Jim Carlton wrote an article in the Wall Street Journal on Jun 20, 2009 that squares exactly with what I am seeing in the field, working with first time buyers.  There are definte “pockets of recovery” in Silicon Valley.  “Homes are selling briskly again in the lower end of the market [under $600,000] in Santa Clara County… with prospective buyers making multiple offers and bidding well above asking prices.”

Carlton notes the “median sales price of Santa Clara County homes in May was $445,000, up 5.7% from February 2009, when prices stopped dropping.”  Brisk sales and multiple offers are because of affordability for first time buyers and investor believing that the bottom has been reached.  Please understand that this does not mean that there still won’t be more foreclosures.  Also, some market area such as Saratoga or Los Gatos are still relatively slow and prices still soft because of borrowers problems getting jumbo mortgages above $729,750.

What I found interesting was the 19 comments on the on-line post which indicate that many people are leery of any positive news.  Understandably, many are still angry and distrustful because of our recent economic problems caused by lack of proper regulation and abuses in lending and appraisals.  Inspite of these surly comments to Carlton’s article, I have personal knowledge that the journalist actually took the time to examine the real statistics and even attend an Alain Pinel Realtors sales meeting last week in Almaden, conducted by Manager, Dave Walsh.

Emotions may cloud the public’s proper interpretation of facts.

Some of the best real estate investments are found in those pockets of recovery that are starting to emerge.

Rick Bonetti | 408-857-8800 | Alain Pinel Realtors | The Art and Heart of Real Estate | DRE#01237009