This is great news, Follow the Link Below Welcome 2011!
Bloomberg: The number of contracts to buy previously owned homes rose more than forecast in November, a sign sales are recovering following a post-tax credit plunge.
http://www.bloomberg.com/news/2010-12-30/pending-sales-of-existing-homes-rose-3-5-in-november-exceeding-forecasts.html
Thursday, December 30, 2010
Tuesday, December 28, 2010
Happy New Year, It is Going to be a Great Year!
It is going to be great!
All indicators are positive in the Real Estate Market and I am so JAZZED to be with Sereno! I am surrounded by really, really great Brokers and Agents. I think that we can all look forward to a wonderful 2011!
Both Santa Clara & San Mateo have seen quite a bit of activity this last week, even with the holiday.
I have three new listings coming on in the New Year and several Buyers anxiously awaiting new inventory.
I want to thank all of my great clients and friends for a truly great year. I am truly blessed by all of the referrals and business. It means quite alot to me when someone calls for simple advice or representation in a transaction. It truly is the lovliest complement!
Lazar & Sereno Group Ready for the New Year!
Well we are ready to go! John Lazar is still in the game with knowledge & experience beyond anyone! Ginna Lazar as always working to make everything smooth seamless and successful and our Claire, working on her obtaining her RE license....and being raised in the most professional, detail oriented and experienced Real Estate company in the area, Sereno Group! The Lazar legacy lives on in Northern California Real Estate! A combined total of 69 years of experience just a click away www.lazarhomes.com!
Tuesday, December 21, 2010
Good News for a Change! Retail is Up, Up Up
Happy Holidays!!
I am sending along some continued, positive economic news as we close out 2010 and are ready to have a fantastic year in 2011!
Same-store sales at a selection of
U.S. retailers posted last week the biggest jump of this holiday
season, rising 4.2 percent as more consumers finished shopping,
according to a survey of retailers.
http://www.bloomberg.com/news/2010-12-21/u-s-retail-sales-accelerated-last-week-in-biggest-jump-of-holiday-season.html
I am sending along some continued, positive economic news as we close out 2010 and are ready to have a fantastic year in 2011!
Same-store sales at a selection of
U.S. retailers posted last week the biggest jump of this holiday
season, rising 4.2 percent as more consumers finished shopping,
according to a survey of retailers.
http://www.bloomberg.com/news/2010-12-21/u-s-retail-sales-accelerated-last-week-in-biggest-jump-of-holiday-season.html
Thursday, December 16, 2010
Jim Gimbel Tech Support Extraordinaire!
Well...it happened...I had a HUGE computer glitch. It is repaired now and I am calm...I want to put out to you the name of my Tech Support person
Jim Gimbel
650-704-1403
He is so responsive and talented! He will be replacing my hard drive next week and I am getting a big girl moniter..finally! My little Christmas gift to me (about time)
I really reccomend Jim he has been helping me since 2006 and has never let me down. His prices are very reasonable and he can do ANYTHING!
Jim Gimbel
650-704-1403
He is so responsive and talented! He will be replacing my hard drive next week and I am getting a big girl moniter..finally! My little Christmas gift to me (about time)
I really reccomend Jim he has been helping me since 2006 and has never let me down. His prices are very reasonable and he can do ANYTHING!
Wednesday, December 15, 2010
This is not a Partisian Issue...It is to Protect Mortgage Interest Deduction
In late November, President Obama’s Deficit Reduction Commission released its preliminary recommendations, and one of the provisions called for dramatically limiting the MID. Since then, the commission failed to win enough votes to approve the recommendations. However, it is very likely that legislation will be introduced next year to curtail the MID. Few issues are more important to homeownership than the mortgage interest deduction, and while the housing market continues to recover, any change that reduces the ability of the market to heal is misguided and must be rejected.
Beth L. Peerce
2011 President
CALIFORNIA ASSOCIATION OF REALTORS®
Beth L. Peerce
2011 President
CALIFORNIA ASSOCIATION OF REALTORS®
Tuesday, December 14, 2010
Inventory Way Way Down, Lender's Have their Panties in a Knot!
Each week I lick my chops in anticipaton of seeing new listings come on. I have six Buyers/Clients that have been looking for just the right home for months. But lately each time I see the Brokers Open Tour Sheet I am disapointed!
On our Broker Tour Sheets we see maybe four or five new listings (if that) and several properties that have had a price reduction or have fallen out of contract for some reason and are coming back on the market. That's it! Yet in my recent findings I see that purchases have ticked up.
The Buyers are ready and I know that I am holding five listings to put on in the next several months. And I am not the only Realtor that has this situation. We have pent up anticipation in the coming first quarter of 2011 for both Buyers and Sellers.
The loan situation does not help! Even if you have a credit score of 800 and have millions in the bank the Lender of today will put you through ridiculous and unbelievable hoops! It takes almost 60 days to close some transactions....and these are very very well qualified Buyers folks. My clients with cash just buy with all cash and then get a loan.
So we are just plain stuck right now...in the New Year as inventory comes on the market and Lenders lighten up things should be humming along smoothly by summer.
All for now! Be careful out there....it's rainy an that time of year!!
On our Broker Tour Sheets we see maybe four or five new listings (if that) and several properties that have had a price reduction or have fallen out of contract for some reason and are coming back on the market. That's it! Yet in my recent findings I see that purchases have ticked up.
The Buyers are ready and I know that I am holding five listings to put on in the next several months. And I am not the only Realtor that has this situation. We have pent up anticipation in the coming first quarter of 2011 for both Buyers and Sellers.
The loan situation does not help! Even if you have a credit score of 800 and have millions in the bank the Lender of today will put you through ridiculous and unbelievable hoops! It takes almost 60 days to close some transactions....and these are very very well qualified Buyers folks. My clients with cash just buy with all cash and then get a loan.
So we are just plain stuck right now...in the New Year as inventory comes on the market and Lenders lighten up things should be humming along smoothly by summer.
All for now! Be careful out there....it's rainy an that time of year!!
Tuesday, December 7, 2010
San Mateo County Year End and Forecast
Hello all,
Here is the year end report for San Mateo County and the 2011 forecast. As in the Santa Clara report a graph attachment it above. This reflects activity over the last two years.
Cheers,
Ginna
--------------------------------------------------------------------------------
Here are some highlights to pay particular attention to as you review the data/graphs through October of 2010:
1. Median Price- The Median Price decreased slightly for the second month in a row in SMC to end the month at $600,000 (which is $20,000 lower than October one year ago) and down from last month’s mark of $616,500 The SMC Median reached its low point in January of 2009 at $515,000. We have essentially had one significant slowdown this year over the summer, however, pending sales have increased over the past 30 days and are poised to close out strong this year. We are revising our year-end Median projection down from $650,000 to $625,000 which would be $25,000 lower than the median one year ago.
2. Supply & Demand (Units)- We continue to see a significant distinction in pendings and solds, however, some balance in the inventory category as we compare October 2008 with 2010 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply continues to remain UP very slightly .2% (09 vs 10= 2808 vs 3114). The number of under contract properties (pending sales) continues to soar and increased from last month- UP 49.5% (09 vs 10= 501 vs 553) and the sold/closed escrows also increased from last month and remain up an impressive 41.2%. The overall pattern and direction of this market for the past 12-18 months has declining overall supply/inventory which has now leveled out, increasing new sales and closed escrows.
3. Month’s Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) remains near all-time low levels at 3.9 months supply at month end, substantially down from last month’s figure of 4.8 (also lower than Oct 09/4.1 months supply). This is down from a 2 year peak of 7.9 months in December of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months, then increased slightly over the past three months to nearly 65 days and climbed again in October to in excess of 70 days on market .
4. Sales Absorption- The Absorption metrics are quite compelling with the comparison of October 2008 vs October 2010 with under contract properties up 46.3% and closed/sold escrows up 39.22%. 17.5% of the active properties/listings were under contract at the end of October 2010, which is up from a fully adjusted figure of 15.4 percent under contract in September of 2010.
The first half of 2010 was significantly stronger than the same time period 2009. We had a slight slowdown over the summer months of this year which is not all that uncommon from a seasonal perspective. This slowdown, however, did correspond with some global economic concerns mainly surrounding the Euro and resulted in a temporarily declining stock market in the US. The past several weeks have seen renewed confidence, and signs of hope that the economic recovery is picking up momentum. The DOW has responded and has mostly remained above 11,000 most recently and the past two days has climbed above 11,300. This is been powered by positive developments and reports mainly in areas of employment, retail sales and real estate. Two Bloomberg articles* posted today highlight the factors leading the reasons for increased optimism which is also driving up the US and Bay Area pending sales activity as we close out 2010.
*Bloomberg: Stocks Gain, Treasuries Fall, on Retail, Home Sales Data; http://www.bloomberg.com/news/2010-12-02/asian-stocks-rise-set-for-best-gain-in-a-month-dollar-commodities-climb.html
*Bloomberg: Pending sales of US existing houses jumps a record 10% in October, indicating the industry at the center of the last recession is stabilizing as the job market improves; http://www.bloomberg.com/news/2010-12-02/pending-sales-of-existing-homes-in-u-s-increased-a-record-10-in-october.html
I am now forecasting a 12% increase in overall sales volume in 2011 over 2010. I anticipate that prices will remain mostly flat with a 3-5% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis. Overall, I expect that we will see an improved market in 2011 and we are now heading into the final stage of 2010 with headwinds that have more substance than the mostly government backed stimulus that drove the increased sales at the end of 2009.
Here is the year end report for San Mateo County and the 2011 forecast. As in the Santa Clara report a graph attachment it above. This reflects activity over the last two years.
Cheers,
Ginna
--------------------------------------------------------------------------------
Here are some highlights to pay particular attention to as you review the data/graphs through October of 2010:
1. Median Price- The Median Price decreased slightly for the second month in a row in SMC to end the month at $600,000 (which is $20,000 lower than October one year ago) and down from last month’s mark of $616,500 The SMC Median reached its low point in January of 2009 at $515,000. We have essentially had one significant slowdown this year over the summer, however, pending sales have increased over the past 30 days and are poised to close out strong this year. We are revising our year-end Median projection down from $650,000 to $625,000 which would be $25,000 lower than the median one year ago.
2. Supply & Demand (Units)- We continue to see a significant distinction in pendings and solds, however, some balance in the inventory category as we compare October 2008 with 2010 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply continues to remain UP very slightly .2% (09 vs 10= 2808 vs 3114). The number of under contract properties (pending sales) continues to soar and increased from last month- UP 49.5% (09 vs 10= 501 vs 553) and the sold/closed escrows also increased from last month and remain up an impressive 41.2%. The overall pattern and direction of this market for the past 12-18 months has declining overall supply/inventory which has now leveled out, increasing new sales and closed escrows.
3. Month’s Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) remains near all-time low levels at 3.9 months supply at month end, substantially down from last month’s figure of 4.8 (also lower than Oct 09/4.1 months supply). This is down from a 2 year peak of 7.9 months in December of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months, then increased slightly over the past three months to nearly 65 days and climbed again in October to in excess of 70 days on market .
4. Sales Absorption- The Absorption metrics are quite compelling with the comparison of October 2008 vs October 2010 with under contract properties up 46.3% and closed/sold escrows up 39.22%. 17.5% of the active properties/listings were under contract at the end of October 2010, which is up from a fully adjusted figure of 15.4 percent under contract in September of 2010.
The first half of 2010 was significantly stronger than the same time period 2009. We had a slight slowdown over the summer months of this year which is not all that uncommon from a seasonal perspective. This slowdown, however, did correspond with some global economic concerns mainly surrounding the Euro and resulted in a temporarily declining stock market in the US. The past several weeks have seen renewed confidence, and signs of hope that the economic recovery is picking up momentum. The DOW has responded and has mostly remained above 11,000 most recently and the past two days has climbed above 11,300. This is been powered by positive developments and reports mainly in areas of employment, retail sales and real estate. Two Bloomberg articles* posted today highlight the factors leading the reasons for increased optimism which is also driving up the US and Bay Area pending sales activity as we close out 2010.
*Bloomberg: Stocks Gain, Treasuries Fall, on Retail, Home Sales Data; http://www.bloomberg.com/news/2010-12-02/asian-stocks-rise-set-for-best-gain-in-a-month-dollar-commodities-climb.html
*Bloomberg: Pending sales of US existing houses jumps a record 10% in October, indicating the industry at the center of the last recession is stabilizing as the job market improves; http://www.bloomberg.com/news/2010-12-02/pending-sales-of-existing-homes-in-u-s-increased-a-record-10-in-october.html
I am now forecasting a 12% increase in overall sales volume in 2011 over 2010. I anticipate that prices will remain mostly flat with a 3-5% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis. Overall, I expect that we will see an improved market in 2011 and we are now heading into the final stage of 2010 with headwinds that have more substance than the mostly government backed stimulus that drove the increased sales at the end of 2009.
PLEASE READ THIS YOUR MORTGAGE INTEREST DEDUCTION IS ON THE LINE!
From Our New 2011 NAR President- This is REALLY Important YOU GUYS!!
Won't you please call your Representative to ask their help
in defending home ownership
and the Mortgage Interest Deduction? They need to hear from YOU today.
The Mortgage Interest Deduction (MID) is vital to both home ownership and our economy.
I'm disappointed that anyone in Congress — or on a Presidential Commission — would even suggest limits to the Mortgage Interest Deduction. Mortgage interest has been deductible for nearly 100 years, and the proposed changes will affect all 75 million home owners in the United States. We must act now to make sure the MID is not changed.
Ever since the Deficit Commission announced its conclusions, the news media have been buzzing about the report. And what do they emphasize? Proposals to limit or even eliminate the Mortgage Interest Deduction. I'm concerned because all this does is scare the public — and potential buyers — away from the housing market. The last thing the housing industry needs right now (and for the foreseeable future) is another bucket of ice water to be thrown on the market. People who hear these news reports don't differentiate between a proposal and a done deal. They just know that a tax provision they actually understand and rely on is under siege. This is just unacceptable.
I am asking you to call to your representative's office today to ask him or her to defend the Mortgage Interest Deduction from any cuts or reduction as outlined in the Deficit Commission Report.
This Call for Action requires you to do something a little different. In order to track the calls we are making to Congress, we need you to follow the link and enter your phone number and zip code to be connected to your representative's office. You can make this call now, or later today at a more convenient time. But we need you to make this call.
After you enter the information, you will receive a phone call with instructions before being patched through to Capitol Hill.
Count me in Ron, I am ready to make my call*.
This call is important. We need to be clear and draw a line in the sand. While we all support efforts to reduce the deficit, further undermining the critical housing recovery cannot be the price that is paid. Here are some suggested talking points for you to use when you call:
I am a constituent and a REALTOR®.
I have been on the front lines of the housing crisis. I can assure you that even talk of changing MID harms an already fragile market.
I am strongly opposed to the Deficit Commission's proposal to either limit or eliminate the Mortgage Interest Deduction.
News reports saying that Congress threatens to repeal or limit MID will keep potential buyers on the sidelines and further delay the housing recovery.
We must speak loudly and clearly with one voice to ensure the further recovery of our economy and the housing market and educate every legislator about how much Home Ownership Matters. We can't do that with the few REALTORS® who take action consistently. We need every REALTOR® to respond. Please call NOW and tell your representative to help defend home ownership and the MID*.
On behalf of the NAR Leadership team, thank you for your support and time,
Ron Phipps
2011 NAR President
*Standard text messaging fees and rates apply
________________________________________
Won't you please call your Representative to ask their help
in defending home ownership
and the Mortgage Interest Deduction? They need to hear from YOU today.
The Mortgage Interest Deduction (MID) is vital to both home ownership and our economy.
I'm disappointed that anyone in Congress — or on a Presidential Commission — would even suggest limits to the Mortgage Interest Deduction. Mortgage interest has been deductible for nearly 100 years, and the proposed changes will affect all 75 million home owners in the United States. We must act now to make sure the MID is not changed.
Ever since the Deficit Commission announced its conclusions, the news media have been buzzing about the report. And what do they emphasize? Proposals to limit or even eliminate the Mortgage Interest Deduction. I'm concerned because all this does is scare the public — and potential buyers — away from the housing market. The last thing the housing industry needs right now (and for the foreseeable future) is another bucket of ice water to be thrown on the market. People who hear these news reports don't differentiate between a proposal and a done deal. They just know that a tax provision they actually understand and rely on is under siege. This is just unacceptable.
I am asking you to call to your representative's office today to ask him or her to defend the Mortgage Interest Deduction from any cuts or reduction as outlined in the Deficit Commission Report.
This Call for Action requires you to do something a little different. In order to track the calls we are making to Congress, we need you to follow the link and enter your phone number and zip code to be connected to your representative's office. You can make this call now, or later today at a more convenient time. But we need you to make this call.
After you enter the information, you will receive a phone call with instructions before being patched through to Capitol Hill.
Count me in Ron, I am ready to make my call*.
This call is important. We need to be clear and draw a line in the sand. While we all support efforts to reduce the deficit, further undermining the critical housing recovery cannot be the price that is paid. Here are some suggested talking points for you to use when you call:
I am a constituent and a REALTOR®.
I have been on the front lines of the housing crisis. I can assure you that even talk of changing MID harms an already fragile market.
I am strongly opposed to the Deficit Commission's proposal to either limit or eliminate the Mortgage Interest Deduction.
News reports saying that Congress threatens to repeal or limit MID will keep potential buyers on the sidelines and further delay the housing recovery.
We must speak loudly and clearly with one voice to ensure the further recovery of our economy and the housing market and educate every legislator about how much Home Ownership Matters. We can't do that with the few REALTORS® who take action consistently. We need every REALTOR® to respond. Please call NOW and tell your representative to help defend home ownership and the MID*.
On behalf of the NAR Leadership team, thank you for your support and time,
Ron Phipps
2011 NAR President
*Standard text messaging fees and rates apply
________________________________________
Santa Clara County 2010 & 2011 The Good The Bad and The Ugly!
Happy Holidays to you all!
Here are the 2010 Market Statistics for Santa Clara County through October and my 2011 Forecast .
As I predicted in my previous reports, we are now seeing the year-end pickup in activity which is being buoyed by the mounting positive economic news in the US and corresponding stock market upswing. As an indicator of overall improvement in the San Francisco Bay Area’s real estate market in comparison to 2009.
I am now forecasting a 12% increase in overall sales volume for 2011 over 2010. I anticipate that prices will remain mostly flat/stable with a 3-5% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis. Overall, I expect that we will see an improved market in 2011 and we are now heading into the final stage of 2010 with headwinds that have more substance than the mostly government backed stimulus that drove the increased sales at the end of 2009.
From my family to yours, we wish you a very happy holiday season and a prosperous and peaceful 2011
Ginna, John and Claire
*************************************************************************************
Please find the most updated Market Dynamics statistics. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.
Here are some highlights to pay particular attention to as you review the data/graphs through October of 2010:
1. Median Price- The Median price clicked up in Santa Clara County and ended the month of October at $535,000, up from $520,000 in September. The SCC Median reached its low point in March of 2009 at $415,000. Over the past two weeks, we have seen a resurgence of sales activity including some higher end offers and sales between $2 and $5M+ in our market areas. This, coupled with the increased pending sales activity in October/November will likely lead to a fairly steady Median price range as we close out 2010. December 2009 ended with a Median Price of $500,000 and I am right in line with my projection for a year end Median of $525,000 in SCC.
2. Supply&Demand (Units)- We continue to see a significant distinction as we compare October 2008 with 2010 in each of the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply continues to remain significantly: down 27.7%. The number of under contract properties (pending sales) continues to remain- up 34.7% and the sold/closed escrows remain up 27.4% . The general pattern and direction of this market for the past 12-18 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows.
3. Month’s Supply of Inventory & Days on Market The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) is at the lowest point over the past two years at 2.8 months supply at month end (which is down from 4.0 months supply in September 2010 and 3.4 months in October 2009). This is down from a 2 year peak of 14.2 months in January of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months and has increased over the past three months to nearly 70 days on market average.
4. Sales Absorption- The Absorption metrics have been consistently compelling with the comparison of October 2008 vs September 2010 with under contract properties up 72.24% and closed/sold escrows up 61.58%. 22.5% of the active properties/listings were under contract as of October 2010, up from a final figure of 17.4 percent in September of 2010.
The first half of 2010 was significantly stronger than the same time period 2009. We had a slight slowdown over the summer months of this year which is not all that uncommon from a seasonal perspective. This slowdown, however, did correspond with some global economic concerns mainly surrounding the Euro and resulted in a temporarily declining stock market in the US. The past several weeks have seen renewed confidence, and signs of hope that the economic recovery is picking up momentum. The DOW has responded and has mostly remained above 11,000 most recently and the past two days has climbed above 11,300. This is been powered by positive developments and reports mainly in areas of employment, retail sales and real estate. Two Bloomberg articles* posted today highlight the factors leading the reasons for increased optimism which is also driving up the US and Bay Area pending sales activity as we close out 2010.
*Bloomberg: Stocks Gain, Treasuries Fall, on Retail, Home Sales Data; http://www.bloomberg.com/news/2010-12-02/asian-stocks-rise-set-for-best-gain-in-a-month-dollar-commodities-climb.html
*Bloomberg: Pending sales of US existing houses jumps a record 10% in October, indicating the industry at the center of the last recession is stabilizing as the job market improves; http://www.bloomberg.com/news/2010-12-02/pending-sales-of-existing-homes-in-u-s-increased-a-record-10-in-october.html
Here are the 2010 Market Statistics for Santa Clara County through October and my 2011 Forecast .
As I predicted in my previous reports, we are now seeing the year-end pickup in activity which is being buoyed by the mounting positive economic news in the US and corresponding stock market upswing. As an indicator of overall improvement in the San Francisco Bay Area’s real estate market in comparison to 2009.
I am now forecasting a 12% increase in overall sales volume for 2011 over 2010. I anticipate that prices will remain mostly flat/stable with a 3-5% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis. Overall, I expect that we will see an improved market in 2011 and we are now heading into the final stage of 2010 with headwinds that have more substance than the mostly government backed stimulus that drove the increased sales at the end of 2009.
From my family to yours, we wish you a very happy holiday season and a prosperous and peaceful 2011
Ginna, John and Claire
*************************************************************************************
Please find the most updated Market Dynamics statistics. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.
Here are some highlights to pay particular attention to as you review the data/graphs through October of 2010:
1. Median Price- The Median price clicked up in Santa Clara County and ended the month of October at $535,000, up from $520,000 in September. The SCC Median reached its low point in March of 2009 at $415,000. Over the past two weeks, we have seen a resurgence of sales activity including some higher end offers and sales between $2 and $5M+ in our market areas. This, coupled with the increased pending sales activity in October/November will likely lead to a fairly steady Median price range as we close out 2010. December 2009 ended with a Median Price of $500,000 and I am right in line with my projection for a year end Median of $525,000 in SCC.
2. Supply&Demand (Units)- We continue to see a significant distinction as we compare October 2008 with 2010 in each of the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply continues to remain significantly: down 27.7%. The number of under contract properties (pending sales) continues to remain- up 34.7% and the sold/closed escrows remain up 27.4% . The general pattern and direction of this market for the past 12-18 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows.
3. Month’s Supply of Inventory & Days on Market The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) is at the lowest point over the past two years at 2.8 months supply at month end (which is down from 4.0 months supply in September 2010 and 3.4 months in October 2009). This is down from a 2 year peak of 14.2 months in January of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months and has increased over the past three months to nearly 70 days on market average.
4. Sales Absorption- The Absorption metrics have been consistently compelling with the comparison of October 2008 vs September 2010 with under contract properties up 72.24% and closed/sold escrows up 61.58%. 22.5% of the active properties/listings were under contract as of October 2010, up from a final figure of 17.4 percent in September of 2010.
The first half of 2010 was significantly stronger than the same time period 2009. We had a slight slowdown over the summer months of this year which is not all that uncommon from a seasonal perspective. This slowdown, however, did correspond with some global economic concerns mainly surrounding the Euro and resulted in a temporarily declining stock market in the US. The past several weeks have seen renewed confidence, and signs of hope that the economic recovery is picking up momentum. The DOW has responded and has mostly remained above 11,000 most recently and the past two days has climbed above 11,300. This is been powered by positive developments and reports mainly in areas of employment, retail sales and real estate. Two Bloomberg articles* posted today highlight the factors leading the reasons for increased optimism which is also driving up the US and Bay Area pending sales activity as we close out 2010.
*Bloomberg: Stocks Gain, Treasuries Fall, on Retail, Home Sales Data; http://www.bloomberg.com/news/2010-12-02/asian-stocks-rise-set-for-best-gain-in-a-month-dollar-commodities-climb.html
*Bloomberg: Pending sales of US existing houses jumps a record 10% in October, indicating the industry at the center of the last recession is stabilizing as the job market improves; http://www.bloomberg.com/news/2010-12-02/pending-sales-of-existing-homes-in-u-s-increased-a-record-10-in-october.html
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