Weekly Market Report for the Week of January 29th-February 4th, 2006:

Happy Valentine's Day Bloggers!

Santa Clara County inventory remained relatively stable this week at around 2433 total properties for sale. The increasing buyer demand and rate of sales is snapping up new inventory. The great weather is also heating up the bay area real estate market and it's a reminder of how blessed we are to live here.

We had a slow start in the beginning of January but we are moving into full swing. Many entry level markets in the valley with properties listed under $1 million are seeing a great deal of multiple offer situations. Our Santa Cruz market is just beginning to heat up as well. Coastal properties (beachfront) are moving well with cash buyers on the hunt for the right home. The entry level market in Santa Cruz is moving a bit slower but most likely trending activity in the valley. Expect a push in the next few weeks in the Santa Cruz, Capitola and Aptos markets in most price ranges.

Nearly every Silicon Valley office reported multiple offers this week and some, like Los Gatos, "in all price ranges." This included a few in the $2-3 million range. One of our Cupertino offices had two offers on a apartment building listed at over $10 million. Other offices reported multiple offers on 50% or more of their sales this week. Here are a few quotes from our managers over the past week, "the market is great," "Great sales, quiet listing week," "buyers are out looking for the best new listings-good properties get noticed," "Good activity, especially on open homes."

Expect slightly increasing inventory and continued buyer and sales activity throughout the balance of February.