Wall Street could also play a pivotal role if the stock market worsens and impoverishes stock-rich home buyers, often credited with triggering the current boom. But waiting to buy, gambling that the seller's market will end and yield more affordable housing could be a sucker bet. Just the opposite. After the weaker than normal spring buying season, as summer wanes, the market should heat up again when vacations end and buyers notice the greater selection of homes for sale. The board also reported that monthly sales peaked at 1,905 in March, but then fell three consecutive months to 1,788 sales in June before barely turning up to 1,794 in July.
Interest rates continue to cooperate with buyers.
There's a lot less demand for funds in Asia because the economies are so sour,'' said Howard Roth, vice president and regional economics director at the Bank of America. While interest rates remained flat, inventories bulged, more than doubling from a paltry 2,519 listings in January to 5,249 in July, according to the board. There wasn't enough to sell. Now we are getting a more normal inventory and we are already seeing some strong numbers in August,'' said Karen Trolan, a Coldwell Banker senior vice president and regional manager in San Jose. The long sought-after increase in inventory is a natural progression in a hot market, as neighbors watch neighbors sell at sizable profits and also decide to cash in.