Most everyone is sensing that the market is really beginning to pick up steam. Multiple offer activity has picked up substantially from a few weeks ago when we literally had no multiple offer situations reported. Many analysts have been comparing the activity in late 2005 to earlier, more active times of the year. The reality is that we typically experience a seasonal slowdown in the last quarter of any year. While we may not continue to see a rapid rate of double-digit appreciation, most analysts including NAR, CAR and most recently, some local newspapers expect the market to be healthy in 2006 with mild appreciation.
The long holiday, incredibly wet weather and a hang-over from all the activity during the record breaking year of 2005 contributed to a slower start in 2006. As I look outside my window today, I see beautiful sunshine and it just happens to bringing along with it, a hotter real estate market in Silicon Valley.
Santa Clara County inventory remained much lower than expected as we closed out 2005 and we are starting off this year at a historically low level (approximately 2350 in Santa Clara County). Many multiple offers are being reported this week. We have historically low supply and very low interest rates.
Expect more heated activity in the coming weeks as we head into the peak buying season. Inventory should continue to climb at a healthy pace and is now being met with some strong buyer demand.
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