In my last article, I pointed out that the inventory of single-family homes for sale in San Mateo County was declining, while the number of homes sold was rising. I noted that these might be “indications of a pending upward trend in prices” and that it was perhaps “the time to act for those who have been waiting on the sidelines to buy a home when the market bottoms.”

Recent news confirms my findings. According to chief economist of the National Association of Realtors ®, “”Despite the frictions related to obtaining mortgages, buyer interest remains solid. But inventory continues to shrink and that is limiting buying opportunities. This in turn is pushing up home prices in many markets”   (http://goo.gl/zdvPh).  And, Zillow claims, “The housing market has finally turned a corner (http://www.zillow.com/blog/research/2012/07/24/zillow-home-value-forecast-for-june-2013/).”

My previous article was based on sales statistics as of April 2012.  I now have the data for May and June as well.  I thought I should check and see what is new in San Mateo County.  Here is what I found:

Inventories continue to be almost 40% lower than a year ago. Numbers of monthly closed sales are about 10% above last year’s numbers.

Homes have begun selling in about 40% less number of days.

Average sale price have increased by 5% from a year ago.
The data are quite convincing that the housing market might have indeed “turned a corner” or “bottomed.” While within the current political, legislative, and economic environment of many uncertainties, we should perhaps have sustained trends for longer periods of time in order to be really convinced, I am convinced enough at this time to stand by my suggestion that it may be time to act if you were waiting for the market to “bottom.” I think the bottom is here; unless you are a short-term “flipper” it would not matter in the long run whether the true bottom happened last month or it will happen in a few months from now.