Real Estate Articles
REALTOR®: Silicon Valley is “Gold Country,” Great Location for Buyers, according to REALTORS®
Nahouraii noted aside from good weather, the Valley's access to San Francisco, the arts and entertainment and good schools, its main industry is technology, a valuable asset. "Businesses that want to excel need to utilize high tech. We are located in Silicon Valley, the technology capital of the world," said Nahouraii. "Majority of technology is done here, so when any business or economy picks up in the world, we benefit."
In addition, Nahouraii explained the region's value is rooted in supply and demand – there is not much land in Silicon Valley, as the area is blocked off by the ocean and by the mountains.
What are the market trends that point to a favorable housing market in this area? Income in the Valley is high compared to other parts of the state because of its educated work force; interest rates continue to be "dynamite"; inventory is low; and the affordability level has improved.
- Nahouraii indicated interest rates are still at historic lows with the fixed 30-year conforming rate ranging from 4.75 to 4.25 percent.
- Data from the MLS shows as of January 1, 2010, inventory of single family homes in Santa Clara County was at 2,176 homes, a far cry from 5,993 a year ago. Demand for homes is out there not only from first-time home buyers because of the tax credit incentives, but also from investors, bargain hunters, homeowners who have wanted to move up and have been waiting for prices to become more reasonable, and families who have moved here due to job relocations.
- While the median home price in Santa Clara County is beginning to rise once more, Nahouraii said prices have come down enough that homes have become more affordable. In the fourth quarter of 2009, the median home price was at $581,000, much more affordable than $800,000 a couple of years ago. There are still short sales and foreclosures to contend with, but high-end homes too are becoming affordable.
In this day, your Web site is in essence, your business card," Nahouraii said.
Nahouraii said the biggest reason 2009 was a bad year for real estate was due to fear of declining valuation and job losses. "The first has gone away. We are seeing our median home prices rising," he said. "We just have to deal with the second. And the beauty in our area is we are seeing more jobs because of the importance of technology."?
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.