Silicon Valley Real Estate Market Trend Report:

Santa Clara County (SCC): Home Sales Prices Flattening Out

The median sales price for single-family, re-sale homes fell 2.4% from August. Nevertheless, it was up 15.1% compared to last year. That’s the twenty-third month in a row the median sales price has been higher than the year before.

The average sales price for single-family, re-sale homes rose 2.2% from August. It was up 19.2% year-over-year.

The sales price to list price ratio went from 108.8% to 107.9%. Multiple offers continue to be the norm.

Sales of single-family, re-sale homes were down 1.5% year-over-year in September. There were 941 homes sold in Santa Clara County last month. The monthly average since 2000 is 987. That breaks a twelve month streak of home sales being higher than the year before.

Pending sales were up 17.1% year-over-year.

Inventory of single-family, re-sale homes was down 23.0% compared to last year. That is the twenty-fifth month in a row inventory has been lower than the year before. As of October 5th, there were 674 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, stayed at 21 days. The average since 2003 is 89.

It took only fifteen 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 15.6% compared to last September. The average sales price gained 10.2% year-over-year.

Condo sales were up 20.5% year-over-year. There were 452 condos sold in September.

The sales price to list price ratio went from 103.5% to 103.4%.

Condo inventory fell 31.1% compared to last September.

As of October 5th, there were 414 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory rose one day to twenty-seven.

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.

September  2021 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 Bit Of  Turbulence  (SCC & SMC)

October 1, 2021 — As often seems to be the case, a late-September range of crosscurrents have hit the financial markets, Of late, investors have had their choice of worries on which to focus, including political theater in Washington over spending, funding the government and raising the debt ceiling, the ever-changing economic climate, actual and possible turnover at the Fed, present COVID trends and impacts, inflation worries and more. With the change of seasons, it’s clear that summer’s relative quiet is behind us, and the climate has intensified a bit.

The final look at GDP growth the second quarter was revealed this week, and looking in the rearview mirror at the period that ended three months ago we see a robust economy that posted a 6.7% annual growth rate. Delta’s deceleration of activity in the third quarter — just closed yesterday — will probably leave growth for Q3 at perhaps 4% or less (the latest run rate — with much of September’s data yet to be incorporated — is 3.2%, according to the GDPNow tracker at the Atlanta Fed). Some growth that was expected to take place in the third quarter was likely delayed due to Delta, but some may have been lost, since at least the traditional vacation season has passed.

The yearlong uptrend in inflation may be leveling off, but there are no signs of any abatement. The Personal Income and Personal Consumption Expenditures report from the Bureau of Economic Analysis revealed that overall PCE prices rose another 0.4% in August, lifting the top line annual run rate another tenth of a percentage point to 4.3% for the month. Core PCE (the Fed’s preferred price gauge) increased another 0.3% in August, the same as seen in July, and holding the annual rate of core PCE inflation at 3.6% for a third consecutive month. The Fed’s stated goal is to see core PCE routinely running at about 2% or perhaps a little above it, and three months at a rate some 80% above target is something that no doubt concerns the Fed. It still expects price increases to be “transitory” but they are seemingly starting to prove a little more intractable than the Fed expected.

Construction spending failed to post an increase or decline in August, coming in unchanged from July’s levels. The drag all came from the commercial sector, which declined by a full 1% during the period, it’s weakest showing since February. Residential construction continues to shine, and rose by another

0.4%, a thirteenth gain in the last 14 months. Outlays for public-works projects also managed a second consecutive gain of 0.5%, as road work and education-related spending increased during the month.

Applications for mortgage credit eased back by 1.1% in the week ending September 24, according to the Mortgage Bankers Association, as requests for both purchase-money mortgages (-1.2%) and those for refinancing (-0.9%) declined. With mortgage rates bumping higher this week after a very flat summer pattern, refi activity will probably tail off again, but purchase requests shouldn’t be dented too much by the minor rise in rates. With regard to home purchases, the National Association of Realtors reported an 8.1% increase in their Pending Home Sales Index for August; inasmuch as there were increases in purchase applications for three of the four weeks in August, that stands to reason. So far this month, there have been increases in purchase apps in two of the four weeks, so we could see some additional purchase activity as we move into the fall, too, especially since inventories of homes available to buy have been in a mild improving trend over the last couple of months.

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 REPORTS RECORD HIGH 19.7% ANNUAL HOME PRICE GAIN IN JULY

NEW YORK, SEPTEMBER 28, 2021: 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 July 2021 show that home prices continue to increase across the U.S. More than 27 years of history are available for the data series and can be accessed in full by going to CLICK HEAR

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

Is it time to seriously consider investing in real estate?

Signup for my Real Estate Investment Alerts and you’ll receive my real estate investment opportunities.

San Mateo County (SMC): Home Sales Dip in September

After being higher, year-over-year, fourteen months in a row, sales of single-family, re-sale homes in San Mateo County fell 5.0% in September. There were 396 homes sold in San Mateo County last month. The average since 2000 is 398.

Sales prices for single-family, re-sale homes rose in September. The median sales price gained 1.6% from August. It was up 11.4% compared to last year. That’s the sixteenth month in a row the median sales price has been higher than the year before.

The average sales price for single-family, re-sale homes rose 11.2% from August. It was up 14.3% year-over-year.

The sales price to list price ratio fell to 108.3% from 109.5%.

Inventory of single-family, re-sale homes was down 38% compared to last year. As of October 5th, there were 347 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 to twenty-five days.

It took nineteen 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 rose 4% year-over-year.

Year-over-year, the average sales price rose 5%.

Condo sales were down 2.3% year-over-year. There were 125 condos sold last month. The average since January 2003 is 122.

Inventory was down 41.1% year-over-year.

As of October 5th, there were 162 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory rose to thirty-eight from twenty-nine.

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

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

September  2021  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.