If you would have asked me a year ago, I would have told you it was not possible. Let me put in a caveat, however: the numbers do not represent all areas, only the county as a whole. Real estate is a micro climate business, so what is happening in your neighborhood does not necessarily reflect what is happening a few mile away in another town. Some areas are still hot and others are doing horribly.
What am I rambling about? It is called absorption rate: it measures the number of months it would take for the current inventory of properties to delete itself. According to NAR, a buyer’s market is represented by 6 months or more of unsold inventory.
Calculating the absorption rate, as I do every month tonight, I realized that we are at a monumental threshold: 5.83 months of supply as of today. This means if you were to put your house on the market today, you would be competing for buyers with 5.83 months of unsold supply of single family homes in Santa Clara County. We are technically in a balanced market and heading towards a buyer’s market at the current pace by next month. Now that’s food for thought for qualified buyers out there.
Steve Mun, Silicon Valley Realtor
www.stevemun.com
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