Inventory Continues to Fall! In May of 2008 Santa Clara County had 7,384 properties on the market, the highest in years! Today there are 3,060 properties on the market, less than half of May 2008. The chart below shows the decline in inventory and its effect on price and days to sale.
In the past 30 days I have presented 12 offers on properties valued between $150,000 and $525,000. When compared to the rest of the nation, Silicon Valley has a completely different climate. This article from MSNBC helps to explain why http://www.msnbc.msn.com/id/32970895/ns/business-forbescom/
FHA Loans Getting Tougher…
Low interest rates through government funded loans are a leading cause to this surge in activity. Shashank Shekhar, a premier lender of FHA loans, explains the challenges right around the corner for people looking to qualify for FHA loans. http://lendingexpertblog.com/blogs/?p=595
REMINDER: November 30th is the Deadline for the $8,000 First Time Home Buyer Tax Credit. Lobbyists are trying to extend that deadline but there is no guarantee. Click here to learn more.
Market ReCap The chart below shows how cities east of highway 880 have been consistently losing inventory over the past year and a half. What this means is that home prices will rise as it is a “supply vs. demand” economy.
For Comparison: The West side of Highway 880 has not seen as dramatic of a change.
Fewer properties will be coming on the market through the end of 2009. Buyers will continue to receive great deals due to the threat of rising interest rates and losing out on the $8,000 tax credit. These factors will play a larger role than the threat of prices going down, thus continuing to drive prices up.
The table represents aggregated values based on MLS data for the specified date.
Enjoy the rest of your week and as always I welcome referrals from friends, co-workers or family members looking to buy a piece of property. I am also happy to provide sound unbiased advice at any time. You can rely on my integrity and follow-through.
"Dreams come true. Without that possibility, nature would not incite us to have them."
* John Updike (1932 - 2009)