Santa Clara County (SCC): Sales & Prices Continue to Slow
Sales of single-family, re-sale homes were down for the twelfth month in a row, year-over-year, in August. Sales fell 24.5%. There were 734 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.
The median sales price for single-family, re-sale homes fell, month-over-month, for the third month in a row. It was down 5.7% from July. It was flat compared to last year, breaking a thirty-two month streak of being higher than the year before.
The average sales price for single-family, re-sale homes was down, month-over-month, for the fifth month in a row. It lost 10.5% from July. It was down 3.7% year-over-year.
The sales price to list price ratio fell from 101.2% to 100%. Multiple offers continue to be the norm.
Pending sales were up 1.6% year-over-year.
After being down, year-over-year, thirty months in a row, inventory of single-family, re-sale homes was up for the sixth month in a row. It gained 35.4% compared to last year. As of September 5th, there were 934 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 56 days to 38 days. The average since 2003 is 89.
It took twenty-five 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 down 3.6% compared to last August. The average sales price lost 1.2% year-over-year.
Condo sales were down 36.6% year-over-year. There were 284 condos sold in August.
The sales price to list price ratio fell from 102% to 100.1%.
Condo inventory fell 2.6% compared to last August.
As of September 5th, there were 382 condos for sale in Santa Clara County. The average since January 2000 is 757.
Days of inventory fell from forty-eight to forty.
It took an average of twenty-five days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis
August 2022 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
In The Range Of Neutral (SCC & SMC)
Sept 2, 2022 — The calendar page turned again this week, and summer is at or coming to a close, depending on which point-in-time marker you may prefer. We’re now into the final month the third quarter, and while there are sporadic clues that the economy and inflation are both moderating, it’s not clear that there is sufficient moderation to keep the Fed from tightening policy aggressively again at its coming meeting.
The sharp slowdown in the housing market is starting to be reflected in outlays for new construction projects. Construction spending declined by 0.4% in July, dragged down by a 1.5% decline in outlays for residential projects. Sales of newly constructed homes have flagged this year under adverse conditions, and supplies of new homes are at about 13-year highs, so it’s little wonder that less money is being spent to start new housing developments. Residential spending was the only drag in July, as non-residential projects saw an increase of 0.4%, and public-works spending expanded by a stout 1.5% for the month. Perhaps some of the money earmarked in the “infrastructure” bill signed into law earlier this year is starting to show up in public projects.
Applications for mortgage credit continued their 2022 downtrend this week. The Mortgage Bankers Association reported a 3.7% drop in requests for mortgages in the week ending August 26, and applications are at their lowest point since 1999. Applications for purchase-money mortgages dipped another 1.8%, while those for refinancing slumped by 7.8% last week. Of late, mortgage rates have started moving back up toward the cyclical highs seen back at the official start of summer in June; with just a couple of weeks to go to before summer officially ends and fall begins, and given the recent trend, we seem likely to return to those early-summer levels for mortgage rates before long.
There was really nothing in the data this week to refute the notion that the Fed will continue to be aggressive at its meeting this month, and perhaps beyond. The argument for a 75 basis point increase may have been weakened slightly as the labor data released this week wasn’t off-the-charts strong; at the same time it was plenty strong enough to suggest that the economy can easily withstand monetary policy being moved to a more restrictive stance from its current “in the range of neutral” position. Price pressures are showing tentative signs of slowing and that may continue for a time as lower energy costs work their way through the economy, but are plenty of reasons to think that such declines aren’t durable, and the Fed largely discounts them, anyway.
Investors continued to adjust their positions this week after Fed Chair Powell’s message reinforcement last week, and underlying interest rates that influence mortgages continue to rise as a result. The somewhat-less-stronger-than-feared employment report tempered the recent rise in rates a bit, trimming off just a few basis points from an otherwise considerable increase in yields this week. As yields finished the week higher than where they began, mortgage rates are likely to push higher again next week again. Presently, the average offered rate for a conforming 30-year fixed-rate mortgage is only 15 basis points below its high for this cycle so far, and that gap will likely be closed considerably when the next report comes from Freddie Mac on Thursday morning.
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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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 Decelerated In June
NEW YORK, AUGUST 30, 2022: 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 June 2022 show that home prices continue to increase across the United States. 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): Home Sales Continue Falling
After being higher, year-over-year, fourteen months in a row, sales of single-family, re-sale homes in San Mateo County fell for the eleventh month in a row. They were down 33.5% in July. There were 290 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 down 6.4% compared to last year.
The average sales price fell 4.3% year-over-year.
The sales price to list price ratio fell from 108.9% to 103.5%.
Inventory of single-family, re-sale homes was up 40.6% compared to last year. As of August 5th, there were 485 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-four to fifty 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 0.3% year-over-year.
Year-over-year, the average sales price fell 3.9%.
Condo sales were down 24.2% year-over-year. There were 94 condos sold last month. The average since January 2003 is 122.
Inventory was up 35.4% year-over-year.
As of August 5th, there were 195 condos for sale in San Mateo County. The average since January 2003 is 350.
Days of inventory rose from fifty to sixty-two.
It took an average of twenty-six days to sell a condo last month.
If you are planning on selling your property, call me for a free comparative market analysis.
September 2022 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.