The Case/Shiller Index, which tracks composite home prices across 20 major metro areas including the SF Bay Area, shows those areas mainly up again in October. The SF Bay Area edged up 0.4% from September to October, which is three months in a row of increases. Here's the story from the SJ Mercury News:
Does this really mean we've turned around? I'd say yes. As posted previously, both the median and average selling prices in Los Altos have increased each quarter this year. Also, inventory levels have been dropping steadily which helps drive more demand. That has been happening in Los Altos as well as Mountain View and Los Altos Hills.
You're probably wondering - why? In my opinion, low interest rates and a strong interest in living here. Rates are ridiculously low so anyone who can get a loan is getting one.
As for living here, we've got some of the best schools in the state, a comfortable semi-rural lifestyle (no streetlights, etc), and low crime. People want that and are willing to pay for it. We were one of the last areas to drop during the general market decline. We're among the first to recover.
We'll see how it goes but I think 2010 will be a really good year. I have a 4BR/2BA listing in Los Altos coming on the market in February so we'll see how that goes.