Monica & Mandy's Real Estate Update - August 2022 ūüŹ°  ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏  ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏  ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏  ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
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The Monica & Mandy Group 

WSJ Ranked Among

America's 

Best Teams 

August 2022 Report


 The real estate market runs on a cycle and will never continuously appreciate or remain stagnant. Many economic, political, and environmental factors play roles such as interest rates, inflation, financial markets, housing prices, global turmoil.


Human psychology also plays a major role in real estate markets, with optimism and confidence fueling upcycles and fear and doubt forming downcycles.


Here is an example of how interest rates affect a Buyer's purchasing power.  With a higher interest rate, the purchase price must be lower to have the same monthly payment:


$4,000,000 Purchase Price - Interest Rate at 4% with 20% Down Payment - $15,277 Monthly Mortgage Payment


$3,200,000 Purchase Price - Interest Rate at 6% with 20% Down Payment - $15,348 Monthly Mortgage Payment


Monica & Mandy's

Real Estate Q&A

Rising Interest Rates


Dear Monica: I want to buy a house but am put off by rising interest rates. Should I buy now or wait to see what happens? -Ted S. 


Dear Ted: If you want to buy a property that you plan to own for at least five or more years, you shouldn’t be deterred by rising interest rates as long as the house you want to buy fits your needs and budget. It’s likely that interest rates will rise again so buying now could be advantageous.


A good strategy would be to buy now and if interest rates do come down in the future, you can refinance and take advantage of a lower rate. Homeowners typically refinance every five to seven years anyway.


In Stanford Circle, the July median home sales price has dramatically dropped compared to early 2022.  However, when compared to July 2021, prices were essentially the same, which may reflect the typical summer slow-down with fewer sales because many buyers are on vacation.  Or, it could reflect an actual market decline. A few more months of data should make this clearer.

In July, 

only 50% of sales closed above the final, often adjusted list price, down from 86% in March.

 

We are seeing more buyers submit offers at or below list price. 

This may reflect a gap between sellers, who think prices are the same as they were in the spring and buyers, who have have less purchasing power due to higher-interest rates. 

Featured Listings

JUST LISTED - 440 Cesano Ct #314
Palo Alto
2 Bed | 2 Bath | $1,476,000
151 Melville Avenue
Old Palo Alto
6 Bed | 4.5 Bath | $5,000,000
1990 Sharon Road
Central Menlo Park
3 Bed | 2 Bath |$2,998,000

Recent Sales

360 Leland Avenue
West Menlo Park
5 Bd | 4.5 Ba | $6,738,000
10600 Chardonnay Lane
Los Altos Hills
4 Bed | 3.5 Bath | $5,500,000

(represented Buyer)

810 Cedro Way
Stanford
3 Bed | 2.5 Bath | $2,300,000
1155 Merrill Street #108
Menlo Park
3 Bed | 2 Bath | $1,585,000

Buyer Needs

We have buyers looking in Atherton, Menlo Park, Palo Alto, Woodside, Portola Valley, and Los Altos Hills in prices ranging from $4M - 15M and are always looking for pre-market opportunities or properties coming soon.  If you know of any properties that fit, we would love to hear about them! 

The Monica Corman &


Mandy Montoya

 Group
DRE# 70012036 | 01111473 | 01911643
M: 650.465.5971 | 650.823.8212

monicaandmandy@compass.com
compass

© Compass 2022 ¦ All Rights Reserved by Compass ¦ Made in NYC

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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