Silicon Valley Real Estate Market Trend Report:

September 2023

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

The median sales price for single-family, re-sale homes rose, month-over-month. It was up 3.7% from July. It was up 12.1% compared to last year.

The average sales price for single-family, re-sale homes was up 7.1%, month-over-month. It was up 14.1% year-over-year.

Sales of single-family, re-sale homes were down for the twentieth month in a row, year-over-year, in August. Sales fell 14.2%. There were 633 homes sold in Santa Clara County last month. The monthly average since 2000 is 987.

The sales price to list price ratio fell from 105.9% to 105.3%.

Pending sales were down 56.5% year-over-year.

Inventory of single-family, re-sale homes was down for the fifth month in a row. It fell 56.6% compared to last year. As of September 5th, there were 584 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 30 days to 28 days. The average since 2003 is 89.

It took eighteen 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 7.3% compared to last August. The average sales price gained 4.5% year-over-year.

Condo sales were up 1% year-over-year. There were 290 condos sold in August.

The sales price to list price ratio rose from 102.8% to 103.4%.

Condo inventory was down 48.6% compared to last August.

As of September 5th, there were 236 condos for sale in Santa Clara County. The average since January 2000 is 757.

Days of inventory fell from thirty-three to twenty-four.

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.

August  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

 

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The Unofficial End?  (SCC & SMC)

Sep 1, 2023 — Just as Memorial Day is the unofficial start of summer, Labor Day is its unofficial end. Technically, summer doesn’t start for about three weeks after the last Monday in May and doesn’t end until about three weeks until after the first Monday in September, but regardless of hard dates or definitions, it’s generally agreed that the end is somewhere around now.

After investor concerns and disagreements over the summer as to whether the Federal Reserve is or isn’t done raising interest rates, the most recent sets of inflation and labor market data are starting to suggest that we may be at least at an unofficial end of rate hikes. Now, that’s not to say that interest rates will soon be lowered, or that there’s a zero chance of another quarter-point hike yet to come. Even in September, it’s not uncommon to have a heat wave as the season shifts, but no one would suggest that the inevitable end of summer was somehow suspended. In the same way, we may yet see less favorable readings on inflation or an unexpected bump in hiring, but it’s starting to feel as though a slowing trend for the economy may be sufficient to see the Fed turn to a more sustained pause.

Outlays for construction projects expanded smartly in July, rising 0.7%. With housing starts powering higher, spending on residential projects rose by 1.4% for the period, a third consecutive solid gain. This was joined by a 0.5% increase in spending on non-residential projects, rebounding after a like-sized decline in June, but not by public-works projects, which retreated by 0.4%, the first decline in government-backed spending since May 2022. With plenty of infrastructure repairs and improvements needed, the dip in spending for this segment is probably just a one-time downward blip.

We know that new residential construction has been supported by a lack of houses available to buy in the existing home market. That perhaps makes it a little surprising that the Pending Home Sales Index from the National Association of Realtors managed a positive mark for July, rising by 0.9%, a second consecutive monthly increase. That said, the PHSI is still 14% below year-ago levels. although that’s a bit better than it was in June. If they make it to closing, this measure of contracts signed to purchase should provide a little support for existing home sales for August or perhaps September, but conditions for buyers certainly didn’t improve much in August, what with mortgage rates kicking to 22-year highs. Such an increase in cost likely means that somewhat more buyers had no choice buy to rescind offers as affordability declined further during the month.

Despite rates at multi-decade highs, at least some folks came out to seek mortgage credit. In the week ending August 25, applications for mortgages rose by 2.3%, according to the Mortgage Bankers Association. Requests for funds to buy homes rose by 2%; those to refinance existing loans rose by 2.5%. Of course, with market activity very subdued overall, it doesn’t take much to move the needle by percentage points, as relatively few additional applications can have an outsized impact. Still, it’s good to see that consumers can and will respond despite high-rate conditions.

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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Real estate related Articles

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08-13-2023

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

By Scooty Nickerson and Julia Prodis Sulek

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

By Veronica Dagher Follow and Anne Tergesen

Almanac
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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 Positive Momentum Continues in June

NEW YORK, AUGUST 29, 2023: 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 2023 show all 20 major metro markets reported month-over-month price increases for the fourth 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

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San Mateo County (SMC): Home Prices Mixed, Sales Down

Sales of single-family, re-sale homes in San Mateo County fell 10.2% in August. There were 254 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 1.5% compared to last year.

The average sales price rose 8.3% year-over-year.

The sales price to list price ratio stayed at 103.4%.

Inventory of single-family, re-sale homes was down 25.7% compared to last year. As of September 5th, there were 350 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 from forty-six to forty-one days.

It took twenty-nine 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 14.3% year-over-year.

Year-over-year, the average sales price fell 0.3%.

Condo sales were down 25.5% year-over-year. There were 79 condos sold last month. The average since January 2003 is 122.

Inventory was down 32.9% year-over-year.

As of September 5th, there were 1427condos for sale in San Mateo County. The average since January 2003 is 350.

Days of inventory fell from forty-nine to fifty-six.

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

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

August 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.

 

 

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