Owning a home in Silicon Valley is not an easy task. The local market of supply and demand, especially in west side of the Valley, is not in sync with the rest of the country's economical situation. The extreme of low supply and high demand has made purchasing a home in Silicon Valley very competitive and sometimes tricky. In this blog, bits and pieces of market phenomenon are presented for your information.
Monday, September 8, 2014
Does lower interest rate make house more affordable?
September 8, 2014
After the interest rate dropped, the mortgage applications went up 0.2 % last week from the previous week. The details are in the following link:
http://www.cnbc.com/id/101965360
I believe this will spur demand of housing; however, it would not help get more houses to the market for sale. In Silicon Valley, the supply of homes for sale is historically low. This helps increase the price of homes for sale. Compounded with the cash buyers influx into the Valley, any home buyers have not had an easy time in the process of purchasing homes. Some have been watching and waiting on the sideline, while the brave and young buyers jumped in and bought their first homes. The necessity of owning a home for the young first-time buyers are proving to be correct for this market.
This is just our observations, not solution to our tight real estate market... We welcome your opinions and input.
Thanks for reading.
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