Santa Clara County (SCC): Market Continues to Weaken
The median sales price for single-family, re-sale homes rose, month-over-month. It was up 2.6% from May. It was down 1.3% compared to last year.
The average sales price for single-family, re-sale homes was up 2.5%, month-over-month. It was up 1.1% year-over-year.
Sales of single-family, re-sale homes were down for the eighteenth month in a row, year-over-year, in June. Sales fell 14.9%. There were 717 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.
The sales price to list price ratio stayed at 105.4%.
Pending sales were down 32.1% year-over-year.
Inventory of single-family, re-sale homes was down for the third month in a row. It fell 57% compared to last year. As of July 5th, there were 539 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 26 days to 22 days. The average since 2003 is 89.
It took sixteen 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 8.3% compared to last June. The average sales price rose 3.7% year-over-year.
Condo sales were down 21.4% year-over-year. There were 282 condos sold in June.
The sales price to list price ratio rose from 103.4% to 103.7%.
Condo inventory was down 58.6% compared to last June.
As of July 5th, there were 226 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory stayed at twenty-three.
It took an average of seventeen days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
June 2023 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
Stronger Data, Firmer Rates (SCC & SMC)
June
30, 2023 — It’s becoming both clearer and more likely that the Fed will lift rates at its next meeting in July, and based on comments this week from Fed Chair Jay Powell, the potential also exists that back-to-back increases could come over the next two meetings, as a pair of moves is “not off the table”, per Mr. Powell. He also noted that “If you look at the data over the last quarter, what you see is stronger than expected growth, a tighter than expected labor market, and higher than expected inflation.”
That trio of factors gives the Fed plenty of reason to resume its rate hiking campaign. Perhaps the only items that might see the Fed extend their so-far one-meeting “pause” are the unclear effects of this spring’s banking troubles and that there’s little history on how the economy and inflation will fully react to a 500 basis point increase in short-term rates over just a year’s time.
Could the central bank “skip” July, too? It’s certainly possible, as another six weeks of holding off would likely do little damage in the inflation fight. However, with few signs that the economy is rapidly slowing, the labor market loosening measurably or inflation cooling at a faster rate, there’s not a lot of reason to expect the Fed to hold their fire. That said, there is still a month’s worth of data due out before the next Fed meeting, and a stronger nudge in the right direction on one or more of these fronts might be enough proof that policy already in place is sufficient to reach the Fed’s goals, but probably not.
Economic growth is also getting a bit of support from home building and sales, and thin inventories of homes for sale in the existing housing market are pushing at least some buyers over to the new construction market. Sales of newly-constructed home rose by a stout 12.2% in May, climbing to a 763,000 annual rate of sale, the fastest pace since February 2022. The surge in sales pulled the supply of new homes down to 6.7 months at the current rate of sale, with the 428,000 units available the fewest number in more than a year. This should provide builders with incentive to keep construction humming over at least the next few months. To help move stock, builders have been using incentives that include price concessions and subsidizing financing, but those discounts and offers are being used somewhat less often of late, at least according to the National Association of Home Builders. The median price of a new home sold in May was $416,300, turning higher again after a meaningful decline from last October’s $496,800 peak, probably reflect the lessened use of price cuts by builders last month.
Price discounts and financing help are far less common in the existing home market, but may become more of a part of the marketing arsenal if mortgage rates don’t show a meaningful decline soon. Sales of existing homes are only perking along at a modest level, one that is likely to become even more modest in the coming month or two. The National Association of Realtors Pending Home Sales Index for May posted a 2.7% decline; this measure of purchase contracts signed suggests that existing home sales for June and July will struggle to hold present levels of about 4.3 million (annualized). The PHSI has now posted declines in each of the last three months, usually the busiest time of year for housing.
Despite mortgage rates closer to recent highs than not, applications for mortgages managed a small increase last week. In the week ending June 25, the Mortgage Bankers Association reported a 3% increase in requests for mortgage credit, a third consecutive gain. Applications for purchase-money mortgages rose by 2.8%; those to refinance existing loans managed a 3.3% bump. A holiday is on tap again for next week and mortgage rates seem poised to rise a bit more in the coming days, and this will probably break the unexpected streak of small increases in applications seen over the last few weeks.
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.
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| Investopedia 11-30-2022 | Warren Buffett: Be Fearful When Others Are Greedy By Adam Brownlee |
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 Rebound Continued in March
NEW YORK, JUNE 27, 2023: 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 April 2023 show all 20 major metro markets again reported month-over-month price increases
with gains accelerating in 12 markets. More than 27 years of history are available for the 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): Home Prices Mixed, Sales Up
Sales of single-family, re-sale homes in San Mateo County rose 1.9% in June. There were 316 homes sold in San Mateo County last month. The average since 2000 is 398.
The median sales price for single-family, re-sale homes was down 4.9% compared to last year.
The average sales price rose 1.5% year-over-year.
The sales price to list price ratio fell from 104.3% to 103.1%.
Inventory of single-family, re-sale homes was down 27% compared to last year. As of July 5th, there were 374 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 from forty-two to thirty-four days.
It took twenty-one 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 0.4% year-over-year.
Year-over-year, the average sales price fell 4.9%.
Condo sales were down 20.4% year-over-year. There were 86 condos sold last month. The average since January 2003 is 122.
Inventory was down 31.3% year-over-year.
As of July 5th, there were 138 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory fell from forty-eight to forty-seven.
It took an average of fourteen days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
June 2023 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.