Median Prices are Rising

The headline from the article link below states "Median Price Rises in nearly 60 percent of US metropolitan areas in first quarter".

This is an exuberant headline that would lead one to believe that the macro real estate market is out of the woods and on the road to recovery. We all hope this is the case but we will only have an idea as to the true health of the national market after we have 3-4 quarters with successive gains without the Government's underlying support mechanisms in place. First time home buyers have accounted for a huge percentage of transactions spurred on by huge incentives. Also, the mortgage market has benefited from a plummeting Euro in the last month.

There are some good signs in the market but I think it is a bit early to say that the broad market is out of the woods and that we are in full recovery mode. So, how do you know whether to buy or not? It needs to make sense... what does that mean? It means that you're criteria alone will determine if it is a good time to buy. The reality is that now is a much better time to buy than 4 years ago if you are gainfully employed. Generally, your dollar goes a lot farther now than it did then...

http://www.fox59.com/business/sns-ap-us-home-stretch,0,1815580.story

From the desk of Zach Trailer

A Bit of Perspective

This is an interesting article that brings a bit of gravity back to the encouraging housing sales statics that we have seen in 2010. The crux of this article touches on the fact that a high percentage of our national wealth is tied up in the housing market. Of course, over the last 10 years this wealth was leveraged to consume. The appreciating asset of our homes over the last 10 years created an "ATM" that people could then draw from for all sorts of purchases. Though this ATM has dried up for the average person the truth that this article points out is that this has other consequences that ripple through the economy affecting construction, small business, and government employment all which contribute to the jobs engine in the United States. This is a good read that helps bring to life the ripple effect that an overall reduction of value in the real estate market has.


http://finance.yahoo.com/real-estate/article/109507/real-estates-far-reach-to-continue-to-pinch

Multiple Offers Abound

California is an amazing place: The weather, the diversity, the geography, the innovation... all of these factors make California like no other place on earth. Real Estate in California is no exception. Over the last seven years as a Realtor on the Peninsula in the Bay Area I have seen an historic ride up. What is more amazing is that as other markets have fallen spectacularly across the country, the mid-Peninsula has held-up spectacularly well. This just goes to show the resilience that Palo Alto, Menlo Park, Atherton, Woodside, Los Altos, Los Altos Hills, and Mountain View have. With Stanford and the heart of the of Silicon Valley a stones throw away these housing markets remain incredibly resilient. Multiple offers currently seem to be the norm in the heart of the Peninsula. Low interest rates, a rebound in the equities markets, and low inventories are feeding a sellers market. Weekend open homes inn the 1.3M-1.8M range have seen 50 plus groups of people through in a single day. The oldest words in real estate are location, location, location... this continues to ring true.

High Speed Rail

High Speed Rail remains an unknown in the Peninsula Real Estate market. It has the potential to impact homes and valuations along the rail corridor.

There is the possibility that property could be seized by eminent domain if the current corridor is widened. There is the possibility that the train could go underground throughout portions of the Peninsula leaving real estate generally unaffected. There is the possibility that the track will be elevated. There is the possibility that the project will be over budget and will not happen. The reality is that no one knows at this point what will happen though the public comment period may give a bit of insight into this. Regardless, this is an important issue to keep apprised of on behalf of all Peninsula real estate owners and especially those who have property abutting the current rail corridor. As more information comes to light I will continue to write on this subject.