The recent government rescue of Fannie Mae and Freddie Mac has been a great thing for interest rates and consumer confidence. It will be interesting to watch it unfold over the next several weeks.
Our Cupertino office points out, “Lots of enthusiasm! Let’s hope it translates into transactions!” We’re definitely seeing increased buyer interest right now. Pendings are up 121% over this time last year and inventory is down. But buyers are still cautious and slow to make offers. Our Los Altos San Antonio office points out that “Activity was way up from last week. Buyers seem to be out in full force at our open homes.” Our Saratoga office concurs, despite what they thought was going to be a slow week. “Although sales have been decreasing,” said Saratoga Manager Pat McKeany, “we experienced a spike in sales yesterday with nine being processed. Hopefully this is a sign of improvement. Additionally we had 10 offers on a well-priced Saratoga home.”
The South County continues to be driven by bank-owned properties and sales in that market have been steady over the last week. In many cases, these homes continue to generate a lot of buyer interest and often result in multiple offers. Sellers in this market seem to be getting the idea and we are starting to see some welcome price adjustments.
Now that Labor Day is over and everyone is back from vacation, I think we’re going to see a spike in sales. Couple that with the Fannie Mae, Freddie Mac takeover and we’re in a pretty solid situation heading into autumn.
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