The San Jose Mercury News reports home sales in November were at their lowest level since 2007-08 in both the East Bay and South Bay. Part of the reason may be attributed to there being fewer days to record sales – 17 as opposed to the more common 19 days. However, low inventory, high prices, and difficult to get loans were also a significant factor.
Demand remains high as clearly reflected in the rise in prices over the course of 2014. In San Mateo County home prices reached an all-time high in October and likewise in Santa Clara County in June. Alameda County came within 4.4 of a record high while Contra Costa County remained 35 percent below it’s peak.
Many agents predict that demand will remain high as would-be buyers try to escape rising rents and purchase a home before interest rates increase, as they are projected to do in 2015.