Market Trends Report

The Silicon Valley Real Estate Market Trends Report: February 2024

In this issue

Santa Clara County (SCC): Prices and Sales Rise to Start the Year

The median sales price for single-family, re-sale homes was up 12.1% compared to last year.

The average sales price for single-family, re-sale homes was up 7.6% year-over-year.

Sales of single-family, re-sale homes were up 19.8%, year-over-year, in January. There were 314 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

The sales price to list price ratio rose from 103.1% to 103.4%.

Pending sales were down 58.6% year-over-year.

Inventory of single-family, re-sale homes was down for the tenth month in a row. It fell 40.2% compared to last year. As of February 5th, there were 319 homes for sale in Santa Clara County. The average since January 2000 is 2,703.

Days of Inventory, or how long it would take to sell all homes listed for sale at the current rate of sales, rose from 19 days to 30 days. The average since 2003 is 89.

It took twenty-four days to sell a home last month. That is the time from when a home is listed for sale to when it goes into contract.

The median sales price for condos was up 8.2% compared to last January. The average sales price gained 2.4% year-over-year.

Condo sales were up 19.1% year-over-year. There were 131 condos sold in January.

The sales price to list price ratio rose from 100.5% to 101.1%.

Condo inventory was down 21.9% compared to last January.

As of February 5th, there were 193 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory rose from twenty-five to forty-four.

It took an average of thirty-seven 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 (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 https://avi.rereport.com/market_reports

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Want straiget 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 https://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.

Six More Weeks, At Least (SCC & SMC)

Feb. 2, 2024 — Purportedly, if a groundhog doesn’t see his shadow on the morning of February 2, an early spring can be expected, and when he does, it means six more weeks of winter. While the same certainly isn’t true for the Fed, the shadow of inflation was still seen by Fed members this week, and so it is likely to be longer than six more weeks before the federal funds rate is lowered from its current 22-year high.

While the statement that closed the January 31-February 1 meeting acknowledged that inflation has begun to retreat — “Inflation has eased over the past year but remains elevated,” said the release — Fed Chair Powell added greater color to this perception in his post-meeting press conference. “We’re looking for greater confidence that inflation is moving sustainably down to 2 percent,” he noted, adding “It’s not that we’re looking for better data. We’re looking at continuation of the good data that we’ve been seeing.” He also said that “The lower inflation readings over the second half of last year are welcome, but we will need to see continuing evidence to build confidence that inflation is moving down sustainably toward our goal.”

Responding to a question later in the press conference, he revealed that “Based on the meeting today, I would tell you that I don’t think it’s likely that the Committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that [cut rates].” and “That’s probably not the most likely case or what we would call the base case.”

Applications for mortgage credit declined by 7.2% in the week ending January 26, ending what was a pretty fair month for mortgage activity on a downbeat note. Requests for funds to purchase homes slumped by 11.4%, but those to refinance existing loans managed a 1.6% increase for the week. Mortgage rates have mostly leveled off over the last two months, with the average offered rate for a 30-year FRM holding between 6.6% and 6.7% over the last seven weeks.

Based purely on where the yield on the influential 10-year Treasury ended Friday — that is, back to about where it was before the Fed meeting — it looks as though that mortgage rates may have just a little space to retreat next week. Compared to this week, the economic data calendar is sparse, giving investors some time to ponder the present and future of the economy and path of monetary policy. We think that the average rate for a conforming 30-year FRM as reported by Freddie Mac will retreat by perhaps three basis points or so by the time next Thursday comes along. Should this decline come, it would put the most popular mortgage rate back at about nine-month lows, not a bad start for the upcoming spring homebuying season.

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

 

Real Estate Related Articles

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

WSJ 
11-06-2023

How the Real-Estate Fees Verdict Will Affect Home Buyers, Sellers
By Robin Rothstein

San Jose Spotlight
10-31-2023

Silicon Valley’s hottest housing markets lose residents

By Ben Irwin

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 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 https://www.smcare.org/default.asp
For Santa Clara County Tax Assessor visit https://www.sccassessor.org/index.php

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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 Upward Trend Decelerates in November

NEW YORK, JANUARY 30, 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 November 2023 show that 12 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 to CLICK HERE

 


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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: https://avi.rereport.com/market_reports

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Call or email me if you have any questions.

For further details and a city-by-city breakdown statistics, go to

https://avi.rereport.com/market_reports.

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Looking to Downsize?

Keep Your Property Tax Base

Under Proposition 60, California homeowners 55 and older get a one-time chance to sell their primary residence and transfer its property-tax assessment to a new one, but the market value of the new home generally must be equal to or less than the market value of the old home.

Prop. 60 was designed to help longtime California homeowners who want to downsize but don’t want to give up the low property-tax assessment they enjoy in their existing home.

Under Proposition 13, homes are reassessed for property-tax purposes when there is a change in ownership or new construction. In between ownership changes, the assessed value can go up by an inflation rate not to exceed 2% a year. (Homeowners can get temporary reductions when property values go down.)

Prop. 60 lets homeowners 55 or older transfer their base-year value from an existing primary residence to a new primary residence, but there are restrictions.

The new home must be in the same county as the old one or, as Proposition 90 added, in one of eleven counties that accept transfers of base-year value from other counties. The eleven counties are: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne and Ventura.

Also, the new home must be purchased or built within two years – before or after – the sale of the original property.

If the new house is purchased before the old house is sold, the market value of the new house on its purchase date cannot exceed 100% of the old home’s market value on the date it is sold.

Silicon Valley Real Estate Market Trends Report

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