It’s been awhile since we had a market update, so let’s take a
look-see, shall we? Hmmm. In the past week, 34 new listings popped
up like gophers in the garden of San Benito County, 60 in south
Santa Clara County. Inventory stands at 288 in San Benito, 430 in
south Santa Clara County. This means buyers have many options.
It’s been awhile since we had a market update, so let’s take a look-see, shall we? Hmmm. In the past week, 34 new listings popped up like gophers in the garden of San Benito County, 60 in south Santa Clara County. Inventory stands at 288 in San Benito, 430 in south Santa Clara County. This means buyers have many options.
How is it for sellers? As I’ve mentioned before, “Patience, Grasshopper.” (Well, I didn’t actually say that, but you get the point.) It is not officially a buyers’ market. A buyers’ market occurs when the inventory hits a statistical six-month supply. Right now in San Benito County, our inventory is 288. I know you hate word problems, so I’ll do the math. In April, 49 homes were sold. Dividing 288 available homes by 49 homes sold in a month we get a time of 5.9 months, or something very close to a buyers’ market. In south Santa Clara County we find 104 homes were sold in April. So 430 divided by 104 equals approximately four months. That’s a very balanced market.
One interesting trend to note: In south Santa Clara, 24 homes closed escrow last week, but 28 homes were removed from the inventory due to cancellation or withdrawal of the listing contract. In San Benito 16 homes closed escrow and 15 were removed. What does this mean? It means that the same amount of people are selling their homes as there are sellers giving up. We have gotten so spoiled as sellers in the past few years. Now if the home doesn’t sell in a month, we pout.
So what does it take to get your home sold quickly? It has to shine like a bright star in the constellation. And it needs to be priced well against its competition. What does that mean? You might need to go below market rate. Sad but true. That’s what it takes to get a quick sale: Good looks and a cheap price.
If you have some time and patience, you’ll be able to wait it out until someone falls in love with your home. But again, notice the use of that word patience? I know, I know. It’s tough to be patient, but that’s what it takes in today’s market.
Though mortgage rates have climbed a bit, they are still historically fabulous. And what about that real-estate bubble doomsayers have been touting for the past few years? Well, it hasn’t materialized. First of all, there is a systemic shortage of properties here in California. More people come here each year than there are homes being built. Secondly, baby boomers are buying second homes and investment properties as they inherit wealth from their parents. And lastly, this is one of the most wonderful places in the United States to live. Location, location, location … it supplies us with a demand not based on a single industry or economic model.
Hang on, here, we’re switching gears. I was just talking to my friend Israel from Beale Properties about the sale of condominiums. The sale of them is a little bit problematic right now because the homeowners’ dues are counted in an expense when a buyer is looking for a home. So they will qualify for less of a mortgage than if they were buying a home. But let’s look at condos in a new light.
While I was in Boston’s Beacon Hill district last week for a family wedding, there was a story about a 180-square-foot space at the Brimmer Street Garage selling for $200,000. Then this week the Associated Press writer Dee-Anne Durbin wrote about car condos in Florida. A man paid $219,000 for a condo in which to park his 1930 Ford Model A coupe, 1961 Corvette convertible, 1970 Mercedes-Benz 280SL and three special edition motorcycles. For this, he gets a safe, air-conditioned birth for his treasures with 24-hour security and concierge services.
Whoa, doggies! Concierge service for a car? I wonder what that means. I guess the car can get theater seats or hotel reservations if it wants a night on the town.
Most of these properties are bought by men in their late 40s to early 60s. Not just for cars; buyers often plan to use their condos for boats and Jet Skis or anything else they want stored safely. These complexes are especially popular in areas where there are hurricanes and other environmental threats. In addition, they thrive in areas of dense high-rise condo developments (home condos, that is) because one often gets a garage space with the condo, which is not private and secured.
The particular man Ms. Durbin wrote about has installed a huge flat-screen TV in his car condo. He feels his cars are works of art which need protection, but he also spends a lot of his free time polishing them, and wants the comforts at home while engaged in his favorite pastime.
What will they think of next? Well, whatever you think of, call your Realtor. In the words of Walt Disney, “If you can dream it you can so it.” A Realtor helps you turn dreams into reality.
And remember: Be kind to your Realtor.
