ResalesPalo Alto, California: Housing Market Idles In Neutral
The fast-moving Palo Alto market has stalled to neutral, say local Realtors, but that is all the more reason to invest in a home in the area.
"It has changed to a buyer"s market now," says Realtor Ruth Ow. "More listings are on the market. Sellers are motivated. Low-price houses are moving slightly down. Multi-million homes have price reductions up to 50 percent.
"The 30-year mortgage rate has reached a 40-year historical low," Ow advises. "It"s a really good time for the first-time buyer and move-up buyer."
Says Realtor Tariq Rafeeqi, "Palo Alto is a desired place to live on a Peninsula, with lots of civic activities and great schools. I expect the market may heat up a little if a better economic picture is envisioned by the buyers, while the interest rates are at their lowest. So, sellers may get a better price for their houses.
"Although more buyers are loan-approved, they are waiting to see a better economic picture," says Feeqi. "They are waiting to see whether there is any real estate bubble to burst as media has been so emphatically suggesting. So, sellers have to wait a little to get good offers. However, with time, the market will become neutral and may even heat up. Sellers shall price the house right, or else they will see it sitting and waiting for traffic.
"I believe that now is the best time to buy in Palo Alto," advises Feeqi. "When real estate prices goes up, Palo Alto usually leads the way, and when prices go down, Palo Alto usually lags behind other places. The prices in Palo Alto have already adjusted down from the peak.
Is there a housing bubble bursting in Palo Alto?
"I really do not subscribe to the bubble theory in real estate," says Feeqi. "Palo Alto is still selling reasonably well. It is just a nice place to live."
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