Happy New Year! 2008 is going to be an interesting year for real estate. There are a number of economic factors at play as well as a media which loves to predict doom and gloom.

Mortgage interest rates are currently very low.

30 Year Fixed: 6.07%
15 Year Fixed: 5.68%
1 Year Adjust: 5.47%

Interest rates might even go lower if the Federal Reserve drops short term rates by another half point as expected later this month.
On other economic news, unemployment rates jumped a bit in December which caused a stir in the stock market. Existing home sales rose 4/10% showing very modest growth. The current expectation is that we will begin to see a very slow recovery starting in the Spring. It is currently a buyers market so it might be a good time to look for a second home or move up by renting your existing home and purchasing a new home. With low interest rates, a buyers advantage, and good inventory, now might be a good time to act before market becomes extremely competitive as it has been over the last several years.
If you or anyone you know have any real estate questions or needs please feel free to call or e-mail me.

Here is a snapshot of the activity between 2006 and 2007 in Santa Clara County.