The Santa Clara County real estate market continues to defy predictions – high growth continues in areas with great school districts such as Cupertino and Sunnyvale, and low growth in many areas of San Jose with lesser school districts also continues.
One reason for the less than ideal all-around market conditions is excess inventory. It appears that there are many homes on the market now, probably at least in part due to rising interest rates and all the subprime lending issues that have recently peppered the news media.
Taking a look at sales vs inventory through April, we can see that there have been less homes sold in 2007 than last year, and more for sale:
However, prices continue to rise and the average price per square foot of a home in Santa Clara County is now $553. Why? Possibly because buyers are still buying, but are choosier now as the excess inventory creates more possibilities than were available before.
It will be most interesting to see how this scenario changes as we move into the summer months, and buyers have to start selecting homes before school starts.