Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Sales Prices & Sales Continue to Fall

The median sales price for single-family, re-sale homes rose, month-over-month. It was up 5.9% from March. It was down 8.2% compared to last year.

The average sales price for single-family, re-sale homes was up 3.3%, month-over-month. It was down 8.9% year-over-year.

Sales of single-family, re-sale homes were down for the twentieth month in a row, year-over-year, in April. Sales fell 45.4%. There were 526 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

The sales price to list price ratio rose from 102.9% to 104.8%.

Pending sales were down 10.1% year-over-year.

After being up, year-over-year, thirteen months in a row, inventory of single-family, re-sale homes was down 22.8% compared to last year. As of May 5th, there were 644 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 31 days to 36 days. The average since 2003 is 89.

It took nineteen 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 12.1% compared to last April. The average sales price fell 8% year-over-year.

Condo sales were down 56.8% year-over-year. There were 218 condos sold in April.

The sales price to list price ratio rose from 101.5% to 103.2%.

Condo inventory was down 35.9% compared to last April.

As of May 5th, there were 227 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory stayed at thirty.

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

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

April 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

One More Time (SCC & SMC)

Apr 28, 2023 —  Seems like it’s been a fast six weeks, but here we are on the cusp of another Federal Reserve meeting. Since the last one, it appears that the banking stresses have either been contained or have at least settled, the economy has lumbered along and inflation has plateaued, albeit at a level still well above where the central bank wants it to be. Labor markets have loosened just a bit, but yet remain very tight, in turn keeping pressure on wages, presumably allowing inflation to persist.

All in all the stage is set for the Fed to raise interest rates one more time, most likely by a quarter of a percentage point. Will it be the last in the cycle? There’s no way to know, of course, and incoming inflation data will drive those future decisions. Futures markets suggest that a pause after this hike is likely, with only a minority of speculators expecting additional moves this summer. For our part, we’re not quite convinced the Fed is done yet, what with core prices still stubbornly high at about two-and-a-half times the desired 2% core PCE rate.

If you build it, some will come. Sales of new homes rose by 9.6% in March, climbing back up to a 683,000 annual rate of sale, the highest annual pace since last March. While still a meager pace, sales are only about 3.4% below where they were a year ago, and have risen by nearly 26% annualized compared to the recent bottom of 543,000 seen last July. With the boost in sales, inventories of homes available to buy thinned out a bit, falling from 8.4 months of supply in February to 7.6 months available in March, with the 432,000 (annualized) actual units available the leanest total since last April. It also appears that perhaps some of the price concessions seen over the winter have eased off a bit, as the median price of a new home sold in March was $449,800; although still below the record high of last October, median selling prices have ticked higher in each of the last two months. With sales trending to the positive, builders have at least some incentive to continue to put up dwellings, and that should also help keep the economy nudging forward for at least a while yet.

Existing home sales, though, are the larger portion of the housing market, and conditions there remain difficult. The National Association of Realtors Pending Home Sales Index — a measure of signed contracts to buy homes — slumped by 5.2% in March. Purchasing an existing home typically takes 45-60 days, so the decline in contracts won’t be reflected in actual sales numbers until April or May’s reports come (late May, late June). That said, the spring homebuying season looks not only to be quite muted this year, but also short, unless mortgage rates fall sharply or more and less expensive houses suddenly start to hit the market. Somehow, that just doesn’t seem all that likely at the moment.

Despite somewhat firmer mortgage rates of late, requests for mortgage credit managed to increase a little bit. The Mortgage Bankers Association reported a 3.7% increase in overall applications for mortgages, lifted by a 4.6% increase in requests for purchase-money loans but also bumped up by a 1.7% rise in those to refinance existing mortgages. There’s been some ebb and flow in mortgage applications in recent weeks, but no real discernible trend to speak of.

Mortgage rates are likely to be a mixed bag at best again next week. The underlying trend for yields suggests a flat-to-slightly-lower path for mortgage rates at least into early next week, but it wouldn’t be a great surprise to see no change or even a couple of basis point increase in the average offered rate for a conforming 30-year fixed-rate mortgage

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.

Real estate related Articles

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 September

NEW YORK, DECEMBER 27, 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 October 2022 show that home price gains declined across the United States. 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 Continue to Fall

The average sales price for single-family, re-sale homes fell 8.7% year-over-year.

The median sales price for single-family, re-sale homes fell 17.9% compared to last year.

Sales of single-family, re-sale homes in San Mateo County fell for the twentieth month in a row, year-over-year. They were down 49.2% in April. There were 187 homes sold in San Mateo County last month. The average since 2000 is 398.

The sales price to list price ratio rose from 102.3% to 102.4%.

Inventory of single-family, re-sale homes was up 8.8% compared to last year. As of May 5th, there were 359 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 forty-three to fifty-six 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 25.3% year-over-year.

Year-over-year, the average sales price gained 13.8%.

Condo sales were down 61.8% year-over-year. There were 52 condos sold last month. The average since January 2003 is 122.

Inventory was down 8.1% year-over-year.

As of May 5th, there were 124 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory rose from forty-four to sixty-nine.

It took an average of twenty-nine days to sell a condo last month.

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

April 2023 Sales Statistics (SMC)

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.