February Silicon Valley Real Estate Market Highlights

Here are the highlights of January transactions and market comments for Santa Clara County real estate and San Mateo County real estate. Your comments and questions are always welcome. If you see something in your neighborhood that you are curious about or have a question, please don't hesitate to share with us. If you have questions or a comment, please leave them here, or feel free to contact me through my website.

> Market Overview -- The last several months has seen a continual decrease in the amount of sales in both counties, an indicator of slowing markets and something we see each year as we enter the holiday and winter season. Closings of single family residences (SFR) in Santa Clara County decreased from last month to 640 from 951 but was 7.9% higher than the same month a year ago. For San Mateo County, SFR closings were 234, down from 370 last month and up 0.9% from the same month a year ago. My analysis of the transactional information reveals:

* The supply of single family residences available for sale (inventory) in Santa Clara County, jumped to 2,335 homes from 2,228 and is 23.7% higher than the same month a year ago. Similarly, we saw San Mateo County's inventory jump to 1,088 homes from 983 and was 33.8% higher than the same month a year ago. Keep in mind that many sellers remove their homes from the marketplace at the end of the year so this is not unexpected to see an increase into January. Generally, inventory is about on track with the ten-year average. Against this backdrop, the market continues more positive in Santa Clara County than in San Mateo County.

* More than 40% of sellers in Santa Clara County get at least list price for their homes! In San Mateo County, the corresponding percentage is a bit over 37%. This is another indicator that the overall market remains stronger in Santa Clara County. Also, these indicators have drifted lower but perked up a bit in January in each county.

* Days of Unsold Inventory (DUI), after a recent upswing has resumed a move lower. If this positive trend continues, it could portend a market that is gaining strength and could point to more positive market conditions later in the year. We watch this important indicator closely. As we have discussed, DUI is a calculation using both supply and demand so not an opinion. A higher figure for DUI, then, means the market is becoming weaker. For January, Santa Clara County had a DUI of 60 for SFR's, down from 77, 64 for condos/townhouses, down from 88 and 94 for multi-unit properties, down from 128. San Mateo County had a DUI reading of 85 (down from 106) for SFR's, 107 (down from 140) for condos/townhouses. Once again, all readings continue to point to a more positive market for Santa Clara County.

> Seller Markets? -- For Santa Clara County the hottest (seller) market areas are South San Jose, Santa Teresa and East Valley portions of San Jose. For San Mateo County, there were NO hot markets! A seller's market has shorter time on the market, fewer number of homes available for sale, higher demand by buyers with a tendency to have multiple offers and sale prices generally exceeding list prices with a potential of price appreciation.

> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Los Gatos, Saratoga and Campbell. Los Gatos is currently my "Best Buy" area in the county. For San Mateo County, we see buyer's markets in Foster City/Redwood Shores and especially the San Mateo Coast cities. The "Bay Cities" of San Mateo County like San Mateo, Redwood City, etc. are a bit cool right now. What makes a "buyers" market is the relationship of supply to demand -- simply put as higher supply and lower demand. The characteristics of a buyer's market is a longer time on the market, higher number of homes available for sale, lower demand by buyers which translates into a lower probability of multiple offers and a tendency for price stabilization or even price depreciation.

Where do I get "Seller's" and "Buyer's" market information? This is not an opinion or based on price levels but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI).

> Median prices have moved lower in Santa Clara and San Mateo counties -- The median price for SFR's in Santa Clara County has decreased for the last several months. It now stands at $532,000, versus $558,000, or a 4.7% decrease from last month and an increase of 0.1% from the same month a year ago. The median price for condos/townhouses decreased to $271,500 from last month's $335,000, and is down 15.4%from the same month last year. San Mateo County's median price for SFR's was $590,000, down from $719,500 last month, down 9.2% from the same month a year ago. The median price for San Mateo County condo/townhouses was $367,500, down from $370,000 last month and 20.9% from the same month last year. I continue to advise my clients NOT to use an entire county's median price level to decide whether to buy or sell or time the market as market areas within each county differ. For instance, I see divergencies in the different market areas in each county so these are general statements. Ask me to provide you with how your area compares.

> 80 days and no offer! -- One of the indicators I review closely is the median days on market (median DOM) for available homes. For Santa Clara County it stands at 79 and for San Mateo County it is at 86. This means that half of the homes on the market are over this figure and half under. The homes that sold are at just 54 and 48, respectively, in Santa Clara and San Mateo counties.

Need help with understanding the market in your area? Give me a call or email me for a no-obligation consultation and research to arm you with market intelligence to help you make a better, more-informed decision.


Thanks for reading my blog. I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.

Silicon Valley Martin Luther King Day Events & Holidays Closings Information

This is a partial list of area events celebrating Dr. Martin Luther King Jr. Day on Monday, January, 18st.

* Annual Dr. Martin Luther King Jr. Luncheon. Keynote speaker will be Bryan Monroe, CEO of Monroe Media Group and former editorial director of Ebony magazines, speaks. 11:00am to 2:00pm, Monday, January 18st, Parkside Hall, 180 Park Avenue, San Jose. $55. 408-292-3157. www.mlksantaclaravalley.com

* MLK Freedom Train. Join King devotees aboard the San Francisco-bound Freedom Train on Monday for a trip to the Bill Graham Civic Auditorium. Leaves Diridon Station at 9:30am and makes stops in Sunnyvale, Palo Alto and San Mateo. Tickets, $10, must be purchased in advance. 408-861-5352. www.brownpapertickets.com/event/86924

* Freedom March. Public participation encouraged in a re-enactment of a civil rights march supporting King's ideals. Noon-2:00pm, February 6th, Dr. Martin King Library, 150 E. San Fernando St., San Jose. 408-808-2183. www.sjlibrary.org.

* Treading the Dream. Live music, art and fashion shows celebrating the dream of Dr. Martin Luther King Jr. Includes wine tasting and appetizers. 6:00pm-9:00pm, Sunday, January 17th. X Studio, 2147 S. 10th St., San Jose. $10-15. 408-826-2498.

* Birthday celebration. Storyteller Diane Ferlatte leads a program of stories and songs about King. 12:30, 2:00 and 3:30pm, Monday. Children's Discovery Museum, 180 Woz Way, San Jose. 408-298-5437. www.cdm.org.

* Community cleanup. Join others removing graffiti and litter from neighborhoods, parks and along Coyote Creek, 8:30am - 12:30pm, Monday. Meet at Happy Hollow Park & Zoo, 1300 Senter Road, San Jose. Must be age 12 and older. Ages 12-18 must be accompanied by an adult chaperone. 408-794-6400.



Holiday Closings: Federal, State offices will be closed. County offices in Santa Clara, San Mateo, Alameda, Santa Cruz, Monterey, San Benito all will be closed. City offices in the above counties will be closed. No mail delivery. Libraries will be closed. Schools in the above counties will be closed. Banks, title & escrow firms will be closed.



Thanks for reading!

Lunar New Year Events

Happy New Year! OK, Happy Lunar New Year! In the Chinese calendar, the longest chronological record in history dating back to 2600 B.C., this year marks the lunar year 4,706 -- Year of the Rat. The first day of the new lunar year is February 7, 2008.

Here are some local events celebrating the Lunar New Year in San Mateo, Santa Clara and San Francisco counties.

Silicon Valley/Santa Clara County:

• Lunar New Year Blessing and Dedication Ceremony. Zen ceremony in Chinese and English followed by a vegetarian lunch. 9:30am - 12:30pm, February 3rd. Chung Tai Zen Center of Sunnyvale, 750 E. Arques Avenue, Sunnyvale. Free. 408-733-0750. www.ctzen.org/sunnyvale

• Vietnamese Spring Festival and Parade. Festival will include Vietnamese arts and crafts, live performances, martial arts demonstrations, children's games and rides, talent show and food booths. 11:00am - 6:00pm, February 10th. 180 Park Avenue. San Jose parade: Market Street between St. John and San Carlos Streets. Free. 408-202-2672. http://www.vsfsanjose.com/

• Lunar New Year Celebration. Traditional crafts, displays, martial arts demonstrations, music and dance performances and food tasting. 10:00am - 5:00pm, February 16th and Noon to 5:00pm, February 17th. Children's Discovery Museum, Woz Way and Auzerais Street, San Jose. Free. 408-298-5437, extension 204. www.cdm.org/p/viewPage.asp?mlid=4 .

San Mateo/San Mateo County:

• Challenge School Chinese New Year Performance. 6:30 to 8:00pm, February 7th, Bayside Performing Arts Center, 2025 Kehoe Avenue, San Mateo. $10 per adult. 650-574-6878. http://www.masterworks.org/ .

San Francisco:

San Francisco's Chinese New Year Parade began in 1860 and was named by the IFEA to be one of the top ten parades in the world! It is also one of the remaining night illuminated parades left in the country.

• 2008 Chinese New Year Parade. Saturday, February 23rd. 5:30 pm.

The Chinese Calendar names each year after an animal and legend has it that a person born under a certain animal will display traits of that animal. I was born in the year of the Tiger. What sign are you in the Chinese 12-year calendar cycle?

Rat: 1924 1936 1948 1960 1972 1984 1996 2008

Ox: 1925 1937 1949 1961 1973 1985 1997 2009

Tiger: 1926 1938 1950 1962 1974 1986 1998 2010

Rabbit: 1927 1939 1951 1963 1975 1987 1999 2011

Dragon: 1928 1940 1964 1976 1988 2000 2012

Snake: 1929 1941 1953 1965 1977 1989 2001 2013

Horse: 1930 1942 1954 1966 1978 1990 2002 2014

Ram: 1931 1943 1955 1967 1979 1991 2003 2015

Monkey: 1932 1944 1956 1968 1980 1992 2004 2016

Rooster: 1933 1945 1957 1969 1981 1993 2005 2017

Dog: 1934 1946 1958 1970 1982 1994 2006 2018

Boar: 1935 1947 1959 1971 1983 1995 2007 2019

Gung Hey Fat Choy! Chúc Mừng Năm Mới!

Thanks for reading!