The outlook on the housing market continues to be mixed, but in the Silicon Valley region, the mood is upbeat. Local brokers recently gave their perspective on the market and what they expect for this year.
"We're seeing some momentum in the market," said Doug Evans, chair of Silicon Valley Association of REALTORS® Los Gatos/Saratoga District. "We made steady improvement in 2010 over 2009. Sales volume in Santa Clara County was up 7 percent and, interestingly, the $2 million and above market saw a 30 percent jump in sales volume. Our Los Gatos market did even better, with overall unit sales up 25 percent year over year."
Evans, who is manager of Coldwell Banker Residential Brokerage in Los Gatos, said agents were extremely busy in December, closing $60 million in sales volume on 75 properties, with another 74 properties going into escrow. "I don't confess to have a crystal ball, but I'm very optimistic - as are all of our agents," he maintained. "There seems to be a lot of positive consumer sentiment out there. Buyers are realizing this is a very unusual point in time where you have a decent amount of homes for sale, very attractive pricing and near-record-low mortgage rates. This trifecta doesn't happen very often and won't last forever. I think we're going to see more buyers jumping into the market."
Chris Trapani, CEO of Sereno Group, also has good feelings about this year. "This is the most optimistic I have been since the end of 2006 and beginning of 2007," he exclaimed.
Trapani explained Santa Clara County has the lowest month's supply of inventory in over two years and a considerably higher percentage of active listings in escrow compared to previous years. "This, combined with improving tech company profits, a rising stock market and increasingly positive news about the economy, has developed more confidence than we have seen in four years," Trapani said.
Jeff Barnett, vice president and regional manager of Alain Pinel Realtors, believes 2011 will see a 2 to 3 percent increase over 2010 sales, but he doesn't see a double dip, as some economists forecast, not in Silicon Valley. "The Silicon Valley economy is so strong, but I don't believe we'll see a full recovery until unemployment goes away, and this may not happen till 2013," Barnett projected.
"We are heading in the right direction," commented Brian Crane, vice president and managing officer of Intero Real Estate Service.
Crane said there have been multiple offers in all price points, with much competition in the low-end market. Even high-end homes that are well-priced are receiving multiple offers.
"There are good opportunities out there because more sellers are becoming realistic," Crane observed.
The brokers agree the opportunity continues to be great for buyers. "I firmly believe in the buy side. It's an incredible time," Trapani said. "For sellers, it depends on what market they're in, their expectations and timing."
Evans cautions buyers to be realistic about prices. "Prices have come down, but you're not going to be buying properties for 50 cents on the dollar. Don't try to time the market to find the very lowest price, or the very best time to jump in. Just take advantage of the good market conditions before you right now," Evans said.
It may not seem like the best time to sell, but the brokers say well-maintained homes in good neighborhoods that are properly priced are selling, some with multiple offers.
"Make sure your home is priced competitively," Evans advised. "Make your home look the very best it possibly can. There is a lot of competition out there, and if your home doesn't shine, buyers will move on."
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.
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