The best indication of which MLS sub-market areas are "hot" and which are not, is the ratio between pending sales and total inventory.  A few definitions are helpful:

 

Pending Status 2 means there is a contingency.  In today's market this is generally on a short sale where the bank reserves the right to accept other offers.  Less likely it could also be contingent of the sale of the buyer's home.  Because of these uncertainties that sales may not go through additional offeres are encouraged. 

Pending Status 3 means the sale is subject to just the "normal" inspection/financing/appraisal contingency period.  Occasionally, these properties are shown during the contingency period and back up offers accepted, but not usually.

Pending Status 4 means "do not show" in that all contingencies are removed and the property is just awaiting scheduled close of escrow.

 

"Hot" does NOT mean that the sub-market is not in "distress" because of short sales or foreclosures, it just means that those properties are being absorbed in the sales process.  Sub-markets that are hot" generally mean there is strong demand from the buyers perspective, but not necessarily strong price support from the sellers perspective.  It may mean there is buyer competition and multiple offers, because the prices are so low.  Hot sub-markets with a high proportion of short sales or foreclosures "taint" the values of non-distress properties.

 

Here is a snapshot of  "hot" MLS sub-markets as of May 27,2009.  These are sorted by the right column.

Single Family Residential	Active	Pending	Pending	Pending	Pending	Combined	Pending
City/Area	Status 1	Status 2	Status 3	Status 4	Total	Total	Percent
Stanford (243)	1	0	1	1	2	3	67%
South San Jose (11)	155	59	90	158	307	462	66%
Santa Teresa (2)	44	18	30	31	79	123	64%
Blossom Valley (12)	112	36	70	83	189	301	63%
Alum Rock (4)	276	57	135	265	457	733	62%
Berryessa (5)	109	29	45	88	162	271	60%
Whisman (200)	3	0	4	0	4	7	57%
Milpitas (6)	66	7	26	51	84	150	56%
Evergreen (3)	201	43	79	126	248	449	55%
Green Gables (238)	8	0	6	3	9	17	53%
Miramonte (209)	11	0	6	6	12	23	52%
Morgan Hill / Gilroy / San Martin (1)	352	53	154	148	355	707	50%
Sylvan Dale (201)	2	0	1	1	2	4	50%
Cambrian (14)	120	20	57	41	118	238	50%
Santa Clara (8)	135	17	51	55	123	258	48%
Central San Jose (9)	187	24	62	83	169	356	47%
Sunnyvale (19)	141	14	47	52	113	254	44%
Campbell (15)	127	6	52	35	93	220	42%
Willow Glen (10)	183	24	52	57	133	316	42%
Cupertino (18)	146	15	51	33	99	245	40%
College (236)	3	0	2	0	2	5	40%
South of El Monte (214)	39	2	15	8	25	64	39%
Highlands (213)	8	0	2	3	5	13	38%
North Shoreline (203)	8	1	3	1	5	13	38%
Crescent Park (239)	11	0	2	4	6	17	35%
South Palo Alto (233)	31	1	7	8	16	47	34%
Almaden Valley (13)	117	8	25	26	59	176	34%
Alviso (Santa Clara County) (7)	4	0	1	1	2	6	33%
Green Acres (231)	4	0	1	1	2	6	33%
Old Palo Alto (237)	12	1	1	4	6	18	33%
Palo Alto Hills (230)	6	0	1	2	3	9	33%
Grant (208)	17	1	1	6	8	25	32%
Downtown (242)	7	0	1	2	3	10	30%
North Los Altos (211)	36	0	9	6	15	51	29%
Professorville (241)	6	0	1	1	2	8	25%
Midtown (234)	22	0	1	6	7	29	24%
Country Club (212)	17	0	3	2	5	22	23%
Downtown (207)	14	0	2	2	4	18	22%
Thompson (205)	8	0	1	1	2	10	20%
Los Gatos/Monte Sereno (16)	204	6	31	11	48	252	19%
Saratoga (17)	167	4	21	14	39	206	19%
San Antonio (206)	9	0	0	2	2	11	18%
Ventura (235)	6	0	1	0	1	7	14%
Los Gatos Mountains (23)	73	2	9	1	12	85	14%
Los Gatos Mountains (23)	73	2	9	1	12	85	14%
Community Center (240)	8	1	0	0	1	9	11%
Los Altos Hills (221)	67	2	1	5	8	75	11%
Barron Park (232)	10	0	0	1	1	11	9%
County Area (210)	0	0	0	0	0	0	0%
North Bayshore (202)	0	0	0	0	0	0	0%
Rengstorff (204)	2	0	0	0	0	2	0%
Summary	3,368	453	1,170	1,436	3,059	6,427	48%
Prepared by Baniani & Bonetti 5/27/09