The real estate market in Saratoga, CA is transitioning from a “buyers market” back to a “sellers market” as we are once again seeing multiple offers, depending on how a property is priced.  We were involved in the sale of a $2.7 million property on Saratoga Heights Dr. last week that had six bidders and went well above list!  We also had the listing on a $425,000 condo in nearby Campbell that sold to multiple offers above list!

Based on the rate of closed escrows there is currently about 6 months of inventory; based on pending sales it is only 4.4 months inventory

Inventory reached a peak in May 2009, but sales also stared to pick up, compared with dismal year-end 2008 and first quarter 2009 results.

Long awaited improvement in the stock market coupled with some analysts saying that “the worst of the recession is over” gave more buyers confidence to re-enter the real estate market they judged had “bottomed out.”  But has it?

The front page of today’s San Jose Mercury News suggests the “Housing Slide May Move Into Rich Side of Town.”  According to Zillow estimates, Single family home prices in Saratoga droped only -10% from July 2008 through June 2009.

Until recently, Saratoga had been immune to short sales and REO.  Saratoga sellers generally have had more “staying power” than the low end of the Santa Clara County real estate market.  Short sales and REO are starting to show up on the list of pending and closed sales.  There are currently 21 properties in foreclosure stage in Saratoga; most have adjustable mortgages.  Click>here for more information.

So simple answers to complex markets are usually misleading.  Call me if you are a buyer or seller and I can tell you where the deals are and what your property is worth in today’s market.

Rick Bonetti | 408-857-8800 | The Art and Heart of Real Estate | Alain Pinel Realtors | DRE #01237009