The storm clouds which have been lingering over the San Carlos housing market for the last year may be starting to give way to brighter days. San Carlos tied a 2009 record today when its active inventory of single family homes dropped to 47 homes. Additionally, at least two of those 47 homes will be pending by tomorrow morning. Without any new inventory we will drop to 45 active homes by Thursday, which would be the lowest amount of available homes since early January of 2008. There is absolutely no doubt that the market has picked up over the last two months, especially in the 700K to 1M range. Many that were on the sidelines for so long, waiting to find a bottom to the market, are all of the sudden trying to get in. This notion is supported by the fact that we have 37 homes with a pending status in San Carlos. The 47:37 ratio of active versus pending homes is a very solid indication that our market has picked up strength over the past two months. Very low interest rates, tax credits, a slightly improving economy and a feeling that the San Carlos market may have bottomed, have all contributed to the recent spike in buyer demand.
While we are a far cry from the craziness of 2002-2007, it is nice to see the San Carlos housing market coming back to life.
Okay, I’m a bit (actually more than a bit) tired of hearing about the great tax credit for first time home buyers. This credit phases out based on income and is ZERO if your household income is greater than 150K. And, given the home prices in San Carlos, I’m guessing that many buyers need a HHI of 150K to afford houses and to qualify for mortgages. I really wish that all the real estate agents would be a little more honest about this supposedly fantastic credit.