I read an article this morning that says 64% of American's think this is a good time to buy. That compares favorably to a similar survey in 2003 when the figure stood at 66%. So, just because the majority think it's a good idea does that mean it's so? Yes!
Let's start with interest rates. Right now the average overnight rate on a 30 year loan is 5.25%. That's really cheap money. For jumbo loans - more applicable around here - the average rate is 5.95%. But wait, just because I can get a cheap loan doesn't mean it's a good time to buy. That's partly what started the downturn, right?
True enough but we're seeing strong demand without radical price increases. Multiple offers are making a comeback but the difference between the boom times and now is that we're not seeing most houses push way over their asking prices.
For Q1 2010 in Los Altos, we had 63 closed sales versus 27 in 2009. The median sales price increased from $1.41M to $1.521M and the percentage of listing price received increased from 93.56% to 97.29%. These statistics are for single-family homes.
It's a great time to buy and the statistics are showing that in this area we are doing our part. Let's have a strong Q2 and continue the trek back to a stable economy.