Santa Clara County (SCC): Home Prices & Sales Continue to be Weak
The median sales price for single-family, re-sale homes in June was down for the fifth month in a row and seven of the past eight months, year-over-year. It fell 4.1%. The average sales price was down for the eighth month a row. It fell 4.5%.
The sales price to list price ratio dropped to 101.6% from 102.2%.
Home sales dropped 17.6% from May, and they were down, year-over-year, for the fourteenth month in a row: 16.4%. There were 817 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 thirteen months in a row. Last month, it was up 42% 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, gained ten days to 54 days compared to May. The average since 2003 is 89.
As of July 5th, there were 1,514 homes for sale in Santa Clara County. The average since January 2000 is 2,778.
It is taking twenty-four 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 up last month from the month before but were down year-over-year. Sales prices for condos have been lower than the year before seven months in a row.
The sales price to list price ratio was 101.3%.
Condo sales were down 21.2% year-over-year.
Inventory continues to expand. It has been higher than the year before thirteen months in a row.
As of July 5th, there were 697 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory rose to sixty-eight.
It took an average of twenty-eight days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
June 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
Summer Simmer For Rates, Markets (SCC & SMC)
June 28, 2019 — As the calendar page turns this coming week, we close the books on the first half of 2019, which was certainly an eventful period. Typically, around the Independence Day holiday, markets seem to become much quieter, and often settle in to the doldrums for a while until the Labor Day wake up call to resume normal activity.
That seems less likely to be the case this year, as there is a rather pronounced expectation that the Fed will be cutting short-term interest rates at its July 31 meeting. However, we may have at least a couple of weeks of mellower activity, and perhaps saw the first inkling of this in the last couple of days, as both equity markets and bond markets held fairly stable. Provided the economic news that is due out over the next couple of days isn’t too far outside of the range of expectations, we might see a more settled period run for a couple of weeks until we begin to close in on the next Fed meeting.
That would be good, given that major equity indexes just completed their best June in about 80 years and also that mortgage rates are presently at about 2.5 year lows — and both arguably because the Fed has stood pat this year despite being pressured politically, by a changing economic climate, challenged by low inflation and ever-changing trade and tariff policies that may disturb expected trends to unknown degrees.
Sales of new homes continued were lackluster in May with a muted annual sales pace of 626,000. Weakness in the Northeast and especially the West pulled sales down by 7.8% compared to April (itself a decline from March). Although higher interest rates certainly don’t help housing sales, the reality is that lower rates aren’t a cure-all for them either — the issue is more about the availability of desirable, affordable homes to buy in markets that need them than the price of mortgage money. For existing homes, it’s a lack of inventory and high prices; for new homes, it’s more likely that typically higher prices and new stock being built outside of the most desirable areas or at a greater commuting distance from center-city jobs that are keeping sales from gaining traction. In turn, this is keeping builders from starting homes at a more rapid pace, and in May there were an actual 333,000 units built and ready for sale, good enough to cover needs for 6.4 months at the current level of demand, so its unlikely that housing starts will flare higher anytime soon.
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
| TUG June, 2019 | Is Purchasing Residential Rental Properties in Silicon Valley a Good investment? By Avi Urban |
WSJ June 20, 2019 | Investors Are Buying More of the U.S. Housing Market Than Ever Before By Laura Kusisto |
| Bloomberg Business Week May 9, 2019 | Flipping properties at the top of the market is a risky undertaking for speculators and a gift to buyers. I’m so excited that it was my client who benefited from this HUGE discount. By Prashant Gopal |
| The Mercury News May 1, 2019 | Comparable Sales Appraisers Can & CAN’T Use By Jay Voorhees |
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 CONTINUE TO FALL ACCORDING TO S&P CORELOGIC CASE-SHILLER INDEX
NEW YORK, JUNE 25, 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 April 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 going to https://bit.ly/2JuIPn3
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): Home Sales Prices Slip
Prices for single-family, re-sale homes were down in June from May. The median sales price fell 8.2% and the average sales price fell 0.8%. Year-over-year, the median sales price was down 1.8%, but the average sales price gained 6.2%.
The sales price to list price ratio dropped from 105.9% to 104.6%.
Home sales fell 7.3% from May, and, were down, year-over-year, for the eighth month in a row: -7.5%. There were 368 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 thirteen months in a row. Last month, it was up 24.3% 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, gained two to forty-three days.
As of July 5th, there were 547 homes for sale in San Mateo County. The average since January 2003 is 1,287.
It is taking twenty-four 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 reached a new, all-time high in June of $1,030,000. That was a gain of 2.5% year-over-year. The median sales price rose 0.7% from May. The average sales price fell 1.8% from May. Year-over-year, the average sales price gained 0.4%.
Condo sales dropped 21.8% year-over-year.
Inventory continues to expand. It has been higher than the year before eleven months in a row. It gained 63.1% over last June.
As of July 5th, there were 137 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory fell to forty-three.
It is taking thirty-eight days to sell a condo.
If you are planning on selling your property, call me for a free comparative market analysis.
June 2019 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.
