A Good Time To Buy?

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Any Real Estate recovery must come from the bottom up. The increasing improvement in availability and prices of homes and mortgages, especially in the 1st time buyer field will be the force that reverses the recent decline in the market. This will not happen overnight but in some parts of Santa Clara County it is already visible. Anyone who has tried to buy a Bank Owned Property recently can tell of the disappointment of finding themselves out bid due to multiple offers. This is a definite indication of a stabilizing market ready to bounce back once the oversupply of Short Sales and REO’s works its way through the market place. This will not be for a few months yet but it will happen.

It’s a good idea to remember that the bottom of a market is impossible to see until it’s moving away from you. However, it can be anticipated by comparing the number of New Listings coming on the market to the number of Pending Sales over the same period. When this ratio begins to get close to it’s historical norm it is a very strong indicator that we are close to a bottom.

Beware: Where the market is distorted by a high number of distress sales (Bank Owned and Short Sales) this indicator is still useful but does not tell the full story.

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