Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Should I buy a home now?

It funny, back in 2006 and 2007 almost no one was asking that question. Instead, they were asking, How much home can I buy?Wrong question at the wrong time. Fast forward to today and buyers should be asking how much home can I buy and not should I buy a home now.

Yes, I know, a real estate agent will always say yes when asked if its a good time to buy a home.But, today market offers an unprecedented opportunity. Let me explain.

First, take Santa Clara County mortgage rates, back during the peak of the bubble in 2007 30-year mortgage rates were in the low to mid 6% range. Today? Rates are in the low to mid 4% range, a drop of 50%.

Next, the median price for single-family, re-sale homes in Santa Clara County peaked at $868,500 in October 2007. It bottomed out at $445,000 in February 2009. Yes, you missed the bottom!

The median price has been in the high $500,000 to the mid $600,000 ever since.

O.K., so you are afraid to buy because you dont know where home prices are going. Well, no one has a crystal ball, and, as Wall Street is fond of saying, the past is no predictor of future results. But, as Baron Rothschild is credited with saying, Buy when there blood in the streets, even if the blood is your own.

Now for the caveats, yes, there are caveats!

As always, the best homes, pristine move-in condition, in the best neighborhoods, i.e. schools, are selling first for the most money with multiple offers. If the best neighborhood is your primary criterion, and the best homes are beyond your means, consider fixer homes or condos and townhomes.
If the best neighborhood is not a consideration, but a pristine home is, you will find less competition in other areas.

The market in Santa Clara County is very spotty with towns like Palo Alto, Sunnyvale, Los Altos, Saratoga and Mountain View being exceptionally hot, primarily due to dot com and IPO millionaires: think Facebook and LinkedIn.

You will absolutely, positively need an in-depth neighborhood market analysis to buy or sell in this market.


If I could get what Zillow says my home is worth, I sell it in a minute. According to my calculations, Zillow has over-valued my home by 36%, and that before selling costs!

P.S. The conforming loan limits are dropping from $729,750 to $625,000 for loans closing after September 30th. Some lenders have already stopped processing loans up to the $729,750 limit, and all lenders will likely stop on or around September 1 for new applications.

Related Posts

  • 87
    Tags: best, real, estate, trends
  • 86
    San Jose Single Family Real Estate Market Report Median Price, Average Price and number of Sales - All went up in March compared to February 2011. However all three numbers were down from March 2010. Days on market (the time it takes for a home to sell after it's listed…
    Tags: market, real, estate, price, selling, trends
  • 85
    Existing home sales rose 1.8 percent in May - their highest pace since February 2007 - according to the National Association of Realtors (NAR) anticipated monthly report that came out this week. In total, 5.53 million single family, condo and townhome sales came to fruition. Strong numbers considering that inventory…
    Tags: market, price, $, real, estate, trends
  • 85
    Real Estate Prices and Sales Bounce Back in March in Santa Clara County Sales of single-family, re-sale homes continued to gain ground last month in Santa Clara County, rising 52.1% from February, and up 11.8% year-over-year.The median price for single-family, re-sale homes in Santa Clara County was up 7.1% from…
    Tags: price, santa, clara, county, market, real, estate, median, homes, trends
  • 83
    Unlike the real lottery, hitting the rental property jackpot requires experience, knowledge, and skill. You need to know exactly what to look for and where to look for it. Without both of these factors you can easily find yourself buying a rental property sinkhole. We've put together a collection of…
    Tags: best, market, real, estate, trends