Santa Clara County (SCC): Home Sales Prices Set New Highs to End the Year
The median sales price for single-family, re-sale homes rose 4.2% from November to set a new high for the sixth time in 2021. It was up 27.7% compared to last year. That’s the twenty-sixth 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 also set a new high for the sixth time. It rose 2.1% from November. It was up 26.2% year-over-year.
The sales price to list price ratio went from 110.4% to 111.7%. Multiple offers continue to be the norm.
Sales of single-family, re-sale homes were down for the fourth month in a row, year-over-year, in December. Sales fell 19.8%. There were 690 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.
Pending sales were up 18.8% year-over-year.
Inventory of single-family, re-sale homes was down 52% compared to last year. That is the twenty-eighth month in a row inventory has been lower than the year before. As of January 5th, there were 205 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 10 days to 9 days. The average since 2003 is 89.
It took only eighteen 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 13.6% compared to last December. The average sales price set a new high. It gained 17.1% year-over-year.
Condo sales were down 8.3% year-over-year. There were 321 condos sold in December.
The sales price to list price ratio stayed at 104%.
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.
December 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
Twenty Twenty One Done (SCC & SMC)
December 30, 2021 — As they were in 2021, conditions for housing markets should remain solid for 2022. Somewhat higher mortgage rates and still rising prices will continue to crimp affordability, and a lack of supply of existing homes at affordable price will likely remain a hindrance to higher levels of sales. Conditions are somewhat different in the new construction market, though; there are plenty of homes being built and plenty for sale at the moment, but their cost and location can present different challenges to buyers. Still, with labor and materials shortages said to be starting to ease a bit and input prices likely to rise less quickly, it may be that the new construction market is poised to rev up again, much as it did to start 2021.
The National Association of Realtors noted that their Pending Home Sales Index eased by 2.7% in November, but this left the indicator of contracts signed during the month at its third highest level of 2021. Should all these documented intents to buy actually make it to closing, existing home sales for December and into January should still be running pretty warm at over a six million annualized rate, just a bit softer than the recent pace.
While mortgage rates remained low in 2021, they did manage to rise from all-time record levels to start the year to what otherwise would have been merely fantastic, almost unheard-of levels. Interestingly, the average conforming 30-year fixed rate for all of 2020 was 3.11%… the very same average at which we are closing 2021. In fact, for this year, the annual average was 2.96% — so despite mortgage rates rising by about a half-percentage point since ’21 began, they were still lower in the aggregate this year compared to last.
That’s probably not going to be the case for ’22. In fact, we’re closing this year very close to 2021 highs (3.18%), and 2021’s half-point climb in rates is likely to be seen again this year, give or take a little. It may again be that we’ll start next year with what turns out to be the lowest average rate for the year, much as we did in 2021, and go from there.
For next week, we think that there will be a small lift in mortgage rates. An increase of a basis point or two in the average offered rate for a conforming 30-year fixed-rate mortgage seems likely, something we’ll find out when Freddie Mac’s next release comes on Thursday morning.
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
FORTUNE 12-27-2022 | By Lance Lambert |
WSJ 11-9-2021 | Building and Renting Single-Family Homes Is Top-Performing Investment By Will Parker |
Federal Reserve System 11-8-2021 | The U.S. Housing and Mortgage Market: Risks and Resilience Governor Michelle W. Bowman |
Investopedia 11-1-2021 | How Interest Rates Affect the Housing Market By Barry Nielsen |
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 19.1% ANNUAL HOME PRICE GAIN IN OCTOBER
NEW YORK, DECEMBER 28, 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 October 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): Average Home Sales Price Hits New Record
Sales prices for single-family, re-sale homes rose in December with the average sales price setting a new record. The average sales price rose 3% from November. It was up 31.1% year-over-year.
The median sales price fell 13.1% from November. It was up 12.9% compared to last year. That’s the nineteenth month in a row the median sales price has been higher than the year before.
The sales price to list price ratio rose to 110.3% from 109.5%.
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 fourth month in a row. They were down 21.3% in December. There were 307 homes sold in San Mateo County last month. The average since 2000 is 398.
Inventory of single-family, re-sale homes was down 50.8% compared to last year. As of January 5th, there were 124 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 twelve days.
It took twenty-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 8.2% year-over-year.
Year-over-year, the average sales price rose 11.9%.
Condo sales were down 22.9% year-over-year. There were 108 condos sold last month. The average since January 2003 is 122.
Inventory was down 58.8% year-over-year.
As of January 5th, there were 70 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory fell from thirty-five to nineteen.
It took an average of twenty-six days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
December 2021 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.