Has the Real Estate Market Bottomed Out?

Posted on May 10, 2009 by Connie Miller 
Filed under Blog · Tagged:

What indicator do you use for determining when the Silicon Valley real estate market has hit bottom?  Number of weeks of reduced inventory?  We are there.  Velocity of sales increasing?  We are there.  Return to multiple offers?  We are there.  Folks, I think the market has officially bottomed out.  And as soon as the Fed figures that out, interest rates are going to rise. 

 

Here is a snapshot of last week:

Rate of sales increased in Los Altos for the 6th week in a row.  When started tracking this, 9% of all houses were selling.  This past week, 22% of all listings went sale pending.  Specific Los Altos listings that sold.  Pine, Solana, both listings on Greenview Place, Colonial Oaks, Don Kirk and Rosita all went sale pending on MLS.  Rumor is both listings on Odell Way also sold.  Solana, Pine and Loucks all went with multiple offers.  The week before that, Mira Loma in Los Altos Hills sold with multiple offers.  That was priced around $4.3M. 

 

Other agents in my office came back battered from having to compete in multiple offer situations. Here is a sampling: 14 offers were made on a listing in Milpitas.  3 offers on a house in Campbell.  Another agent wrote four offers on houses in San Jose.  All were multiple offer situations. 

 

Even if there is another wave of foreclosures that hit the market after the government imposed moratorium is lifted, the strength of the high end market in Los Altos leads me to believe we have decisively turned a corner. 

 

I see many engineers coming to my open houses trying to calculate the exact market bottom.  Well, if this data does not compel you to act now, I doubt if anything will. 

 

 

Comments

Leave a Reply