Home Demand Heats Up While Supply Shrinks
Articles appeared October 15th in SF Chronicle and SJ Mercury about current real estate sales in the San Francisco Bay Area and Santa Clara County. They reported Sep sales increases of 8% in the region and 17% in S.C. County from Sep of ’08. The specifics naturally vary from city to city.
As Realtors and Brokers serving Los Altos, Palo Alto and surrounding communities, we have posted current trends comparing each September over a ten year period for the communities of Menlo Park, Palo Alto, Los Altos, and Los Altos Hills.
In addition, we just published our newsletter with Q3 2009 market data as compared to one year, five years, and ten years ago for the cities of Atherton, Portola Valley, Menlo Park, Palo Alto, Los Altos, Los Altos Hills, Mountain View, Cupertino, and Sunnyvale. While sales are up in ’09 vs. ’08, they are down considerably from five and ten years ago.
Potential sellers hearing this good news are most likely to hold onto their homes a while longer expecting values to rise. They’ll be correct in their assumption – until the next bit of economic bad news hits. Rich Karlgaard in Forbes this month warns of the pending commercial mortgage “bomb” about to explode. Just now coming to light is the fact that there are is just as much “under water” debt in the commercial sector as there is in the residential sector.
If we were potential home sellers, we’d sell now and take advantage of this very favorable (for now) market! There is very likely to be additional corrections ahead. Waiting to sell could be a very costly gamble.
Jeff Stricker & Steve TenBroeck