2024 was an exciting year for real estate. In fact, it was the best year of my professional career! I worked with many wonderful Silicon Valley sellers and buyers who asked many savvy (and sometimes challenging!) questions. This got me thinking, what were the most common questions that people had about real estate in 2024? I decided to ask Google and this is what I found! In this blog, I cover the most asked questions about real estate this past year and try to offer a few of my own insights as a 20+ year veteran in Los Altos real estate and beyond. Keep reading to learn what everyone else is asking!
Question 1: What Are the Current Real Estate Market Trends?
No surprise here—everyone wants to know what’s happening in the market. I always remind newer agents of this: while we think about real estate daily, our clients don’t. They have busy lives, careers, and other priorities, so it’s our job to be the experts and provide clear, up-to-date insights.
So, how’s the real estate market in Silicon Valley? In 2024, it was dynamic and driven by factors like fluctuating interest rates, tech stock performance, and evolving buyer preferences. Home prices in Silicon Valley grew by about 10%, significantly outpacing the national average of 4%. Buyers became less seasonal, focusing on finding good deals year-round.
Sellers, on the other hand, faced mixed results. Some held out for higher prices than the market could support, resulting in longer days on market. However, those who priced their homes strategically often sold quickly and above the asking price! Houses for sale in Los Altos typically sell fast because of the high demand. Looking ahead, I expect buyers and sellers to align more closely on pricing, creating a balanced and competitive market. I’m excited for 2025!
Question 2: Is It a Good Time to Buy a House?
The million-dollar question! The answer depends on your financial readiness and goals. Interest rates have seen slight fluctuations this year, but they’re still historically low compared to decades past. If you plan to stay in your home for the long term, buying now could be a smart move.
In places like Los Altos, homes often hold their value exceptionally well due to the area's appeal. Whether you’re eyeing a modern estate in the Country Club area or a charming Craftsman in the Old Los Altos neighborhood, the key is to work with an experienced realtor who can guide you through the nuances of timing and negotiation.
Question 3: How Do Interest Rates Affect Home Buying?
Let’s break it down, higher interest rates mean higher monthly mortgage payments, which can reduce your purchasing power. Conversely, lower rates can make homes more affordable. In 2024, we’ve seen a balanced approach from buyers who are mindful of interest rates but also recognize the value of taking action when they find the perfect property, especially in Silicon Valley real estate markets like Los Altos, Los Altos Hills, and Palo Alto.
Pro tip: Get pre-approved for a mortgage to understand what you can afford. This not only strengthens your offer but also gives you a clear picture of how interest rates impact your budget.
Question 4: What Are the Hidden Costs of Buying a Home?
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Closing Costs: These typically range from 1-2% of the home’s purchase price and include fees for appraisals, loan origination fees, recording fees, inspections, and more.
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Property Taxes: Rates vary by state, county, and even city, so research your area.
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Home Maintenance: From roof repairs to landscaping, maintaining your investment is crucial. Budget for annual upkeep to avoid surprises.
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Furnishing Costs: A larger home means more furniture, which can add up. If you’re upgrading from an apartment, plan for furnishings to make your house feel like a home.
Question 5: How Can I Improve My Home’s Value Before Selling?
It’s great to see this question in the top five - it shows sellers understand the importance of making strategic updates. When advising clients, I like to offer a few options:
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Minimal Updates: Essential fixes to get the home market-ready.
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Optimal Updates: Focused upgrades for the best return on investment.
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Comprehensive Updates: For those aiming to maximize their sale price.
Well, what are some of the best ways to improve home value before selling? Selling a classic Eichler in Palo Alto or a modern farmhouse in a Los Altos neighborhood? Here are a few suggestions I offer almost every client!
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Painting: Fresh interior and exterior paint immediately refreshes your home’s appearance.
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Landscaping: Boost curb appeal with well-maintained greenery and a tidy yard.
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Kitchen and Bathroom Updates: If you do want to put some money down for remodeling, these spaces often offer the highest ROI.
Question 6: What Should I Look for in a Real Estate Agent?
Good question! Choosing the right agent can make all the difference in your real estate journey. No matter where you are, I suggest that you look for someone who knows the local market, has a strong track record, and communicates clearly and honestly. Even in the online world we live in now, not everything about a community or a home is on the internet. Having someone in your corner who truly knows the local market, has a history of success, and keeps you informed every step of the way is essential to reaching your goals.
Question 7: What Are the Best Real Estate Investment Strategies for Beginners?
It’s no surprise to see some investors making their way into the top 10 questions! While I’ll admit I’m not an expert in the latest social media trends around “house-hacking” or “flipping,” I do have some solid advice for those considering an investment property.
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Good Bones Matter: If you’re eyeing a fixer-upper in a great area, don’t base your decision solely on the property’s current appearance. Hire a professional home inspector to perform a thorough evaluation, and review the findings with an expert.
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Would You Live There?: One of the first questions I ask prospective investors is, “Would you live in this property?”. Just because an area is trendy now doesn’t mean it will stay that way. If you’d consider living in the home yourself, it’s more likely to attract tenants or future buyers.
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Location, Location, Location: When investing in real estate, think beyond the property lines. Look at factors like the school quality, commute accessibility, nearby amenities, etc. These elements drive long-term property value and make your investment more attractive to renters or buyers.
As a Los Altos real estate expert, I often use my hometown as an example. If someone interested in investing asks, "Where is Los Altos located?" you can highlight its prime location near the mountains, the bay, and the coast, along with its proximity to the amenities of Silicon Valley and San Francisco. Keeping long-term value in mind is essential when considering an investment.
Question 8: How Do I Get Pre-Approved for a Mortgage?
Getting pre-approved is a straightforward process that involves choosing a lender, gathering financial documents, and submitting an official application. In competitive markets like Los Altos, unless you are paying with all cash, a pre-approval is absolutely necessary. Here’s a tip that I like to share with my buyers from all price ranges. Try to get your finances organized before you begin this process. You don’t want your lender having to jump through hoops trying to understand where your money is, why it is being moved around, where it came from, where it’s going, etc. Make your financial situation as transparent as possible. This will instill greater confidence in your lender, potentially improving your final loan amount and purchasing power.
Question 9: What Are the Most Popular Home Features in 2024?
If you are considering selling, understanding the current pool of buyers is critical in home preparation, staging, and marketing. Today’s buyers are regularly gravitating to home features like open floor plans, well-equipped kitchens, dedicated home offices, outdoor living areas, and much more. This is particularly true in the Los Altos zip codes. You need an informed agent in your corner who knows what today’s buyers want and can effectively market your home to them.
Question 10: How Does Inflation Impact Real Estate?
We’ve been experiencing a period of high inflation, so it’s no surprise that a question about its impact on real estate rounds out our top 10. Here are a few key ways inflation affects the real estate market:
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Rising Home Prices: The increased cost of goods and labor drives up home prices, making properties more expensive.
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Higher Interest Rates: To combat inflation, the Federal Reserve has raised interest rates, which impacts borrowing costs and monthly mortgage payments.
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Increased Demand for Tangible Assets: Real estate is often viewed as a reliable hedge against inflation, leading to greater demand for property investments.
I hope that this blog was helpful! Sometimes it’s good to know what others are asking to make sure that you have as comprehensive an understanding as possible. 2025 has started with some challenges, and my family is dealing with some personal issues right now related to the Los Angeles fires, but I am optimistic about the future. Especially when it comes to real estate in Los Altos, California, and the surrounding Silicon Valley area. If there is anything I can do to help you, please don’t hesitate to reach out!
Are you looking for an experienced local Realtor at The Agency Los Altos to help you navigate buying or selling a home in Los Altos or the surrounding areas?
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Susan Sims, Broker-Associate
LIC.# 01408349
The Agency Los Altos
