Whoa, doggies! It’s been awhile since we had a State of the
Market address. Here goes: Fourscore and seven years ago our
forefathers brought forth upon this continent a new nation
conceived in liberty and
– oops. Wrong folder.
Whoa, doggies! It’s been awhile since we had a State of the Market address. Here goes: Fourscore and seven years ago our forefathers brought forth upon this continent a new nation conceived in liberty and – oops. Wrong folder.
Hmmm…oh, here it is. It appears the inventory in San Benito County is following its New Year’s resolution to lose weight. It stands at 310, as opposed to almost 400 a few months ago. Since the start of the year, we’ve seen 58 transactions pop onto the Multiple Listing Service (MLS). We’ve added 23 new listings, and removed 24 due to withdrawal, cancellation and expiration. Six properties closed escrow which means they have changed hands, exchanged keys, moved out and moved in. We had 3 contracts accepted on properties.
In south Santa Clara County, inventory is down to 364 after a high of more than 500. The MLS saw 123 transactions. There are 45 new listings. Again there was a net reduction because 32 listing contracts were canceled, expired or were withdrawn and 16 properties closed escrow. There were 11 sales.
What does this say about the outlook for real estate this year? Not a darn thing. This is merely a snapshot of the market. You’ll get these throughout the year. Over time, we’ll be able to see trends and make some sense of it all.
Last year was not a fun time to be in real estate. So many new real estate agents had flooded the industry with high hopes. It was depressing to see them get discouraged by a lack of success and slowly move on to a more lucrative and stable work environment. In addition, there were beautiful properties that sat and sat and sat, not getting any showings. The sellers became discouraged and disillusioned.
It is much more fun to be in a market where business is bustling and both Realtors and their clients are seeing dreams come true. But the market is always cyclical. I think the statistics we reviewed today indicate a move toward a stable market.
At the beginning of 2006 there was a huge drop in the amount of sales, causing the time on the market for each property to go way, way up. Sellers became frustrated and frantic. The buyers, on the other hand, were content to sit and wait for that long-anticipated real estate bubble to burst. Have you noticed that never happened? That’s because there never was a bubble. It was media hype that caused a furor. It sold papers, gave talk radio a field day, and wreaked havoc with the peace of mind of California buyers and sellers.
Then we saw a standoff. Sellers wanted to stand firm on prices, buyers wanted huge concessions and killer deals. Mortgage rates continued to be both favorable and stable, allowing buyers to feel complacent in their strategy.
But viewing the past with 20-20 hindsight, we find overall last year (according to the economic experts at the California Association of Realtors) prices rose about 7% throughout California. So buyers holding off for the deal of a lifetime are actually short-changing themselves. Real estate has always been a wealth builder overall. The timing of it is not crucial unless you plan on moving in two years or so. Call your local real estate professional today to see what options you might want to explore in 2007.
So the inventory of our local market has reduced as many of us are hoping our waistlines will this year. (Why did you make me eat all those holiday treats? Arrrgggghhh.) The New Year is also a good time to make a reduction in our home’s inventory. We often forget to be grateful for what we have and realize we already have everything we need. Most of our houses are a riotous jumble of things rather than a harmonious collection of objects that truly mean something to us. If an object is not beautiful, useful or hugely sentimental, what is it doing in the rooms of your home?
Perhaps it’s time to simplify each room. This does not mean you have to choose a lesser life style or that you make do or live without, but that you weed out “things” that do not inspire, comfort, and serve you. Surely there is a home for each of possessions which no longer assist you in celebrating your life.
Sell it on eBay, donate it to Emmaus House, Hazel Hawkins, Hope or St. Vincent de Paul. Have a neighborhood garage sale. Leave it on the sidewalk with a sign reading “Free.” (Actually, a guy did that with a desk. It sat for two days. He changed the sign to read $10 and it was stolen within the hour. Sigh.)
In the book “Simple Abundance” by Sarah Ban Breathnach six principles are identified as guidepost towards a lush, rich life. They are gratitude, simplicity, order, harmony, beauty and joy. May you be blessed with these gifts of the spirit in 2007.
And be kind to your Realtor. May he or she be blessed as well!
