Monday, November 16, 2015

November Silicon Valley Real Estate Market Update

Quick Market Overview: The gradual seasonable slowing is now taking place as we head towards Thanksgiving and the Holiday Season. However, the real estate markets in Santa Clara and San Mateo counties remained with seller's market characteristics. Once again, record median prices were seen in October in the Silicon Valley real estate market, breaking last year's records. Demand continues to outstrip supply in Santa Clara County as 61.1% 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 sold for more than list price of 72.0%. Both of these actually increased from the same month a year ago and are the highest rates ever for this time of year! The median price for a single family residence in Santa Clara County continued in record territory at $950,000, and increased 8.9% over October 2014 so the Silicon Valley real estate trends continue in a positive manner. For San Mateo County, its median price settled at $1,209,000, increasing at an even higher 13.4% over October 2014. Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,111, flat from the same month a year ago and still remains historically low for this time of year. Sales (accepted offers) increased 4.4% in Santa Clara County from the same month a year ago. For San Mateo County, inventory of single family residences stood at 389 which was an increase of 4.3% but it, too, 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. Obviously, expert negotiation skills will help buyers increase their probability of success without overpaying or going nuts on their offer price. Sale price to list price ratio shows that for Santa Clara County transactions completed during October, this ratio stood at 103.2% -- the highest for this time of year in the past 16 years! Currently, the highest ratio belongs to the Los Altos/Palo Alto market area (median price of about $2.75 million) at 111.8%, a continued very hot marketplace! The Cupertino/Sunnyvale market area (median price about $1.51 million) came in second at 106.0% but had the lowest days of unsold inventory (DUI) at 26, denoting an even tighter marketplace. San Mateo County's ratio overall is at 106.2% with the highest ratio in the Foster City/Redwood Shores market area (median price of about $1.68 million) at 109.1%. Buyer's take note: If you've been in the market during last Spring to early Fall of this year, you're probably frustrated dealing with all the competition and lost out in multiple offer situations. However, the tables are turning. As we head towards the Holiday Season, there are less competition as some buyers "take a breather" and have holiday travel plans and family commitments to think of. The advantage shifts more toward buyers at this time of year. You might also consider having an excellent negotiator on your team! As you may suspect, market areas do vary in terms of supply and demand attributes so if you would like specific market condition information for your area or neighborhood, please feel free to ask me, your Remax Agent, now a part of the largest Remax agency in California -- RE/MAX Gold! And as always, you are welcome to leave your comments or questions or give me a call. Thank you.