We are seeing continued momentum build throughout the Valley, and this is due to three main reasons: 1) Lack of Housing Inventory We have only 1.1 month's supply of single-family homes in Santa Clara County, and 1.3 in San Mateo County! What does this mean exactly? Using Santa Clara County as the example, it means if no other properties were to come on the market, at the current rate of sale today it would take only 1.1 months to clear through Santa Clara County's entire pipeline of housing inventory! That is a very short supply of homes as you can see. So what is the solution? We need more houses on the market! If you are thinking of selling, now is truly is a great time to be a seller. If you are or know someone who is, contact me or please refer me and I will be glad to help.
2) Buyer Demand and Urgency There are many layers of buyers currently in the market right now that is creating quite a competitive landscape. Today's buyers include:
- Those who were waiting on the sidelines last year for the market to recover, and jumping in now
- Buyers relocating to the Valley due to the recent employment surge
- Move-up buyers, many with post-IPO earnings
- Developers snapping up tear-down and land opportunities
- Investors snapping up rental properties, short sales and foreclosures (many paying in cash)
- International buyers
Combining this with record low interest rates has created a sense of buyer urgency to purchase we have not seen in years.
3) Increased Consumer Confidence Consumer confidence rebounded to its highest level in 13 months at the end of March as optimism about jobs and income overcame higher prices at the gasoline pump, according to a Reuters Survey. The consumer confidence index rose to 76.2, the highest since February 2011, from 75.3 in February.
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