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Posted Wed Oct 29 09:19AM

Hi Everyone!

An update is overdue and wanted to let everyone know what's going on in the market here in Santana Row.

Since the last update a request to see more REO listings was giving so I've added a tab of REO listings in the surrounding area...all 95128 area code. If you ask you shall receive...let me know what you'd like to hear about and I'll get you the info you request.

REO's and short sales have continued to pop up on all 1 bedroom floor plans, significantly reducing the comps which directly affects the sales prices...buyer's look at the comps and see these low sale prices and in the market we're in aren't willing to offer more than previous sales prices for active listings. Not only that, but if a offer does come in higher and goes into contract, the appraisal value is based off the copms and the lenders are so tight that it's hard to get an appraisal and an appraisal review from the lender all passed at that price...this is unfortunetly bad news for sellers and good news for buyers...there's a lot of great deals out there.

There's currently a 2 story 1 bedroom loft + den facing the row for sale for $569,000. It's technically pending, but it's a short sale and still accepting offers. There's one facing away from the row for sale for $497,950!!!...not an REO or short sale! There's several single story 1 bedroom studios for sale for as low as $449,000!!!!...also not an REO or short sale! Unfortunetly for seller's, this is what you're competing against. Fortunetly for buyer's, this is what you get to choose from...people are buying for investment again, and not neccessarily just REO's and short sales...owner's are motivated enough for people to buy from them for investment as well, and won't have to worry about dealing with 6 month contracts for short sales that might not get approved or dealing with REO's that are in, typically, aweful condition. There are 14 active 1 bedroom units on the market and 4 pending.

2+ bedrooms have started to feel the effects of the market as well. We haven't seen the comps show this because none have sold recently. There haven't been any REO or short sale on any 2+ bedrooms yet so the list prices haven't dropped...however because the list prices haven't dropped, nothing has sold. All listings are still what they were a year ago, but the market isn't the same as it was a year ago. People are very hesitant to pay the same for something now as it would've sold for a year ago. his makes it a great time to sell 2 and 3 bedroom units. Lower your price below the competition, you won't get what you would have a year ago, but you'll get higher as a percentage to what you would have got than any 1 bedroom in Santana Row would get, or any house would get in the area. It's a good time to sell 2+ bedrooms, but will be a good time to buy 2+ bedrooms soon as prices drops are starting to happen. Sellers are motivated to sell and they're properties unfortunetly sit on the market and they can either not sell them, or reduce the price. The ratio to what you can get for a house in Silvercreek or Los Gatos to the Santana Row condo can only be weighed so much in one direction...that's the biggest comment I get from potential buyers of 2+ bedroom units..."I saw a huge house for that much in Willow Glen or Silvercreek for that much that used to cost 30-40% more that this unit". There is 1 - 2 bedroom, 2 - 3 bedroom, and 1 - 4 bedroom currently on the market.

We're starting to see a lot of people pull their properties off the market and rent them out until the market takes a turn...unfortunetly we don't know when this will happen...a few months or a few years. I've been fortunite to set record prices in the majority of my sales at the time and seem to get the best deals for my buyers and sellers, so if you're interested in buying or selling and have any questions, give me a call anytime.

What do you want to hear about? Let me know and I'll touch on the topic.

Thanks, I look forward to hearing feedback, and I hope all is well!

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