Understanding the Market
Some time ago I stated that the Stock Market and the Real Estate Market are related. They move together on a longer term basis. Looking back at that comment had me wondering why we are seeing a strong report on housing price increases nationally and how that relates to our Silicon Valley Market. To summarise the inconsistencies I can say that we are in a perfect storm situation. It is not a buyer's market nor a seller's market. The perfect market where sale prices are stagnant and buyers do not fight with other buyers in over bidding the home of their choice. Pushing prices too high puts transactions at risk as lenders and appraisers are under pressure from a risk standpoint and homes do not pass. The seller is now faced with putting the home back on the market and having to deal with a property that must cut prices to sell. In our present situation we are in a situation where there have been a record number of price cuts on a weekly basis. Generally speaking for the Si