Santa Clara County (SCC): Home Sales Continue to Surge
Sales of single-family, re-sale homes jumped 36.1% year-over-year. Home sales were up 10.1% compared to September. There were 1,051 homes sold in Santa Clara County last month. Last October there were 772 homes sold. The average since 2000 is 987.
The median sales price for single-family, re-sale homes set a new record high last month. It rose 18.1% compared to last year. That’s the twelfth month in a row the median sales price has been higher than the year before.
The average sales price was up 11.5% year-over-year. Higher priced homes are selling at a faster rate than lower priced homes.
The sales price to list price ratio went from 102.7% to 103.3%.
Pending sales were up 52.9% year-over-year.
Year-to-date, home sales are down 5.2%.
Inventory of single-family, re-sale homes was down 30% compared to last year. That is the fourteenth month in a row inventory has been lower than the year before. As of November 5th, there were 894 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 one day to 26 days compared to September. The average since 2003 is 89.
It took only twenty 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 3.3% from last October. The average sales price gained 3.5% year-over-year.
Condo sales were up 12.3% year-over-year. There were 392 condos sold in October.
Year-to-date, condo sales are down 7.3%.
The sales price to list price ratio from 100.5% to 100.9%.
Condo inventory dropped 0.9% from last October.
As of November 5th, there were 630 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory rose to forty-eight from forty-six.
It took an average of twenty-seven days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis
October 2020 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 Quieting Roar (SCC & SMC)
October 30, 2020 –After an unprecedented decline in the second quarter of 2020, the economy rebounded in record fashion in the third quarter. You would expect to see these kinds of swings when you move from a nearly completely shut period to one that is nearly completely open, but even with a quarter where GDP growth was nearly double the previous record gain, the reality is that the economy has only recovered about two-thirds of the growth it lost in the short, severe coronavirus pandemic recession.
That roaring rebound of activity was measured in a quarter that closed a month ago already, and while there still seems at least some forward momentum still evident, the strong blast of growth of that period is quieting. Worse, perhaps, is that the virus is again surging, which may lead to new restrictions on economic activity, as it has overseas.
When the economy began to shut back in March, it tipped into recession, posting an annualized decline in Gross Domestic Product of 4.96% for the first quarter; once nearly fully stopped in the April-June period, the plummet moved to a -31.38% annual rate. A $2 trillion CARES Act spending spree by the federal government, interest rates slashed to zero and strong bond buying by the Fed and a re-opening of the economy on a widening basis over the period sparked a record annualized increase for GDP of 33.08% in the third quarter — nearly double the previous, post-WWII pop of 16.7% in 1950.
The strongest portion of the growth came early in the third quarter, but to us does seem to have settled back starting in August and more so in September. October’s just finishing up, but early signals point to additional moderation in activity, and there’s little reason to expect a continued surge for growth in the fourth quarter, although we will probably still be on the positive side of the ledger when the results are tallied… next year.
Housing has been one of the more roaring components of the unleashed economy. We learned last week that members of the National Association of Home Builders have never been happier or seen better conditions, and this week we learned that sales of new homes remained at a high level, if not quite as hot as they have been. In September, sales of newly constructed homes eased by 3.5%, slipping back to a 959,000 annual rate of sale, and August sales were trimmed back a bit as well. Regardless, these figures are still among the best seen in about 14 years, so there’s good reason why homebuilders are happy. Even with the slower pace of sales, inventories remain quite lean, with stockpiles of 3.6 months (284,000 units). With optimal inventory closer to six months, this level is certainly low enough to prompt builders to keep busy as we close 2020 and move into next year at a minimum. Also, and unlike spiking prices for existing homes, the median price of a new home sold was 0.5% below August levels, and costs of new homes are only about 3.5% higher this September than they were last year. At $324,000, the gap between the median price of a new and used home is quite narrow at just $12,200 — about $50 per month at today’s interest rates.
With the delayed-to-summer spring homebuying season likely coming to a close, and normal seasonality starting to creep in, a slowdown in homebuying is likely (if perhaps not as pronounced as would normally be the case). New home sales eased in September; that change is based upon the signing of contracts to buy. In this way, the National Association of Realtors Pending Home Sales Index is similar — a tally of purchase contracts signed during the month. September’s PHSI declined by 2.2%, a small but meaningful reversal of direction, and one that continues a moderating pattern. On a month-to-month basis, May saw a 44.3% increase over April, June saw a 15.8% increase over May, July added another 5.9% on top of June and August kicked 8.8% above that. Outside of the pandemic hard stop for sales contracts, September’s the first decline since the normal seasonal slide, last seen in the typically soft November-December period last year. No worries, though; even with the September slippage, contracts in play are still about 21% above year-ago levels. Still, things are less hot than they have been.
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
| Realtor Magazin October 22, 2020 |
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| WOLF STREET October 8, 2020 | The Big Boys Are Back: Financializing Single-Family Houses | |
| San Jose Mercury News October 2, 2020 | Bay Area leaders leery of mandate By Louis Hansen | |
| Washington Post October 2, 2020 | Beautiful, perk-filled and mostly empty: What the future holds for tech’s billion-dollar headquarters By Fannie Mae |
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
S&P CORELOGIC CASE-SHILLER INDEX SHOWS ANNUAL HOME PRICE GAINS INCREASED TO 5.7% IN AUGUST
NEW YORK, OCTOBER 27, 2020 – S&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 2020 show that home prices continue to increase at a modest rate across the U.S. More than 27 years of history are available for these 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): Home Sales Surge, Prices Rise
Sales of single-family, re-sale homes in San Mateo County jumped 38.1% year-over-year in September. There were 417 homes sold in San Mateo County last month. The average since 2000 is 398.
Year-to-date, home sales are down 9.6%.
Although backing off the nigh set in August, the median sales price for single-family, re-sale homes was up, year-over-year, by 17.4%.
The average price also backed off the high set in August. It was up 25.3% year-over-year.
After being higher than the year before two months in a row, inventory of single-family, re-sale homes was off 11.3% compared to last year. As of October 5th, there were 560 homes for sale in San Mateo County. The average since January 2000 is 1,287.
The sales price to list price ratio was flat at 102.4%.
Days of Inventory, or the amount of time it would take to sell all homes for sale divided by how many homes have sold, dropped seven days to thirty-nine days.
It took twenty-five 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 1.4% year-over-year. It was down 1.5% from August. The average sales price fell 4.4% from August. Year-over-year, the average sales price gained 0.2%.
Condo sales jumped 66.2% year-over-year. Condo sales were up 18.5% from August.
Inventory rose 46.3% year-over-year. It was up 13.6% compared to August.
As of October 5th, there were 275 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory fell to sixty-two from sixty-seven.
It took an average of twenty-two days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
October 2019 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.
