Quick Market Summary: The hot streak continues as October is added to the hottest real estate market period in history! Buyers seem to be getting a jump on expected future price gains and/or higher mortgage rates. Normal market trends have late summer and fall prices drifting lower along with sales and inventory. Not so this year! In October, inventory of available homes for sale attained what looks like a record low in Santa Clara County of just 645 single family residences. Median prices continue to set records — in Santa Clara County it was $1,250,000 and $1,525,000 in San Mateo County. The Santa Clara County median price for condos/townhouses is $767,000. Demand continues to outstrip supply in Santa Clara County as 75% of homes that closed escrow sold for more than list price inferring multiple offers and was 84% in San Mateo County. Historically, we see a higher level of interest from buyers post-Labor Day that lasts for a month or so and then things tend to settle down as we approach the holidays.
Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was just 645 down from 700 last month and down from 1,116 the same month last year or a decrease of 42.2%! Sales (accepted offers) were 1,003 down from 995 last month and decreased 8.7% from 1,098 the same month last year. Closed sales were interesting — they were 797 in October, 886 last month in September but only 859 last year, a decrease of 7.2%. Comparing the large reduction of inventory and the smaller drop in offers accepted, we’ve seen that turnover has accelerated. Put another way — the length of escrows have shortened making our market more efficient or faster.
For San Mateo County, inventory of single family residences stood at 318 in October down from 396 last month. Sales (accepted offers) were 460 an increase from 393 last month. For both counties, the inventory continues to lag far below the historical 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 trying to enter the market.
Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during October this ratio stood at 107.7% and the highest ever for this time of year and a bit lower than the all time high of 110.0% reached in the heady days of the “Dot-com” period in 2000. Last year it stood at 101.9%. Take a look at the chart below from MLSListings.com which shows this ratio since 2000.
Currently, the highest ratio and the hottest market belongs to the Cupertino/Sunnyvale market area (median price of about $1.80 million) at 113.7% which means that the average closed sale has a sale price 13.7% higher than the list price. It also registered the lowest median days on market at just 8 which means half the inventory sells in just eight days! The coolest is the South County (Morgan Hill and Gilroy) market area (median price of about $0.82 million) with 101.0% and 15 days.
Days of unsold inventory are at a record low of just 22.5 for Santa Clara County and 31 for San Mateo County. This means that for Santa Clara County that the entire inventory, if held static, would sell out in less than 23 days!
The high end of the price ranges in the Los Altos/Palo Alto and Los Gatos/Saratoga market areas are showing signs of cooling. They are staying on the market much longer than those more closely aligned with the median priced homes in those same areas.
San Mateo County’s overall sale price to list price ratio stands at an even higher level of 110.2% with the highest ratio and hottest market area in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.00 million) at 111.8% with a median days on market of 14. The coolest is the Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area, (median price of about $1.23 million). As was the case with the high end in Santa Clara County, we’re seeing the same characteristic with those higher priced homes in San Mateo County in Menlo Park, Atherton, Portola Valley, Hillsborough and Woodsidealong with the high part of the range in the Bay Cities and Redwood City. San Mateo County’s sale price to list price ratio chart is from MLSListings.com.
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 valuation, please feel free to call me, your Remax Agent! You are welcome to leave your comments or questions or contact me directly at my website. Check out and “like” my Facebook Business Page (have over 750 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.
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