Signs of Stability

How do we know when the market has hit bottom? We really don't until the low point has come and gone. But one of the key indicators that we are reaching stability is when the number of transactions starts to increase. We are seeing this in Marin's more affordable home property markets (San Rafael, San Anselmo, Novato). Month to month figures for units sold (say Oct '09 vs Sept '09) confirms a trend toward stability in these areas. Hard to believe, but we are seeing multiple offers, over asking price. Novato, under $500K is positively on fire, a real Seller's market. Some of our more exclusive home property towns (Ross, Sausalito) are also showing new signs of stabililty, though the number of transactions remains small and most experts still expect a bumpy ride ahead for the high end ($1.5MM+). Low interest rates for conforming mortgages and first time Buyer tax credits are in part responsible for these improving results. I expect an active 4th quarter as Buyers continue to capitalize on these conditions. See 3rd quarter stats on my Stats page.