Santa Clara County Hits 4-Year Inventory Low!

Well with the typical holiday slowdown and lack of inventory, there has just not been much to report to you all.  With 2009 now behind, we all look hopefully to a better 2010!

So where are we at so far this year?  Inventory is at a 4 year low, 1548 active single family homes on the market. This level has not been seen since January of 2006!! Still characteristic of the market is high pending sales numbers, 2546 to be exact as of January 4, 2010.

Just one year ago we were at 3931 active homes and 1598 pending sales.  The market has done a complete 180 degree flip-flop!

Looking forward to the New Year, what is expected to happen?

1. There will be more inventory coming to market.  Read my last post “Where is this inventory starved market heading?“

2. Rates will be low for a couple months and then are likely to go up.  Why?  The Treasury has already given indication that it will stop buying mortgage-backed securities soon, which will then push the bank rates up and then our interest rates up.

3.  Short Sales are going to be more commonplace.  Banks are realizing that it costs less to work with the seller and short sale the home than to foreclose on it.  Also the HAFA program and other loan modifications are truly helping a very small percentage of people, so those distressed homes will end up as short sales.

Any other thoughts on what might happen in real estate for the new year?