February’s inventory numbers showed gains in all reported counties when compared both month-over-month and year-over-year. Santa Clara County leads the way in year-over-year gains with a staggering 49% jump, while San Mateo and Santa Clara Counties saw a 23% and 22% jump when compared month-over-month. More homes are coming to market and this trend will continue into Summer. Will the increased number of homes help to slow down appreciation? Too early to tell. Add in the variable of increasing interest rates as the bond market begins to sell, demand may drop slightly as inventory increases slightly, and price pressure may ease, slightly.
The graph below shows the inventory of homes and average sales price curves for San Jose.
(data source: MLSLISTINGS.com February 2015)