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“If you price your home at a comparable neighborhood price, it will sell with three to five offers.” That statement was repeated numerous times at last Friday’s Silicon Valley Association of Realtors district tour.
On the other hand realtors also said, “If the house is overpriced people won’t look at it.”
With a median home price of $1,169,500, the Los Altos-Los Altos Hills area continues to be one of the most desirable locations for home buyers.
Santa Clara County neighborhoods with sales of luxury homes over $1 million in 2003 were: Saratoga, 243; Los Altos, 221; and Los Altos Hills, 194 (according to DataQuick Information Systems).
As of March 1, the supply of homes is so low buyers are lining up to wait for any new listings. Inventory is less than half of what it was at this time last year.
As of last Saturday, there were 34 single-family homes available in Los Altos and 32 in Los Altos Hills. The home prices range from $1.5 million to $16.5 million, with homes under $1.8 million selling quickly.
“The stock market has no influence any more. People are now buying homes because it’s a safer investment,” said Sallie Morgan, a Coldwell Banker agent. “The last three top sales in Palo Alto were all-cash.”
“The money coming in now is hard money, and it’s solid,” said Bob Morton, also a Coldwell Banker agent. “No more stock options that led to foreclosures in the county.”
“The low inventory of available homes for sale is nearing a critical juncture,” said California Association of Realtors President Ann Pettijohn. “In a more balanced market there is a seven- to 10-month supply of homes for sale. In January it was only two months statewide.”
Home sales soared in Santa Clara County last year because of the low mortgage interest rates and renewed buyer confidence. Thirty-year fixed mortgage interest rates averaged 5.71 percent during January 2004, down from 5.92 percent in January 2003, according to Freddie Mac.
Nearly 29,000 houses and condominiums changed hands in the county last year. That was 14 percent more than 2002, and at the present rate of sales another new record will be set.
In contrast to the increase in single-home purchases, there is a depression in the rental market.
“We had more than 11,000 people leave Santa Clara County in search of jobs (in 2003), and most of those people lived in rental properties,” Morgan said. “Of course, we know it’s always cheaper to buy than to rent.”
In another action, Morgan presented a check for $16,600 to Community Services Agency. The amount was collected from real estate agents during social and business events.
Representing the Housing Industry Foundation, President Dennis Young received a check for $109,700 from the Silicon Valley Association of Realtors Charitable Foundation. The mission of the foundation is to help individuals and families either remain in or return to stable housing and assist with special housing projects.
“As realtors, I have never seen a more generous group of people,” Young said. “This is an all-time high.”
