|San Jose – Almaden Valley
Question: How might Warrior arena in Mission Bay affect our real estate market?
Answer: My initial response: “Is there such a thing in the Bay Area?” Consider Santa Clara County, where only 545 single-family homes and 171 condos/townhouses are actively for sale and the average home sells at 102 percent of its list price. Is it possible there might not be such a thing as an overvalued home? I often tell buyers when they ask me if a home is worth it that if it isn’t today, it will be tomorrow.
Having said that, the question remains how do you tell if a home is overvalued. It turns out there really is such a thing in the Bay Area. When looking at the statistics of home sales, the average home takes 35 days to sell, so that means not every home sells in one week and receives multiple offers that are hundreds of thousands of dollar more than the list price. So how do you tell? If you are a buyer, you start with looking at the days on market.
Any home on the market for more than 30 days possibly has something wrong with it, and whatever the “it” is, the price will be part of it. Homes that have been on the market for a long time sell for a lower price. So I would define an overvalued home as one that’s been on the market without receiving any offers for more than 30 days.
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