Friday, February 12, 2016

February Silicon Valley Real Estate Market Update

Quick Market Overview: As is usual for this time of year, the number of available homes for sale have increased. While not a huge jump, we do see a trend change nonetheless. Notwithstanding this, however, the real estate markets in both Santa Clara and San Mateo counties remain in record territory in terms of prices and well off their average inventory levels over the past 15+ years. Record median prices were seen again in January in the Silicon Valley real estate market, breaking last year's records. Demand continues to outstrip supply in Santa Clara County as 60% (versus 58% last month) 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 62% versus 60% last month. Both of these are record highs for this time of year! The median price for a single family residence in Santa Clara County continued in record territory at $898,000, and increased 10.6% over January 2015 so the Silicon Valley real estate trends continue in a positive manner. For San Mateo County, its median price settled at $1,155,000, increasing at 9.5% on a year over year basis.

Below is a chart of the number of single family residence sales in Santa Clara County from January 2002 to January 2016. (Data source: Notice the general downwards trend.

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 591, up from 495 or 19.4% from the record low in December but a decrease of 18.5% from the same month a year ago. whereas sales (accepted offers -- please see above chart) decreased 13.2% in Santa Clara County keeping the downtrend in force since 2012.
For San Mateo County, inventory of single family residences stood at just 234 which decreased 2.9% 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. Sales (accepted offers) were 200 a 8.7% decrease from the same month a year ago.  
Sale price to list price ratio shows that for Santa Clara County transactions completed during January, this ratio stood at 102.5%, level with the previous month and among the highest for this time of year over the past 16 years! Currently, the highest ratio belongs to the Los Altos/Palo Alto market area (median price of about $2.30 million) at 108.3%, a continued very hot marketplace! It also registered the lowest median days on market at just 9 which means half the inventory disappears in just 9 days! 
The Cupertino/Sunnyvale market area (median price about $1.60 million) came in a close second at 106.7% with a median days on market of 13. San Mateo County's ratio overall is at 105.0% with the highest ratio in the Bay Cities (Belmont, Burlingame, Milbrae, San Carlos, San Mateo) market area (median price of about $1.42 million) at 106.2%.

As you may suspect, 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.

No comments: