Santa Clara County (SCC): Home Prices Continue to Rise
Although the median price for single-family, re-sale homes remained at $1,000,000 for the second month in a row, the average price rose 1.1% from May to reach a new high.
Sales of single-family, re-sale homes got back to the positive side in June, rising 5.6% from last year.
Active listings continue to be anemic, down by double-digits for the thirteenth month in a row. Pending sales showed single-digit losses for the fifth month in a row.
The sales price to list price ratio has been over 100% for forty months in a row.
Market momentum may be slowing a bit. But with the enormous amount of money chasing low inventory, we don’t expect that to last long.
June Stats (SCC)
Single-Family Homes
Year-Over-Year
- Median home prices increased by 11.1% year-over-year to $1,000,000 from $900,000.
- The average home sales price rose by 10.5% year-over-year to $1,313,490 from $1,188,500.
- Home sales rose by 5.6% year-over-year to 1,096 from 1,038.
- Total inventory* fell 17.1% year-over-year to 2,182 from 2,633.
- Sales price vs. list price ratio rose by 1.9% year-over-year to 106.9% from 105.0%.
- The average days on market rose by 5.5% year-over-year to 20 from 19.
Month-Over-Month
- Median home prices slipped by 0.0% to $1,000,000 from $1,000,000.
- The average home sales price rose by 1.1% to $1,313,490 from $1,298,990.
- Home sales up by 6.7% to 1,096 from 1,027.
- Total inventory* dropped 1.6% to 2,182 from 2,218.
- Sales price vs. list price ratio dropped by 0.7% to 106.9% from 107.7%.
- The average days on market increased by 9.8% to 20 from 18.
Condominiums
Year-Over-Year
- Median condo prices increased by 23.1% year-over-year to $651,000 from $528,750.
- The average condo sales price rose by 22.1% year-over-year to $716,991 from $587,392.
- Condo sales rose by 5.2% year-over-year to 448 from 426.
- Total inventory* fell 21.9% year-over-year to 676 from 866.
- Sales price vs. list price ratio rose by 3.7% year-over-year to 107.7% from 103.8%.
- The average days on market fell by 26.1% year-over-year to 14 from 19.
Month-Over-Month
- Median condo prices improved by 5.0% to $651,000 from $620,000.
- The average condo sales price rose by 5.5% to $716,991 from $679,810.
- Condo sales up by 16.4% to 448 from 385.
- Total inventory* dropped 0.3% to 676 from 678.
- Sales price vs. list price ratio dropped by 0.8% to 107.7% from 108.6%.
- The average days on market dropped by 3.4% to 14 from 15.
* Total inventory is active listings plus contingent or pending listings. Active listings do not include contingent listings.
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.
Getting Your Home Ready to Sell (SCC)
In today’s real estate environment, selling a home can be a challenge. The two most important aspects of selling your home in the current market is first, price it properly. Well-maintained homes priced properly often receive multiple offers. Second, a clean, well-kept home will sell for more money than one that is run down.
If you are ready to sell your home, we have some tips for you.
First, make sure people will be enticed into your home when they first look at it from their car. This is called curb appeal. The next time you drive up to your home, look at it as if you were thinking of buying it. What could you do to make it more appealing from the curb? Is the yard neat? The grass green? The bushes trimmed? The kid’s toys put away? Is the front door clean? The garage door? A little paint and elbow grease here ensures more people will visit your home.
Next, you know all those little niggling things you’ve been meaning to fix? The squeaky door. The door knob that doesn’t work properly. The closet door that slides roughly. Fix them!
Go for the spacious look. You are going to be moving, that’s why the house is on the market. Start packing. Pack everything but the essentials, then put them in storage. This goes for the kitchen as well. Take all those appliances and containers off the counter tops and pack them away.
Spruce up your back yard. The back yard has evolved into one of the most important rooms of the house, especially in warmer climates. Buyers will be attracted to back areas that have a nice deck or patio area with plenty of space for dining, grilling, and entertaining. And if you have a section of your yard that is child-friendly — perhaps with a swing set, sandbox or play area — play it up as much as possible.
Make your windows sparkle. Make sure your windows are nice and clean, especially if you live in a sunny region that doesn’t get much summer rain.
Keep your walls light. If you’re thinking about touching up the paint on your walls before you put your home on the market, keep the colors neutral and light. A light yellow or beige will make the room feel cooler than darker hues, like brick red or dark taupe.
Let the light in. Open blinds and curtains so plenty of light illuminates the home’s interior.
Keep the pool clean. If you have a pool or spa, make sure it’s clean. If you have a fence, make sure locks and latches are working properly.
All this may seem like a lot of work, and it is, but it means a quicker sale with less hassle and more money in your pocket. Not to mention the pleasure you and your family will receive from living in a well-kept home.
To set the proper price, a seller must be aware of current market conditions, including what has sold recently in your neighborhood, and what is your competition.
Mortgage Rate Outlook
Rates Edge Higher As Data Outweigh Greek Debt Mess
July 2, 2015 — HSH.com’s broad-market mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages rose by just one basis points (0.01%) this week to an average of 4.14 percent. The FRMI’s 15-year companion managed a rise of double that, adding two basis points to nudge up to an average interest rate of 3.41 percent. Popular with first-time homebuyers, rates on fully-insured FHA-backed 30-year FRMs remain considerably below their conforming counterparts and rise by just one basis point for the week, edging up to an average of 3.91 percent. Meanwhile, the overall 5/1 Hybrid ARM bucked the trend, trimming one basis point off of last week’s average to land at 3.06 percent this week. HSH’s FRMIs are combined averages, including both conforming and jumbo rates, providing borrowers with a more wide-ranging view of mortgage conditions.
Spending on construction projects gained 0.8 percent in May, a lessened pace of activity but still sufficient to complete a six-month string of positive readings. With housing picking up a little speed this spring, outlays for residential projects rose by 0.3 percent, while spending for commercial and industrial construction rose by 1.5 percent for the month. Spending on public works projects has sputtered at times during the recovery, but the 0.7 percent rise in May was a third consecutive increase.
Given the present stance of the market, it would be hard to expect lower mortgage rates next week. We could be in for some additional volatility for rates. Adding to the mix we have some updates on service-business activity, a report on the imbalance of trade and the minutes from the last Fed meeting to ponder. All will probably suggest that the firmness to rates of late is justified, but call it a leap of faith, but we just might see rates largely end unchanged by the time the week closes.
Investors Corner
Home Price Gains Ease in April
According to the S&P/Case-Shiller Home Price Indices
New York, June 30, 2015 — S&P Dow Jones Indices today released the latest results for the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices. Data released today for April 2015 show that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.
Read more at https://goo.gl/zgXCXz
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San Mateo County (SMC): Home Prices Back Off, Slightly
The median price for single-family, re-sale homes stayed over $1,000,000 for the sixth month in a row and fifteen of the past sixteen months. The median price was down a bit from May, but managed to be up, year-over-year, by double-digits for the fifth month in a row.
Sales of single-family, re-sale homes fell, year-over-year, but were higher than the month before.
Active listings continue to be anemic, down by double-digits for the twelfth month in a row. Pending sales broke their double-digit loss streak at nine months by only being down 8.8%.
The sales price to list price ratio has been over 100% for thirty-eight months in a row.
June Stats (SMC)
Single-Family Homes
Year-Over-Year
- Median home prices increased by 16.1% year-over-year to $1,300,000 from $1,120,000.
- The average home sales price rose by 15.6% year-over-year to $1,652,150 from $1,429,090.
- Home sales fell by 12% year-over-year to 411 from 467.
- Total inventory* fell 31.5% year-over-year to 775 from 1,131.
- Sales price vs. list price ratio rose by 3.6% year-over-year to 109.9% from 106.1%.
Compared To Last Month
- Median home prices slipped by 1.9% to $1,300,000 from $1,325,000.
- The average home sales price fell by 0.4% to $1,652,150 from $1,659,460.
- Home sales up by 6.8% to 411 from 385.
- Total inventory* increased 1.3% to 775 from 765.
- Sales price vs. list price ratio dropped by 1.1% to 109.9% from 111.1%.
- The average days on market increased by 18.8% to 20 from 17.
Condominiums
Year-Over-Year
- Median condo prices increased by 19.4% year-over-year to $692,500 from $580,000.
- The average condo sales price rose by 15.5% year-over-year to $721,132 from $624,332.
- Condo sales fell by 12.8% year-over-year to 130 from 149.
- Total inventory* fell 43.1% year-over-year to 168 from 295.
- Sales price vs. list price ratio rose by 3.3% year-over-year to 108.2% from 104.8%.
Month-Over-Month
- Median condo prices slipped by 1.9% to $1,300,000 from $1,325,000.
- The average condo sales price fell by 0.4% to $1,652,150 from $1,659,460.
- Condo sales up by 6.8% to 411 from 385.
- Total inventory* increased 1.3% to 775 from 765.
- Sales price vs. list price ratio dropped by 1.1% to 109.9% from 111.1%.
- The average days on market increased by 18.8% to 20 from 17.
* Total inventory is active listings plus contingent or pending listings. Active listings do not include contingent listings.
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.
