At the end of 2011, the inventory of homes for sale in Santa Clara County reached its lowest since March of 2005, at 2,018 units for sale. What does that mean? It means that with sales at a steady 1,100 per month clip at mortgage interest rates below 4%, real estate values in the San Jose/Silicon Valley area are ripe to strengthen. And who wouldn’t want that?
Don’t expect a wild run-up in prices this year as was seen in the early 2000s. Don’t even hope for that. What we’d like to see is values rising at least 4% in 2012. Based on 2011′s numbers and the current conditions, that’s a reasonable expectation and one that will put us well on our way to a better overall economy.
The Valley Breakdown – median prices and months of inventory for various parts of Santa Clara County – click image to enlarge
Santa Clara County Listings, Pended Sales, and Closed Sales: Houses, Townhouses, and Condominiums Combined
Vital Signs: (Santa Clara County houses, townhouses, and condos, as of December 2011)
Total Active Listings: 2,018
Average asking price of unsold homes: $876,000 (remember, luxury homes in higher price ranges take longer to sell and skew this number higher)
Average sales price of sold homes: $620,000
Median sales price of sold homes: $475,000
Average percentage of original asking price obtained by successful sellers: 94%
Average number of cumulative days on market: 79
Closed sales, year-to-date: 15,322
Listings expired during December 2011: 144
Average 1-year appreciation: 3.5%
Months of supply by the end of December, based on closed sales: 1.7 (sellers’ market: competing bids are not unusual)
Average 30-year fixed interest rate as of January 19, 2012: 3.88%, 0.8 points









