Russell Morris

Russell Morris


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    Russell Morris
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    Wow it is hard to believe the year is almost over. This has been a very unusual real estate market in SIlicon Valley. The sub-prime and adjustable loans have come back to hurt many owners who got into investments without understanding how adjustable loans work or were very marginal buyers and their lenders should never have allowed the loans to be made. This has become a national and international  problem because of all the defaults occurring. This has caused lenders to go out of business and many homeowners  to loose their homes. Institutions are either not lending or making their qualifying ratios so high it is making it more difficult for people to purchase at this time. Property values have come down in the Bay Area from 10-50%. We are seeing short sales (where the loan amount exceeds the value of the property) and many foreclosed homes. Interest rates are are runnig in the high 5% to the mid 6% range. Lenders do have money, but the subprime market has dissapeared. There is now a lot of inventory in the market at this time.The market has shiftetd to more of a buyers market..This is a fantastic time to buy a home as well as investment properties. Despite what you hear or read properties are still selling in Silicon Valley.Sellers that price their homes at market value are selling their homes, lenders that now own homes are selling them below market value..Sellers that  believe properites are still the same as last year are unable sell their homes. Sellers today have to be more realistic if they want to sell their homes in the market place. The inventory is high and offers great opportunity for todays buyers. Remember urgency and motivation helps set value. Over 80% of the people buying property today are going to the internet to find out what is for sale in the market place.It is very important today that homes are available on as many sites as possible and have virtual tours. At Coldwell Banker almost all our homes are on a minimum of 20 sites as well as Realtor .com and the New York Times Open house..Our Coldwell Banker site is the number one site in the industry We are getting over TWO MILLION hits/week with the average viewing time on our site is being over 12 minutes.