Santa Clara County Market Condition

Click on the picture above to see an enlarged version.

As of 10/27/08, the Absorption Rate for Single Family homes was 7.61 months and Condos/Townhomes was 7.67 months.



Absorption Rate projects out into the future the amount of time (in months) it will take to sell a typical home if it come into the market place now. Simply put, it is a formula which looks at the numbers of homes sold in a designated area in the past (typically a full year) and compares those against the number of homes that are unsold in the marketplace (right now), to come up with the projection. It is perhaps the single most important formula in making home buying/selling decisions, yet only a handful of Realtors seem to discuss it. I hope you find this information useful. It will be updated on a monthly basis.

According to National Association of Realtors (NAR), the real estate market is defined as follows:



More than 6 months of supply = Buyer's Market

6 months of supply = Balanced Market

Less than 6 month of supply = Seller's Market





Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

Conforming Rate decrease coming soon!

A little reminder for everyone: until the end of this calendar year (2008), the FHA insured loan limit for “Jumbo” Conforming Rate will remain at $729,750; but starting in 2009, that limit will change permanently to $625,000.

This means for whatever reason, if you have to buy this year, then it will be the last opportunity for you to participate in this special program and be permitted to borrow up to over ¾ of a Million dollars to purchase your home. Remember, any amount above and beyond the conforming rate limit will be more difficult for most borrowers to obtain and will come with significantly higher interest rates, so if you must buy, then it will be a great chance for you to buy now.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com