Priced out of the marketIn Silicon Valley, the prices of houses are rising fairly dramatically right now. In some cases, it’s 10% or more month over month for certain types of homes & price points.  I’m frequently seeing houses in the $900,000 to $2 million range getting multiple offers (5-7) and selling for $50,000 to $150,000 over list price. In Cupertino and Palo Alto, it’s worse – sometimes more than 20 offers per house!

With rapid housing price appreciation in Silicon Valley, home buyers who are “patiently waiting” for more inventory and just the right house to come on the market can end up finding themselves “priced out of the market“.

What does it mean to be “priced out of the market”?

In a nutshell, it means that while a few months before, you could afford the type of house you wanted (more or less), but prices have risen so fast that now you feel that you cannot buy anything at all. You feel that it’s no longer worth it to buy – so you continue to rent. And you continue to watch prices rise, both for the home you wish you had bought but also the rents over which you have no control. The gap between what you could have bought (but didn’t) and what you can buy now can mean the difference between fe3ling able to buy a home and not.  When the gap gets too big, you are “priced out of the market”.

Have you been patiently waiting for just the right house to come on the market?  Let me suggest to you that it may not be forthcoming.  It is very possible that while you watched the market last year, prices were getting primed for a rebound of sorts. It’s now underway and guess what?  What you could afford a year ago is no longer possible today!

This is one time when waiting does not pay off!

Why do buyers wait when they might do better to jump in?

Want to be a home owner in the San Jose area? Hire a great agent, but then LISTEN to him or her! Pay attention to the stats (such as www.popehandy.rereport.com ) but remember that there’s often a lag time between what’s happening “in the field” and what’s apparent in the statistics.

If you need a reality check, go visit some open houses.  Today some buyers of mine and I visited a few open houses in Cupertino. At each one, it was a zoo!  So many people that I felt almost claustrophobic!  (Seriously, I loathe thick crowds, and these were fairly bad.) I asked the agent about offers and was told, at one place, that although it had been on the market just 24 hours, they already had 4 verbal offers – or 4 offers coming – and 10 disclosure packets out. (Old rule of thumb: one offer for every 2 disclosure packages viewed. Not exact, of course!)

This is no time to fiddle and watch Rome burn. If you want to buy a house in Silicon Valley and have been sitting on the fence, this may be the time to get off and dive in.  Talk to YOUR trusted Realtor for guidance as it’s not the same in Blossom Valley or South San Jose as it is in Saratoga or Monte Sereno or Los Gatos.

I’ve told my kids this: if I could, I’d be buying investment property right now.  Fortunately, they are both in a great, private college and I joke that every time I get a paycheck, it goes to their university  in SoCal – so no investment homes for me right now – but oh I wish I could!!

Will you be priced out of the market? I hope not. Check the stats, but talk with your trusted Realtor for guidance. Looking for a great agent? Give me a call and we can set up a time to chat in person or by phone.

  1. 2 beds, 1 bath
    Home size: 1,000 sq ft
    Lot size: 2,243 sqft
  2. 3 beds, 3 baths
    Home size: 1,318 sq ft
    Lot size: 527 sqft
  3. 4 beds, 6 baths
    Home size: 4,000 sq ft
    Lot size: 37,339 sqft
  4. 4 beds, 4 baths
    Home size: 2,828 sq ft
    Lot size: 8,054 sqft
  5. 3 beds, 2 baths
    Home size: 1,593 sq ft
    Lot size: 11,626 sqft
  6. 3 beds, 2 baths
    Home size: 2,023 sq ft
    Lot size: 7,753 sqft
  7. 3 beds, 3 baths
    Home size: 2,026 sq ft
    Lot size: 3,384 sqft
  8. 4 beds, 3 baths
    Home size: 2,400 sq ft
    Lot size: 6,503 sqft
  9. 5 beds, 6 baths
    Home size: 7,313 sq ft
    Lot size: 1.00 ac
  10. 5 beds, 4 baths
    Home size: 4,086 sq ft
    Lot size: 20,473 sqft

See all Real estate in the city of Los Gatos.
(all data current as of 10/19/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Translation

by Transposh - translation plugin for wordpress
Mary Pope-Handy
Realtor
ABR, CIPS, CRS, SRES
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at) PopeHandy.com
License# 01153805


Selling homes in
Silicon Valley:
Santa Clara County,
San Mateo County, and
Santa Cruz County.
:
Special focus on:
San Jose, Los Gatos,
Saratoga, Campbell,
Almaden Valley,
Cambrian Park.
Let’s Connect
Find Mary on FacebookFollow Mary on Twitter
RSS FeedFollow Mary on YouTube

Please see more icons
at the bottom of the page.

The real estate search
Use the widget below to browse properties which are for sale, under contract (pending) or sold. Want to view only homes which are available now? Use the "find a home" link on the menu above (next to the "home" button).
Mary’s other sites & blogs
Valley Of Hearts Delight
Santa Clara County Real Estate,
with an interest in history

Move2SiliconValley.com
Silicon Valley relocation info

popehandy.com
Silicon Valley real estate,
focus on home selling

Silicon Valley Real Estate Report
Silicon Valley real estate
market trends & statistics
Mary’s Blog Awards
Top 25 real estate blogs 2016
2016: Personal Income's list of top 25 real estate blogs.


Best Realtor blog award
2016: Coastal Group OC's list of best Realtor blogs


The 2009 Sellsius list of top 12 women real estate bloggers
2009: Sellsius list of top
12 women real estate bloggers


Mary Pope-Handy's Live in Los Gatos blog won the 2007 Project Blogger contest, sponsored by Inman News and Active Rain

2007: Mary Pope-Handy and Frances Flynn Thorsen win the Project Blogger Contest for Mary's Live in Los Gatos blog. The contest was sponsored by
Active Rain and Inman News.


Non blog award


Best real estate agent in Silicon Valley from the San Jose Mercury News poll of readers in 2011
"Best real estate agent
in Silicon Valley"

2011 readers' poll,
San Jose Mercury News

Categories
Site Statistics
  • Users online: 3 
  • Visitors today : 1,398
  • Page views today : 4,584