Klor Strong Team Blog

Our main issue is that there is not enough housing for the amount of buyers that want to purchase. Because Real Estate statistics are hyper local, any general statement that has as its basis a global statistic for the United States, has little to zero relevance to our Bay Area RE. In Detroit you can purchase a single family home for $59,0000. In the Bay Area, that will buy you a large, newer vehicle or old trailer- not even a financeable mobile home….

New construction in the Bay Area is not selling like hotcakes due to the difficulty of obtaining financing, not due to lack of demand. We have a MAJOR stumbling block right now in the financing process which is the new appraisal rules & regulations- the amount of war stories are mounting and unfortunately we are all getting wounded by it! These new rules have left us with very few good appraisers that are intelligent, professional & discerning and instead we have a bunch of uneducated, unmotivated, & unknowledgeable  people  that are willing to work for $125 for over 20 plus hours worth of work! These are the folks that are stopping transactions from going through. But then, we’ll talk more about that later….

As a secondary problem for new housing- which is just getting started- is the Chinese Drywall issue www.newsinferno.com/archives/5591 (just an example).

Indicators that ARE important are:

2/21/09     1,375 Properties available for sale in Santa Clara County 28.1% were in escrow

2//10     760      “          “       “   “    “    “     “    “      59.3% are in escrow

But even these stats are not totally correct due to the amount of Short Sales that are under contract/in escrow that will NEVER close escrow and will end up back on the market as Foreclosures…..

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…

Well, it just so happens you CAN! If you as a Buyer, Seller, Lender or Agent are having issues with someone and the issue has to do with Real Estate, then the Santa Clara County Association of Realtors has the answer to calm your pain. More than 5 years ago, the Ombudsman Committee was established to do just that. You can check out the information at www.sccaor.com. Click on the Disputes Resolution tab. During 2009, we were able to informally mediate 147 cases! 98% of which were resolved by our committee of 8. So, next time you have a question regarding ethics, best practices or just need a little help figuring out if what is going on in your transaction is “above board” or not- get a hold of our local Ombudsman committee and let us help you sort it out.