Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Home Sales Down, Prices Up

Sales of single-family, re-sale homes were down for the third month in a row, year-over-year, in November. Sales fell 10.2%. There were 857 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

The median sales price for single-family, re-sale homes rose 3.4% from October. It was up 21.7% compared to last year. That’s the twenty-fifth month in a row the median sales price has been higher than the year before.

The average sales price for single-family, re-sale homes rose 4.8% from October. It was up 19% year-over-year.

The sales price to list price ratio went from 109.4% to 110.4%. Multiple offers continue to be the norm.

Pending sales were up 18% year-over-year.

Inventory of single-family, re-sale homes was down 53.4% compared to last year. That is the twenty-seventh month in a row inventory has been lower than the year before. As of December 5th, there were 309 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, fell from 15 days to 10 days. The average since 2003 is 89.

It took only sixteen 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 9.4% compared to last November. The average sales price gained 8.9% year-over-year.

Condo sales were up 17.3% year-over-year. There were 434 condos sold in November.

The sales price to list price ratio went from 103.9% to 104%.

Condo inventory fell 60.7% compared to last November.

As of December 5th, there were 202 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory fell nine days to thirteen.

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

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

November 2021 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

Home Prices Continue Rising (SCC & SMC)

November 24, 2021 — Demand for existing homes remains strong, but limited inventory continues to be a throttle for sales and an accelerant for home prices. Little available to buy during the traditional spring homebuying season helped extend that period into the late summer months, and as soon as the number of homes for sale improved a bit, sales rebounded as we moved into the fall. In October, sales of existing homes rose by 0.8% to a 6.34 million (annualized) pace, and the increase in sales over the last two months thinned stockpiles of homes for sale back to a very lean 2.4 months of supply at the current sales pace. Inventories had improved slightly over the summer, rising to 2.6 months for a couple of months in a row, but these have of course been snapped up by willing homebuyers. Homebuyers continue to buy despite sill-sizable price increases; compared to last year, the median price of a home sold in October was 13.1% higher, although that’s still a relative improvement over the 23%-plus annual price increases seen in the spring.

Given the continuing lack of homes for sale, still-rising prices and mortgage rates that are likely to be less-supportive over time, it doesn’t seem likely that sales of existing homes will be able to continue to climb. As well, as we are headed into what is usually the softest portion of the year for home sales, the number of homes for sale may get leaner as some are pulled off the market for the holidays and some potential homebuyers may wait out better weather to shop for homes. Both actions would curtail sales to a degree. Pending home sales (a measure of contracts signed) slipped in September, and October’s report comes next week, inferring sales activity for November and December.

Sales of new homes continue to exhibit a lack of traction. Originally put at 800,000 annualized sales in September, this figure was revised downward to 742,000 in the latest report, and October’s sales managed only a 0.4% increase on that to rise to a 745,000 annual figure. A lack of inventories of homes to buy isn’t the problem here; there are 389,000 units built and ready to be sold, a 6.3 month supply, and the highest monthly figure since September 2008. In fact, and excepting the 2005-2006 boom (and subsequent 2008-2012 bust) the number of new homes for sale is pretty close to historical normal levels. This also suggests that homebuilding may throttle back somewhat in months to come, and it may be that new home sales around 800,000 is all that we can expect at the moment. Prices of new homes aren’t skyrocketing as they are in the existing housing market, but the 1.3% increase put the median price of a new home sold at $404,400, about $50K more than the median price of an existing home.

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 Corner

S&P CORELOGIC CASE-SHILLER INDEX REPORTS 19.5% ANNUAL HOME PRICE GAIN IN SEPTEMBER

NEW YORK, NOVEMBER 30, 2021: 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 September 2021 show that home prices continue to increase across the U.S. More than 27 years of history are available for the data series and can be accessed in full by going to CLICK HEAR

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 Continue to Fall

After being higher, year-over-year, fourteen months in a row, sales of single-family, re-sale homes in San Mateo County fell for the third month in a row. They were down 7.5% in November. There were 370 homes sold in San Mateo County last month. The average since 2000 is 398.

Sales prices for single-family, re-sale homes rose in November. The median sales price gained 6% from October. It was up 33.7% compared to last year. That’s the eighteenth month in a row the median sales price has been higher than the year before.

The average sales price for single-family, re-sale homes rose 3.5% from October. It was up 26.5% year-over-year.

The sales price to list price ratio rose to 109.5% from 109.2%.

Inventory of single-family, re-sale homes was down 49.2% compared to last year. As of December 5th, there were 215 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, fell to seventeen days.

It took seventeen 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 rose 3.8% year-over-year.

Year-over-year, the average sales price rose 10%.

Condo sales were down 17.3% year-over-year. There were 105 condos sold last month. The average since January 2003 is 122.

Inventory was down 49.6% year-over-year.

As of December 5th, there were 127 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory stayed at thirty-five.

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

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

November 2021 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.