Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Sales Surge in June

Sales of single-family, re-sale homes jumped 75.7% in June compared to May. This was unexpected. Home sales were down 0.1% compared to last June. There were 840 homes sold in Santa Clara County last month. Last June there were 841 homes sold. The average since 2000 is 987.

Year-to-date, home sales are down 23.2%.
Inventory of single-family, re-sale homes was down 44.6% compared to last year. That is the tenth month in a row inventory has been lower than the year before. As of July 5th, there were 914 homes for sale in Santa Clara County. The average since January 2000 is 2,703.

The median sales price for single-family, re-sale homes in June was up 3.0% compared to last year. The average sales price was up 3.6% year-over-year.
The sales price to list price ratio was flat at 100.6%.
Days of Inventory, or how long it would take to sell all homes listed for sale at the current rate of sales, plunged twenty-nine days to 32 days compared to May. The average since 2003 is 89.

It took only twenty-three 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 down 11.1% from last June. The average sales price fell 11% year-over-year.

Condo sales were down 23.1% year-over-year. There were 260 condos sold in June.
Year-to-date, condo sales are down 20.5%.
The sales price to list price ratio rose to 100.4% from 99.5%.
Condo inventory dropped 41.1% from last June.
As of July 5th, there were 467 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory fell to fifty-two from ninety.
It took an average of twenty-five days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.

June  2020 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

New Record For Rates, Again  (SCC & SMC)

Jun 29, 2020 — Mortgage rates are already at record lows, and this is helping to drive demand for housing, even if its a bit hard to see at the moment. Sales of existing homes dropped 9.7% in May, sliding to a 3.91 million annualized rate of sale, and coupled with declines over the two prior months, sales of existing homes have fallen by about 26% since February. The hard drop in sales means that the ratio of inventory relative to sales rose to its highest level in a good long while, but even the current 4.8 months of supply remains well below optimal levels. Before you start to think that the inventory situation has improved much, consider that the 1.55 million homes for sale in May was still almost 19% below the same month a year ago. A lack of buyers in the market also quelled the outsized increases in home prices, which had been running quite hot, but eased to a gain of just 2.3% in May compared to a year ago.

Of course, May’s existing home sales represent activity in the market in March and April, when the pandemic shutdown was at its most intense, so sales and prices will likely revive in the next couple of months. What’s unclear is the degree that both demand and supply remain tempered by millions of folks on unemployment, seeing reduced hours and incomes or in mortgage payment forbearance programs.

Sales of new homes are recorded differently, and are perhaps more reflective of demand closer to today, even as they lag by a month. In May, sales of new homes rose by a stout 16.6% from a downwardly-revised 580,000 units sold in April. At 676,000 (annualized) homes sold during the month, it’ll take another 14.5% jump just to return us to where we began the year, but the resumption of activity here is solid. The flare in demand was such to pull the supply of homes down to a 5.6-month level (318K actual units built and ready for sale), a figure low enough that should see builders stepping up the pace of new construction into the summer. Renewed demand allowed the price of a new home to rise again after a three-month skid, and prices of a newly-built home were 5.6% higher this May than last.

How much follow-through to the uptick in new home sales (and what will eventually show as a rebound in existing homes sales) remains to be seen. Record low mortgage rates are fine, but underwriting conditions for mortgages remain tight. As well, demand at the margins may be crimped from high levels of unemployment, as these benefits can’t generally be counted as income for the purposes of qualifying for a mortgage. Those collecting unemployment benefits won’t be able to buy homes any time soon, and folks who already own their homes won’t be able to refinance, either. Even with record-low rates in the market, applications for new mortgages declined by 8.7% in the week of June 19; the Mortgage Bankers Association noted that apps for purchase-money mortgages fell by 3%, breaking a nine-week string of increases, while apps for refinance dropped 11.7% for the week.

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 Corne

ANNUAL HOME PRICE GAINS REMAINED STEADY IN APRIL ACCORDING TO S&P CORELOGIC CASE-SHILLER INDEX

NEW YORK, JUNE 30, 2020 – 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 2020 show that home prices continue to increase at a modest rate across the U.S. More than 27 years of history are available for these data series, and can be accessed in full by going to click here

U.S. Housing Markets Moving Into Rent Territory for First Time in Over 8 Years: Report

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San Mateo County (SMC): Sales Surge in June

Sales of single-family, re-sale homes in San Mateo County soared 47.8% in June compared to May. Home sales were down 10.9% year-over-year. There were 334 homes sold in San Mateo County last month. The average since 2000 is 398.

Year-to-date, home sales are down 25.4%.

Inventory of single-family, re-sale homes was down 15.9% compared to last year. That is the tenth month in a row inventory has been lower than the year before. As of July 5th, there were 493 homes for sale in San Mateo County. The average since January 2000 is 1,287.

The sales price to list price ratio rose from 100.7% to 101%.

The median sales price for single-family, re-sale homes was up, year-over-year, by 7.9%. The average price was up 3.1%.

The median sales price was up 6.4% compared to May. The average sales price was down 5%.

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 nineteen days to forty-three days.

It took twenty-nine 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 fell 6.4% year-over-year. It was up 6.9% from May. The average sales price rose 3.2% from May. Year-over-year, the average sales price dropped 4.3%.

Condo sales fell 22% year-over-year. Condo sales were up 44.4% from May.

Inventory rose 12.9% year-over-year. It was up 18.6% compared to May.

As of July 5th, there were 166 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory jumped to sixty-two from eighty.

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.

June  2019 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.