Yes, Virginia…..there really was a rate increase in December 2015….we all knew the Fed wouldn’t stay at zero percent raise forever and here it is. 30-yr. fixed mortgages are now above 4% APR, and we are pretty certain there will be at lease one more raise during 2016, followed by others in 2017. That means that if you are a Buyer in the market currently, you may have to revise downward the price of homes you are considering because your monthly payment will have gone upward. Or perhaps you will begin looking at adjustable rate mortgages if you intend to keep your home for at least 5 years.
We are still dealing with very low inventory in Santa Clara County, and it is definitely still a Seller’s market. At the same time, the buyer pool has diminished from a combination of discouragement, many homes on the market being less than completely turnkey, and too much competition for the ones that ARE desirable. If you are a Seller, and your home is in decent condition, it will sell fairly quickly. If you are a Buyer and you can keep persevering with your search, and make minor compromises on your “wish list”, you have a very good chance of making a successful offer.
Obviously, if you are a Buyer, the longer you wait to make an offer, as prices continue to rise and interest rates also rise, there is a very good chance you will be “priced out” of areas you really wish to live in.
As a Seller, if you are considering putting your home on the market, you should be very confident of achieving the best possible price outcome, in a short period of time.
SO……not really so different a market from late 2015 :-). Except for the higher prices, of course.
NEWS YOU CAN USE:
If you do purchase a home that needs work, there are some realities to consider with regards to renovations. Here is an infographic to get you started.
We’re happy to provide you with a consultation as to what renovations really bring you the most increased value for your home. Just give us a call, at408-893-6306 to arrange a time for us to drop by. Here are some of the most important items….
We are participating with the Santa Clara County Realtor Foundation in their $1 Million Dollar Homeless Challenge. Homelessness is epidemic in our county, despite the fact that we live in the wealth of Silicon Valley. Every penny raised from this campaign will be donated to two Santa Clara County charities that support keeping homeless families together, rather than splitting children from parents. Family Supportive Housing is the onlyfamily shelter in Silicon Valley that allows families to stay together as a family unit. Stand Up For Kids provides support to the 1,600 homeless children in the valley. The goal is to raise one million dollars during 2016. If you can, please make a donation to this incredibly important cause, by visiting www.realtorshelpinghomeless.com .
We have almost 15 year of experience in real estate in Silicon Valley, coupled with Nick’s legal background and Barbara’s expertise in marketing. We depend on the goodwill of our clients, and we are never too busy for your referrals. Please tell your friends about our thoughtful, value-added, and personal attention approach to real estate representation.
We’ll be back next month or so, with another Real Estate Update. In the meantime, enjoy the rain!