This morning I ended up watching Ben Bernanke’s testimony until such time he mentioned inflation and transitory in the same sentence. I abruptly shut down my laptop and hit the gym. During my work out I reflected on my attitude towards the news and politics and came to the conclusion that I was just jealous that I could not have an audience to speak to and engage so as to be able to put certain words together so I can sound like I know what I am talking about.
I remembered that LuxuryHome.pro does have an audience as several hundred visitors visit this site monthly of which a full 25% + are local. When I run an adwords campaign traffic triples. A few years ago most of the Traffic was coming from New York, now its San Francisco…..New York is #7 in visitor’s traffic and #2 is Santa Rosa.
The first half of 2011 sales results are in with the following statistics. $1.5 million – $5 million closed sales for Santa Rosa are up approximately 35% from the same period last year. In the $1.0 mil to $1.5 mil closed sales are down 40% from last year. Entry level closed sales 100k – 400k identical to last year.
Values are down year to year with a noticeable shortage of available inventory. I believe this to be Transitory as our friends in Washington are prepared to be accommodative if necessary and have taken steps and have made plans to “Tighten” monetary policy if necessary.
Looking at the Santa Rosa Crystal Ball so to speak…….I believe that the bottom in values is in…..and what we in the field like to use as a barometer is under contract and pending statistics that are UP and the fact that the number of buyers looking in the Million plus range is up considerably.
Only question is…will they pull the trigger? If they do delay it will only be Transitory.