Santa Clara County (SCC): Home Prices Hit a Million
The median price for single-family, re-sale homes reached $1,000,000 for the first time ever.
Sales of single-family, re-sale homes fell, year-over-year, after two months of higher sales.
Active listings continue to be anemic, down by double-digits for the twelfth month in a row. Pending sales showed single-digit losses for the fourth month in a row.
Anecdotally, we’ve been hearing that multiple offers are declining. Rather than eight to ten offers on a home, many homes are selling with less than three offers.
This could be a result of buyers’ exhaustion, and could portend a slowing of the market.
Although, with a sales price to list price ratio of 107.7% last month, which matches the record high set the month before, demand seems to be strong.
The sales price to list price ratio has been over 100% for thirty-nine months in a row.
May Stats (SCC)
Single-Family Homes
Year-Over-Year
- Median home prices increased by 14.3% year-over-year to $1,000,000 from $875,000.
- The average home sales price rose by 11.7% year-over-year to $1,298,990 from $1,163,220.
- Home sales fell by 3.9% year-over-year to 1,027 from 1,069.
- Total inventory* fell 15% year-over-year to 2,218 from 2,609.
- Sales price vs. list price ratio rose by 1.9% year-over-year to 107.7% from 105.7%.
Month-Over-Month
- Median home prices improved by 2.6% to $1,000,000 from $975,000.
- The average home sales price rose by 1.4% to $1,298,990 from $1,280,480.
- Home sales down by 2.1% to 1,027 from 1,049.
- Total inventory* increased 8.9% to 2,218 from 2,037.
- Sales price vs. list price ratio increased by 0.0% to 107.7% from 107.7%.
Condominiums
Year-Over-Year
- Median condo prices increased by 14.2% year-over-year to $620,000 from $543,000.
- The average condo sales price rose by 15.9% year-over-year to $679,810 from $586,779.
- Condo sales fell by 15.6% year-over-year to 385 from 456.
- Total inventory* fell 22.8% year-over-year to 678 from 878.
- Sales price vs. list price ratio rose by 3.6% year-over-year to 108.6% from 104.8%.
Month-Over-Month
- Median condo prices improved by 9.7% to $620,000 from $565,000.
- The average condo sales price rose by 6.0% to $679,810 from $641,360.
- Condo sales up by 6.6% to 385 from 361.
- Total inventory* increased 9.5% to 678 from 619.
- Sales price vs. list price ratio increased by 0.6% to 108.6% from 107.9%.
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.
Mortgage Rate Outlook
Mortgage Rates Firming: Blame the Fed
May 29, 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 eased by a single basis point (0.01%) this week to an average of 3.97%. The FRMI’s 15-year companion moved in reverse of that, climbing by one basis point to an average interest rate of 3.27%. Rates on fully-insured FHA-backed 30-year FRMs remain considerably below their conforming counterparts but were at a standstill this week, holding at an average 3.73%. Meanwhile, the overall 5/1 Hybrid ARM added a single basis point to bump up to an average 2.98%. HSH’s FRMIs include both conforming and jumbo rates, providing borrowers with a broader view of mortgage conditions.
The downtrend in mortgage rates in April helped sales of new homes to improve. The Census Bureau reported sales of newly-built homes rose by 6.8% for the month, climbing to a 517,000 annualized rate of sale. Inventory levels here are somewhat more elastic; that is, more new homes can be built to meet demand. According to the report, there is about 4.8 months of built and ready-to-sell stock available; this is thinner than optimal at about 205,000 units. Builders continue to express caution about adding to stock even as the housing market continues on an overall path of slow improvement. The 5.3% month-over-month rise in prices may see a little more enthusiasm for that, though — it was the first increase in prices seen since last November.
Long-term interest rates (and mortgage rates) are of course forward-looking by their nature. Soft economic patches aside, interest rates have nudged higher this spring not because the current climate is much to write home about, but rather that the prospects for more widespread growth (here and abroad, especially in the Eurozone) are improving. That said, it seems as though it will be more of a slowly rising tide lifting all boats for this go-round, rather than the U.S. pulling hard to help keep afloat many other economies.
Also, no panic here and certainly less over there seems to have softened the conditions which produced recent lows for rates, which are likely to be sticky around these levels, give or take a little. If everything goes according to expectations (a process not likely, or at least not smoothly) we may be soon be at or near the start of a long and gradual upturn for rates. Before then, we will need to take the first step, probably in September, and see where we’ll go from there.
Investors Corner
Home Price Gains Accelerate, Led by San Francisco and Denver
According to the S&P/Case-Shiller Home Price Indices
New York, May 26, 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 March 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…
Read more at https://goo.gl/pN4FCr
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San Mateo County (SMC): Home Prices at All-time Highs, Again
The median price for single-family, re-sale homes stayed over $1,000,000 for the fifth month in a row and fourteen of the past fifteen months.
Sales of single-family, re-sale homes fell, year-over-year, and were lower than the month before, which is unusual.
Active listings continue to be anemic, down by double-digits for the eleventh month in a row. Pending sales showed double-digit losses for the ninth month in a row.
Anecdotally, we’ve been hearing that multiple offers are declining. Rather than eight to ten offers on a home, many homes are selling with less than three offers.
This could be a result of buyers’ exhaustion, and could portend a slowing of the market.
Although, with a sales price to list price ratio of 111.1% last month, which is a record high, demand seems to be strong.
The sales price to list price ratio has been over 100% for thirty-seven months in a row.
May Stats (SMC)
Single-Family Homes
Year-Over-Year
- Median home prices increased by 17.8% year-over-year to $1,325,000 from $1,125,000.
- The average home sales price rose by 7.4% year-over-year to $1,659,460 from $1,544,650.
- Home sales fell by 14.1% year-over-year to 385 from 448.
- Total inventory* fell 31.8% year-over-year to 765 from 1,122.
- Sales price vs. list price ratio rose by 4.2% year-over-year to 111.1% from 106.7%.
Compared To Last Month
- Median home prices improved by 2.1% to $1,325,000 from $1,297,500.
- The average home sales price rose by 2.5% to $1,659,460 from $1,619,040.
- Home sales down by 2.3% to 385 from 394.
- Total inventory* increased 5.8% to 765 from 723.
- Sales price vs. list price ratio increased by 1.2% to 111.1% from 109.8%.
Condominiums
Year-Over-Year
- Median condo prices increased by 15.1% year-over-year to $722,500 from $627,500.
- The average condo sales price rose by 20.4% year-over-year to $778,789 from $646,836.
- Condo sales fell by 18.9% year-over-year to 120 from 148.
- Total inventory* fell 37.8% year-over-year to 181 from 291.
- Sales price vs. list price ratio rose by 5.4% year-over-year to 110.5% from 104.8%.
* 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.
