Santa Clara County (SCC): Home Sales Prices & Sales Down
The median sales price for single-family, re-sale homes fell, month-over-month. It was down 1.2% from January. It was down 16.4% compared to last year.
The average sales price for single-family, re-sale homes was down 0.7%, month-over-month. It was down 11.2% year-over-year.
Sales of single-family, re-sale homes were down for the eighteenth month in a row, year-over-year, in February. Sales fell 36.8%. There were 302 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.
The sales price to list price ratio rose from 98.9% to 101.6%.
Pending sales were down 6.5% 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 twelfth month in a row. It gained 7.3% compared to last year. As of March 5th, there were 531 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 61 days to 47 days. The average since 2003 is 89.
It took thirty 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 13.7% compared to last February. The average sales price fell 14% year-over-year.
Condo sales were down 48.3% year-over-year. There were 165 condos sold in February.
The sales price to list price ratio rose from 99.4% to 101.1%.
Condo inventory was up 80.1% compared to last February.
As of March 5th, there were 217 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory fell from sixty-seven to thirty-six.
It took an average of thirty days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
Febuary 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
Stubborn Economy, Inflation, Fed (SCC & SMC)
Feb 24, 2023 — While it’s not uncommon to think of things that are difficult or refuse to change as “stubborn”, it’s a little odd to consider positive things this way. For example, we can certainly refer to stubborn inflation, which remains solidly higher above desired levels, but it feels a little off to consider solid economic growth to be stubborn, although that’s exactly what it is.
All the Fed’s machinations over the past near-year — increasing rates quickly, cutting bond buying and trimming their portfolio holdings — has been to try to get the economy to a level soft enough as to bleed inflationary pressure from the system. Tighter financial conditions and higher rates should have the tendency to effect this change (and ultimately will), but the economy continues to prove more resilient than expected, making the Fed’s inflation fighting more difficult.
It’s early yet, but the available data for the first quarter of 2023 that populates the Federal Reserve Bank of Atlanta’s GDP Now model is also pointing to a 2.7% annualized rate of growth. While there are signs of a cooling economy to be seen if one looks around, it’s not as though there has been all that much change from the recent trend. According to the National Activity Index from the Federal Reserve Bank of Chicago, the economy in January was stronger than it had been since last July; the 0.23 value for this index for January was also the first positive reading since September. The NAI is a amalgam of 85 economic indicators; using a par value of zero, it seeks to show whether the economy is growing above or below its “potential”, or ability to expand without becoming overheated. This is thought to be a GDP of 2.4% or so or perhaps a bit less but whatever the actual level, economic activity in January at least was more warm than neutral.
As mortgage rates settled down from (so far) cyclical highs in November and December, home sales found some solid ground on which to perch. According to the National Association of Realtors, existing home sales eased by just 0.7% in January, slipping to a flat 4 million annualized rate. That said, even with only a modest January decline, sales of existing homes have now declined in each of the last 12 months and are currently about 37% below last January’s levels. The prospect of a near-term pickup in sales doesn’t seem all that strong at the moment, as mortgage rates have recently begun to rise again as we come to the beginning of the traditional spring homebuying season however, and outside of financing costs, homebuyers that do venture into the market are likely to find somewhat improved conditions; the supply of homes for sale remained at 2.9 months in January, a far cry from last January’s 1.6 months (and the same as December’s level). As well, the period of time a home is available on the market to buy has expanded to 33 days, allowing for more time to make a considered decision. That decision may be made over a home’s price; compared to last year at this time, the median price of an existing home sold was just 1.3% higher this January than last, so nearly the same — and since the recent price peak of last June, that median price of a home sold has now declined by 13.2%
In the new construction market, supplies of homes to buy are rather more elastic, and builders also have more leeway in offering incentives and price concessions to move inventory as needed. Sales of newly-constructed homes rose by 7.2% in January, the same-sized increase as seen in December, lifting the annualized rate of sale to 670,000 units. This is up considerably from the 550,000 annual pace of last September and good enough to be the strongest rate of sale since last March. With the increase in sales, inventory levels of homes for sale were pulled back down a bit, landing at 7.9 months (from 8.7), with 439,000 annualized units available for sale ; this is the leanest actual stocks have been since June, and possibly gives builders a need to start to build a bit to keep pace with demand. As far as new home prices go, the $427,500 for January continued a decline from a recent peak, and is now 14% below last fall’s record high — and the lowest actual dollar amount since a year ago February.
Requests for mortgage credit still don’t reflect much enthusiasm for housing, though. In the week ending February 17, the Mortgage Bankers Association noted that applications for mortgages declined by 13.3%, dragged down by an 18.1% drop in those for purchase-money mortgages, but also by a 2.2% drop in requests to refinance existing loans. Perhaps the Valentine’s Day holiday was a distraction for potential homebuyers, or maybe they simply noticed that mortgage rates has risen and decided to wait for a better opportunity to present itself before filing an application.
For further details and a city-by-city breakdown statistics, go to https://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 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 Decelerated In December
NEW YORK, FEBRUARY 28, 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 December 2022 show that home price gains continued to drop across the United States with declining prices reported in the San Francisco and Seattle 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): Average Sales Price Sets New Record
The average sales price for single-family, re-sale homes rose 27.6% year-over-year. It went over $3,000,000 for the first time ever.
The median sales price for single-family, re-sale homes gained 1.5% compared to last year.
Sales of single-family, re-sale homes in San Mateo County fell for the eighteenth month in a row, year-over-year. They were down 15.1% in February. There were 146 homes sold in San Mateo County last month. The average since 2000 is 398.
The sales price to list price ratio rose from 98.5% to 99.4%.
Inventory of single-family, re-sale homes was up 8% compared to last year. As of March 5th, there were 270 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 sixty-five to fifty days.
It took thirty-two 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 0.5% year-over-year.
Year-over-year, the average sales price fell 13.2%.
Condo sales were down 33% year-over-year. There were 59 condos sold last month. The average since January 2003 is 122.
Inventory was up 6.3% year-over-year.
As of March 5th, there were 119 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory fell from eighty-nine to fifty-four.
It took an average of forty days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
February 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.