2-4 Months of “Honeymoon Optimism” in West Valley Market?
Appraiser Roger Miller was at our Alain Pinel Realtors sales meeting this morning to review the past year’s real estate market and prospects for the future. Here are some highlights:
Median SFD home price in the 4th quarter of 2008 for Saratoga ($1.6 million) is identical to the second quarter 2000 (pre bubble); Los Gatos’ median is $1.2 million (higher than 2nd Q2000 of $1.095M); Monte Sereno is about the same ($1.85M).
Saratoga homes had a low absorption rate 4th quarter 2008, which suggest potential sluggishness in the $1-2 million range, due perhaps to some middle managers unsure about their jobs and tighter financing for loans above $625,500.
Roger is predicting that we may have “a 2-4 month window of good home sales activity in the Saratoga/Monte Sereno/Los Gatos market area early in 2009 because of “honeymoon optimism” with President Obama being inaugurated today.”
The past market discount for a split bedroom floorplan vs. a traditional bedroom wing has dimished, as has the past deduct for 3 bedrooms vs. 4 bedrooms. This may be due to older demographics as well has changing preferances.
