16 Ron
Porter's Buyer's Advocate Articles Helping Home Buyers understand...
B u y e r A g e n c y i n
S i l i c o n V a l l e y
"Agents For The Homebuyer"
How's The Market Doing?
I get asked that question a lot.
As you may recall there have been swings between distinct buyers and sellers
markets. When I started in this business in 1985 a strong buyers market
was in effect. Interest rates were coming down through the 13% area from
a high of 21% a few years earlier. In 1986 rates came down under 10% and
buyers started coming out by the hundreds. In 1987 rates went under 9%.
At the same time huge sums of money started coming into our local housing
market from Hong Kong and Taiwan and a sellers market started. In 1988
home prices went through the roof to artificially high levels. In 1988
the defense industry was cutting way back. This made a drastic negative
effect on the Silicon Valley economy. Home prices peaked for single family
homes in February 1989. Condos and townhomes were still low in comparison
and continued to rise in value as single family home prices started falling.
By the end of 1989 condos and townhomes also peaked. We were experiencing
the switch from a sellers market to a buyers market as laid-off defense-related
workers boarded up their homes and moved out of Silicon Valley for the
first time ever. For current real estate market conditions, click
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