Quick Market Summary: We’ve gone through the historically hottest part of the year where a higher wave of buyer activity (demand) comes knocking. Now, we are in the summer months with many potential buyers in vacation mode so the activity is less intense. We continue to have buyer interest and activity but it is countered by continued low inventory. In July, inventory of available homes for sale remained anemic in each county. Median prices continue to set records — in Santa Clara County it was $1,168,000 and $1,600,000 in San Mateo County. Even though these levels have drifted slightly lower, they represent record median prices for this time of year in the Silicon Valley real estate market. Demand continues to outstrip supply in Santa Clara County as 74% of homes that closed escrow sold for more than list price inferring multiple offers. Same proportion in San Mateo County. Post Labor Day, we’ll see even more buyer activity so would expect prices to remain strong.
Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was just 834 with sales (accepted offers) of 1,146. In this measure, a downtrend in inventory levels continues in force since 2012!
For San Mateo County, inventory of single family residences stood at 319 with sales (accepted offers) at 366. 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 July, this ratio stood at 105.5% 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 $1.90 million) at 111.5%. It also registered the lowest median days on market at just 8 which means half the inventory sells in less than 8 days! The coolest market area is South County (Morgan Hill/Gilroy) (median price of about $0.80 million).
San Mateo County’s overall sale price to list price ratio stands at an even higher level of 108.5% with the highest ratio and hottest market area in the Bay Cities (Belmont, Burlingame, Millbrae, San Carlos, San Mateo) market area (median price of about $1.70 million) at 112.0%. The coolest market area is the Expensive (Atherton, Menlo Park, Portola Valley, Woodside, Hillsborough) market area, (median price of about $3.33 million).
As always, 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! You are welcome to leave your comments or questions or contact me directly. Thank you.
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