Silicon Valley Real Estate Market Trend Report:

October 2023

Santa Clara County (SCC): Prices Rise, Sales Down

The median sales price for single-family, re-sale homes was up 8.3% compared to last year.

The average sales price for single-family, re-sale homes was up 9% year-over-year.

Sales of single-family, re-sale homes were down for the twenty-first month in a row, year-over-year, in September. Sales fell 44.1%. There were 409 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

The sales price to list price ratio rose from 105.3% to 106.1%.

Pending sales were down 52.4% year-over-year.

Inventory of single-family, re-sale homes was down for the sixth month in a row. It fell 37.9% compared to last year. As of October 5th, there were 661 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 29 days to 47 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 up 14.1% compared to last September. The average sales price gained 9.8% year-over-year.

Condo sales were down 51.1% year-over-year. There were 158 condos sold in September.

The sales price to list price ratio fell from 103.4% to 103.2%.

Condo inventory was down 32.9% compared to last September.

As of October 5th, there were 310 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory rose from twenty-seven to fifty-seven.

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

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

September 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

 

Want straight answers to your real estate questions?

Call 650-305-1111 or send me a note to schedule a complementary & confidential one-on-one meeting.

VISIT http://avi.rereport.com/ for a free on-line market analysis of your property.

You can also perform your own personal search of properties for sale.

Back to Y2K Again (SCC & SMC)

Sep 29, 2023 — From time to time, reminiscing about the past can be a nice thing. Revisiting the good old days, remembering how things were. However, there can be times when looking back isn’t such a comfort, and with 30-year fixed mortgage rates touching about 23-year highs this week, it’s more unpleasant than not.

In such a case, it might be better not to have such a memory at all; in the case of many of today’s homebuyers, today’s interest rate climate isn’t one of deja vu, but rather the first time they are experiencing such a high and sustained period of high mortgage rates. It’s reasonable to think that a potential homebuyer is lamenting today’s conditions, where high mortgage rates are just a kicker on top of near-record high home prices and very few homes available to buy in the market at any reasonable price.

In contrast to today’s homebuying audience, potential homebuyers back at the end of Y2K were actually cheered by the then-current level of mortgage rates, as they were actually declining from even loftier levels. While mortgage interest rates now may be similar to then, there are other key differences in the housing market. In another contrast, the median price of existing single-family homes in the fourth quarter of 2000 was just $139,400 per the National Association of Realtors; at least through August of this year, that same median-price figure was $407,100, so the pain of today’s higher mortgage rates is a little more acute, even if accounting for increases in incomes over time. As well, potential homebuyers had more homes to choose from — there was about 3.9 months of supply at the then-present pace of sales back in the end of year 2000, well above today’s 3.3 months available.

Looking back, mortgage rates may be the same, but it’s to be expected that today’s potential homebuyers would be envious of those who had to brook high mortgage rates during the last episode, given the beneficial offsets in home price and supply.

High rates and unfavorable conditions damped sales of existing homes to a very quiet level starting earlier this year, with sales of newly-constructed homes faring better. Supplies of homes to buy are more elastic in the new construction side of the market, but where they are built and available isn’t a perfect replacement for a lack of existing homes for sale. At the same time, new homes sales are also affected by higher financing costs, although these may be partly offset by builder incentives. Still, these only goes so far.

Sales of newly-built homes throttled back in August, declining by 8.7% compared to an upwardly-revised figure for July (+17k to 739.000 annualized units sold). This dropped the present rate of sale to a four-month low after a promising spring and early summer selling season. The decline in homes sold helped re-lift the number of homes available to buy to 7.8 months of supply at a current sales pace, some 431,000 actual units. Months of supply aside, the number of units ready for sale has been firming back up in recent months, and the combination of sliding sales and rising supply may have contributed to the recent darkening of builder moods as reported by the National Association of Home Builders. Builder incentives to help move houses can include financing incentives and price reductions, and the median price of a new home sold in August was $430,300, down from $436,600 in July.

As noted, sales of existing homes have already been damped, not just from high mortgage rates and prices but also from a lack of supply. The outlook isn’t getting any brighter; the National Association of Realtors Pending Home Sales Index for August pointed to a 7% decline from July, and is 15.7% lower compared to August 2022. This measure of signed contracts last month won’t be incorporated into existing home sales until September or even October sales are tallied (late October, late November) and point to even slower sales heading into the normally softer fall and winter months. Also, and at least for some of August, mortgage rates then were rather lower then than now, so the headwinds they create may actually be more considerable for September, with prospects for improvement in sales diminished.

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.

 

Do you want to be notified of investment

opportunities across the country? send me a note with subject “investment’s opportunities

 

 

Real estate related Articles

SJM
08-13-2023

TEXAS? FLORIDA? NOPE. BAY AREA REFUGEES ARE FLEEING TO SEATTLE

By Scooty Nickerson and Julia Prodis Sulek

WSJ
08-11-2023

Here’s What a $5 Million Retirement Looks Like in America

By Veronica Dagher Follow and Anne Tergesen

Almanac
06-29-2023

Menlo Park Planning Commission OKs architectural plans for Meta’s Willow Village

By Cameron Rebosio

CNN
06-10-2023

Silicon Valley escalates the battle over returning to the office

By Catherine Thorbecke

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 Rebound Continued in May

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 May 2023 show all 20 major metro markets reported month-over-month price increases for the third straight month. 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

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 Prices Up, Sales Down

Sales of single-family, re-sale homes in San Mateo County fell 40.5% in September. There were 178 homes sold in San Mateo County last month. The average since 2000 is 398.

The median sales price for single-family, re-sale homes was up 5.4% compared to last year.

The average sales price rose 10.7% year-over-year.

The sales price to list price ratio rose from 103.3% to 103.4%.

Inventory of single-family, re-sale homes was down 13.6% compared to last year. As of October 5th, there were 458 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 seventy-five 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 4.9% year-over-year.

Year-over-year, the average sales price fell 2.4%.

Condo sales were down 37.5% year-over-year. There were 50 condos sold last month. The average since January 2003 is 122.

Inventory was down 20.4% year-over-year.

As of October 5th, there were 168 condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory rose from fifty-seven to ninety-seven.

It took an average of forty-one days to sell a condo last month.

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

September 2023 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.

 

 

SILICON VALLEY REAL ESTATE MARKET TREND REPORT

Get it sent directly to your inbox and stay informed

Subscribe

MARKET TRENDS REPORT


Archives