With Obama’s Housing Stimulas Plan 2009, this season, we’ve seen home buyers really come out shopping.Especially the first time home buyers. California’s tax incentive plans of 100M ran out on July 3. In the Silicon Valley, City of San Jose’s MAP (Mortgage Assist Program) also had met quotas. Pretty soon, November 30th’ deadline for home buyers to claim $8000 tax credit will become a goal too impossible to reach. Why? Because we don’t have enough inventories in the Valley. All bargains had been SOLD OUT!!!
Per Referral Realty weekly inventory trace stats:
In Jun 1, 2009 Santa Clara County Class 1 (single family homes) and Class 2 ( condominium and town homes) had total 4,291 properties. As of Aug. 17, 2009 the inventories dropped to 3,504. 787 houses were sold during the 12 week period. Weekly sold units, both Class 1 and 2 maintain at around high 400 to mid 500 units level. Weekly closing units (status 5) raising from 266 units on June 1 to 325 (7/6) and dropped to 217 in (8/17). Compared with the same week (8/8) last year, the inventories had dropped from 7,039 to currently only 3,775.
This is a very encouraging phenomenon, but at the same time,the bidding war also created some frustration and anxiety among buyers. They couldn’t quite understand why the housing price is dropping but they still couldn’t buy.
The banks seemed to work well with the Government ‘s TARP program. After the re-fi craze in the beginning of the year, now the purchase finally got caught up, and with 30-day close came back as norm for Bay Area purchase pattern.
Activities and stats all seemed healthy and moving for this summer selling season. But we definitely need more inventories. IF no inventories MEANS JOB MARKET IS HOLDING STEADY, then that’s really a good sign of economic’s recovering. We may, however still need to proof this in the next few months to come.