As we move into the 4th Quarter of 2015, three key market drivers continue to push sales and appreciation on homes upward. Continued job growth for the Silicon Valley area, low available inventory of homes for sale, and record low-interest rates.
Job growth for our area is nearly 3% over last years with some of the major players like Apple, Cisco, and Google adding 10,000+ jobs. A low supply due to negative new construction numbers over the last five years and current homeowners not as likely to move due to low refinanced mortgages or lack of enough equity coming out of the real estate bust to move. Finally, interest rates hovering around 4% has continued to keep demand out pacing supply.
The FED will discuss increasing rates on September 15th. Some say they will increase a 1/4 of a point as their requirement of unemployment under 6% has been met. Others believe, low-interest rates are the only keep the economy chugging and with recent activity in China and Europe, the FED may decide so as not to rock that fragile boat. Only time will tell.
With these three drivers, an opportunity to see a slight increase in homes for sale, and reasonably low interest rates continue may be just enough to help fence sitters to make their move as we head to the holidays. If you would like more information on a particular neighborhood in Santa Clara County, please contact me CJ@TalkToCJ.com or 408-406-6035.