English: Historical museum. 20450 Saratoga-Los...

English: Historical museum. 20450 Saratoga-Los Gatos Road. Saratoga, California, USA More details about subject (Photo credit: Wikipedia)

On Thursday of last week, I met Jimmy Vu of  Bank of America for coffee.  According to Jimmy, the recent rise in interest rates has certainly cooled of the number refinance  that his office was handling.   But what about the real estate sales!?  When will the full impact of these rates hike will show up on the Real Estate sales.  So, we will explore the immediate impact of these hikes in Saratoga, California.  

During the Monday 7/22/2013-7/26/2013 only 8 properties closed escrow in Saratoga California.   The Average Sale price of these sales was $2,198,750 with an average of 65 days on the market.   Average Square feet on the same of these homes was $722 which is high for Saratoga!

List Price DOM Sale Price Bed Baths Yr Built SQ Ft Lot Size Price/Sqft
Min $1,650,000 8 $1,600,000 3 3 1948 2,331 10,019 $463
Max $3,099,000 271 $3,000,000 5 4 1995 4,100 72,800 $969
Avg $2,3099,000 65 $2,198,750 4 3 1969 3,076 26,775 $722
Sum $17,393,000 $17,590,000

Ironically we are heading towards the seasonable slow down of Real Estate sales where most families with High School age children have already been moved in order to enroll the kids into Los Gatos-Saratoga School district which is one of the best in the region.    So, how much of the slow down will be seasonable and how much of it will be due to the rise in interest rates.  

During August in 2012, we saw significant slow down in interest in renal properties for our properties in Los Gatos-Saratoga School districts after the 2nd week of July.  Our client’s whose Los Gatos property was attracting many qualified families in May-June time frame was forced to cut their rent to sign up a family after the start of August.

Are you still looking to buy in Los Gatos-Saratoga School districts!?   Has the rise in interest rate slowed your search?   What is your plan B!?

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