SAN JOSE, Calif., Dec. 13, 2010 /PRNewswire/ -- The Santa Clara County housing market appears to be recalibrating towards further recovery in 2011 – a year that will likely see strong sales and higher inventory, but also rising interest rates.
Buyer demand is strong – in November approximately 48 percent of all homes on the market, including single family homes, townhouses and condos, were in escrow, according to MLSListings Inc.
"Buyers recognize that the cost of homeownership will go up a lot once interest rates start climbing from all-time lows – in fact rates have been rising in the past month," said Karl Lee, president of the Santa Clara County Association of REALTORS®. "The number of closed sales might have been even higher with a more efficient short sale process and less stringent underwriting."
The inventory level is trending down from the year's peak of 6,872 in September. 5,902 homes were for sale in November. But the downward trend may change in the coming year.
Lee said, "Santa Clara County will probably see more short sales and foreclosures unless unemployment and income significantly improve. Sellers are well advised to put their homes on the market before competition increases from further influx of distress properties and as the typical market doldrums during the holidays end."
SCCAOR President Karl Lee can be reached for comments at email@example.com or 408.205.1726.
About the Santa Clara County Association of REALTORS®
SCCAOR, established in 1896, is California's oldest and Northern California's largest real estate association. We represent about 10,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.
SOURCE Santa Clara County Association of REALTORS