Today’s Silicon Valley real estate headlines are a mixed bag, as usual. No wonder it’s hard to figure out what’s going on sometimes. It depends on where you’re getting your news and what point the writer or news outlet is trying to push.
Residential Real Estate Headlines
Residential real estate on the Peninsula has taken off like a rocket again. Limited housing inventory. Low rates. And high demand? I don’t know about that.
Is the demand high? Right now we have an incredibly low number of houses for sale. So if you have really low inventory what does the demand look like? If we had more houses but the same number of buyers out there, does that mean we high demand? Do we have the high demand because there aren’t very many houses to sell? I don’t think the two are synonymous.
I think we have high demand because of the low inventory. And if we did have more houses to sell the demand wouldn’t be so extreme. Does it matter? I don’t know. Just something I was thinking about.
A ranch-style home like 3713 Martin Drive in The Village listed for $999,000 and sold for $1,720,000
|Home size||930 sqft|
|Lot Size||5,001 sqft|
Come home for the holidays to this completely remodeled down to the studs rancher in San Mateo Village/Glendale Village. 3 bedrooms and 2 baths with a modern yet warm versatile floorplan where your kitchen, living room, and dining area all come together in one light, airy, and open space. Designer finishes adorn the kitchen and both full bathrooms. Entertain friends and family in the outdoor space this home provides. An additional workshop/office/rec. room is also offered in the backyard. 3713 Martin Dr awaits you!
Property Type(s): Single Family
|Year Built||1950||Community||San Mateo Village/Glendale Village|
|Garage Spaces||1.0||County||San Mateo|
Listing information deemed reliable but not guaranteed. Read full disclaimer.
311 Seaside Dr, Pacifica – a similar home – listed for $999,000. It sold for a very different $1,305,000. In the fall of 2002, that same home sold for $450,000
Why is the inventory so low?
One of the reasons is that Silicon Valley must have the highest rate of nimbyism in the nation. Is there a study for that? There should be.
Today’s Real Estate Headline: Wealthy Silicon Valley town cites mountain lions as reason not to build affordable housing
“The well-heeled Silicon Valley suburb of Woodside has come up with a novel way to block plans that would potentially bring in more affordable housing: Declare itself Cougar Town.” How “well-heeled”?
The average home sale price for 2021: $4,927,163
What’s even more ridiculous about Woodside claiming exemption for more affordable housing because it’s a “habitat for potentially endangered mountain lions”. Potentially endangered? Really?
Woodside isn’t special. Mountain lions are all over this area. They regular walk down the residential streets of Pacifica too. So is the whole westside of the Peninsula now mountain lion habitat?
This is one of the more frightening to think about: Mountain lion watches kids ride their bikes
Today’s Real Estate Headline: Tech helped drive Silicon Valley home price gains; Will Meta’s record stock plunge reverse the trend?
In the seventh paragraph… Meta’s woes will have “very little” impact on Silicon Valley’s housing market, citing the Bay Area’s housing crunch and a “huge” desire to live there.
Next Real Estate Headline: Building boom for Silicon Valley offices reaches six-year high
Reason number two for the lack of inventory. And it’s only going to get more intense: “Silicon Valley witnessed a building boom during 2021 that produced the most office construction in six years…”
“Silicon Valley tech and life science companies will build on their lead as the bellwethers of the U.S. economy,” stated the report released by Cushman & Wakefield, a commercial real estate firm.”
Real Estate Headline: San Jose has the third highest ‘equity rich’ homes in the U.S.
Why won’t Covid force a foreclosure frenzy?
Rising home prices makes for extraordinary equity. The median home price appreciation from Spring 2020 to Fall 2021: 32%
If you have that much equity in your house you’re not going to get to the point of foreclosure. Why would you? You have equity. You don’t need to walk away from your house. Both you and the bank are going to get paid.
“As of the last quarter of 2021, 42% of residential properties with an underlying mortgage were considered equity rich, according to a report from Attom, a real estate data company. That was up from 30% in the fourth quarter of 2020.”
“The real estate market was on fire last year, with the frenzied pace of sales activity pushing home prices to record highs.”
And it wasn’t just Pacifica. This headline is nationwide: Home prices in 2021 rose 16.9%, the highest on record.
If you’re thinking of making a move, call me. Let’s talk about the possibilities.