Silicon Valley Real Estate Market Trend Report:

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

The median sales price for single-family, re-sale homes rose 24.2% compared to last year. That’s the twenty-seventh 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 was up 26.2% year-over-year.

The sales price to list price ratio went from 111.7% to 113.7%. Multiple offers continue to be the norm.

Sales of single-family, re-sale homes were down for the fifth month in a row, year-over-year, in January. Sales fell 27.3%. There were 429 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

Pending sales were up 23.4% year-over-year.

Inventory of single-family, re-sale homes was down 31% compared to last year. That is the twenty-ninth month in a row inventory has been lower than the year before. As of February 5th, there were 334 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 9 days to 23 days. The average since 2003 is 89.

It took only fourteen 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 2.4% compared to last January. The average sales gained 5.6% year-over-year.

Condo sales were down 12.1% year-over-year. There were 233 condos sold in January.

The sales price to list price ratio rose from 104% to 106.1%.

Condo inventory fell 59% compared to last January.

As of February 5th, there were 152 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory rose ten days to twenty.

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

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

Condo inventory fell 72.2% compared to last December.

As of January 5th, there were 105 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory fell three days to ten.

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

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

January 2022 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 Sales Rise (SCC & SMC)

January 28, 2022 — Sales of new homes popped 11.9% higher in December, landing at an 811,000 annualized rate of sale. This was the strongest pace since March, and probably reflects two things: very little available to buy in the existing home market and a desire to get a deal in place before mortgage rates began to rise after the Fed’s December meeting suggested that might not be a long way off. Interestingly, it was a mix of lower costs homes that moved during the month, and that dragged down the median price of a new home sold by 9.3% to $377,700, so new homes sold during the month were only slightly more expensive (+$19,700) than an existing home sold during the same month. Such a narrow gap can make it an easier decision to buy new, when there is plenty of supply instead of the ultra competitive existing home market. Even with the bump in sales, there’s enough supply of new houses to last six months at the current rate of sale, with the 403,000 actual units the highest inventory level since August of 2008. The increase in sales of new homes in December was made larger by downward revisions to sales in November (-19K); October sales (-13K) were also revised down.

Higher mortgage rates in January will probably crimp sales a little bit, but conditions remain pretty favorable for homebuyers, provided they can find something to buy in the existing home market. The National Association of Realtors Pending Home Sales Index (a measure of signed purchase contracts) downshifted by 3.8% in December, falling back to levels last seen in September. It may be that there is some seasonal effect here — even fewer homes listed for sale during the holidays being an additional deterrent to potential homebuyers, trimming the PHSI — but little to buy at or near record high prices at a time when mortgage rates are moving higher isn’t exactly the kind of climate that promotes a higher level of sales. Whether there is much of a spring homebuying season will depend on whether there are more houses available to buy and whether mortgage rates edge or leap higher. We’ll find out soon enough.

Near-term, the effect can be seen in the weekly index of mortgage applications from the Mortgage Bankers Association. In the week ending September 21, requests for mortgage credit shrank by 7.1%, pulled down by a 1.8% decreased in calls for purchase-money mortgages and a 12.6% drop in refinance applications. The recent spike in rates has severely curtailed already-flagging rate-and-term refinances, leaving mostly cash-out refis in the market. Although these are less affected by slightly higher rates, they will also be impacted to a degree, and more so should rates continue upward.

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 18.8% Annual Home Price Gain in November

NEW YORK, JANUARY 25, 2022: 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 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

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): Average Home Sales Price Hits New Record, Again

Sales prices for single-family, re-sale homes rose in January with the average sales price setting a new record. The average sales price rose 1.7% from December. It was up 36.5% year-over-year.

The median sales price rose 4.1% from December. It was up 27.2% compared to last year. That’s the twentieth month in a row the median sales price has been higher than the year before.

The sales price to list price ratio fell to 110.1% from 110.3%.

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 fifth month in a row. They were down 23.5% in January. There were 176 homes sold in San Mateo County last month. The average since 2000 is 398.

Inventory of single-family, re-sale homes was down 39.7% compared to last year. As of February 5th, there were 173 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 to twenty-nine days.

It took thirty-two 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 9% year-over-year.

Year-over-year, the average sales price rose 6.8%.

Condo sales were down 7.6% year-over-year. There were 85 condos sold last month. The average since January 2003 is 122.

Inventory was down 41.9% year-over-year.

As of February 5th, there were 90 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory rose from nineteen to thirty-two.

It took an average of thirty-one days to sell a condo last month.

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

January 2022 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.