Santa Clara County (SCC): Home Prices Up, Sales Pop in August
The median sales price for single-family, re-sale homes was up 4.6% compared to last year. The median sales price was $1,877,500.
The average sales price for single-family, re-sale homes was up 10.6% year-over-year. The average sales price was $2,294,970.
Sales of single-family, re-sale homes were up 32.5%, year-over-year, in July. There were 730 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.
The sales price to list price ratio fell from 107.3% to 104.9%.
Pending sales were up 17.6% year-over-year. There are 596 homes in escrow.
Inventory of single-family, re-sale homes was up 17.3% compared to last year. As of August 5th, there were 691 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 from 31 days to 28 days. The average since 2003 is 89.
It took sixteen 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.
Condo prices were mixed last month. The median sales price for condos was down 0.5% compared to last July. The median sales price was $950,000. The average sales price gained 2% year-over-year. The average sales price was $1,056,900.
Condo sales were up 25.1%. There were 279 condos sold in July.
The sales price to list price ratio fell from 104.4% to 103.1%.
Pending sales were up 20.4% year-over-year. There are 272 condos in escrow.
Condo inventory was up 50.8% compared to last July.
As of August 5th, there were 398 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory rose from forty to forty-three.
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.
July 2024 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
Fed Holds, Economy Downshifts, Rates Drop (SCC & SMC)
August 2, 2024 — Even as the Fed held policy steady at its July meeting but suggested that rate cuts will soon come, financial markets have suddenly become worried that the economy is faltering. Whether the central bank is falling behind the curve is certainly a matter of concern, and some folks may have preferred to see the Fed make a move this week rather than wait. While it’s likely too soon to have grave concerns, market reactions this week simply reinforce the idea that getting inflation back down to 2% was likely to be a less-than-smooth process, even if it mostly has been so far.
The Fed held the funds rate at its present level for an eighth consecutive meeting, and the official statement that closed the meeting again said “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” However, Fed Chair Powell noted at his post-meeting press conference that “The second-quarter’s inflation readings have added to our confidence, and more good data would further strengthen that confidence.” He also offered that if the inflation data broadly are in line with the Fed’s expectations over the next six weeks that “a reduction in our policy rate could be on the table as soon as the next meeting in September.”
Overall spending on construction projects declined for a second consecutive month in June, posting 0.3% decline. With housing conditions still difficult, outlays for residential development declined by 0.3% and are also in a back-to-back drop over the last two months. This time, however this decline was joined by a 0.1% reduction in spending on commercial projects and also a 0.4% decline in public-works project outlays. On the whole, construction spending is still some 6.7% higher over the last year, but seems to be losing some traction.
Given the difficult housing climate, the 4.8% increase in the National Association of Realtors Pending Home Sales Index for June was a bit of a surprise. Existing home prices hit a record high last month and mortgage rates were little better than they were in May, but the number of homes for sale has been improving, so perhaps some potential homebuyers saw it as their best chance to jump into the market. Of course, it bears considering that not all signed contracts make it all the way to the closing table, so before you pencil in a sharp pickup in home sales for July or August (reports due later this month and in September, respectively) it is likely that the size of the bump may be more muted than the June PHSI would suggest. Still, with the sluggish pace of existing home sales this spring, any pickup in activity would be welcome.
Given how financial markets reacted to both the Fed and the spate of softer data this week, we’ll likely see a pickup in mortgage applications next week and perhaps beyond. This wasn’t the case in the latest available week, though, as the Mortgage Bankers Association reported a 3.9% decline in requests for mortgage credit in the week ending July 26. Applications for loans to purchase houses slipped by 1.5% for the week, while those to refinance existing loans slumped 7.2%. If late-week mortgage rates declines hold for a bit, we’d expect to see at least some pickup in refinance activity, even as mortgage rates will still remain fairly high.
We think there’s a good likelihood of a 17-22 basis point or so decline in the average offered rate for a conforming 30-year fixed-rate mortgage as reported by Freddie Mac next Thursday, with average rates falling into the low-mid 6.5% range. If they make it below 6.6% — and there’s a good chance they will — the headlines will read “lowest mortgage rates in almost 16 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.
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| NAR 06-13-2024 | San Jose to allow property owners to sell ADUs |
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 Breaks Previous Month’s ALL-TIME HIGH In May 2024
New York, July 30, 2024: S&P Dow Jones Indices (S&P DJI) today released the May 2024 results for the S&P CoreLogic Case-Shiller Indices. The leading measure of U.S. home prices shows the upward trend continued to decelerate in May 2024. More than 27 years of history are available for the data series and can be accessed in full by going to CLICK HERE
for the S&P CoreLogic Case-Shiller Indices. The leading measure of U.S. home prices shows that the upward trend decelerated in April 2024. 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
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San Mateo County (SMC): Prices & Sales Up in July
Sales of single-family, re-sale homes in San Mateo County rose 23% in July, year-over-year. There were 262 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 $2,095,000. It was up 6.3% compared to last year.
The average sales price rose 3.9% year-over-year.
The sales price to list price ratio fell from 107.1% to 105.7%.
Inventory of single-family, re-sale homes was down 1.1% compared to last year. As of August 5th, there were 352 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 thirty-six days to forty days.
It took twenty-one 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 25.3% year-over-year. It set a new record high of $1,141,500
Year-over-year, the average sales price gained 13.6%.
Condo sales were up 8.3% year-over-year. There were 78 condos sold last month. The average since January 2003 is 122.
Inventory was up 35.1% year-over-year.
As of August 5th, there were 200 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory rose from seventy-one to seventy-seven.
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.
June 2024 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.