Followers of the market report know inventory in Santa Clara County has been at or near record lows for the past year.
This has had a salubrious effect on prices. The median price for single-family, re-sale homes is up 29% year-to-date.
The 3-month moving average median price is up 51% from the bottom of the market: March 2009.
Where are all the Sellers?
Which brings us back to the question, “where are all the sellers?”
It’s pointless to read the national press on market conditions in Silicon Valley. They don’t apply!
There is no “massive shadow inventory”. There are no investors buying foreclosed properties in bulk.
With the economy as strong as it is here, people have jobs, so they’re staying put. Retirees are also staying put to be near their families.
Low Inventory Explanation
The only other explanation for low inventory is homeowners who are underwater. Yet, Santa Clara County has the lowest percentage of underwater owners in the state, about 25% according to DataQuick.
So, for the foreseeable future, we will have rising prices fueled by lack of inventory and multiple offers.
With money at an all-time low, and property prices still about 22% below their peak in 2007, those who have cash or can get a loan are in prime position to make a purchase.
Morgan Hill Housing Market and Options
If you would like to discuss the Morgan Hill housing market and your options, please give DeVonna Meyer a call today at (408) 981-4079.
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