In the first and second quarters of 2022 Cupertino house prices reached an all-time high as buyers purchased before an expected interest rate increase. Prices then dropped until the first quarter of 2023. Then, even during a year of interest rate increases, house prices have risen from their fourth-quarter 2022 low back to their all-time high in Cupertino. Cupertino real estate and Saratoga real estate are showing the greatest recent strength in Silicon Valley.The Silicon Valley real estate market is surprising many with its strength. High interest rates discourage new construction. Many buyers are predicting that now is their best time to buy.
We've all seen reports about the low number of home sales and the high cost of a home. This is true for Cupertino real estate.On Sept 21, 2023, the San Jose Mercury News published an article about falling home sales. The author, Jonathan Lansner, created graphs of California single-family home sales prices and the number of single-family homes sold. His short article is worth visiting. His key points were that:1.) The number of sales have dropped by about 30% all across California2.) August's median sales price is the third highest on record.He concludes his article by saying, "Something must give. Will it be prices? Rates? Or just years of limited homebuying?"We have seen articles calling attention to people and companies leaving California for quite a long time. Yet house prices are not falling, and because of increasing interest rates, buyers are paying more than ever to purchase a house using…
A 1031 exchange enables you to defer paying income taxes on your investment property's appreciation when you sell it if you invest all of the investment into a like-kind property. The most worrisome issue for many investors in Silicon Valley is finding and purchasing a replacement property within the specified time. You have 45 days from the day escrow closes on the sale of your property to identify in writing to your exchange intermediary three possible properties you will try to purchase. The IRS allows you 180 days from the day escrow closes on your sale, to close escrow on your purchase. The IRS does not allow any exception to these time limits. Learn more about doing a 1031 exchange. Work with a top Silicon Valley real estate agent who has done many 1031 exchanges, and you greatly increase your odds of success.
