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%. 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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