Hi, Wang:

This is Yvonne Yang with Coldwell Banker. For the area and the price range that you are looking (95129 and under $600K), the market is very active.. Multiple offers are common these days... I would suggest you to start the search now. Either buy a 2 Bed condo/townhouse in the area such as 95129 or you can buy a 3 bed townhouse or single house in some other area where also has decent school. Recently, I helped quite a few buyers bought some SFR with elementary API over 900 and with very affordable price.

Please contact me at 408 674 4418 or email me
yvonne.yang@cbnorcal.com for more details.

Hi Nova! Nice to "see" you again!

I will have to respectfully disagree with you on this one, and believe, still, that our bottom in Sunnyvale has passed. Like you, I'm also a supply and demand, gal, but at least for us here in Sunnyvale (and parts of Cupertino, Los Altos, Los Gatos, Saratoga, Palo Alto and Monta Vista) there is much more than market pressures at play here to keep prices from falling to 2000 levels.

Here's why...

The demographics in our area (94087) have always been a disproportionately larger share of older home owners who, like my parents, purchased their homes over 25 years ago at prices barely approaching 6 figures. For these individuals, they sell only when they have to (relocation, rest home or death), which is why the overall "turnover" rate is so incredibly low in the more desirable sections of Sunnyvale, Cupertino, Monta Vista, Los Gatos, Saratoga, Los Altos--anywhere where the homes are 45 years old and older. Combine the fact that most of these seniors live in homes that are entirely paid off and have Prop 13 protection for property tax, and they don't need or want to move.

We both know this to be true because, if you are like me and regularly shop the homes in our neighborhood, most of the homes coming onto the market in our area have Realtors who relate roughly the same story...."the family is selling because the owners died/had to move to a rest home/moved to warmer climates."

As a result, there are still a large number of homes that will remain "static" (not for sale and not bought) until the demographic composition begins shifting. So for many, the usual factors of market demand and supply--at least in Sunnyvale and where there are large populations of older homeowners--simply do not apply. For my parents, for example, you cannot offer them enough money to blast them out of their 94087 home. After all they have no mortgage payment, live on a 1/4 acre parcel, and pay--what--$3000 a year in taxes? Even I'd stay put and I LOVE houses!!

So, don't expect much movement in the more desirable areas in terms of housing price spreads for the mid- and upper-range homes. However, I do believe that we are looking at a lot of adjustments in these same areas in about 7 years, when many of our existing population will be approaching their late 80s. However, by then the economy will surely have recovered and the homes will be worth even more than they are now.

Just my thoughts...

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realy
Sunnyvale, CA
Tel (408) 426-1616

hi grace,

i feel that mid range and high range have not yet come anywhere close to the bottom.
for example, in 2000, $/ft was $280 for sunnyvale city (as whole) and $300 for 94087 (desirable area).

today, sunnvale is selling at $400 but 94087 at $500.
Why this disparity?

is it not because in 94087 sellers have no urgency and can withstand the pressure?

i belive market is driven by supply and demand and things return to their mean. what do you think?

Hello Wang and thanks for your question.

Two months ago, while everyone was stating that prices would continue to fall, I began mentioning that economic indicators did not indicate price slippage, and that, in my mind, the bottom in Santa Clara had come and gone. In fact, I felt that prices and housing demand was on the upswing. Today, with pending home sales up 3.2 percent nationwide--despite the nay-sayers--it looks like housing is back, and rolling in highly desirable areas, such as 95129 (San Jose with Cupertino Schools).

Depending on where in West San Jose you wish to live and the price of the property, it might certainly be worthwhile to consider the purchase of a 2 bedroom townhome in the community. However, there are also areas of 95051 (Santa Clara) that share the same Cupertino schools, and portions of 94087 (Sunnyvale) where Cupertino schools are also available. As a result, I would not necessarily confine myself to just one section of San Jose if a school district is a pivotal point in your buying decision.

As for foreclosures, there are not many in the desirable areas of town (94087, 95129, 95014, 95051 in Cupertino School District), so even the few foreclosures scheduled to come onto the market in the next 90 days will not, in my opinion, create a market downturn favorable to support further price reductions in housing.

So while it is still a buyer's market, the areas where buyers want to live, are seeing much more demand and, as a result, more activity at sale time. Look to other areas with Cupertino School District schools for your best bet in finding a good home.

Good luck and happy house hunting!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
Tel 408-426-1616

As a Cu specialist, I do smell the homes will be more desirable and pricier soon. When high tech workers realize their jobs are not threatened they want to move to certain areas.

Of all the buyers I have dealt they qualify for much larger mortgage and have more cash than other neighborhood buyers. People who put purchase on brake is mostly out of fear of losing jobs. If you want a 3 BR single family home in Lynbrook area it is likely to move back to a mil again.

For 3 BR condo/town home one has to overbid to get in today. They rarely come on the market. I have several cleints on my waiting list.

I couldn't agree more than what NINA DARUWALLA just stated. Finding a home is very difficult for a consumer. You must find an agent who specializes in the area you are looking to buy. For example, I just made an offer on a 4BR home in San Jose for $350,000. For me I prefer staying away from Town Homes and Condominiums just because it's a bit harder to sell and there are HOA fees that can be costly as well. I have a two year old as well and one on the way, and your needs changes when having a child. The market is as low as it can go. If you want to wait for a few months, you should be okay, but waiting a few years... You might regret it. I made another offer on a condo for another client a few days ago and the property received over 15 offers. Good Luck!

>>Prices and Interest Rates havent been this low in 30 years.
First sentence - first word. Where exactly have prices fallen to 30 year back values?
My lie detector has started beeping.

Hi Wang,

Prices and Interest Rates havent been this low in 30 years. The 95129 area you are talking about have Cupertino Schools. I wrote an offer for a client on a Condo just 3 weeks ago in the same zip code and there are 4 offers on that property! Even now, there are multiple offers for properties with Cupertino schools. Yet its a Buyers market and not as bad as it can get! How much lower do you think its going to get? not much at all, and with multiple offers, even Lenders (Short Sales) and Bank owned properties will accept the highest offer as they need to recover the max owed on the property. Time passes fast, and before you know it your child will be ready for school. BUY NOW while prices are where they are, wait for 3 years, and if the market has flipped, you are in the running with multiple offers galore and will be paying the price demanded. Interest Rates will definately go up and so then your affordability amount will go down.
I live and work in Cupertino, am also a Public Safety Commissioner with The City, and know my City inside out. Let me know if I can help you through your home buying process.
Be well and Safe, regards,
Nina Daruwalla

HI Wang, If you are considering a three year plan then buying now will allow you to have better tax strategy options and build equity at the same time. Over the next three years I believe we are going to experience quite a run. The economy will improve!

Finding a property in a good school district, that you can afford now, removes the possibility that the market may price you out of that neighborhood if a "buyer war" begins.

Michael
http://www.MichaelRobertsHomes.com