August Silicon Valley Real Estate Market Update

Quick Market Summary:  Last month I stated that sequentially median prices in Santa Clara and San Mateo counties were nudging upwards since the recent low in December of last year. However, that appears to have ended. We've been in a kind of flat market environment these past three or four months. Not a usual thing to see. We see signs that the market is topping as is usual for summer time.  As was 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. Sellers need to be more aggressive as to list prices. Buyers have two important things going for them -- declining mortgage rates and prices have moderated to help.

For July results, we see that Santa Clara County median prices for single family residences are 3.8% lower than in July 2018. San Mateo County median prices have decreased 3.5% from the same month a year ago. Median prices for Santa Clara County stood at $1,299,000 versus $1,350,000. In the context of looking at the past two years we've seen the median go from $1,168,000 in July 2017 to $1,299,000 or a two-year gain of 11.2%.   

Condo and townhouse median price in Santa Clara County reached $820,000 in July compared to $910,000 last year or a decrease of 9.9%. Two-year change was impressive at 11.9%.

July Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,369 up sharply from 1,209 or 13.2%. Sales (accepted offers) were 1,006 up 1.3% from the same month last year when is was 993. The number of sales has trended lower for several years.

For San Mateo County, inventory of single family residences stood at 437 versus 414 or an increase of 5.6% from July 2018. Sales (accepted offers) were 350 compared to 382 for the same month last year, a decrease of 8.4%.

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 100.7% compared to last year's ratio of 105.2%. 48.2% of homes in Santa Clara County that closed escrow in July sold for more than list price compared to 70.6% last year and 74.4% in July 2017. It was 61% in San Mateo County versus 75% last year.

The hottest market in Santa Clara County again belongs to the Cupertino/Sunnyvale market area with a median price of about $1.871 million) at 101.0% which means that the average closed sale has a sale price 1.0% higher than the list price! It also registered a median days on market of 11 which means half the inventory sells in 11 days. The coolest is the South County market area (Morgan Hill, San Martin and Gilroy) with a median price of about $0.943 million) with 98.7%.

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 48 for Santa Clara County and 44 for San Mateo County. Both of these are higher than last year's figures of 43 and 34, respectively and the highest since 2012. The current levels place Santa Clara County and San Mateo in a balanced market condition since their levels are above 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 $1.138 million) at 111.1% 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 $1.250 million) at 99.3% with median days on the market of 40. 

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.