Downturn? What downturn? The bubblistas may have to wait juuuust a bit longer (as they have been for seven years) for the foretold 40% market correction to happen around here. The new year has opened up here in the Peninsula with a bang for the real estate market, and whatever wobbly consumer sentiment there may have been in the last quarter of last year has been replaced with, well, quite frankly, a bit of a feeding frenzy.
If OFHEO and NAR numbers are trailing indicators of the market, and Altos Research’s real estate data represent leading indicators, then pre-leading indicator factors would have to be open house interest, and number of bids submitted.
Open house interest: By both of those metrics, the market has started off with a healthy bang. Of the 20-odd open houses hosted last weekend by colleagues in my office, most were swamped with interested buyers.
Multiple offers: I submitted an offer today on one of those rare finds: a sub-million dollar Palo Alto listing. Alas, 14 of my colleagues and their clients had the same thought. Multiple offers have been happening up and down the Peninsula in the last 10 days or so. Normally this level of activity doesn’t start till the rains end and Spring begins.
What will happen this year in the real estate market? Who knows…I certainly don’t. But I can say, with fair certainty, that it ain’t gonna be crashing around here any time soon.
Tags: Palo Alto, Real estate
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