Santa Clara Valley Real Estate Report – Nov/Dec 2011

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HIGHLIGHTS

– Pending sales up 9.2% year-over-year, nationwide.

– Notices of default dropped in October.

– The number of properties owned by the banks was down 14.4% year-over-year.

Pending sales were up 10.4% in October compared to September, and up 9.2% year-over- year, according to the National Association of REALTORS®.

Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this is indicates more buyers are taking advantage of the excellent affordability conditions,” he said.

“Many consumers are recognizing that home buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.

“Although contract signings are up, not all contracts lead to closings. Many potential home buyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as cancelling an old credit line while taking on a new one,” Yun said. “Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close the margins of qualifying, or they might get a loan but with less favorable terms.”

NAR encourages consumers to be aware of their credit score and actions which could hurt or enhance it.

http://houselogic.com, the association’s consumer website devoted to all aspects of homeownership, offers tips for improving credit scores at http://tinyurl.com/27czzgb.

MARKET STATISTICS
Sale of single-family, re-sale homes fell 4.8% in November from October. Year-over-year, home sales were off 5.9%. Year-to-date, home sales are flat.

Condo sales were off 2.5% from October, but were up 26.9% year-over-year. Year-to-date, condo sales are up 12.3%.

The median price for homes was down 5.1% year- over-year. This is the thirteenth month in a row the median price for homes has been lower than the year before.

The median price for condos was off 12.5% compared to last November.

Inventory of both homes and condos continues to be weak, which should be good for prices. Home inventory was down 28.9% compared to last November: 1,672 homes actively listed. Condo inventory was down 46.1% year-over-year.

Please remember, while statistics are nice, they will not determine the price you pay or get for a property. That will come down to you and the buyer or seller.

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