Real Estate Articles

REALTOR®: Pending home sales hindered by low inventory

Low inventory constrained September pending home sales in California, according to the California Association of REALTORS®. C.A.R.'s Pending Home Sales Index fell 3 percent from a revised 119 in August to 115.4 in September, based on signed contracts. Pending sales were up 0.8 percent from the 114.5 index recorded in September 2011. 

Data from MLSListings Inc. shows Santa Clara County had 1,892 single-family home sales under contract in September, down from 2,116 from August and 2,434 in September 2011. Single-family home sales under contract in San Mateo County were at 758 in September, compared with 793 in August and 827 in September 2011.

Inventory continues to lag. In September, inventory of single-family homes in Santa Clara County totaled 2,162, down from 2,371 in August and 3,856 in September 2011. San Mateo County inventory of single-family homes totaled 1,023 in September, down from 1,063 in the previous month and 1,750 in September 2011.

The low inventory and historically low interest rates are bringing buyers into the market, which is leading to multiple offers on many properties, said Suzanne Yost, president of the Silicon Valley Association of REALTORS®. "In this type of market, it is difficult to go it alone. You need the expertise of a knowledgeable Realtor who can provide comparable data, and prepare and negotiate the best contract," said Yost.

Yost shares the following tips with buyers:

• Be prepared to make a substantial down payment. In many cases, it means being able to provide at least 20 percent down.
• Get preapproved for a mortgage loan, not just prequalified.
• Decide on the price you are willing to pay for a home and how high you are willing to go in a multiple offer situation, so that you don't get caught up in an emotional decision.
• Be ready at a moment's notice. It's a tight market and your REALTOR® will be reviewing listings as soon as they're available. If he or she finds something that matches your criteria, you'll want to look at the house and be ready to make an offer — quickly. If your REALTOR® advises making an offer quickly, that is usually good advice in today's market.

The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please email or call the SILVAR office at (408) 200-0100.

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