March Silicon Valley Real Estate Update

Quick Market Summary:  Wow, what a difference a month or so makes! We've learned that the Shelter-in-Place was extended to the end of April. We're finding new routines in our homes and only going out if part of the deemed essential nad all others for just food, medicine, gas, etc. Just last Saturday, real estate was reclassified as "essential". So, should you want to discuss any aspect of real estate, please don't hesitate to contact me. If you have an important need for anything at all that is not getting taken care of, please give me a call at 408-230-0365, email me at Tom's Email Address. 

As for the real estate markets, before the virus crises hit, the markets were doing well. For February transactions, median prices have logged year over year increases -- 14.8% in Santa Clara County and 5.5% in San Mateo County. That brings the median price in Santa Clara County to $1,378,000 and $1,603,000 in San Mateo County.  

Inventory (supply) dropped in each county. A 24.0% drop in Santa Clara County inventory and a 12.9% decrease in San Mateo County inventory added to the incidence of a higher percentage of transactions selling for more than list price and inferring multiple offers -- 64% for Santa Clara County and 56% for San Mateo County. Sales (demand) continues to exceed inventory (supply). 

Finally in this overview, we find that transactions are occurring even with the social distancing! Anecdotal information I've obtained finds some listings obtaining a bunch of offers. If you are a buyer who sees a listed home's virtual tour, let me know and I'll try to obtain available information and inspection reports for you to read and review. If you are a seller, the SIP commands photo tour companies and inspectors NOT to go out currently but let me know and as soon as safe and practical, I can get these arranged for you along with any work that is needed (landscape, painting, cleaning, etc.).  

Condo and townhouse median price in Santa Clara County settled at $794,000 in February compared to $825,000 last year or a decline of 3.8%.

February Nuts and Bolts: Inventory or the number of homes available for purchase in Santa Clara County was 736 down sharply from last year of 969 or 24.0%. Closes were 609 and were just 0.3% higher than the same month last year when it was 607.  

For San Mateo County, inventory of single-family residences stood at 352 versus 404 a decrease of 12.9% from February 2019. Closes were 259 compared to 262 for the same month last year, a decrease of 1.1%.

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 104.6% compared to last year's ratio of 101.3%. 64.5% of homes in Santa Clara County that closed escrow in February sold for more than list price compared to 50.4% last year. For San Mateo County, the ratio was 105.3% versus 103.6% last year. The percent sold for more than list price was 56% versus 60% last year.

The hottest market in Santa Clara County again was the Cupertino/Sunnyvale market area with a median price of about $2.100 million) at 107.7% which means that the average closed sale has a sale price 7.7% higher than the list price! It also registered median days on market of 8 which means half the inventory sold in 8 days! The coolest is the South County market area (Morgan Hill, San Martin, and Gilroy) with a median price of about $0.920 million) with 99.1% and median days on the market of 11.

Days of unsold inventory is another key indicator which is the intersection of supply of available homes compared to demand and stands at 27.8 for Santa Clara County and 36 for San Mateo County. The current levels place both counties in a seller's market condition since their levels are below 40.                                                              

The hottest market in San Mateo County last month the North Cities (Brisbane, Colma, Saly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.160 million) at 109.1% with median days on market of 11. The coolest is the Expensive (Menlo Park, Atherton, Portola Valley, Hillsborough, Woodside) market area (median price of about $3.635 million) at 97.6% with median days on the market of 16. 

As always, I'm here should you want to discuss your real estate plans or need any help during this unbelievable crisis we all are facing.

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