If you've been reading this blog for a while, you know that I call our local market...Sunnyvale, Cupertino, Mountain View, Los Altos and Palo Alto...the real estate oasis, because these areas have been relatively untouched by the foreclosures and short sales that surround us. The tech market has kept out economy strong, and there were very few subprime loans in our local sales. All around us, properties went "underwater," with values reduced to less than the loans that secured them. Now a new report from Zillow shows that home values in these areas have slipped slightly in the third quarter...not a lot, only 1-2% compared to last year at this time...but the first crack in the dike that surrounds us. I don't expect large numbers of our homes to "go underwater," but as unemployment rises in the Valley, values could fall somewhat more, although nowhere near the double-digit range of our neighbors in San Jose.
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