon Valley real estate market continues in its slower pace as it usually does this time of the year. After the holiday season, buyers and sellers start getting back to other matters like resuming their search for a home or thinking of entering the market to sell. There were 55% of the closings in Santa Clara County had a sale price greater than list price — 53% in San Mateo County. This ratio indicates or more accurately infers that there were multiple offers. Historically, the Silicon Valley real estate market shifts more toward a seller’s market after Super Bowl Sunday — the last “holiday” of the season.
Prices, as measured by the median price or the middle transaction, have been choppy to flat with a few exceptions. Santa Clara County median price for a single family residence stood at $775,000 in December, a slight decrease from November. However, San Mateo County turned in an increase to $1,050,000 from $942,000 last month as a higher percentage of higher-priced homes sold. Compared to the prior year levels, the Silicon Valley real estate trends continues to be positive. For instance, Santa Clara County’s median price stood 14.6% higher than in December 2012.
As mentioned above, the percentage of homes sold where sale price was greater than list price continues to drop but is still at a very healthy 55% in Santa Clara County. Highest is the Cupertino and Sunnyvale market area with 76% and lowest is in South County (Morgan Hill to Gilroy) with 22%. For San Mateo County, the overall percentage is 53% with the highest level in the Bay Cities of Belmont, Burlingame, Milbrae, San Carlos and San Mateo with 74%. The lowest percentage of homes that sold above list price is 19% on the San Mateo Coast (Half Moon Bay, El Granada, Moss Beach, Montara).
With an average days of unsold inventory (DUI) at 25, the hottest market area in Santa Clara County is the Los Altos and Palo Alto area with just 10 followed closely by the Cupertino and Sunnyvale market area. Coolest is in the East, Central, South San Jose market area at 32. For San Mateo County with an average DUI of 18, the hottest is the Bay Cities area comprising Belmont, Burlingame, Milbrae, San Carlos and San Mateo with 12 and the coolest is on the San Mateo Coast with 37. Why do I track these? Its important to understand the market dynamics of the supply versus the demand to advise clients on the most appropriate strategy to employ whether to buy or sell.
For questions, comments on the Silicon Valley real estate market or update in your neighborhood or your target area you are considering, please contact me and I’ll personally respond. Thanks for reading!

Friday, May 24, 2013

Silicon Valley Real Estate Trends

With continued low inventory levels and higher demand from buyers, the April median price in the Silicon Valley real estate market jumped to their highest level since 2007 to $800,000 for a single family residence -- up 24% from the same month a year ago.

Similarly, the median price in April for condos and townhouses in Santa Clara County was $510,000, compared to $349,000 the same month a year ago which was a phenomenal 46% change.

For San Mateo County, the San Mateo real estate trends showed the April median price at $956,000, compared to $760,000, last year or a 25.8% increase.

As you know, a median price figure is the middle transaction so this statistical calculation won't necessarily translate into an across the board increase for each and every home.  What it does indicate is a strong market pressure and an upward trend for the Silicon Valley real estate market.

The frequency of the sale prices exceeding list prices is 73% in Santa Clara County and 68% in San Mateo County.  An indicator of the magnitude shows that the sale price to list price ratio averages 106.1% and 105.8% in Santa Clara County and San Mateo County, respectively.

An indicator I track closely in addition to the above ones, is the median days on market.  This represents how long it takes for one-half of the listings to sell.  In Santa Clara County, it is 10 days but just 9 in the Cupertino and Sunnyvale market area (hottest area in the county with a median sale price of $1,223,000) to 17 in the South County area which comprises Morgan Hill to Gilroy with a median sale price of $629,000.  For the current San Mateo real estate trends, it is but 11 days.

If a listing lingers on the market significantly longer than the median, well then it is a candidate for an analysis to determine the possible cause(s) including price, condition, marketing, etc.

As the old Meat Loaf song went, "two out of three ain't bad".  The last three buyers I helped recently, two strategies out of the three were successful.  In the first one, with multiple offers, my advice to my buyers was to offer in a range above list price and doing so beat out the second-place offer by just $1,000 with eight offers and a sale price over $800,000.  In the second transaction, the strategy devised by and used by my buyers failed.  They calculated a dollars per square foot against comparable homes.  For residential, this approach only works when you get lucky as in winning the lotto but I use this in addition to other aspects in my commercial transactions.  Their offer came in tenth out of ten and they missed purchasing a beautiful home by over $100,000.  For the third one, my buyer listened and followed my advice to offer in a range above list price and even though he didn't have the highest priced offer, the seller did accept his offer and closed recently.  For this one, there was more to my strategy than just price so on that basis, he won.  In the two successes, I not only gave advice on the minimum but on the maximum to pay for the home.  By the way, my long-term average performance is a success rate of 60% so these last three upped my average slightly!

In the last few weeks, I've noticed a change in the market in the favor of the buyers!  Many homes have generated multiple offers but not to the extent that we saw in the early part of the year.  This is in keeping with the historical tendency as we near Memorial Day weekend that buyers decide they have other things to do -- e.g., graduations, weddings, anniversaries, planning for vacation when school gets out, etc.  Also noted is that the inventory levels or those homes available to purchase have risen lately, affording more choices for buyers.  For single family residences, the highest inventory in seven months and for condos and townhouses, the highest level in eleven months!

Notwithstanding my prior comments about the market conditions during April, buyers that have pulled back from actively looking for a home for whatever reason, now stand a much better chance of being able to buy with less competition than in the recent past.  Mortgage rates still remain favorable but have nudged up a bit but still in artificially low levels as the Feds continue to purchase a mixture of U.S. Treasury and mortgage-backed securities to the tune of about $85 billion per month!  Their most recent comments contain a lot of double-speak thus raising the risk of a change in their programs -- e.g., less buying and the risk of higher mortgage rates.  In following the money, a lot of the funds created in the banking system have gone into asset categories like stocks and real estate (Google recently hit $900 and LinkedIn $200).  This is the "new" way the government prints money.

Please leave a comment or question if there is something you'd like to hear more about or would like information about the market in your neighborhood or contact me through my website or send me an email.  Thank you for reading!

Friday, April 12, 2013

April Silicon Valley Real Estate Market Update

Here are my observations of the most recent March transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website or send me an email.

General Market Observations and Comments -- Inventory, those homes available for sale have continued to increase, but remain well below the average level for this time of year.  In Santa Clara County, there were just 908 single family residences on the market versus 857 last month. In San Mateo County, there were 446 compared to 433. These levels are running about 50% of the average over the last 10+ years!

The median days on the market or what it takes to sell one-half of those on the market, sell in just 11 days in Santa Clara County and 12 days in San Mateo County -- indicating a hot seller's market. For March, 792 homes closed escrow last month in Santa Clara County, up from 621 in February and 333 did so in San Mateo County versus 247 last month. Comparing March of 2013 with previous Marches, this month was the third slowest in terms of closings.  

Both counties continue to have the characteristics of a seller's market generally. During March, more than half of the closings had a sales price greater than a list price (68% in Santa Clara County and 62% in San Mateo County with both percentages increasing from February). For owners thinking of selling, it is important to understand the market dynamics in their particular market area. For many, this remains an excellent time to sell.

Seller's -- Should You List on the MLS or Not? --  More recently, we've run into listings that are "not advertised" and not on the MLS (Multiple Listing Service).  I advise my sellers that in order to assure the maximum exposure to the market, it is imperative to have their home on the MLS.  That way, all agents may be exposed to it.  If not, we call those listings "pocket" listings.  The term denotes that the listing is for the listing agent/broker only and its purpose is to increase the likelihood that that listing agent will handle both sides of the transaction, not to get the maximum price and best terms for the seller!  As listing agents, we Realtors sign an agency relationship form that states the agent will use full fiduciary duties to their client but pocket listings don't adhere to this as it doesn't place their client's interest before their own.  Be wary of agents advising NOT to list it on the MLS which is designed to open up the market and as a result is a benefit to the seller.  This might be used in an extreme circumstance.  For example, when a famous personality wants to sell but there are still ways to circumvent this approach that gives the seller access to the entire market.  Watch out for the legal battles when sellers who have been told that they will receive market value without the "mess" of having their home on the market only to find out they've been financially sucker-punched.   

Hot, Hotter, Hottest Market Areas -- In Santa Clara County, the hottest market area is Cupertino, Sunnyvale (zip codes 95014, 94086, 94087). It sports a median sale price of $1,245,000 and has a median days on market of just 9 days! A hotter market is Los Altos and Palo Alto with a median sale price of $2,288,000 has a median days on market of 10. Only a hot market is Santa Clara, Willow Glen, Cambrian and Campbell with a median sale price of $750,000 and has a median days on market also of 10.  

Beautiful and Abundant Trees - Los Altos, CA

For San Mateo County, the hottest market area is Foster City and Redwood Shores with a median sale price of $1,006,000 and a median days on market of 10, followed by a hotter market of the Bay Cities area including Belmont, Burlingame, Milbrae, San Carlos, San Mateo with a median sale price of $1,051,000 and a median days on the market of 10.   


Median Prices are Jumping -- The trends of median prices of single family, condo and townhouse homes continue upwards. For single family residences, March saw Santa Clara County's median price, half above and half below or the middle transaction, at $731,000 and the median sales price for San Mateo County increased to $950,000. The upwards trend has been evident since the Spring of 2009. By the way, market bottoms were also established during this time in both stock indices and commodities.

Recent Overbidding Levels Remain High -- The percentage where sale price is greater than list price gives us an indication of the incidence of multiple offers. Already mentioned is the frequency of overbidding (sale price greater than list price 68% of the time in Santa Clara County and 62% in San Mateo County) but a more telling aspect is the magnitude or sales price to list price ratio (SP/LP). In Santa Clara County, the average SP/LP ratio is 105.2 or in the average transaction the seller gets 5.2% above the list price. Hottest area is Los Altos and Palo Alto with 109.7. The Cupertino and Sunnyvale market area was just behind with a ratio of 108.9. In San Mateo County the numbers look similar. Overall, the county average is 104.8 and the highest is Bay Cities market area of Belmont, Burlingame, Millbrae, San Carlos, San Mateo with 107.4.



Yahoo! World Headquarters - Sunnyvale, CA

Thanks for reading! I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- On Google+ at +Tom McEvoy. Let me know if you have any comments, questions, observations or any future topics you'd like me to address.

Tuesday, March 19, 2013

March Silicon Valley Real Estate Market Update


Here are my observations of the most recent February transactions for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website or send me an email.

General Market Observations and Comments -- Even though the amount of homes (single family and condos and townhouses) available for sale have increased, they are still historically low. In Santa Clara County, there were just 857 single family residences on the market versus 727 last month. In San Mateo County, there were 433 compared to 394. Half of those on the market sell in 11 days in Santa Clara County and 13 days in San Mateo County. This is termed median days on market. I think the inventory will continue to drift upwards as we enter Spring which will give some more choices to buyers who have been placed at a disadvantage. Still, 621 homes closed escrow last month in Santa Clara County and 247 did so in San Mateo County. Both counties have the characteristics of a seller's market in most market areas but not all. During February, more than half of the closings had a sales price greater than a list price (63% in Santa Clara County and 60% in San Mateo County). Both of these percentages have continued their trend upwards. For owners thinking of selling, it is important to understand the market dynamics in their particular market area. For many, this remains a very good time to sell.

What Does $85 Billion a Month Buy You? --  No this isn't some ultra-high rental or even a super high mortgage payment. This is what the Federal Reserve (FED) is paying for by buying mortgage-back securities each month!  Well, the sellers get cash and the cash has to go somewhere. If the banks are paying close to zero interest as are the money market funds, these funds are flowing into assets -- namely, stocks, commodities and real estate. If an investor can't get any yield in his or her CD at the bank, they buy an asset they hope could go up in price.

Hot, Hotter, Hottest Market Areas -- In Santa Clara County, the hottest market area is Cupertino, Sunnyvale (zip codes 95014, 94086, 94087). It sports a median sale price of $1,232,000 and has a median days on market of just 9 days! A hotter market is Los Altos and Palo Alto with a median sale price of $2,019,000 has a median days on market of 10. Only a hot market is Los Gatos, Monte Sereno and Saratoga with a median sale price of $1,521,000 and has a median days on market of 37, historically hot for this area.  

For San Mateo County, the hottest market area is Foster City and Redwood Shores with a median sale price of $1,270,000 and a median days on market of 11, followed by a hotter market of North County cities of Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco. The hot market is the expensive areas of Menlo Park, Atherton, Portola Valley, Hillsborough, Woodside. The median sale price in this area is $2,588,000 and has a median days on market of 20, 


Median Prices are Jumping -- The trends of median prices of single family, condo and townhouse homes march upwards. For single family residences, February saw Santa Clara County's median price, half above and half below or the middle transaction, at $713,000 and the median sales price for San Mateo County increased to $820,000. The upwards trend has been evident since the Spring of 2009. By the way, market bottoms were also established during this time in both stock indices and commodities.

Recent Overbidding Levels Remain High -- The percentage where sale price is greater than list price gives us an indication of the incidence of multiple offers. Already mentioned is the frequency of overbidding (sale price greater than list price 63% of the time in Santa Clara County and 60% in San Mateo County) but a more telling aspect is the magnitude or sales price to list price ratio (SP/LP). In Santa Clara County, the average SP/LP ratio is 103.9% or in the average transaction the seller gets 3.9% above the list price. Hottest area is Cupertino and Sunnyvale with 110.0. In San Mateo County the numbers look similar. Overall, the average is 104.6 and the highest is Bay Cities market area of Belmont, Burlingame, Milbrae, San Carlos, San Mateo with 107.5.


Murphy Avenue called Murphy Street in Sunnyvale, CA
Distress Property in Decline -- In Santa Clara County, there were just 4% of the available listings that were short sales and 4% bank-owned which means regular listings accounted for more than 90%! This is a far cry from even last year when these combined for a quarter of the listings. 


What Will Mortgage Rates Do? -- Those with an adjustable rate mortgage might want to think about a refinance in the not too distant future. Yes, the FED has been trying to maintain a low-rate environment by the purchase of mortgage-backed securities with the expressed purpose of keeping rates low to spur the economy. Problem is that those funds have and are moving into assets -- stocks, commodities and real estate. The economy can't "absorb" these funds as companies wait to get more understanding of the moving target of tax increases and a higher level of regulation (Obamacare, Dodd-Frank, to name a couple) overhanging the economy, not to mention the huge budget deficits which imply higher taxes ahead. 


So, in answer to the question, yes, they will go up. It could occur relatively quickly when the FED senses there is more inflation than they are willing to tolerate or when investors demand higher yields on government securities to compensate for a perceived higher level of risk and/or the real or potential for increased inflation. The FED has had a history of either too much/too long of money creation or ratcheting up rates too far/too long to squeeze the economy.

Thanks for reading! I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- On Google+ at +Tom McEvoy. Let me know if you have any comments, questions, observations or any future topics you'd like me to address.