Slowest Month in Home Sales . . . Not True for Los Altos
On Friday, Real Estate headlines in the area trumpeted the decrease year over year in closed sales for the month of October. The San Jose Mercury News feature article quotes MDA DataQuick President John Walsh as saying the decrease indicates a “hangover from expired home buyer tax credits, which spurred many to buy in the first half of the year.” That’s not exactly accurate in our view. You’ve got to look back at what was going on in the market in 2009. Sales were very slow in the first half of 2009 and continued through the summer. But by early fall, those who had delayed selling or buying, were coming back into the market. So, sales in October 2009 were up. As compared, Santa Clara home sales in October 2010 looked “off” but were right in line with county sales for October 2008.
What’s even more important is that sales in Los Altos were 40% higher in October 2010 than October 2009 (see chart below). As we’ve said many times, quoting county-wide data is not accurate to determine the strength or weakness of the real estate market in your community. Using a wide brush stroke of statistics covering a large area actually causes confusion and misunderstanding. It should never be forgotten that all real estate (and understanding) is local! We are committed to bringing you the real story on trends in the area. Please feel free to contact me if you would like to discuss the current market conditions.