What’s Hot and What’s Not

The best indication of which MLS sub-market areas are “hot” and which are not, is the ratio between pending sales and total inventory. 

“Hot” does NOT mean that the market is not in “distress” because of short sales or foreclosures, it just means that those properties are being absorbed in the sales process. 

Currently the hottest sub-markets (shown in parentheses) in Santa Clara County are South San Jose (11), Santa Teresa (2), Blossom Valley (12) and Berryessa (5).  Unfortunately, these areas also have a high incidents of short sales and foreclosures too.

Sub-markets that are hot” generally mean there is strong demand from the buyers perspective, but not necessarily strong price support from the sellers perspective.  

“Hot” may mean there is buyer competition and multiple offers, because home prices are so low, but hot sub-markets with a high proportion of short sales or foreclosures “taint” the values of non-distress properties.

Sub-areas that are not hot (less than 20% ratio of pendings to total inventory) are Los Altos Hills (221), Los Gatos mountains (23), Saratoga (17) and Los Gatos/Monte Sereno (16).  These areas have much higher median prices and also suffer from higher mortgage rates form non-conforming jumbo loans.  Properties are selling in these sub-markets and realistic pricing seems to be the key.

Click>here for more details of single family resale homes by specific MLS sub-markets.

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