Klor Strong Team Blog

Mortgage loan applications recently surged 23%, according to the Mortgage Bankers Association.  Are you taking advantage of the record-low interest rates?

http://money.cnn.com/2012/01/18/real_estate/mortgage_rates/index.htm

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This whole “Real Estate Crystal Ball” question is really getting out of hand. When you look strictly at the statistics in our beautiful and prolific Silicon Valley, we presently have 34 more single family homes for sale than this time last year. It would be important to know how many homes are under contract or pending sale- well, there is only a 2.7% difference from this same time last year. These statistics which a few years back would speak volumes of what is going on in the local market, now give mere muddy rear view mirror glimpses!

Due to the fact that these statistics are full of reluctant home sellers that are awaiting a “possible” Short Saleapproval from the lender that holds the mortgage or heaven forbid, the multiple separate lenders that hold the 1st, 2nd and possibly 3rd mortgages; they are slight indicators at best. Short Sales confuse the statistics as so many of them never actually close escrow. A large percentage end up in the lender foreclosing and a very small percentage of sellers end up achieving a “Loan Modification“, a VERY small percentage. 

So how do you figure out what is REALLY going on? I know the answer is going to be way too obvious to those that understand they can’t know everything about everything- ask an active, professional, Realtor®with years of experience reading real estate markets! You would think that was a no-brainer! But time and time again, Buyers and Sellers who only purchase and/or sell a home a maximum of 3 times in their lifetimes, think they know more than reputable real estate agents and brokers.

Who else has more intimate and real time knowledge about the Real Estate market and what is presently happening than an active, professional Realtor? Where else can you take up a professional’s time, energy and pick their brain to your heart’s delight and initially not pay a dime for it? Call, email, text, tweet or face book your professional Realtor and ask them what is happening in your local market, they will be more than happy to answer! If you’d like, you can always contact us if you don’t know a Realtor you can trust- you’d be amazed how much information we can supply you with and all for the cost of a cup of coffee…. that’s what you call a pretty good deal!

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• Silicon Valley is abuzz with bubble and recovery stories – too soon?(venturebeat.com)

O.K., first I’d have to ask you a couple of questions:

1. What day are you reading this on? If it’s any other day than the one on which I’m actually writing this, the answer could be 75% wrong!
2. What exact,  micro, super hyperlocal market are you talking about? 5 miles away, I could be at least 90% wrong!
3. What price range are you wondering about? $400K and under? $750-900K? $1MM and over? WOW, I’d have to give you 3 different answers!
4. Are you asking about Single Family Homes, Town Homes, or Condominiums?

You get the idea I’m sure, it’s really pretty complicated and we can talk about each of these 4 points more in depth in future posts. Right now let’s talk about why generalizations just don’t work in Real Estate.  The national news feeds say the market appears to be getting better and I can only wonder WHO they are listening to and WHERE that very enlightened person is reporting from. If they are in Detroit, they are possibly lying through their teeth! If they are talking about Silicon Valley, Single Family Homes listed under $400,000: BINGO! They are right on the money! So, nationally you cannot make that kind of blanket statement.

Let’s bring it home a little bit more and listen to what they are saying about the California Real Estate Market “Most California real estate markets have already hit bottom”. Makes me wonder where this person bought their crystal ball? I hope they kept the receipt! Depending on what part of California we are speaking of, MOST markets, have not even heard, much less seen the giant whose shoe is going to be the next one to drop…..

In the next post we will examine our local market more closely and expand more on the shoe industry- nos vemos soon…