Silicon Valley Sales are UP

Despite all the bad news out there about slashed prices and houses sitting for months without a buyer, transaction amounts in Santa Clara county are nearly equal to those at the height of 05's boom. Because prices have fallen, people who couldn't qualify for mortgages three years ago are now able to buy. 

Here's a quote from Santa Clara County Median Home Price, Sales Tumbled published in Mercury News two days ago--

"For each of the past four weeks, more than 300 houses a week found buyers and went into escrow, the first time that's happened since May 2005."

The prices are attractive to people looking for homes--not so much for investors who probably wouldn't be able to make a profit off of rents too low to cover monthly taxes, the mortgage, and other costs. 

The median price of homes in the Bay Area is down 26% since May 2007. That's a drop from about $720,000 to $535,750