As I was scanning/reading another real estate blog I came across an article at CNNMoney.com that addressed a big worry for every homeowner right now, “Has the real estate market hit bottom?”
The article states, “Because housing markets are intensely local, it won't do much good to check national figures. Instead, stay alert to leading indicators of recovery in your local market…”
The Indicators are:
- Inventory is declining – That would mean that there are less houses currently on the market than there were last month, the month before, last year, etc. In Gilroy there aren’t.
- Houses are selling faster than they used to – That would mean that the average “Days on the Market” number is lower for a category of property than it was last month, the month before, last year, etc. In Gilroy, it’s not.
- Sellers are acting less desperate – That would mean they lowered the list price, they held open their house both Saturday and Sunday for several months straight, they paid closing costs, they did all inspections, all repairs, and paid HOA for up to a year. In Gilroy, the signs of desperation are growing, not decreasing.
I don’t have to tell you what that means, but I will: In Gilroy our market is not through “normalizing.”
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