Happy January! The sparkle and pop of a new year’s celebration may have passed…but recent real estate news is anything but bland and boring.
With the just-announced reduction in FHA’s mortgage insurance premium, plus last week’s rate dip and the Bay Area location making the year’s hottest neighborhoods of the country, 2017 is turning out to be fast-paced and full of opportunity. In addition, the data we are about to drop will demonstrate the theme that is currently dominating the market – inventory, inventory, inventory – or lack thereof! Think the old game ‘limbo” and “how low can you go” when it comes to counting what’s on the market today.
The tables below might look like a lot of numbers – and they are! These figures represent home inventory levels from 2003-2017 – first summarized in Santa Clara County as a whole and then by area (Saratoga, Los Gatos, Almaden & Willow Glen). You’ll see the data distributed in two forms – active single-family units and months of inventory.
‘Active single-family units’ refers to the actual number of residential single family homes on the MLS at the year & month indicated. You’ll see a dramatic drop over time from thousands of units available county-wide over the years…to just hundreds in the most recent months. Individual area stats are just as telling; for example Saratoga had nearly 200 listings per month in some periods, whereas the current level sits at merely 26 homes for sale!
‘Months of inventory’ figures represent how long it would take to sell all current listings at the current sales pace if no new listings became available. In a balanced market, standard months of inventory is 3-4. You’ll see how that number reached 12.3 at the height of the Great Recession in Santa Clara County, to just 0.7 in Willow Glen today.
It’s clear that local inventory has reached 12-year lows…but what may not be clear is what it means to you. That’s where we come in! With a firm grasp of the current market pulse and career-success rooted in strategic timing, we can help you weigh the where, how & when of your next move. Whether you are thinking of buying, selling, investing or just want to talk ‘shop’ – let us know! We’d love to hear your thoughts on the industry news so far, as well as assess what it means for you, your family and your own goals for 2017.
All our best,
Steve & Christine
Active Single-Family Units
Months of Inventory