San Jose Real Estate * REALTOR ® * Richard Gonzalez

The 2008 Silicon Valley market historically resembles 2001 data.  The next major indicator for our area will be how the market reacts to the current credit turmoil of October 2008, Historically speaking  some spikes in our market place have taken 60 days to correct themselves.

October 2001 was a tipping point and ultimately when the market then began to heat up.  Obviously there are major differences from outside influences affecting the market but if we are trying to get a historical perspective then 2001 is the best year to compare to a 2008 Santa Clara County real estate market.

1/3 of  all Santa Clara County properties has sold over asking price, September coming in at 31.3% of the closed transactions.

We have returned  to the median price point set in Santa Clara County back in May 2000, from 2000 to the 2006 we saw an increase in the median sale price from the low $400,000 to $650,000 and now have see those prices drop back to $470,000.

Transactions that are likely to close are the ones that have been on the market for less than 60 days and properties that have been on the market for over 90 days are likely to TFT (transaction fell through) at an average rate of 12%.

Median days on the market for pending sales was 61, meaning that it took an average of 61 days or less for most people to get into contract.

Pending category is skewed based on our MLS regulations that state “short sales must be reported as pending once an offer is accepted”. As a result we are in contract at record levels, at the highest level in an 8 year average.

Inventory for January 2008 was over 300 Days on the market and is now at 121 of inventory. May 2008 saw an upward trend in the market. Setting aside normal declining levels of inventory during the holidays, it appears as though leading indicators are suggesting a rebound somewhere between February 2009 and April 2009 towards a balanced market environment.