Have We Reached the Bottom of the Market?

On Thursday, July 9, 2009, IAS360, a leader in default management and residential collateral valuations, released its House Price Index which indicates that the national house prices gained 1.6% in May.

New home sales in June increased 11% when compared to May sales, which is the largest increase in more than 8 years.  According to David Resler, chief economist at Nomura Securities, “The worst of the housing recession is now behind us.”

According to Jonathan Dienhart, Director of Published Research for HWMI, “The incremental gains since March are counter to (the) typical seasonal trend, which suggests the market has found the bottom and is truly stabilizing, albeit slowly.”

 

As for the local Santa Ynez Valley market, the trend indicates (via the adjacent Market Velocity graph) that we are seeing a shift in the *days of inventory, which is now close to 1/2  when compared to the highest point.

Speaking with Realtors in other areas where there is a larger number of  “starter” homes, they are now seeing multiple offers on homes that at one time would have been considered over-priced.  As the low-end of the market recovers we are seeing an upward trickle affect. Generally speaking the low-end of the market is the first to be affected and the first to recover.

*Market Velocity-Days of Inventory-the number of days that it will take to eliminate the inventory at the rate properties are entering escrow.

If you are interested in Real Estate in the Santa Ynez Valley, Santa Barbara, Hollister Ranch or surrounding areas, please contact me at jenae@jenae-johnson.com or 805.452.9812.

You can also visit my web site at www.HomesOfSantaYnez.com

Jenaé Johnson

Broker Associate

Village Properties

Lic# 01308742