May 2020 – Market Update


May 2020

Welcome to May! The weather is improving across the city of San Jose, and thankfully, so is the fight against COVID-19. But what about our housing market? Are home prices up or down? Is anyone buying or selling real estate while also sheltering in place?


As you know, the coronavirus pandemic is affecting not only our daily lives in unprecedented ways, but also the way in which houses are being purchased and sold. And, yes, homes are still being purchased and sold but it seems that we all have been jolted into a “new normal” of visiting homes digitally and conducting appointments by FaceTime and Zoom. Nonetheless, home buyers in Silicon Valley have proven to be very resilient and have quickly adapted to these new norms…but, the ultimate impact is still yet to be known as prospective home buyers will continue to face many challenges as the shelter in place begins to slowly lift heading into summer.


After a red-hot beginning to 2020 sales prices launched out of the slower months at the end of 2019 boosted by decreasing interest rates and increased purchasing power, not too mention and uptick in local technology stocks. However, as the coronavirus pandemic infiltrated our marketplace we experienced a rapid pause of activity as would be expected under the strict shelter in place mandate issued on March 17th. Through the end of March and into the beginning of April we witnessed a sharp decline in both the number of new pending sales, as well as new listings coming to the market. Restricted activity, growing unease over the direction of the economy, and the threat of the potential spread of COVID-19 resulted in disrupted sales, as home buyers suffered loss of down payments and loan options, and withdrawn listings as home sellers thought twice about risking exposure to the quickly spreading virus. 


It would also seem reasonable to assume that given the circumstances we might begin to see home prices stumble, but so far, contrary to wishful buyer expectations, home prices have proven to hold steady from the rapid increase we had during the first quarter of the year. Tight inventory levels combined with low mortgage rates that boosted home prices have only continued to keep prices afloat as we continued to see homes sell for at or above their asking prices during the month of April.


But the total effect on the market is not clear…we’re still just starting to feel the effects of the coronavirus pandemic on home sales, and we can expect to see a greater impact on sales next month, as new escrows and new listings continue to linger at lower than typical seasonal levels for our spring market. And, although home prices continue to hold steady for now, some good news for prospective homeowners and those homeowners looking to refinance is that 30-year fixed mortgage interest rates have once again hit an all-time low, at 3.23 percent. Added the easing of the shelter in place restrictions, now allowing the touring of occupied homes as well as the return of home staging services and construction, and we may begin to see the semblance of a more normalized market come mid-summer.


The reality is that real estate is still and continues to be a very sound financial investment, and as many are discovering while they are sheltering in place, their home is an important refuge from the stresses of the outside world. So, if you’re still considering making a move this year, be sure to take the time to connect with your knowledgeable NextHome agent and discover how these changes can help you into your Next Home.



2015 sees changes to homebuyer affordability, says Freddie Mac

As 2014 is coming to and end, we’ve seen another year of low interest rates, increased housing affordability and double-digit house appreciation. It seems that the seller’s market conditions that we have become used to in Silicon Valley are becoming the ‘norm.’

How will things shape up for 2015? Here’s a quick prediction by Freddie Mac:

“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in the video commentary embedded here.

Since Freddie Mac sees interest rates increasing, with an average around 4.6% next year, it’s cheaper to purchase a home now with lower mortgage interest rates than when rates begin to rise. An increase of just 1% in rate can mean the difference of spending nearly another $100,000 in total interest over the first 10 years of the loan!

But rising rates don’t necessarily mean that our housing market will cool off; the job market and consumer confidence are up concerning homeownership, and Freddie Mac sees continued appreciation trends through the next few years nationally. Locally in Silicon Valley, we’re probably looking at another year of double-digit, or close to, appreciation for most communities fueled by the high affordability buyers have in our marketplace. And with our local tech-giants continuing to expand and grow their employee-base, housing choices will only continue to slim.

Contact me for a further discussion regarding the 2015 real estate market outlook in your community.

To Sell or Not to Sell During the Holidays

Interested in selling before the end of the year but not sure about the timing over the Holidays? 


It used to be a simple answer: In the days of past, home purchases dwindled during the holidays, homebuyer traffic dropped drastically, and it was more worth a seller’s (and a Realtor’s) time to get the sign out of the yard, save on advertising, and enjoy the holidays with their families.

That was then…times have changed; today is a different story. With the use of technology, buyers can now shop for homes at all hours of the day, in all weather, from their laptops or mobile devices and the buying season has become a year-round event. The Internet also cuts down on the amount of time that it takes to buy a home because many buyers do their shopping online. In reality, people are always looking for homes – before, during and after the holidays.

More important to consider is that most sellers prefer not to sell during the holidays, meaning more sellers will put their homes back on the market in January and the supply of homes goes up dramatically, which translates to less demand for your particular home and less money as well.

So, although the Holiday Season, between mid-November to beginning of January, may not be considered the best time to sell, here’s our top reasons why selling over the Holidays can still make sense: 

1. People who look for a home during the Holidays are more serious buyers!

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!

3. Buyers have more time to look for a home during the Holidays during the weekdays!

4. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!

5. Some buyers have to buyer before the end of the year for tax reasons.

6. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!

7. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!

The Ultimate List of Homebuyer Tips

The Internet is awash with short and incomplete lists of tips for homebuyers. For the many Americans unfamiliar with the home-buying process, trying to determine which tips to focus on could be confusing. Upon reading these lists, aspiring homebuyers must ask themselves, “Are these tips that industry experts would actually recommend, and are they worth spending my valuable time on?”

To remedy this problem, our friends at Market Leader gathered tips for homebuyers from half a dozen sources, put them all on one giant list, and, after removing the trivial and contradictory ones, surveyed almost 400 top real estate agents about the importance of each tip. For the 17 tips featured in this survey, participants indicated whether they found them to be very, moderately or slightly important for homebuyers – or not recommendable at all!

Here’s the  infographic that resulted form the survey:

Get a Home Inspection

91.4 percent of agents say this is a very important tip.

0.54 percent of agents don’t recommend this tip.

The tip: Get a home inspection to evaluate the safety and overall condition of your new home, even if it appears flawless.

Get Preapproved for a Loan

89.0 percent of agents say this is a very important tip.

0.78 percent of agents don’t recommend this tip.

The tip: Before you start house hunting, get preapproved for a mortgage loan.

Communicate Through Your Agent

89.0 percent of agents say this is a very important tip.

0.27 percent of agents don’t recommend this tip.

The tip: When you want to ask or tell the seller something, always go through your real estate agent.

Put the Deal Into Writing

87.5 percent of agents say this is a very important tip.

0.83 percent of agents don’t recommend this tip.

The tip: Get the seller to put every component of the deal and any verbal agreement into writing.

Include Contingencies With Offer

83.0 percent of agents say this is a very important tip.

0.78 percent of agents don’t recommend this tip.

The tip: Include important contingencies, such as financing and property inspections, with your offer.

Develop a Wish List

82.4 percent of agents say this is a very important tip.

0.27 percent of agents don’t recommend this tip.

The tip: Come up with a realistic wish list. Find out what you can afford in terms of house size, neighborhood and amenities.

Know Your Local Market

75.6 percent of agents say this is a very important tip.

1.7 percent of agents don’t recommend this tip.

The tip: Know as much about the local market as you can. Use your agent’s CMA to learn about the selling price of comparable homes and the strength of the local real estate market.


68.5 percent of agents say this is a very important tip.

1.11 percent of agents don’t recommend this tip.

The tip: Decide what’s most important to you before the negotiation so you know what parts of your offer you’re most comfortable giving up.

Look Into Government Programs

57.7 of agents say this is a very important tip.

1.36 percent of agents don’t recommend this tip.

The tip: Look into programs for first-time homebuyers. See if you qualify for the lower interest rates, low down payment options and down payment assistance programs some banks and governmental organizations offer first-time homebuyers.

Research Real Estate Agents

54.7 percent of agents say this is a very important tip.

7.61 percent of agents don’t recommend this tip.

The tip: Don’t just work with the first real estate agent you come across! Do your homework and find one you’re comfortable with.

Keep Other Houses in Mind

43.9 percent of agents say this is a very important tip.

5.8 percent of agents don’t recommend this tip.

The tip: When you begin negotiating on a specific property, know of other houses you’d be interested in buying. You don’t want to be so desperate to buy a certain house that you give in to whatever the seller wants.

Be Smart With Your Contingencies

40.6 percent of agents say this is a very important tip.

9 percent of agents don’t recommend this tip.

The tip: Avoid including unnecessary contingencies in your offer. Doing so will make it less attractive.

Keep Negotiations Short

39.8 percent of agents say this is a very important tip.

4.8 percent of agents don’t recommend this tip.

The tip: Avoid long, drawn-out negotiations, which can negatively affect the chances of your offer being accepted.

Shop around for Mortgages

37.9 percent of agents say this is a very important tip.

4.7 percent of agents don’t recommend this tip.

The tip: Shop around for at least several mortgage quotes before choosing one.

Ask for More Than You Want

32.1 percent of agents say this is a very important tip.

10.1 percent of agents don’t recommend this tip.

The tip: Ask for more than you want during negotiations, without asking too much. You can “give in” to the seller without actually giving up the things you want!

Scope out Neighborhoods, Neighbors

31.9 percent of agents say this is a very important tip.

7.1 percent of agents don’t recommend this tip.

The tip: Talk to neighbors to get the inside scoop on what it’s like to live in the neighborhoods of homes you are interested in. While doing so, gauge if you would like to live next to these people for the foreseeable future. Bad neighbors can affect your property’s value.

Connect With the Sellers

24.9 percent of agents say this is a very important tip.

27.5 percent of agents don’t recommend this tip.

The tip: Establish a connection with the sellers. You may be able to get a better deal if the sellers see you as a person, not just an opportunity.

Click here to read a list of more homebuyer tips

Home Selling Tips from Over 500 Real Estate Professionals!

What home selling tips are the most important for sellers to know?

The editors at Trulia sought to answer this question and surveyed 500 real estate agents about the importance of two dozen top home selling tips. Each tip was then ranked based on the survey responses and then fine-tuned to the top eight – those viewed as being “very important” by 80 percent of agents or more – to create the below infographic, “Home Selling Tips Every Seller Should Know.”


Price Your Home Realistically From the Start

94.3 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

The largest number of showings will occur in the first couple of weeks, so don’t turn these potential buyers off with an unrealistically high price!

Keep Your House Clean, Tidy and De-cluttered

91.4 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

It pays to keep your home in excellent shape at all times. You never know when a buyer might walk through the front door!

Work With an Agent Who Excels at Online Marketing

90.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Work with an agent who will do a good job marketing your home online. Your agent should take at least 6 listing photos and write a compelling listing description for your home.

Make It Easy to Show Your Home

90.3 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

Make it as easy as possible for agents to show your home to clients. Don’t require appointments to be made weeks in advance or severely limit possible showing times.

Don’t Sign With an Unqualified Buyer

87.8 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Don’t sign a purchase agreement with an unqualified buyer. It’s not unreasonable to expect buyers to bring pre-approval letters (or proof of funds for cash purchases) to show they can buy your home.

Listen to Your Agent!

83.9 percent of agents say this is a very important tip

0.8 percent of agents don’t recommend this tip

Listen to your real estate agent! Find an agent you can trust and follow their advice and recommendations as closely as you can.

Make Small Upgrades to Your Home

83.6 percent of agents say this is a very important tip

0.2 percent of agents don’t recommend this tip

Make small upgrades to help your home sell for top dollar. These upgrades can include applying a fresh coat of paint, replacing door handles, curtains and cabinet hardware, fixing leaky faucets and cleaning the grout.

Work With an Agent Who Follows the Competition

82.4 percent of agents say this is a very important tip

1.4 percent of agents don’t recommend this tip

Work with an agent that will closely follow your competition. Your agent must be familiar with other properties on the market and know the comps in your neighborhood.

Stage Your Home’s Exterior

76.0 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

Stage the exterior of your home: Spruce up the landscaping, trim vegetation, clean walkways of debris and apply fresh coats of paint to the house, fence and deck.

Don’t Insist on the Asking Price

72.0 percent of agents say this is a very important tip

3.0 percent of agents don’t recommend this tip

Don’t insist on selling your house for your asking price, its appraised value, the tax assessor’s estimate, or what you paid for it – your house is ultimately worth what the buyer is willing to pay for it!

Alert Family and Friends

67.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Alert your friends, relatives and neighbors that your home is on the market via email and social media. They may forward your home’s listing to buyers they know.

Make Your Home Move-In Ready

66.6 percent of agents say this is a very important tip

0.9 percent of agents don’t recommend this tip

Make your home move-in ready before it hits the market, so buyers know they won’t have a to-do list if they buy it.

Brighten Up Your Home

64.8 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Maximize the amount of light in your home. Take down drapes, clean windows and cut bushes to let sunshine in.

Clear Out Your Closets

63.1 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Because storage space is an important consideration for buyers, take half of the stuff out of your closets and neatly organize the rest.

Don’t Take the First Offer

59.4 percent of agents say this is a very important tip

3.4 percent of agents don’t recommend this tip

Don’t get over-excited when you get an offer! Examine each offer carefully and take your time deciding if you want to accept it.

De-Personalize Your Home

57.9 percent of agents say this is a very important tip

2.6 percent of agents don’t recommend this tip

Personal items make it harder for buyers to imagine themselves living in your home. Put family photos, trophies, memorabilia and other personal keepsakes in storage.

Don’t Over-Upgrade

56.6 percent of agents say this is a very important tip

1.7 percent of agents don’t recommend this tip

You probably won’t get your money back if you do a huge improvement project just before you put your house on the market.

Conceal Your Pets

52.8 percent of agents say this is a very important tip

5.5 percent of agents don’t recommend this tip

Pets give the impression your house isn’t clean, so hide them, their litter boxes, food dishes and toys during showings.

Don’t Work With the First Agent You Find

51.8 percent of agents say this is a very important tip

5.9 percent of agents don’t recommend this tip

Interview multiple agents before choosing one to work with. Select your agent based on their marketing plan, experience, work ethic and communication skills.

Hire a Professional Listing Photographer

37.1 percent of agents say this is a very important tip

16.4 percent of agents don’t recommend this tip

Hire a professional photographer to take pictures of your home if your agent doesn’t do so. Professional listing photos only cost $100-300 and can increase your home’s sale price by up to $19,000.

Throw Buyers a Bone to Close Escrow Quickly

29.5 percent of agents say this is a very important tip

10.8 percent of agents don’t recommend this tip

If you want a speedy and hassle-free escrow, throw your buyer a bone (like an early closing or a one-year home warranty) if they ask for one. You want to be in their good graces during escrow and after the sale.

Home Selling Tips Every Seller Should Know

Cambrian Park Beauty – Fully Renovated from Top to Bottom

This home is situated on a tree-lined street in a charming and well established neighborhood within Cambrian Park; and is walking distance to the prestigious Hacienda Elementary Magnet school as well as several great community parks. And, located just off Hillsdale and Almaden Expressway, provides very convenient access for commuting to Silicon Valley’s hi-tech industry.

Upon arrival to this lovely home you’ll notice right away that it has fantastic curb appeal; with well manicured landscaping, a stamped concrete driveway with room for up to 3-cars; and a very pristine exterior; all setting the stage for the tastefully upgraded interior…


This home has been tastefully updated throughout from the remodeled kitchen with granite counters, newer ceramic tiled flooring, stainless steel appliances and large chef’s pantry; to the recently renovated bathrooms with granite counters, custom tile and new vanities, sinks and more. Additional features include stainless steel appliances, dual pane windows, copper plumbing, large chef’s pantry, large finished 2-car garage, spacious bedrooms & much more…

Upon entry into the home you’re immediately greeted by a very bright and open floor plan highlighted by gorgeous 3/4″ hand-scraped wide-plank walnut flooring, retextured and designer painted walls, and a beautiful slate tiled fireplace with custom concrete mantel. You’ll also notice that the wall between the living room & dining room has been partially removed allowing for easy conversation and an abundance of sunlight throughout the main living area. Prestigious Cambrian Schools.

For more info & HD video tour:

Gorgeous Remodel with Chef’s Dream Kitchen in South County

1061 Clark Way, Gilroy, CA  |  4 beds, 2 baths, 1,474 Sq. Ft.  |  Offered at $479,000

Beautifully remodeled from top-to-bottom with a chef’s dream kitchen and a backyard oasis featuring a black-bottom pool and cabana, this home will surely be your summertime escape!

Built in 1980, this home offers a spacious 1,474 SF of immaculate living space with an open floor plan, vaulted ceiling and an abundance of natural lighting. Highlights include a fully renovated kitchen, recently updated bathrooms, inside laundry room, 2-car garage; an amazing backyard with swimming pool and cabana and RV & boat parking.

The “chef’s dream” gourmet kitchen is just “stunning” and features top-of-the-line stainless steel appliances including a 36″ Kitchen-Aid 6-burner dual fuel oven/range; an over-sized center island with breakfast bar; and chocolate-cherry wood Kraftmaid custom cabinetry with crown moulding, under-mount lighting & soft close cupboards & drawers; all accentuated by gorgeous beveled Alaska Denali granite slab countertops, full-height mosaic glass tile back splash, and 18″ ceramic tiled flooring.

This home is situated on a tree-lined street in a charming and well established neighborhood in the south-western part of Gilroy; and walking distance to schools and several community parks, including Christmas Hill Park which is home to the Gilroy Garlic Festival. Great public schools are also associated with this adress.


The city of Gilroy is conveniently located off Highway 101 and within 30 minutes commute to many of the Valley’s hi-tech companies…this great community has a small town atmosphere with a quaint historical downtown area offering many great dining and shopping options…other community highlights include Gilroy Gardens (a great family oriented theme park); Eagle Ridge golf course (with 18-hole golf course with tree-lined fairways); the Gilroy shopping outlets and many award winning local wineries!

Immaculate Milpitas Condo Now Available

600 S Abel St., #227, Milpitas, CA 95035 – Offered at $499,000

Located in the highly desirable Luna at Terra Serena in the heart of Milpitas, this rare courtyard level condominium offers an open floor plan with high ceilings, an abundance of natural light, and a great room with kitchen, family and dining areas, and a large oversized patio open to the inner gardens of the courtyard. And with bedrooms located at opposite sides of the main living areas, owners will enjoy maximum privacy from visiting guests.

Highlights of this property are surely the gourmet kitchen with ample-sized granite slab countertops, cherry colored cabinets with plentiful storage, natural stone tiled flooring and stainless steel appliances; as well as the luxurious master bathroom with dual sink vanity, deep soaking tub, an over-sized stall shower, walk-in closet and natural stone tiled flooring.

A side-by-side washer & dryer are conveniently located in the laundry closet within the unit, as well as central heat and air conditioning, and additional storage closets located on the patio as well as down the hall from the condo. Parking is also convenient as two stalls are available in the underground parking garage serviced by two elevators and stairwells.

Living within the Luna at Terra Serena, an exceptional gated community, is peaceful and enjoyable. Residents have access to many common amenities including a grand clubhouse which residents can reserve for large family gatherings or parties; a great swimming pool and spa area adjacent to a common BBQ area; an exercise room with top of the line equipment; several children’s playgrounds, and a beautifully open park.

Behind the Scenes Preview of a New Custom Luxury Home in Alamden – 6798 Elwood Rd

Put on your hardhats, we’re taking you “behind the scenes” on a guided tour of an unfinished custom built luxury home in Alamden.

Rising boldly above the tree tops situated on an oak dotted hillside on Elwood Road, just a few block from the Alamden County Club, you’ll surely notice this smartly built home as it is scheduled for completion in the next few weeks. It’s been full speed ahead for the builder of this custom, one of a kind estate property, since he initially broke ground in fall of 2012.

“The last few weeks are always the most exciting,” according to the builder Sunny Behl of Hill Valley Construction, “being able to experience the character of the home come together at the end of a long project is a fantastic feeling.”

Built with energy efficiency in mind, this beautifully designed tradesman style home is stocked with many advanced energy saving features including a smart roof ventilation system, U.V. rated dual pane windows, foam insulation in all exterior and interior walls, dual zone climate control with energy star furnaces and AC units, two tankless water heater systems and for those needing to commute to SIlicon Valley industry, it offers a smart charging station in the garage for electric vehicles.

Some of the finish work being completed over the coming weeks will include the installation of the custom cherry in-set kitchen cabinets, custom quartz countertops, special hand-milled door trim, white oak wood floors with cherry wood feature strips,  intricate stone tiled fireplaces, italian porcelain tile used in bathrooms and kitchen flooring, and so much more. The delivery of top of the line Thermador appliances should round out the project which is currently on track to be finished the first week in May.

“The setting of this gorgeous home in the middle numerous native California oak trees really creates a feeling that it is a microcosm unto it’s own here on top of gentle rise in the heart of Alamden’s desirable Glen View neighborhood,” explains Mike Gill of Realty World – Eagle Properties Group. “This home is really unique and one-of-a-kind…especially since new construction is very limited in this area, and with it’s hillside setting it offers a stunning million-dollar view over the valley.”

6798 Elwood Road will undoubtedly be a valuable addition to this lovely Alamden Valley neighborhood. With all the high-tech features including cat-5 and coaxial cable, surround sound, and an electric car charging station, this home is a perfect suburban retreat for the hi-tech Silicon Valley executive looking for excellent schools and a quite and safe neighborhood. Schooling options include the following distinguished public schools: Williams Elementary (970 API), Bret Harte Middle (919 API), Leland High (898 API).

Please call us for a tour of this home before completion (408) 204-7699, or please stop by our open house in May.

Housing in Recovery? Or Housing Bubble? – Spring 2013 Market Outlook

There’s a lot of growing speculation among first time homebuyers that we may be experiencing another “housing bubble,” but if we are, it surely won’t be of proportion to that seen in 2006. In the not too distant past there was a time when anyone with a pulse could qualify for a home mortgage, purchase financing was available to those with little to no income or down payments, and all premised on the buyer making interest only payments with an adjustable interest rate. No wonder the housing market crashed in 2007…there was no sustainable gain being made.

Now let’s look at today’s market…Today’s engine in the housing recovery is being driven by buyers purchasing with fixed financing options, large down payments, and fully underwitten loan applications. Housing rents are increasing and home affordability hasn’t been this high for a long time…so why wouldn’t we expect a run on housing?

Welcome to the housing recovery…going strong since Spring of 2012. The current levels of appreciation seem very sustainable for the short term, especially given the continual scarce inventory available for sale, the current increased housing affordability and the incredibly low mortgage interest rates. And as long as housing affordability remains at it’s current levels, and potential homebuyers will prefer to own rather then rent, I don’t think we’re going to see a slow down.

This is especially true of Silicon Valley. Not only is our inventory naturally limited due to the geography of the South Bay Area, creating a natural imbalance between supply and demand to begin with, but there is scarce new lands available for any major new housing developments. Sure we have some small scale infill developments scattered throughout the valley, which are seeing unprecedented interest as new releases are selling out in hours rather than weeks, but our inventory for the most part is dependent on the resale of existing homes which is currently around 50% of normal inventory levels.

So let’s look at the major contributing factors that have led to our quick housing recovery. Outside of the governments interactions in our housing market that has shrunk inventory levels, the freezing of foreclosures last year and appearance of large investors purchasing pools of foreclosed homes directly from banks, there were many strong economic gains made as well. Did you know that there were 42,000 new jobs created in SIlicon Valley in 2012 alone? And according to the Index of Silicon Valley for 2012 (published by Joint Venture Silicon Valley) it seems that our innovative “tech-giants” are just getting started as there was a drastic rise in the amount of venture capital seed money available last year, an increase in patent registrations, and of course, release of new IPO’s (Facebook for example).

So, with the already limited supply of inventory and continued increase in qualified buyers entering the housing market, what may be considered to be “overbidding” on a home today could be seen as “a deal” in another few months. Compared to last summer, the “overbidding” in San Jose was close to 2-3% over asking price, while today we’re seeing close between 10-15% or more…

My two-cents…If it makes financial sense for a prospective homebuyer to own versus renting, considering their monthly housing payments and out of pocket expenses, and the purchase will be for long-term holding, then what difference does it make in the long run if they paid an extra $10k, $20k, or more out of pocket…the same opportunities today are not guaranteed to be around tomorrow. I know that I’d personally rather lock in a housing payment for 30 years at a very low rate versus leaving myself open to the ever fluctuating rental market. And if it meant putting more down from savings, again what’s the difference if my savings account is earning 0% anyways?

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