Quick Market Summary: We're in the hottest market period of the year as we get more buyer activity. As we get closer to the Memorial Day weekend (graduations, nearing the end of the school year) this activity tapers off as buying a home is a choice. In March, inventory of available homes for sale decreased in each county. Sales (accepted offers) were down in Santa Clara County and up a bit in San Mateo County. Median prices increased 4.5% in Santa Clara County to $1,138,000 and 3.7% in San Mateo County to $1,395,000. Still, San Mateo County has the highest median price of all California counties with Marin and San Francisco not far behind. These levels represent record median prices for this time of year in March in the Silicon Valley real estate market. Demand continues to outstrip supply in Santa Clara County as 71% of homes that closed escrow sold for more than list price inferring multiple offers whereas in San Mateo County, it had an even higher percentage of homes that sold for more than list price of 76%.
Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 854, down from 1,034 or 17.4% from the same month a year ago. Sales (accepted offers) decreased 2.9% in Santa Clara County to 1,170. In this measure, a downtrend continues in force since 2012!
For San Mateo County, inventory of single family residences stood at just 336 which decreased 10.4% from the same month a year ago. For both counties, the inventory continues to lag below the average for this time of the year placing pressure on buyers as evidenced in the predominance of multiple offer situations and heated competition between buyers.
Sale price to list price ratio, a key market condition indicator, shows that for Santa Clara County transactions completed during March, this ratio stood at 103.9% and among the highest for this time of year over the past 17 years! Currently, the highest ratio and the hottest market area belong to the Cupertino/Sunnyvale market area (median price of about $1.80 million) at 109.8%. It also registered the lowest median days on market at just 8 which means half the inventory disappears in less than 8 days! The coolest market area is South County (Morgan Hill/Gilroy).
San Mateo County’s overall sale price to list price ratio stands at 107.2% with the highest ratio in the Foster City/Redwood Shores market area (median price of about $1.79 million) at 109.7%. This indicates that this market area is the hottest. The coolest market area is the San Mateo Coast (Half Moon Bay, El Granada, Moss Beach, Montara).
As is always the case, market dynamics change and the supply and demand relationships can vary by area. If you would like specific market condition information for your area or neighborhood or a current home value, please feel free to call me, your Remax Agent! And as always, you are welcome to leave your comments or questions. Thank you.