Time to take a hard look at the beginning numbers this year and see what we can tell about the market. For those of you who are not aware, inventory is a big factor in price performance and home values. As inventory increases and buyers are unable to keep up with the supply of homes entering the market, prices begin to fall, as anxious sellers feel the immanent price drops.
Looking at the Santa Clara home market we actually experienced a decline in inventory from last year’s levels. We also see that pending sales for the week are higher than 2008. Santa Clara has seen some significant price drops in 2008, about 10%-15% overall. If this trend continues we can expect to see some stabilization in the home prices in that market.
It’s already starting out to be a busy year in real estate based on the number. Sales are up overall as buyers are cashing in on good deals. Stay tuned for the next update.