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Real Estate in California

The prices of the properties continue to climb in the suburbs cossues of California, but at intervals slower than front. For example, since the year 1998, the value of the houses located in the counties of San Clara and Santa Mateo, in the area of Silicon Valley, increased by 110% and 129%, respectively. This growth moved back of 3%, on average, in the two counties during the first quarter of the current year compared to the same period the year spent, affirms Jim Harrison, president-director general of RE InfoLink, company which provides service MLS in several counties of California. In Los Violas (2,5%) and Los Gatos (6,5%), the price and the time of sale of the houses increased during the first quarter. In the town of Atherton, qualified of “the postal code richest of the county” by the Forbes magazine, the average price of a house is in rise of 6,2%, that is to say 3,25 million dollars, and the time of sale decreased 104 days to 82 days. “The stability of the market is explained by the good economic health of the area of Silicon Valley, says Mr. Harrison.

In Los Hills Violas, however, the average price of the properties lost 18,2% and the time of sale increased one month compared to last year. It is the same for the town of Woodside, where the price decreased by 11% and the increased time of sale two months. Even if if in general one does not finance the purchase of houses to a million dollars by loans whose interest rate is under the rate of the market these loans being granted borrowers having bad antecedents or a weak pointing of credit, the multiplication of the non-payments frightened the potential buyers, and this, whatever the price of the coveted houses, estimates Ara Hovnanian, president-director general of Hovnanian Enterprises Inc., principal real manufacturer of the New Jersey.

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