I always review the Santa Clara County home sales at the end of the week by checking the pending sales. This is a good way of checking the strength of the market in terms of buying activity. I usually compare from the previous year’s figures to gauge performance. It appears that 2009 has started out very positively, well at least better than 2008.
Santa Clara sales for the week are up 50%, Cupertino also higher, Sunnyvale as well with over 50%, Mountain View also an increase. When we view the higher end Markets of Los Gatos, Saratoga, and Los Altos, they experienced decreases this year. Part of that I think we can attribute to price gains that these areas experienced in 2008 and have just recently felt the slow down. Price adjustments may have to be made in these high cost areas in order for sales to increase.
|The next item to keep an eye out for will be inventory. The combination of housing (supply) and sales (demand) will determine really market performance for the valley. As inventory starts to increase we will see increased sales, whether or not those increased sales will keep up with the pace of inventory will determine price performance, and that’s everyone big question this year, how will prices perform. If you are curious about market performance there is no better way than to subscribe to my Altos Reports for your specific Zip Code. You can do so on the side bar. These reports and show you indicators on where the market is heading.|