Santa Clara County (SCC): Sales Prices Up, Sales Down
The median sales price for single-family, re-sale homes rose 16% compared to last year. It was $1,925,000. That’s the thirtieth month in a row the median sales price has been higher than the year before.
The average sales price for single-family, re-sale homes was up 14.1% year-over-year.
The sales price to list price ratio fell from 116.1% to 112.6%. Multiple offers continue to be the norm.
Sales of single-family, re-sale homes were down for the ninth month in a row, year-over-year, in May. Sales fell 19.5%. There were 886 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.
Pending sales were up 0.8% year-over-year.
After being down, year-over-year, thirty months in a row, inventory of single-family, re-sale homes was up for the third month in a row. It gained 40.4% compared to last year. As of June 5th, there were 924 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, rose from 23 days to 31 days. The average since 2003 is 89.
It took only eleven 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 20% compared to last May. It set a new high for the fourth month in a row. The average sales price gained 13.5% year-over-year.
Condo sales were down 6.6% year-over-year. There were 441 condos sold in May.
The sales price to list price ratio fell from 112% to 110.1%.
Condo inventory rose 12% compared to last May.
As of June 5th, there were 412 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory rose from eighteen to twenty-eight.
It took an average of twelve days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
May 2022 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
A Little Off the Top (SCC & SMC)
May 27, 2022 —It’s a little too soon to make any kind of declarations that the considerable inflation pressures we’ve been experiencing for more than a year may have peaked. There are still plenty of influences on prices that may yet kick costs higher, including lockdowns in China to combat COVID-19 further distorting supply chains, the effects of the War in Ukraine and sanctions on Russia and still-rising labor costs here in the U.S. All that said, the latest indications on price pressures nonetheless suggest that a little has come off the top of inflation of late.
It’s a little too soon to make any kind of declarations that the considerable inflation pressures we’ve been experiencing for more than a year may have peaked. There are still plenty of influences on prices that may yet kick costs higher, including lockdowns in China to combat COVID-19 further distorting supply chains, the effects of the War in Ukraine and sanctions on Russia and still-rising labor costs here in the U.S. All that said, the latest indications on price pressures nonetheless suggest that a little has come off the top of inflation of late.
This revelation was a little different for the central bank, who has a history of raising rates until inflation or the economy has broken, and suggests a more cautious approach in an uncertain economic and political climate. To be fair, the Fed does not actually know where “neutral” is for the federal funds rate; some have suggested that this may be 2.5%, some higher. Keeping in mind that even if the Fed does raise the funds rate by a half-percentage point at both the June and July meetings that this would only place it at 2%, and still rather below even conservative estimates of “neutral”.
With this in mind, and if inflation shows further signs of slowing by then, it would be reasonable to expect quarter-point moves in September and perhaps December. With half-point increases already fully expected for the next two meetings, futures markets currently place a 56% chance of a 25 basis point lift in September, and a better-than-average likelihood of additional quarter-point increases in November and December. Should that happen, fed funds would be at 2.75%. Adding to these policy changes is the effect of Quantitative Tightening as the Fed start running off its balance sheet next week. This process may add the equivalent of another quarter-point increase over time, too.
Although the Fed has lifted short-term rates just a bit, market-engineered interest rates (including mortgage rates) have flared considerably higher since the calendar turned. Although plateauing of late, the damage of higher interest rates applied against ever-rising home costs is beginning to show in a more pronounced way. Case-in-point is the April report covering sales of new homes; although subject to considerable revision, the latest report detailed a 16.6% month-to-month decline in sales of newly-build dwellings, with the 591,000 annual run rate the lowest since December 2018. Falling affordability is at the heart of the decline; the price of a new home came in at a record $450,600, up 19.6% from a year ago, and these purchases would need to be financed with about a 5% thirty-year fixed-rate mortgage. As recently as five months ago, that pairing would have been $398,500 and about 3%, so the change in affordability has been abrupt and ongoing. With the slump in sales, the inventory-to-sales ratio rose to nine months of supply, an actual 440,000 units ready to go, the highest number in about 14 years. If sales don’t start to pick up in the months ahead, it’s a logical assumption that construction of new homes will start to retreat, too.
Affordability issues aren’t limited to just the new home market. Sales of existing homes have been tailing of late from the same adverse conditions, exacerbated by a lack of existing homes to buy. Expect more of the same heading into the summer. The National Association of Realtors Pending Home Sales Index declined by another 3.9% in April, a sixth consecutive monthly decline in the number of contracts signed to purchase a home, and sales initiated by these contract signings won’t show up in existing home sales numbers until May and June (released late June and July, respectively). The current level of the index is roughly equivalent to that last seen in December 2018 (leaving out the hard stop of the first two months of the pandemic in 2020, when shutdowns prevented any kind of activity, let alone buying a home). At this level, existing home sales will probably drop into the 5.3 million or so range.
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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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 homeowners
Many new homeowners 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 homeowners 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 Reports Annual Home Price Gain of 20.6% in March
MAY 31, 2022: 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 March 2022 show that home prices continue to increase across the U.S. 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): Sales Prices Set New Highs, Sales Continue to Fall
The median sales price for single-family, re-sale homes was up 7.9% compared to last year. That’s the twenty-fourth month in a row the median sales price has been higher than the year before.
The average sales price rose 4.9% year-over-year.
The sales price to list price ratio fell from 114% to 112.9%.
After being higher, year-over-year, fourteen months in a row, sales of single-family, re-sale homes in San Mateo County fell for the ninth month in a row. They were down 12.9% in May. There were 379 homes sold in San Mateo County last month. The average since 2000 is 398.
Inventory of single-family, re-sale homes was up 25% compared to last year. As of June 5th, there were 365 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, rose from twenty-four to twenty-nine days.
It took fifteen 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 rose 1.9% year-over-year.
Year-over-year, the average sales price fell 1.9%.
Condo sales were down 4.7% year-over-year. There were 123 condos sold last month. The average since January 2003 is 122.
Inventory was up 38% year-over-year.
As of June 5th, there were 178 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory rose from twenty-seven to forty-three.
It took an average of eighteen days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
Condo sales were down 9.4% year-over-year. There were 135 condos sold last month. The average since January 2003 is 122.
Inventory was down 12.6% year-over-year.
As of May 5th, there were 125 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory rose from twenty-six to twenty-seven.
It took an average of eighteen days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
May 2021 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.