• The “Shrinkage” in Inventory

    sold out

    Shrinkage.

    Yes, the inventory of homes for sale has been horrendously low the last couple months.  Shrunken, like a frightened turtle.

    It’s been a condition written about in many industry pubs and the local papers, but here’s the stark reality: with demand on the rise, and inventory staying precipitously low, many homes are selling for over asking price with multiple offers.  Buyers are feeling like it’s 2005 all over again. And this low inventory problem is driving up the prices. In every city around Silicon Valley.

    Every. City.

    How low is it?  Well, let’s take a look at the current inventory of homes for sale in some of the major cities here in Silicon Valley, and compare that to the amount of homes for sale exactly 12 months ago.

    In no particular order, here we go:

    Right now 12 mos. Ago
    Belmont 16 41
    San Carlos 14 46
    Redwood City 41 127
    Redwood Shores 3 13
    San Mateo 31 139
    Foster City 8 14
    San Bruno 13 65
    Palo Alto 23 34
    Los Altos 19 36
    Menlo Park 22 38
    San Jose 343 1,598
    Santa Clara 19 97
    Cupertino 15 28
    Saratoga 37 88
    Los Gatos 54 87

    Is there light at the end of the tunnel?  Time will tell, especially come spring time, when inventory typically peaks a bit before the summer time.  But is anything about our Silicon Valley market really typical?

    This entry was posted on Saturday, February 9th, 2013 at 12:53 am and is filed under Community events, Current Affairs, Pricing, Real estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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