Santa Clara County Glut Of Houses For Sale

More than a year of supply floods market

March 19, 2008
 
Santa Clara Co. Resale SFH Stats:

Active Listings (Ex Pending Sale Cont. Show): 5112, +83%, YoY, at multi-year
high. They generally peak during Aug-Oct. Last year the peak was 4918 in Oct.
We should see the number reach higher than 6,500 later this year. In Feb 08 only
424 homes were sold. All year we should have more than 12 months of supply on
the market.

Listings in Cupertino, Los Altos and Palo Alto (very high demand towns until
very recently) are up 50% in just two weeks. Looks like local tech Scams having
taken a drubbing is behind this.

Gilroy and Morgan Hill are dead markets with 28 months of supply (29 homes sold
in Feb with listings of 836). I think that people who keep their homes on the
market for 2 years have a serious mental problem. These people have been
dropping prices by 1%, 2%, 3%, etc., at a time and are always way behind the
curve, i.e., market price of their homes. More than 200 homes listed in Morgan
Hill are above $750K! How many buyers of these homes are out there?

Jas Jain
jas_jain@hotmail.com