Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Home Prices Slip in July

The median sales price for single-family, re-sale homes in July was down for the sixth month in a row and eight of the past nine months, year-over-year. It fell 4.1%. It was also down 4.8% from June.

The average sales price was down for the ninth month a row, year-over-year. It fell 4.5%. It was down 4.9% compared to June.

The sales price to list price ratio dropped to 100.6% from 101.6%.

Home sales rose 0.5% from June, but they were down, year-over-year, for the fifteenth month in a row: -3.1%. There were 821 homes sold in Santa Clara County last month. The average since 2000 is 987.

Inventory continues to expand. It has been higher than the year before fourteen months in a row. Last month, it was up 19.5% over last year.

Days of Inventory, or how long it would take to sell all homes listed for sale at the current rate of sales, fell four days to 50 days compared to June. The average since 2003 is 89.

As of August 5th, there were 1,375 homes for sale in Santa Clara County. The average since January 2000 is 2,778.

It is taking twenty-seven days to sell a home. That is the time from when a home is listed to when it goes into contract.

Prices for re-sale condos were down significantly last month from the month before and year-over-year. The median sales price fell 10% from June and 12.5% from last July.

The average sales price fell 8.2% from June and 11.3% from last July.

Sales prices for condos have been lower than the year before nine months in a row.

The sales price to list price ratio fell from 101.3% to 100.6%.

Condo sales were down 25.1% year-over-year.

Inventory continues to expand. It has been higher than the year before fourteen months in a row.

As of August 5th, there were 625 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory fell to sixty-six.

It took an average of twenty-seven days to sell a condo last month.

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

August 2019 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

The Fed Cuts Rates by .25 Point (SCC & SMC)

Aug. 1, 2019 — The Fed cut rates, but 30-year, fixed-rate mortgage rates didn’t budge. They stayed at 3.75%.

With market and Fed-engineered interest rates already low, the Fed’s posturing is arguably more important than the coming small move in the overnight, intra-bank lending rate. Outside of manufacturing and agriculture — both battered by erratic trade policies and tariffs — the economy here is in pretty good shape, and central banks around the world have begun taking steps to help shore up their local economies. If the present “truce” with China can hold, or even be resolved amicably, odds favor that somewhat better economic fortunes lie ahead on a global basis.

Mortgage rates were materially lower during the “spring homebuying season” than expected when the year began. However, the traditional homebuying season is coming to a close now with the release of June’s home sales data. The trend is… well, there really is no trend, per se; if anything, the fall in rates simply helped serve as an offset to home price gains that continue to outstrip income growth, and stabilized the housing market at a moderate rate of sale. In June, sales of existing homes fell by 1.7%, leaving the annualized rate of sale at 5.27 million units. With slightly softer sales, inventory levels continued to creep higher; now at 4.4 months of supply at the present rate of sale, it is the highest since last September, if still well below the 6 months of supply that is consider optimal. After settling into the mid-to-upper 3 percent range early this year, home prices increases have rebounded a bit of late, and sported a 4.3% year-over-year increase in June.

With inventories of existing homes still pretty tight, it would stand to reason that some potential homebuyers look to the new home market instead. However, sales here have also been only moderate at best, but in June did flare 7% higher to a 646,000 annual rate, a figure about average for the first six months of 2019. Despite the bump in sales, inventory levels here remains somewhat above optimal, with builders holding about 6.3 months of inventory at the present rate of sale — about 338,000 actual units built and ready to be sold. With inventory moving at only a moderate rate it is unlikely that we’ll see housing starts improve very much in the future, and in fact, the pattern for starts has been a pretty level one for much of the spring. The median price of new home sold this June was 2.7% higher than last year at the same time, and the median price of new homes sold in a month tends to bounce around a lot from month to month (May showed a 9.9% decline in price, for example)..

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.

Real estate related Articles

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 Corne

S&P CORELOGIC CASE-SHILLER INDEX SHOWS ANNUAL HOME PRICE GAINS CONTINUE TO WEAKEN

ANNUAL HOME PRICE GAINS DIP TO 3.4% ACCORDING TO S&P CORELOGIC CASE-SHILLER

NEW YORK, JULY 30, 2019 – S&P Dow Jones Indices 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 May 2019 shows that the rate of home price increases across the U.S. has continued to slow. More than 27 years of history for these data series is available, and can be accessed in full by Clicking here

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

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San Mateo County (SMC): Home Sales Prices and Sales Continue to Fall

Prices for single-family, re-sale homes were down for the second month in a row, month-over-month. The median sales price fell 3.9% and the average sales price fell 8.9%. Year-over-year, the median sales price was down 2.8%, but the average sales price gained 2.0%.

The sales price to list price ratio rose from 104.6% to 104.9%.

Home sales fell 6.3% from June, and, were down, year-over-year, for the ninth month in a row: -10.6%. There were 345 homes sold in San Mateo County last month. The average since 2003 is 398.

Inventory continues to expand. It has been higher than the year before fourteen months in a row. Last month, it was up 11.8% over last year.

Days of Inventory, or the amount of time it would take to sell all homes for sale divided by how many homes have sold, dropped two to forty-one days.

As of August 5th, there were 472 homes for sale in San Mateo County. The average since January 2003 is 1,287.

It is taking twenty-two days to sell a home. 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 from the new high reached in June. It was down 7.8% year-over-year. The median sales price rose 10.5% from June. The average sales price fell 8.8% from June. Year-over-year, the average sales price fell 7.4%.

Condo sales rose 2.8% year-over-year.

Inventory continues to expand. It has been higher than the year before twelve months in a row. It gained 30.9% over last July.

As of August 5th, there were 123 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory fell to thirty-four.

It is taking only twenty-five days to sell a condo.

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

August 2019 Sales Statistics (SMC)

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.