Home Buying in 95117>Question Details

George, Home Buyer in California

Will the house price decline this Fall?

Asked by George, California Wed Jul 31, 2013

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I agree with Chris's analysis, The thing to remember is no one can really predict what will happen, it kind of all depends on interest rates and inventory. What I would look out for is what the Fed. will do, if they keep buying bonds then the interest rates will stay down if they don't I predict the rates will go up a lot before they settle back a bit, Just look at the fact that the Fed. hinted that they might look at easing off; the result was a jump in rates of over a point before comming back a bit, so you can see that it will affect buyers bottom line and purchasing power.
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1 vote Thank Flag Link Wed Jul 31, 2013
The key factors would be a continued increase in inventory and a rise in mortgage rates. If that happens we'll see a slow down but most likely not a price fall. There is not enough supply to cause a price drop at this time. If you are on the fence to buy think about the cost of money. Are you really getting a better deal if the mortgage rates are higher but the price is slightly less?
1 vote Thank Flag Link Wed Jul 31, 2013
IF there is going to be price softening, it will naturally occur in the fall/winter. However, that doesn't necessarily mean a price drop. For example, it may mean prices go back to April levels instead of June.
0 votes Thank Flag Link Fri Aug 23, 2013
Prices falling? I don't think so. Prices stabilizing, yes. The incredible rise in home values will taper and level out with the rise in interest rates as it might price out some buyers. Any other questions feel free to contact me at (408) 620 4215.

Miguel Zamora
Intero Real Estate Services
Lic# 01931841
0 votes Thank Flag Link Thu Aug 22, 2013
There has been a lot of concern what will happen as interest rates rise. I added home values by month to my website to complement my previous by quarter home values. I haven't seen any significant changes yet.

Home values in zip code 95117 at http://julianalee.com/zip-code/95117-statistics.htm
Look at the price per sq ft.

I've seen comments that interest rates will have to climb over 5% before they will affect the local real estate market. I haven't found good arguments to back that up. From a historical point, we still have quite low interest rates.

Personally, I just recently took action (made a purchase) to take advantage of the still low interest rates.

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650.857.1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
Web Reference: http://julianalee.com
0 votes Thank Flag Link Sun Aug 18, 2013
I think the key factors behind the cause are continued increase in inventory and a rise in mortgage rates. We expect that higher mortgage rates, growing inventory levels, and seasonal relaxations of home demand will continue to moderate home price growth over the next quarter.
0 votes Thank Flag Link Fri Aug 2, 2013
In LA County that may be true. The question is addressed to Silicon Valley as other agents have posted. In Silicon Valley past recession merely skimmed the price causing homes to take longer to sell. 5-10% price drop during each recession.
Flag Mon Aug 5, 2013
Price declining? That would be a wishful thinking as far as the market goes. The sold data shows what happened 2 months ago. It is true, however, that it takes longer today to get into a contract. In SJC it is 29 days (1500-2400 sf SFH) vs. 18 days 3 months ago.

The mind set of sellers is they expect to sell at a certain price based on past data. They are more willing to work with buyers today and are willing to wait a bit longer (days not hours). The mortgage interest rate did go up and since has dropped. There are more inventory on the market and sales are more like traditional market.

For neighborhood stats (values) please refer to my blog:

One group of buyers not active this summer is the investors. Most are stunned to find out home prices recover so quickly. While others are in the backseat watching for changes. The income properties are also in demand and price does not correlate to neighborhood or schools.

Sam Shueh, mba, cdpe, pe
Sr Realtor
Keller Williams Cupertino Realty
SamShuehRealtor @ gmail.com
0 votes Thank Flag Link Fri Aug 2, 2013
It will depend on what the interest rates and job economy will do. As you read no one can predict. We have seen 29% appreciation in the last 12 months. That can not continue at that rate, however, inventory has been low, as well as interest rates. So that is an indication of a steady appreciation.

We may see investor fall out and some first time home buyer's get priced out of the market, so that will slow things down. This makes for a great opportunity for move up sellers, and downsize sellers. This will feed back into the market a consumer which has been on the fence as they could not compete on their buy side, and now that they have equity can come back into the market and hopefully get a contingent offer accepted.

When you partner with a trusted Broker they can keep you apprised of market conditions which affect your real estate goal.

Have an amazing day!
0 votes Thank Flag Link Wed Jul 31, 2013
No, at least not enough to make a meaningful difference...
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Wed Jul 31, 2013
You can bet on it, George:
But I wouldn't!
0 votes Thank Flag Link Wed Jul 31, 2013
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