I Looked at the monthly numbers when I was doing my monthly newsletter and its my opinion that we have finally hit the bottom of the market. For San Benito County its been the first time since June of 2008 that we have had under 50 closings. The new listings are up a bit, Total single family dwellings remains constant from last month at around the 270 level (inventory is thin) -our market has not have this few listings for the past three years.
Santa Clara had over 1100 closings last month - the highest number in three years. Total inventory is about 4100 sing family dwellings which is the lowest since December 2007. When presenting offers for homes under $350,000 - there is a flood of them.
I keep hearing that there is going to be a second wave of REO's hitting the market - no one can tell with any confidence when or if this will happen. Its possible the Banking and REO assent management industry are managing the flow of homes to reverse the downturn in prices. Time will tell if this is the case.
February is upon us. Valentines day is approaching. The real estate market in San Benito County is cooling some. There has been a small rise in the interest rates from just under 5% to just a little over 5%. The total number of single family homes on the market as dropped from a high of 577 in April of 2008 to the current low of 356 in January 2009. We have not seen 350 since January 2007 which may have a positive impact on prices.
The market under $250,000 has seen a lot of activity, with multiple offers being common. Some more positive new is that we have sold more homes in the last 7 months than we did in the previous 17 months. Prices are down and the interest rates are still good - its time to buy.
With all of the debt piling up in Washington there has got to be some inflationary pressures on prices and interest rates. Hopefully we will not see rates like in the early 80's. If you can lock yourself into a low fixed mortgage rate you can reduce your exposure to this possibility.
If your purchase price is under $300,000 expect multiple offers and getting bumped on a few before you get an accepted offer. If you are prequalified for $300,000 - look in the $250,000 to $275,000 rage to give yourself a little flex room when negotiating or responding to the infamous "give us your highest and best".
Quality Real Estate Services in hte Greater Monterey Bay and South Santa Clara Areas since 1985
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