The Standard & Poo’s Case-Shiller index published the home price index last Tuesday. Out of 20 cities monitored, the index increased 9.3 percent in May from 12 months earlier. That’s down from 10.8 percent in the previous month and the smallest annual gain since February 2013. Yearly price gains slowed in 18 of the 20 cities. So, what you say?
Well if you are planning on selling your Silicon Valley in this kind of market, planning and strategic pricing becomes ever more critical. In fact, we are already seeing signs of home that staying on the market much longer specially if these homes are overpriced.
The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The May figures are the latest available. The good news is that existing home sales are rising to an eight-month high in June. But they are still 2.3 percent below last year’s level. And the number of sales declined in June 2014 suggesting a cool down in the market. an index of signed contracts dipped in June, suggesting sales will cool. At the same time, the number of homes for sale has increased, giving buyers more choices.
Contributing to this glooming news for seller is that home sales have been restrained by non-existent wage increases and tight credit where 1st time buyers have been pushed out of the market. Cities in the West including 16.9 percent in Las Vegas followed by a 15.4 percent increase in San Francisco. But home prices remain about 17 percent below the peaks reached in the summer of 2006, just before the housing bust.
This could be the start of good news for buyers who might not be facing massive odds when they had to compete with 15 cash buyers. So, whether you are buying or selling homes in SIlicon Valley, it’s good to seek advice before tipping your toes into the market specially since Los Gatos, San Jose, Campbell and Saratoga have their own unique features that drives these local markets.