Silicon Valley Real Estate Market Trend Report:

March 2024

Santa Clara County (SCC): Prices and Sales Continue to Rise

Sales of single-family, re-sale homes in San Mateo County fell 21.4% in January, year-over-year. There were 99 homes sold in San Mateo County last month. The average since 2000 is 398.

The median sales price for single-family, re-sale homes was up 13.2% compared to last year.

The average sales price gained 8.3% year-over-year.

The sales price to list price ratio fell from 101.1% to 99.6%.

Inventory of single-family, re-sale homes was down 18.1% compared to last year. As of February 5th, there were 222 homes for sale in San Mateo County. The average since January 2000 is 1,287.

Days of Inventory, or the amount of time it would take to sell all homes for sale divided by how many homes have sold, rose from twenty-three to sixty-seven days.

It took forty-seven days, on average, to sell a home last month. That is the time from when a home is listed to when it goes into contract.

The median sales price for re-sale condos fell 3.0% year-over-year.

Year-over-year, the average sales price rose 6.2%.

Condo sales were up 2.5% year-over-year. There were 41 condos sold last month. The average since January 2003 is 122.

Inventory was down 9.2% year-over-year.

As of February 5th, there were 108 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory rose from fifty to seventy-nine.

It took an average of fifty days to sell a condo last month.

Home builders have been increasingly optimistic over the last few months, but consumers aren’t exactly buying new homes in droves. Sales of new homes rose by 1.5% in January to a 661,000 annualized rate of sale, and while this is the highest figure in the last three months, it’s also a figure barely better than during the same period a year ago. In addition, December’s initially reported sales were revised downward by 13,000 units, so there’s a reasonable chance that January actually featured little or no improvement, too. What didn’t change is that there are still 8.3 months of supply of new homes available to buy at the present rate of sale. Home prices remain high, and the median price for a new home sold in January was $420,700, increasing from December to start the year. Like those for existing homes, prices of new homes are starting the spring homebuying season in a firm stance, although the latest median prices was actually about $12,000 less than January 2023.

Builders are enthused because they know there is still very little available to buy in the existing home market, the largest segment of the housing market. Existing home sales seem poised to start the spring in a sluggish manner, as the National Association of Realtors Pending Home Sales Index for January declined by 8.3% compared to December — and is also 8.8% below levels seen in January 2023. This measure of signed contracts to purchase existing homes precedes closed sales by 45 to 60 days; as such, sales for February and especially March are likely to be lower than the current pace, not that it’s all that strong at the moment. Existing home sales tallied an annualized 4 million rate in January, so look for sales figures somewhat less than this in the coming months.

Requests for mortgage credit also point to more sluggishness ahead, too. The Mortgage Bankers Association reported that mortgage applications declined by 5.6% in the week ending February 23, and have now declined in four of the last five weeks. Applications for funds to purchase homes retreated by 4.5%, a fifth consecutive weekly decline, while those for mortgages to replace existing loans settled back by 7.3%, a third drop in a row. Lower mortgage rates in January and into early February (and typical seasonal effects) helped mortgage activity pick up a little bit to start the year, but higher rates in recent weeks have again damped action to a considerable degree.

If you are planning on selling your property, call me for a free comparative market analysis.

February 2024 Sales Statistics (SCC)

* Total inventory is active listings plus pending listings. Active listings do not include pending.

More information is available in our on-line report at http://avi.rereport.com/market_reports

 

Want straight answers to your real estate questions?

Call 650-305-1111 or send me a note to schedule a complementary & confidential one-on-one meeting.

VISIT http://avi.rereport.com/ for a free on-line market analysis of your property.

You can also perform your own personal search of properties for sale.

No Surprises, For Now (SCC & SMC)

Mar. 1, 2024 — A few weeks ago, the Consumer Price Index (CPI) report for January surprised to the high side, suggesting that inflation picked up a bit to start 2024. It was enough to kick long-term interest rates and mortgage rates higher, and another leg up came after the minutes of the January Fed meeting were released and suggested that the Fed was in no hurry to start cutting policy rates.

Where the bump in the CPI was a surprise and lifted interest rates, there was no similar market reaction to the January PCE inflation reports out this week, even though they also showed an appreciable increase in the month-to-month trend for prices. The overall PCE for January increased by 0.3%, up from December’s 0.1% and the largest increase in four months. However, and despite the monthly upturn, the 12-month running rate for PCE actually decelerated a little, sliding to 2.4% from 2.6% in December, so at least the overall slowing in inflation continued through the first month of the year.

Core PCE — the Fed’s preferred measure of inflation — also came in with a sizable 0.4% rise in January, the biggest monthly increase since January 2023. Despite ongoing expectations that they will slow, rising housing costs helped drive the core PCE figure higher again. As with the overall PCE price indicator, the January increase here failed to interrupt core PCE’s annualized decline, as it stepped down another tick to a 2.8% annual rate. This is the lowest it has been since March 2021, and is starting to get within range of the Fed’s 2% target.

Outlays for construction projects throttled back in January, posting a 0.2% decline. It was the first retreat for construction spending in more than a year. The big drag was from spending on public-works projects, which declined by 0.9%; this sector had been running very strong for about a year and a half, benefiting from projects likely fueled with cash from the CHIPs and infrastructure bills, so this may only be a temporary stutter for this component. Spending for non-residential projects eased by 0.1% to start the year, but an increase in funds for residential projects helped soften the decline in the top-line figure, as this component posted a mild 0.2% increase for the month.

Call or email me if you have any questions.

For further details and a city-by-city breakdown statistics, go to http://avi.rereport.com/market_reports.

 

Do you want to be notified of investment

opportunities across the country? send me a note with subject “investment’s opportunities

Real estate related Articles

www.urban.realtor
03-10-2024

Real Estate as an Asset Class
By CAR, NAR, S&P

Norda
Real estate investment
02-7-2024

10 Fastest Growing Housing Markets of the Previous Year
By Marco Santarelli

yahoo!finance
01-31-2024

20 Places in California Where Home Prices Have Plummeted
By Jake Arky

Forbs
01-10-2024

Mortgage Rates Forecast For 2024: When Will Rates Finally Come Down?
By Laura Kusisto & J.R. Whalen

California homeowners interested in building accessory dwelling units on their property just caught a break, potentially shaving off thousands of dollars in fees and permits.
In a move proponents say will help ease the Bay Area’s housing crisis, Gov. Jerry Brown on Tuesday signed Senate Bill 1069, making the so-called “granny units” easier and less expensive to build throughout the state.

For more read California eases restrictions on ‘granny units’ and http://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml

Helpful resource for home owners

Many new home owners or owners who consider remodeling or rebuilding their homes should take advantage of their county Tax Assessor web site. These web site and their respective city building departments web site typically have vest information regarding the process for applying for permits, the impact on their taxes and many other resources that home owners should be aware are available for them.

For the San Mateo County Tax Assessor office visit http://www.smcare.org/default.asp
For Santa Clara County Tax Assessor visit https://www.sccassessor.org/index.php

The Silicon Valley 150 Index Corner

The Silicon Valley’s Real estate market is a derivative of the local economy–it prospers and withers depending on how well the local innovation-based sector performs. The San Jose Mercury News tracks the performances of the largest 150 publicly traded companies headquartered in Silicon Valley through an index called the SV150, which may be found at www.mercurynews.com. Stocks are valued based on several criteria, but one of the more important criteria is a company’s future earnings. Therefore, I see the SV150 as a leading indicator for Silicon Valley’s real estate market.

Investors Corner

S&P CoreLogic Case-Shiller Index Reports 5.5% Annual Home Price Gain For Calendar 2023

NEW YORK,FEBRUARY 27, 2024:  S&P Dow Jones Indices (S&P DJI) today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for December 2023 show that 17 out of the 20 major metro markets reported month over-month price decreases. More than 27 years of history are available for the data series and can be accessed in full by going toCLICK HERE

U.S. Housing Markets Moving Into Rent Territory for First Time in Over 8 Years: Report

Is it time to seriously consider investing in real estate?

Signup for my Real Estate Investment Alerts and you’ll receive my real estate investment opportunities.

San Mateo County (SMC): Home Prices Up, Sales Down

Sales of single-family, re-sale homes in San Mateo County fell 21.4% in January, year-over-year. There were 99 homes sold in San Mateo County last month. The average since 2000 is 398.

The median sales price for single-family, re-sale homes was up 13.2% compared to last year.

The average sales price gained 8.3% year-over-year.

The sales price to list price ratio fell from 101.1% to 99.6%.

Inventory of single-family, re-sale homes was down 18.1% compared to last year. As of February 5th, there were 222 homes for sale in San Mateo County. The average since January 2000 is 1,287.

Days of Inventory, or the amount of time it would take to sell all homes for sale divided by how many homes have sold, rose from twenty-three to sixty-seven days.

It took forty-seven days, on average, to sell a home last month. That is the time from when a home is listed to when it goes into contract.

The median sales price for re-sale condos fell 3.0% year-over-year.

Year-over-year, the average sales price rose 6.2%.

Condo sales were up 2.5% year-over-year. There were 41 condos sold last month. The average since January 2003 is 122.

Inventory was down 9.2% year-over-year.

As of February 5th, there were 108 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory rose from fifty to seventy-nine.

It took an average of fifty days to sell a condo last month.

If you are planning on selling your property, call me for a free comparative market analysis.

January 2024 Sales Statistics (SMC)

* Total inventory is active listings plus pending listings. Active listings do not include pending.

You can get more information at: http://avi.rereport.com/market_reports

 

 

Call or email me if you have any questions.

For further details and a city-by-city breakdown statistics, go to http://avi.rereport.com/market_reports.

 

 

SILICON VALLEY REAL ESTATE MARKET TREND REPORT

Get it sent directly to your inbox and stay informed

Subscribe

MARKET TRENDS REPORT


Archives