November 16, 2010
The real estate absorption rate, or months of invenory, can vary dramatically from one part of the local Silicon Valley real estate market to the next. Right now in Los Gatos, though, it’s fairly stable or uniform. The months of inventory are not terribly different between sale type & hope type in town. It’s not like that in most of San Jose or Santa Clara County! (Reminder, conservatively, 6 months is a balanced market, more is a buyers market and less is a sellers market.)
Houses in Los Gatos, “regular sale”, months of inventory = 5.78 MOI
Condominiums and townhomes in Los Gatos, “regular sale”, months of inventory = 5 MOI
What about short sales?
Short sale houses in Los Gatos, MOI = 5.4
Short sale condos or townhouses in Los Gatos, MOI = 4.5
This is really weird to have the short sales be selling so much better than regular sales. In Sunnyvale it’s the complete opposite! There regular condos and townhomes are selling at the rate of 4.42 MOI but those which are short sales are a whopping 16 months!
To get data and info on the rest of Santa Clara County, please visit my Silicon Valley real estate blog, The Valley of Hearts Delight.