Will Layoffs Increase Inventory?
The two most important leading indicators for real estate prices in a given area are consumer confidence and employment. Even though consumer confidence nationally has plummeted Silicon Valley real estate prices have held up reasonably well because jobs have been stable and little inventory has come onto the market (see our 3/6 Blog entry on inventory). We are now hearing reports of upcoming layoffs at major companies in the valley which have not yet been publicized. Watch the local job reports in coming weeks as a predictor of where local real estate prices will head later this year.