Please click the chart to enlarge the image. This is a valuable information of the Silicon Valley real estate inventory from 2001 to 2013.
The chart showed the inventory at each January of the year. Usually a healthy real estate market inventory of 3,000 units and above support the market flow of support and demand for 6-7 months. In January, 2013, we’ve only had 303 units for the NWQtr, Class 1 and Class 2 combined (see notes below for definition). Which explains why good new listings come to market and got sold right away. And price wars continue.
Also, January 2008, the inventory had its peak of more than 5,649 units in the market, but at the same time closing was only 476 unit in that month for both Santa Clara County Class 1 and Class 2. (Lowest sale in the decade). That’s because most of the inventories were distressed homes and economy was about to melt down, home buyers were reluctant to buy.
I hope this valuable information will prepare home buyers of this Spring season. The market in the Valley is very robust and buyers have to be more than ready in order to win.
Class 1 = Single Family Residence
Class 2 = Townhomes/Condos
SCC = Santa Clara County
NWQtr = NorthWest of Highway 17/011 & SouthWest of Menlo Park/101 = SILICON VALLEY