March Silicon Valley Real Estate Market Update

Quick Market Summary: The real estate market is hot and getting hotter! Yes, you read that right. Year over year comparisons reveal that in Santa Clara County the median price jumped to $1,388,000 up 26.2% and in San Mateo County increased even more steeply at $1,740,000 up 28.9% from last year. So we're still in this hot streak. Still, that doesn't mean every single home went up that much as the median price is the middle price of those that sold. It's more accurate to use median prices as an indicator of the overall trend. Supply and demand -- low inventory or supply coupled with high demand means higher prices. Again, basic economic theory -- low inventory mixed with high buyer demand. The Santa Clara County median price for condos/townhouses is $840,000, up 21.7% from the same month last year. In Santa Clara County 83% of homes that closed escrow sold for more than list price inferring multiple offers and a record for this time of year. It was 79% in San Mateo County. 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 615 down 17% from last year at this time. Sales (accepted offers) were 945 up from 938 or 0.7% from the same month last year. You'd think that sales would be down as much as inventory if you believe what some agents say that sales are limited by the low inventory. They forget that there is another variable to consider -- turnover. A faster market or one with a shorter number of days on market easily cancels or mitigates a lower level of inventory. Think the turnover in the fruit and vegetable portion of the market versus the turnover for packaged goods. Median days on market has dropped to just 9 -- lowest ever! This means that it takes just over a week to sell half of the available homes!

For San Mateo County, inventory of single family residences stood at 264 in February, up 10.9% from last year. Sales (accepted offers) were 358, up 11.2% from February 2017. 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 February this ratio stood at 112.1% and the highest ever eclipsing the previous all time high of 110.0% reached in the heady days of the “Dot-com” period in 2000. Last year at this time it stood at 104.4%.

Take a look at the chart below from MLSListings.com which shows the Santa Clara County sales price to list price ratio trend since 2001. Any value above 100% is an average that is above list price and infers multiple offers.

The hottest market in Santa Clara County belongs to the Cupertino/Sunnyvale market area (median price of about $2.23 million) at 117.6% which means that the average closed sale has a sale price 17.6% higher than the list price! It also registered a low median days on market at just 15 which means half the inventory sells in just 15 days! The coolest is the Los Gatos/Saratoga market area (median price of about $2.40 million) with 104.8% and 43 days of unsold inventory. Notice that the median price of Cupertino/Sunnyvale is closing in on Los Gatos/Saratoga!

Days of unsold inventory are at a record low of just 22.8 for Santa Clara County and 26 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!

San Mateo County’s overall sale price to list price ratio stands at 111.8% 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 $1.11 million) at 116.2% with a median days on market of 17. One advantage of this area is its proximity to San Francisco and a heck of a lot less expensive! The coolest is the Expensive (Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside) market area, (median price of about $3.67 million). 

Take a look at the chart below from MLSListings.com which shows the San Mateo County sales price to list price ratio trend since 2001.

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.

April Silicon Valley Real Estate Market Update

Here are my observations of the most recent March transactions 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 or send me an email.

General Market Observations and Comments -- Inventory, those homes available for sale have continued to increase, but remain well below the average level for this time of year.  In Santa Clara County, there were just 908 single family residences on the market versus 857 last month. In San Mateo County, there were 446 compared to 433. These levels are running about 50% of the average over the last 10+ years!

The median days on the market or what it takes to sell one-half of those on the market, sell in just 11 days in Santa Clara County and 12 days in San Mateo County -- indicating a hot seller's market. For March, 792 homes closed escrow last month in Santa Clara County, up from 621 in February and 333 did so in San Mateo County versus 247 last month. Comparing March of 2013 with previous Marches, this month was the third slowest in terms of closings.  

Both counties continue to have the characteristics of a seller's market generally. During March, more than half of the closings had a sales price greater than a list price (68% in Santa Clara County and 62% in San Mateo County with both percentages increasing from February). For owners thinking of selling, it is important to understand the market dynamics in their particular market area. For many, this remains an excellent time to sell.

Seller's -- Should You List on the MLS or Not? --  More recently, we've run into listings that are "not advertised" and not on the MLS (Multiple Listing Service).  I advise my sellers that in order to assure the maximum exposure to the market, it is imperative to have their home on the MLS.  That way, all agents may be exposed to it.  If not, we call those listings "pocket" listings.  The term denotes that the listing is for the listing agent/broker only and its purpose is to increase the likelihood that that listing agent will handle both sides of the transaction, not to get the maximum price and best terms for the seller!  As listing agents, we Realtors sign an agency relationship form that states the agent will use full fiduciary duties to their client but pocket listings don't adhere to this as it doesn't place their client's interest before their own.  Be wary of agents advising NOT to list it on the MLS which is designed to open up the market and as a result is a benefit to the seller.  This might be used in an extreme circumstance.  For example, when a famous personality wants to sell but there are still ways to circumvent this approach that gives the seller access to the entire market.  Watch out for the legal battles when sellers who have been told that they will receive market value without the "mess" of having their home on the market only to find out they've been financially sucker-punched.   

Hot, Hotter, Hottest Market Areas -- In Santa Clara County, the hottest market area is Cupertino, Sunnyvale (zip codes 95014, 94086, 94087). It sports a median sale price of $1,245,000 and has a median days on market of just 9 days! A hotter market is Los Altos and Palo Alto with a median sale price of $2,288,000 has a median days on market of 10. Only a hot market is Santa Clara, Willow Glen, Cambrian and Campbell with a median sale price of $750,000 and has a median days on market also of 10.  

Beautiful and Abundant Trees - Los Altos, CA

For San Mateo County, the hottest market area is Foster City and Redwood Shores with a median sale price of $1,006,000 and a median days on market of 10, followed by a hotter market of the Bay Cities area including Belmont, Burlingame, Milbrae, San Carlos, San Mateo with a median sale price of $1,051,000 and a median days on the market of 10.   

Median Prices are Jumping -- The trends of median prices of single family, condo and townhouse homes continue upwards. For single family residences, March saw Santa Clara County's median price, half above and half below or the middle transaction, at $731,000 and the median sales price for San Mateo County increased to $950,000. The upwards trend has been evident since the Spring of 2009. By the way, market bottoms were also established during this time in both stock indices and commodities.

Recent Overbidding Levels Remain High -- The percentage where sale price is greater than list price gives us an indication of the incidence of multiple offers. Already mentioned is the frequency of overbidding (sale price greater than list price 68% of the time in Santa Clara County and 62% in San Mateo County) but a more telling aspect is the magnitude or sales price to list price ratio (SP/LP). In Santa Clara County, the average SP/LP ratio is 105.2 or in the average transaction the seller gets 5.2% above the list price. Hottest area is Los Altos and Palo Alto with 109.7. The Cupertino and Sunnyvale market area was just behind with a ratio of 108.9. In San Mateo County the numbers look similar. Overall, the county average is 104.8 and the highest is Bay Cities market area of Belmont, Burlingame, Millbrae, San Carlos, San Mateo with 107.4.

Yahoo! World Headquarters - Sunnyvale, CA

Thanks for reading! I'm Tom McEvoy, Realtor with RE/MAX Santa Clara Valley -- On Google+ at +Tom McEvoy. Let me know if you have any comments, questions, observations or any future topics you'd like me to address.

October Silicon Valley Real Estate Market Update

Here are my observations of the most recent September transactions 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 or send me an email.

General Market Observations and Comments -- The amount of homes (single family and condos and townhouses) available for sale continue to drift lower, continuing to advantage sellers. Levels reached are among the lowest in the last 12 years! Most areas in both counties have the characteristics of a seller's market with more than half of the closings during September had a sales price greater than a list price (59% in Santa Clara County and 50% in San Mateo County). That said, a well-priced listing has a tendency to attract more activity and multiple offers.

Which Half Are You? --  In September, it took just 13 days to sell half of the homes in Santa Clara County and only 16 days in San Mateo County! If you know of a home that has been on the market longer than the median days on market then there must be something wrong no only with the marketing strategy employed but with its condition, location, and oh yes, maybe the price.  These are countywide averages. 

In Santa Clara County, the fastest market is the Cupertino and Sunnyvale (zip codes 95014, 94086, 94087) market area with a median days on market of just 9 whereas the slowest is Los Gatos and Saratoga with a median days on market of 30 for those that closed escrow during the month. For San Mateo County, the fastest market area comprises the Bay Cities of Belmont, Burlingame, Millbrae, San Carlos and San Mateo with 13 and the slowest is the Coastal area of Half Moon Bay, El Granada, Moss Beach and Montara with 68.

Median Prices Increase -- Median prices of single family, condo and townhouse homes continue to march upward. For September, Santa Clara County's median price for single family residences, half above and half below or the middle transaction, increased to $649,000, compared to $598,000 the same month a year ago representing an increase of 16.2%. The median sales price for San Mateo County was $790,000.

Inventory of Available Homes for Sale Continue at Low Levels -- There were just 1,211 single family residences for sale and 257 condos/townhouse in Santa Clara County and just 598 single family residences in San Mateo County. Not record lows but each are about 55% lower than the same month a year ago.

Yahoo! HQ, Sunnyvale, CA

 What's HOT and What's NOT -- In Santa Clara County, the hottest market area is Cupertino and Sunnyvale with a Days of Unsold Inventory (DUI) of 19. In San Mateo County, the hottest area is Foster City/Redwood Shores with a DUI of 20. What's not is Los Gatos/Saratoga in Santa Clara County with a DUI of 99 and the expensive areas of Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside in San Mateo County with a DUI of 137.

History Repeats Itself? -- Median prices in some areas have either met or closely approached their all-time highs! Yes, you read that right. Median prices in Santa Clara County saw a bottom in place in the Spring of 2009 and have trended up since. When analyzing the different market areas in the county, we find that two fall into this category. They are: the Los Altos/Palo Alto (median price of $1,834,000) and the Cupertino/Sunnyvale (zip codes 95014, 94086 and 94087; median price of $1,049,000) market areas.

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

August Silicon Valley Real Estate Market Comments

Here are my observations of the most recent July transactions 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 or send me an email.

General Market Observations and Comments -- The amount of homes (single family and condos and townhouses) available for sale continue at low levels. The level reached in July was the lowest for this time of the year in at least 12 years! Most areas in both counties have the characteristics of a seller's market with more than half of the closings during July had a sales price greater than a list price (57% in Santa Clara County and 51% in San Mateo County). That said, a well-priced listing has a tendency to attract more activity and multiple offers.

Which Half Are You? --  In July, it took just 13 days to sell half of the homes in Santa Clara County and only 15 days in San Mateo County!  If you're home has been on the market longer than the median days on market then there must be something wrong with its condition, location, and oh yes, maybe the price.

Median Prices Increase -- Median prices of single family, condo and townhouse homes continue to march upward. For July, Santa Clara County's median price for single family residences, half above and half below or the middle transaction, increased to $695,000, compared to $598,000 the same month a year ago representing an increase of 16.2%. The median sales price for San Mateo County was $810,000.


Inventory of Available Homes for Sale Continue at Low Levels -- There were just 1,328 single family residences for sale in Santa Clara County and just 598 in San Mateo County. Not record lows but each are about 55% lower than in July 2011.

Apple's Campus of the Future - Courtesy Cupertino City Hall

What's HOT and What's NOT -- In Santa Clara County, the hottest market area is Cupertino and Sunnyvale with a Days of Unsold Inventory (DUI) of 25. In San Mateo County, the hottest area is Foster City/Redwood Shores with a DUI of 27. What's not is Los Gatos/Saratoga in Santa Clara County with a DUI of  102 and the expensive areas of Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside in San Mateo County with a DUI of 117.

Lender-Controlled Transactions Take a Dive -- Last month the percentage of homes on the market that are lender-controlled (short sale and bank-owned) shrank to just 10% in both counties! That means 90% of the active status homes are regular or equity sales. Of course, this percentage will vary throughout each county depending upon the area.



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

July Silicon Valley Real Estate Market Comments

Here are my observations of the most recent June transactions 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 or send me an email.

General Market Observations and Comments -- The amount of homes (single family and condos and townhouses) available for sale continue at low levels continuing the pattern started at the beginning of the year. Normally, inventory levels start their climb in early spring and peak by mid-year but not this time. Most areas in both counties have the characteristics of a seller's market with more than half of the closings during June had a sales price greater than a list price. A well-priced listing has a tendency to attract multiple offers.

Want to Be First Time Buyers? Part 3 --  Rents are continuing to jump as there is more demand than supply of rental units. This week, mortgage rates again reached record lows so it may be more advantageous to own than to rent provided you plan on living in the home for a while.

Median Prices Increase -- Median prices of single family, condo and townhouse homes continue to march upward. For June, Santa Clara County's median price for single family residences, half above and half below or the middle transaction, increased to $686,000, as more and more lower priced homes have been scooped up whereas the median sales price for San Mateo County was $840,000.

Median Days on Market Drops -- Some real estate practitioners are mentioning that it takes on average about six weeks (40 days) to sell a home and they consider that good. However, most sellers wouldn't consider that good when you tell them it will take an average of that long to sell! In actuality, it now takes but 13 days to sell half of the homes. That is the median days on market. The difference is that those homes that have issues, are grossly overpriced or just plain super expensive sit on the market for a long time thus bringing the average up and does not impact the median which is the middle transaction. When I provide advice to sellers I use the median and calculate it down to their neighborhood or as small an area as possible.

Inventory of Available Homes for Sale Continue at Low Levels -- There were just 1,296 single family residences for sale in Santa Clara County and just 606 in San Mateo County. Not record lows but each are about 56% lower than in June 2011.

What's HOT and What's NOT -- In Santa Clara County, the hottest market area is Santa Teresa, North Valley, Blossom Valley portions of San Jose and Milpitas with a Days of Unsold Inventory (DUI) of 24. In San Mateo County, the hottest area is Foster City with a DUI of 18. What's not is Los Gatos/Saratoga in Santa Clara County with a DUI of 66 and the expensive areas of Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside in San Mateo County with a DUI of 76.
 
OK, I'm bragging so I'm repeating that Sunnyvale is #7 in the U.S. -- According to the Kiplinger Personal Finance survey, Sunnyvale was named as the 7th greatest city in the United States to raise kids. As a long-time resident of Sunnyvale and where my wife and I have raised our two sons, I'd have to agree! For a glimpse at Kiplinger's write-up of Sunnyvale, here's a link.


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

Tastefully Updated Birdland Sunnyvale Home with Cupertino Schools

Open House available this Saturday and Sunday, November 14 & 15
from 1:30pm to 4:30pm, sharp.

~ Established Birdland, Sunnyvale Neighborhood Home with Cupertino Schools ~

Beautiful hardwood floors highlight this tastefully-updated Lindsey home with expanded master suite, kitchen and bathrooms. Kitchen was extensively remodeled and offers expansive, Corian counter tops, upgraded cabinetry and top built-in appliances. Living room can be used as dining room. Step-down family room with gas fireplace and wet bar opens to patio with wood deck and spa — great for family gatherings. Recent upgrades include 40-year roof, gutters/downspouts, and fresh exterior paint. Stocklmeir Elementary, Cupertino Middle, Fremont High School.

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If you have any questions or comments, please contact me, Tom McEvoy, Realtor at 408-830-0092 or by leaving your comment here.