Yes, your stats are correct, however the median price in the Valley are on the rise for the past 6 month in 2009:
SCC1 Mar $450K , Apr. $470K, May $490K, Jun $550K, Jul $590K, Aug. $560K
SCC2 Mar $239K, Apr $280K, May $310K, Jun $349K, Jul $330K , Aug. $330k
Notes: SCC1: Santa Clara County single family homes
SCC2: Santa Clara County condominium and town homes
Part of the reasons are the Government infusion money, the Home Protection Plan seems to be working, the banks got money to work. Secondly, the interest rates are excellent and attract more people; Last but not the least, the tax deduction program benefits lots of first-time buyers, which drive the market to active reactions.
Since supplies cannot meet the demand in this season, the bidding wars are everywhere. Last week in downtown San Jose, a 3-bedroom house listed at 200K got 84 offers. One Santa Clara 3-bedroom home listed at $560K got 50 offers and price went up to almost mid $700K, sold in 1 day. On average a desirable listing usually receive 3 offers.
Bargain buyers will be frustrated: If I keep on running into multiple offers, am I getting a bargain? There are two things a bargain buyer and a budget buyer can do: First and the utmost, find out your maximum limit in each bid. Do your math well, ask your Realtors for most updated COMPS to get the closet pricing. Second, ask yourself before you bid: Do I must have this house? List all the pros and cons, combine with all other material situations, such as upgrades, repairs, moving fees, new furniture etc. After all, buying and selling properties is an EMOTIONAL THING. (and money has to do with it, believe me!)
Will the situation cool down a bit in the coming months? The 2009 buying season is winding down. We are moving into Fall, the activities should slow down a bit, usually in the slow season, one may be able to find good bargain if a suitable property comes along. But the most important thing is: we need to see inventories growing, otherwise, the “war” will still be going….