Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Home Sales & Prices Edge Higher in October

After six straight months with the median price of single-family, re-sale homes being lower than the month before, it gained 3.4% in October. Year-over-year, the median price was up 5.9%.

The average price has been lower five of the past six months. It gained 7.9% over September. Year-over-year, the average price was up 6.3%.

Home sales also bounced last month, up 9.9% over September. Year-over-year, home sales were down 5.1%.

The sales price to list price ratio, or what buyers are paying over what sellers are asking has been steadily declining and is now at its lowest level since January 2017. Nevertheless, it remains in the triple digits: 102.0%.

Inventory continues to expand. It has been higher than the year before five months in a row. In October it was more than double last year: 125.2%.

As of November 5th, there were 1,360 homes for sale in Santa Clara County.

Nevertheless, Days of Inventory shed two days to fifty-three days in October.  Since January 2000, Santa Clara County has averaged ninety-four days of inventory.

It is taking twenty-six days to sell a home. That’s the longest since February 2017.

The median price for re-sale condos was up 21.7% year-over-year. The average price was up 15.9%.

The sales price to list price ratio was 103.2%.

Days of inventory rose five days to 57. There are 545 condos for sale in Santa Clara County.

It is taking twenty-one days to sell a condo.

October 2018 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

Economy Firm, Rates Too (SCC & SMC)

November 2, 2018 — In the current economic climate, mortgage borrowers hoping to see lower rates are likely to be routinely disappointed. Simply put, there’s just too much good news to expect a meaningful downturn in interest rates anytime soon.

That’s not to say we might not see periodic dips, which are common, and come and go as inbound economic data ebbs and flows. However, to get a considerable or sustainable decline, we’ll need to see a measurable slowdown in the U.S., or in a major overseas economy, or some durable event that sees investors more strongly prefer safety and security — return OF principal — rather than seeking opportunities that provide for return ON principal.

To be sure, there are changes afoot. There seems to be slowing growth in China, the Eurozone is uneven, at best, with a changing political climate in Germany and Brexit keeping things interesting, plus issues in Italy and more. However, as long as things are solid in the U.S. and the Federal Reserve is likely to continue to lift interest rates, the best a mortgage shopper can hope for is that rates find a way to hang around near present levels.

Although growth may have throttled back a bit in the third quarter of 2018 compared to the second, the present 3.5% rate of GDP growth is very strong. There are a few indications that the fourth quarter may ease up a bit more, but there is no expectation that slightly lesser pace changes the interest rate picture very much.

In looking at and through the data that comes each month and quarter, it’s hard to find anything that suggests that a meaningful decline in interest rates can be expected anytime soon. That’s not to say that some unexpected event might not create a temporary dip here or there or that rates are expected to continue to rise in a straight line, but that the conditions that create firmness in interest rates (and mortgage rates) — solid growth, firming price pressures, an active Fed — all remain in place, and are expected to remain for a while yet. At some point, perhaps not even all that long from now, we’ll come to an inflection point, and the shift in conditions will begin to suggest lower rates as we go along. For now, that remains well into the future.

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 Corne

ANNUAL GAINS FALL BELOW 6% FOR THE FIRST TIME IN 12 MONTHS ACCORDING TO S&P CORELOGIC CASE-SHILLER INDEX

NEW YORK, OCTOBER 30, 2018 – SS&P Dow Jones Indices 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 August 2018 shows 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, and can be accessed in full by going to: https://goo.gl/WHAX8w

U.S. Housing Markets Moving Into Rent Territory for First Time in Over 8 Years: Report

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San Mateo County (SMC): Home Prices & Sales Continue Rising in October

The median price for single-family, re-sale homes rose 1% from September. That’s the second month in a row the median price has been higher than the month before.

The average price for homes also rose 1%. Again, that’s the second month in a row the average price has been higher than the month.

Home sales surged last month, rising 30.5% over September.

Year-over-year, the median price gained 7.5% and the average price was up 13.2%. That’s 30 months in a row the median price has been higher than the year before.

Home sales rose 10.4% compared to last October.

The sales price to list price ratio, or what buyers are paying over what sellers are asking, dropped to 106.6%. That’s the lowest it has been since February 2017.

Days of Inventory dropped fourteen days to forty-three days in October. Since January 2000, San Mateo County has averaged eighty-one days of inventory.

The number of homes for sale was up 58.8% year-over-year. That’s the fifth month in a row inventory has been higher.

As of November 5th, there were 559 homes for sale in San Mateo County.

It is taking nineteen days to sell a home.

Condo prices were also up last month with the median price jumping 6.9% and the average price rising 15.6% over last year.

Sales were down 24.6%. This is the sixth consecutive month condo sales have been lower than the year before.

Inventory was up for the second month in a row, jumping 96.9%. There are now 128 condos on the market.

Condos are staying on the market only 20 Days. That means from the time the condo is listed to when it goes into contract.

For specific information, do not hesitate to contact me.

October 2018 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.