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Three statistics that suggest a rosy market

September 13, 2008

I keep saying the market “feels” better, faster, stronger. It’s just so California.

Being surrounded by engineers in this silicon valley, I know you’ve been frustrated with all my “feelings” – too reminiscent of a Barbara Streisand song – so here are a few numbers to sink your teeth into.

1) Sales – up 16.8% from July and 32% from the same time last year. August is our normal cyclical dip – everyone running off for the last bit of summer – and even with “the dip” it was up 16.8%.

2) Median Sales Price – 648,500 vs 864,000 same month last year. That’s a 33.2% drop from last year. The homes that are priced right are now getting multiple offers. One I just heard of was 95132 – a zip code that’s been killed this last year. Ask price of $625K, it got 7 offers and went 17,500 over ask price! That from an area that was doing NOTHING a year ago!

3) Days of Unsold Inventory – Last year we had 210 days of inventory – that’s 7 months of inventory, today that number is 125 or just over 4 months of inventory – which is a good balanced market. It’s starting to shift out of a buyers market and into that grey in between world. It’s not a seller’s market yet – and it may not reach “seller’s market” for a while. The argument being that there are still properties in default that will add to the supply for the next few years. All I know is when multiple offers start, a strong buyers market is coming to an end.

These numbers are for houses in Santa Clara County. There are plenty of submarkets that don’t fall within these confines but, great news for sellers and no so great news for buyers.

This is what the market looks like just before the prices start to rise. There are still bargains to be had. Find yourself a good Realtor and get in while you still can.

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