Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Home Sales & Prices Continue to Lose Momentum

The Silicon Valley real estate market continued to slow in September with single-family, re-sale home sales and prices lower than the month before.

The median price for homes was lower than the month before for the sixth month in a row. The average price has been lower five of the past six months. Sales have been lower for the past five months.

Nevertheless, prices continue to be higher than the year before. The median price for homes was up 6.0% over last year, while the average price was up 1.2%. Home sales were down for the fifth month in a row: -24.1%.

The sales price to list price ratio, or what buyers are paying over what sellers are asking has been declining and is now at it’s lowest level since January 2017. Nevertheless, it remains in the triple digits: 102.2%.

Inventory continues to expand. It has been higher than the year before four months in a row. In September it was more than double last year: 107.9%.

As of September 5th, there were 1,345 homes for sale in Santa Clara County.

Days of Inventory rose nine days to fifty-five days in September. That’s the highest the indicator has been since July 2016. Since January 2000, Santa Clara County has averaged ninety-four days of inventory.

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

The median price for re-sale condos was up 19.3% year-over-year. The average price was up 14.2%.

The sales price to list price ratio was 103.6%.

Days of inventory rose eight days to 52. There are 551 condos for sale in Santa Clara County.

It is taking twenty days to sell a condo.

September 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

Big investment firms have stopped gobbling up California homes (SCC & SMC)

By: Cal Matters

Astronomical prices are forcing a rising share of California families to postpone buying a house. As a result, the state’s record-low homeownership rate has been a boon to one growing segment of California’s housing market: single-family home rentals.

Between 2005 and 2015, the number of owner-occupied homes in California shrunk by nearly 64,000 units, according to the Public Policy Institute of California. Meanwhile the number of renter-occupied homes increased dramatically.

California now has 450,000 more homes used as rentals than it did a decade ago. Compare that to the 1990s, when the number of rented homes grew by less than 120,000 while the state added 700,000 homes owned by the people who live in them.

The rising tide of single-family rentals has renewed attention on who actually receives the rent payments that nearly 2 million Californians make each month. Lawmakers and first-time homeowner advocates have been scrutinizing a relatively new form of landlord: private investment firms that snapped up thousands of homes during the foreclosure crisis and now rent them out.

With nearly one in four California homes now purchased in all-cash, these well-financed institutional investors have also been blamed as unfair competition against families bidding on starter homes. So how much are institutional investors impacting California’s housing prices? The data says not so much now..

The rest of the article is much too long for this space. You can access it here: https://tinyurl.com/y8ucd9fc

It is well worth the read as it also discusses the impact of foreign buyers on the local market.

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

HOME PRICE GAINS SLOW ACCORDING TO S&P CORELOGIC
CASE-SHILLER INDEX

NEW YORK, SEPTWMBER 25, 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 July 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/aa83k4

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 Bounce in September

The median price for single-family, re-sale homes rose 7.2% from August, after being lower than the month before the two previous months.

The average price for homes gained 8.3%, after being lower than the month before the three previous months.

Home sales also rose last month, rising 3.1%. It had also been down month-over-month for three months.

Year-over-year, both the median and average home prices were up 12%. That’s 29 months in a row the median price has been higher than the year before.

Home sales, on the other hand, were down14.2% compared to last September.

The sales price to list price ratio, or what buyers are paying over what sellers are asking, dropped to 107%. That’s the lowest it has been since March 2017.

Days of Inventory rose eight days to fifty-seven days in September. Since January 2000, San Mateo County has averaged eighty-one days of inventory.

The number of homes for sale was up 41.6% year-over-year. That’s the fourth month in a row inventory has been higher.

As of October 5th, there were 596 homes for sale in San Mateo County.

It is taking twenty-three days to sell a home.

Condo prices were also up last month with the median price jumping 18.3% and the average price rising 16% over last year.

Sales were down 26.8%. This is the fifth consecutive month condo sales have been lower than the year before.

Inventory was up for the second month in a row, jumping 48.3%. There are now 129 condos on the market.

Condos are staying on the market only 15 Days. That means from the time the condo is listed to when it goes into contract.

September 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.