I read an article the other day where the author said that timing the market is a fool’s game. I try to be more diplomatic than that but let me tell you why he says that: it’s because you can’t.
In order to see where the market is, you have to look back at statistics – you have to compare it to something. Typically we use quarter over quarter or year over year comparisons. You’re not going to see market stats for, say, mid September. Often, by the time you are seeing the statistics, the opportunity to take advantage of them has gone by, especially in the fast moving Silicon Valley Real Estate Market.
But I can give you a sense of today’s market based on what I see and my experience of the Silicon Valley Real Estate Market. There is a lull in the market – which is not what we expect to see at this time of year. Normally, we’re in the second hottest selling season of the year with a lot of activity. Right now open house and private showing turn out is down. The number of offers coming in is also down. Sellers are forced to consider at price reductions in some cases.
I don’t know how long this will continue. I wish I could tell you. But if you’re out there looking at houses and you see one that you like, write an offer! Don’t worry about counter offers or multiple offers because there might not be any.
All the media is talking about the increase in interest rates that’s coming. Keep in mind that the increase in mortgage rates is just as important – if not more so – than the price of the home itself. The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the higher the payment will be.
This Buyer’s Purchasing Power chart shows the difference interest rates make in your home purchase. A $1 million home at 3.75% home mortgage rate means $4631 principle and interest payment; looking at 5.25% home mortgage, the monthly payment jumps to $5,522 – $891 difference each month!
If you have questions with your specific home buying or selling circumstance, please let us know. We’re happy to help!
Are you thinking of buying a home or selling your home in the Silicon Valley Real Estate Market? If you haven’t hired a top producing Northern California real estate agent yet, contact me, and I’d be happy to discuss the real estate market history and the current state of the local market!
About the author: The above video “Your Silicon Valley Real Estate Market Update for September 24, 2018” was provided by Vicki Moore of eXp Realty California. With over 20 years of experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Northern California areas: Roseville, Rocklin, Granite Bay, San Mateo, Foster City, Pacifica, Burlingame, San Carlos, Belmont, Redwood City.
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