July Silicon Valley Real Estate Market Update

Quick Market Summary:  Sequentially median prices in Santa Clara and San Mateo counties keep nudging upwards since the recent low in December of last year. There are continued signs the market is topping as is usual for this time of the year (May-June). Last year the peak actually arrived in March and turned into a significant correction. As stated last month and because of the incredible "double ramp up" of prices in the latter part of 2017 and early 2018, we'll continue to see year over year decreases for a while. Overall, demand is below supply which puts downward pressure on prices and makes for listings staying on the market longer.

For June results, we see that Santa Clara County median prices are 4.6% lower than in June 2018. San Mateo County median prices have decreased 0.9% from the same month a year ago. Median prices for Santa Clara County stood at $1,335,000 versus $1,400,000. In the context of looking at the past two years we've seen the median go from $1,182,000 in June 2017 to $1,335,000 or a two-year gain of 12.9%.   

Condo and townhouse median price in Santa Clara County reached $873,000 in June compared to $933,000 last year or a decrease of 6.4%

June Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,393 up sharply from 1,045 or 33.3%. Sales (accepted offers) were 1,056 down 4.0% from the same month last year when is was 1,100. The number of sales has trended lower for several years.

For San Mateo County, inventory of single family residences stood at 440 versus 397 or an increase of 10.8% from June 2018. Sales (accepted offers) were 423 compared to 431 for the same month last year, a decrease of 1.9%.

Sale price to list price ratio, a key market condition indicator, shows that for Santa Clara County transactions completed during the month, this stood at 101.5% compared to last year's ratio of 107.8%. 53.9% of homes in Santa Clara County that closed escrow in June sold for more than list price compared to 79.5% last year and 72.3% in June 2017. It was 62% in San Mateo County versus 81% last year.

The hottest market in Santa Clara County again belongs to the Cupertino/Sunnyvale market area with a median price of about $1.994 million) at 103.3% which means that the average closed sale has a sale price 3.3% higher than the list price! It also registered a median days on market of 15 which means half the inventory sells in just a bit over two weeks. The coolest is the South County market area (Morgan Hill, San Martin and Gilroy) with a median price of about $0.884 million) with 99.7%.

Days of unsold inventory and another key indicator which is the intersection of supply of available homes compared to the demand, moved up and stands at 46.2 for Santa Clara County and 36 for San Mateo County. Both of these are higher than last year's figures of 33.3 and 32, respectively abd the highest since 2011. The current levels place Santa Clara County in a balanced market condition whereas San Mateo County remains in a seller's market condition since its level is below 40. 

The hottest market in San Mateo County last month is the North Cities (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.115 million) at 110.8% with a median days on market of 13. The coolest is the Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area (median price of about $1.280 million) at 99.7% with median days on the market of 18. 

As always, markets are always changing and the supply and demand in a particular area or even neighborhood can vary. 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 RE/MAX Gold 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 (over 775 have done so) or follow me on my Twitter Page.Thank you.