What is happening in the real estate market where you live? In your neighborhood? If you live in north Sunnyvale/Cupertino there are homes for sale and they are holding their prices rather well. Homes in this specific area maintain their value because of the school district. The average price of homes is this area is in the upper 800’s to the lower 1M price range. In obtaining a loan for those priced homes one must be well qualified and have a sizeable down payment. A buyer with this purchase power usually has been well qualified by the lender and therefore short sale is unlikely.
In saying this there are homes that in north Sunnyvale area that are all in short sale. This is because the buyers were not really qualified to take out the loan on the purchase price of the home. These homes usually sell in the higher 500’s to the higher 600’s. The buyers that get into these homes with no money down and the adjustable rate mortgage really pay the ultimate price. The adjusting of the rate causes the short sale to come into play and wreaks havoc on the their life as well as the real estate market itself.
Another view of this is phenomenon is written by Arn Cenedella of Coldwell Banker in Menlo Park.
