Silicon Valley Real Estate Market Trend Report:

June 2024

Santa Clara County (SCC): Home Prices Set New Highs in May

Home prices set new highs for the second month in a row. The median sales price for single-family, re-sale homes was up 19.1% compared to last year. The median sales price was $2,100,000.

The average sales price for single-family, re-sale homes also set a new high for the second month in a row. It was up 15.4% year-over-year. The average sales price was $2,438,990.

Sales of single-family, re-sale homes were up 13.5%, year-over-year, in May. There were 851 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

The sales price to list price ratio fell from 110.7% to 109.2%.

Pending sales were up 13.1% year-over-year. There are 700 homes in escrow.

Inventory of single-family, re-sale homes was up for the first time in fourteenth months. It rose 19.1% compared to last year. As of June 5th, there were 743 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, stayed at 26 days. The average since 2003 is 89.

It took fourteen 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.

Condo prices also set new highs last month. The median sales price for condos was up 12.7% compared to last May. The median sales price was $1,081,500. The average sales price gained 10.2% year-over-year. The average sales price was $1,144,730.

Condo sales were up 31.4%. There were 268 condos sold in May.

The sales price to list price ratio fell from 106.4% to 105.3%.

Condo inventory was up 88% compared to last May.

As of June 5th, there were 406 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory rose from thirty to thirty-three.

It took an average of fifteen days to sell a condo last month.

If you are planning on selling your property, call me for a free comparative market analysis.

May 2024 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

 

 

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Slightly And Steadier (SCC & SMC)

May 31, 2024 — After the start of this year’s decidedly immodest pace for prices, expectations for inflation to level off at a minimum is key to nudging the Fed back toward a place where they will feel comfortable cutting interest rates. While we haven’t gotten too many steps in that direction, the somewhat softer- than-expected CPI report earlier this month was backed up by a flatter PCE prices report for April on Friday, so there’s at least a little to be encouraged about if you’re hoping for lower monetary policy rates this year.

Determining how people are feeling largely depends on the questions you ask them. Just a week ago, there was a pronounced May downturn in Consumer Sentiment as measured by the University of Michigan. This week, the opposite was seen in the measure of Consumer Confidence as reported by the Conference Board. For May, this gauge of consumer moods rose by 4.5 points to a 102.0 level, retaking nearly all the ground it lost in April. Current conditions were assessed to be somewhat more favorable, as the 2.5-point increase in this component about split two prior monthly values. Expectations for the near-term future improved more appreciably, sporting a 5.8-point increase to 74.6, a three-month high. While plans to buy expensive items were mixed (autos flat, homes down, appliances up), expectations for inflation were higher, rising a tenth of a percentage point to 5.4%, the highest it has been since December.

That plans to buy homes were down was unsurprising, given high mortgage rates, high home prices and still rather little available to buy. This pessimism was also seen in the April update of pending home sales from the National Association of Realtors. The Realtors’ PHSI declined by 7.4% for the month, and the index value of 72.3 was the lowest ever seen in a data series that now covers 23+ years. While more homes to buy appear to be coming on market, the challenging affordability conditions that currently exist don’t suggest that a sharp increase in sales will come even if there are more homes to buy. For that to occur, we’d need to see stocks of homes for sale improve in the markets with the most demand, and even then, these would need to be both desirable and affordable to the audience seeking them. Such a fortunate confluence of those elements hasn’t been seen in housing for a good while.

Applications for mortgage credit retreated in the week ending May 24. While there may be a bit of holiday weekend effect in the 5.7% decline in applications reported by the Mortgage Bankers Association, it’s also the case that mortgage rates firmed back up a little during their survey week. Firmer rates likely deterred requests for funds to refinance existing loans (-13.6%) but also those for purchasing homes (-1.1%) as well. Even firmer rates this week (and the other side of the holiday weekend) will probably see little improvement in mortgage applications for the closing week of May, as well.

What we can say with certainty is that mortgage rates moved much higher than was warranted by conditions toward the end of last year, and then moved much lower than was warranted by conditions earlier this year. It also doesn’t seem like a coincidence that rates a few weeks ago returned to the midpoint between those two extremes, given the backdrop of somewhat firmer inflation, somewhat softer growth and the change in the prospects for monetary policy this year. At present, and as they have been over the last few weeks, 30-year fixed mortgage rates are a bit below the mid-point recent midpoint. At present, the slightly better-than-expected PCE report and slight pace of economic activity points to at least some stability for rates at present levels… at least until the next set of economic or inflation reports provides a nudge in one direction or the other.

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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By Oscar Wei, Deputy Chief Economist

Thomas Henthorne
02-17-2024

Breaking Down the 2024 Changes to California Real Estate Laws
By Thomas Henthorne

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’s Upward Trend Persists in February 2024

NEW YORK, April 30, 2024: S&P Dow Jones Indices (S&P DJI) today released the February 2024
results for the S&P CoreLogic Case-Shiller Indices. The leading measure of U.S. home prices shows
that 18 out of the 20 major metro markets reported month-over-month price increases. 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): Prices & Sales Up in May

Sales of single-family, re-sale homes in San Mateo County rose 15% in May, year-over-year. There were 306 homes sold in San Mateo County last month. The average since 2000 is 398.

The median sales price for single-family, re-sale homes set a new record high last month. It was $2,416,250. It was up 16.2% compared to last year.

The average sales price rose 16.5% year-over-year.

The sales price to list price ratio rose from 106.9% to 107.8%.

Inventory of single-family, re-sale homes was up 2.7% compared to last year. As of June 5th, there were 376 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 thirty-six days to thirty-seven days.

It took sixteen 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 3.8% year-over-year.

Year-over-year, the average sales price gained 1.1%.

Condo sales were up 18.1% year-over-year. There were 98 condos sold last month. The average since January 2003 is 122.

Inventory was up 30.1% year-over-year.

As of June 5th, there were 177 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory fell from fifty-seven to fifty-four.

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.

May 2024 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.

 

 

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