November Silicon Valley Real Estate Market Update

Quick Market Summary: Well, when someone tells you the market is dropping, that's false! We are still seeing year over year increases in the median prices for each county. They may be referring to sequential changes which due to seasonality are bit comparable. The supply of homes available for sale or inventory has jumped in each county with the number of accepted offers (sales) down a bit in Santa Clara County but up in San Mateo County. Demand continues below supply but the difference is more pronounced. Buyers take note as this may not last too long. Sellers, you will need to be more aggressive in pricing and look to your competition. The year over year median in Santa Clara County was up 3.6% to $1,295,000 in October and in San Mateo County the median price was $1,594,000 as compared to $1,525,000 last year at this time or a gain of 4.5%. Condo and townhouse median in Santa Clara County reached $900,000 in October compared to $767,000 last year or a jump of 17.3%. My theory is that condos and townhouses have a lower price of entry into a home than a single family home and we may be seeing an impact of higher mortgage rates which are in the 4 3/4-5% range. Even in this tempered environment 54.0% of homes in Santa Clara County that closed escrow in October sold for more than list price inferring multiple offers and the seventh highest rate for this time of year (last year was a record 75.4%). It was 68% in San Mateo County versus 84% last year.

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,393, up from 618 or 125% from last year. Sales (accepted offers) were an anemic 918 down 7.2% from the same month last year when is was 989.

For San Mateo County, inventory of single family residences stood at 545 in October versus 318 last year or an increase of 71%. Sales (accepted offers) were 382 compared to 312 for the same month last year or an increase of 22.4%. 

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during October, stood at 101.9% compared to last year's ratio of 107.9%.

The hottest market in Santa Clara County belongs to the Palo Alto/Los Altos market area (median price of about $3.27 million) at 105.2% which means that the average closed sale has a sale price 5.2% higher than the list price! It also registered a median days on market of just 10 which means half the inventory sells in just a bit over a week and 61% of closings sold above list price! The coolest is the Los Gatos/Saratoga market area (median price of about $2.50 million) with 98.8%.

Days of unsold inventory moved up a bit and stand at 53 for Santa Clara County and 41 for San Mateo County. These are substantially higher than last year's figures of 22 and 31, respectively.

San Mateo County’s overall sale price to list price ratio stands at 106.0% with the highest ratio and hottest market area is in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.05 million) at 109.6% with a median days on market of 16. As I pointed out before, one important advantage of this area is its proximity to San Francisco and a heck of a lot less expensive to purchase or to rent! The coolest is the Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area (median price of about $1.35 million) at 99.4% with median days on the market of 20. 

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 (have 775 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.

October Silicon Valley Real Estate Market Update

Quick Market Summary: Since mid year, we've seen the supply or inventory of homes available exceed demand in a meaningful amount since mid 2016. This has contributed to a slowing down or settling of the market, especially in Santa Clara County. This said, we still have the characteristics of a seller's market with a lot more competition from other sellers now than earlier in the year. Those that are more aggressively priced still sell relatively quickly but generate far fewer offers. In about 18 of the past 20 years, we witness a second spurt of buyer activity after the Labor Day weekend. This year it went proof! The year over year median in Santa Clara County was up 7.2% to $1,265,000 in September and in San Mateo County the median price was $1,650,000 as compared to $1,465,000 last year at this time or a gain of 12.6%. Inventories are up significantly in each county. Condo and townhouse median in Santa Clara County reached $865,000 in September compared to $720,000 last year or a jump of 20.1%. My theory is a lower price of entry into a home than a single family home. Even in this tempered environment 54.6% of homes in Santa Clara County that closed escrow in September sold for more than list price inferring multiple offers and the fourth highest rate for this time of year (last year was a record 70.4%). It was 69% in San Mateo County versus 72% last year.

At least weekly, I review the previous week's statistical and transactional data and there has been much smaller inventory increases AND the number of homes with a pending status (those with an accepted offer) have jumped. Could this be a harbinger of higher activity and a turning point? We'll see! Some buyers are now facing 5% mortgages so they may be "forced" to get off the fence or perhaps be faced purchasing a smaller home. 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,408, up from 700 or 101% from last year. Sales (accepted offers) were an anemic 1,006 down 2.1% from the same month last year when is was 1,028.

For San Mateo County, inventory of single family residences stood at 553 in September versus 396 last year or an increase of 40%. Sales (accepted offers) were 436 compared to 414 for the same month last year or an increase of 5.3%. 

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during September, stood at 102.3% compared to last year's ratio of 105.9%.

The hottest market in Santa Clara County belongs to the Palo Alto/Los Altos market area (median price of about $3.00 million) at 105.4% which means that the average closed sale has a sale price 5.4% higher than the list price! It also registered a median days on market of just 11 which means half the inventory sells in just a bit over a week and 62% of closings sold above list price! The coolest is the South County (Morgan Hill, Gilroy, San Martin) market area (median price of about $0.91 million) with 99.8% and 83 days of unsold inventory.

Days of unsold inventory moved up a bit and stand at 49 for Santa Clara County and 44 for San Mateo County. These are substantially higher than last year's figures of 25 and 37, respectively.

San Mateo County’s overall sale price to list price ratio stands at 107.3% with the highest ratio and hottest market area is in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.11 million) at 111.5% with a median days on market of 14. As I pointed out before, one important advantage of this area is its proximity to San Francisco and a heck of a lot less expensive to purchase or to rent! The coolest is the Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area (median price of about $1.42 million) at 99.7% with median days on the market of 83. 

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 (have 775 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.

September Silicon Valley Real Estate Market Update

Quick Market Summary: We're witnessing a continuing settling down of the market. As I mentioned last month, the foot is off the pedal so the market is slowing. We still have the characteristics of a seller's market BUT there's more competition for sellers now than earlier in the year. You've noticed more signs out and probably wondering why homes on the market near you are staying on the market longer. Those that are more aggressively priced still sell relatively quickly but generate far fewer offers. Most years we see a "spike' of sorts in the level of buyer activity after Labor Day weekend and this year is no different. There is increased activity but again not to the level of earlier in the year. The year over year median in Santa Clara County was up 11.3% to $1,280,000 in August and in San Mateo County the median price was $1,475,000 as compared to $1,423,000 last year at this time or a gain of just 3.7%. Inventories are up significantly in each county. Condo and townhouse median in Santa Clara County reached $924,000 in August compared to $760,000 last year same month or an increase of 21.6%. In Santa Clara County 67.4% of homes that closed escrow in August sold for more than list price inferring multiple offers and the second highest rate for this time of year (last year was a record 74.4%. It was 77% in San Mateo County. 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,197, up from 723 or 65.6% from last year. Sales (accepted offers) were an anemic 942 down 16.7% from the same month last year when is was 1,131.

For San Mateo County, inventory of single family residences stood at 498 in August versus 330 last year or an increase of 50.9%. Sales (accepted offers) were 357 for August compared to 393 for the same month last year. 

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during August this stood at 104.1% and one of the highest ever for this time of the year. Last year at this time it stood at 106.4%.

The hottest market in Santa Clara County belongs to the Palo Alto/Los Altos market area (median price of about $3.40 million) at 109.9% which means that the average closed sale has a sale price 9.9% higher than the list price! It also registered the lowest median days on market at just 9 which means half the inventory sells in just a bit over a week and 77% of closings sold above list price! The coolest is the South County (Morgan Hill, Gilroy, San Martin) market area (median price of about $0.93 million) with 101.7% and 63 days of unsold inventory.

Days of unsold inventory moved up a bit and stand at 44 for Santa Clara County and 42 for San Mateo County. These are substantially higher than last year's figures of 22 and 29, respectively.

San Mateo County’s overall sale price to list price ratio stands at 108.8% with the highest ratio and hottest market area is in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.14 million) at 113.3% with a median days on market of 14. One major advantage of this area is its proximity to San Francisco and a heck of a lot less expensive to purchase or to rent! The coolest is the Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area (median price of about $1.20 million) at 100.1% with median days on the market of 44. 

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 (have 775 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.

August Silicon Valley Real Estate Market Update

Quick Market Summary: Continued is the trend towards a moderating marketplace. As I like to think about it -- the foot is off the pedal so the market is slowing. We still have the characteristics of a seller's market BUT there's more competition for sellers now than earlier in the year. You've no doubt noticed a bit more signs out and those properties on busier streets staying on the market longer if not more aggressively priced. One aspect of this change in that there is less activity and traffic for showings and open houses than earlier. My forecast is for an increased level of activity after Labor Day that we have most years. The year over year median in Santa Clara County was up 15.6% to $1,350,000 in July and in San Mateo County the median price was $1,638,000 as compared to $1,600,000 last year at this time. Inventories are up in each county. Condo and townhouse median in Santa Clara County reached $910,000 in July compared to $733,000 last year same month or an increase of 24.1%. In Santa Clara County 70.6% of homes that closed escrow in July sold for more than list price inferring multiple offers and one of highest rate for this time of year. It was 75% in San Mateo County. 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,209, up from 834 or 45.0% from last year. Sales (accepted offers) were an anemic 993 down 13.4% from the same month last year when is was 1,146. One thing I've noticed in the stats is that the average size single family home that closed escrow reached 1,799 square feet, highest over the past 14 years and 12% larger in size than when is was 1,605 square feet in 2005. 

For San Mateo County, inventory of single family residences stood at 414 in July versus 319 last year of an increase of 29.8%. Sales (accepted offers) were 382 for July and 366 for the same month last year. For both counties, the inventory continues to lag far below the historical average for this time of the year which continues to place pressure on buyers.

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during July this stood at 105.2% and one of the highest ever for this time of the year. Last year at this time it stood at 105.5%.

The hottest market in Santa Clara County belongs to the Cupertino/Sunnyvale market area (median price of about $2.18 million) at 108.5% which means that the average closed sale has a sale price 8.5% higher than the list price! It also registered the lowest median days on market at just 10 which means half the inventory sells in just a bit over a week and 81% of closings sold above list price! The coolest is the South County (Morgan Hill, Gilroy, San Martin) market area (median price of about $0.955 million) with 101.4% and 28 days of unsold inventory.

Days of unsold inventory moved up a bit and stand at 42 for Santa Clara County and 34 for San Mateo County. This means that for San Mateo County that the entire inventory, if held static, would sell out in just over a month!

San Mateo County’s overall sale price to list price ratio stands at 108.6% with the highest ratio and hottest market area is in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.155 million) at 114.3% with a median days on market of 13. One major advantage of this area is its proximity to San Francisco and a heck of a lot less expensive to purchase or to rent! The coolest is the Expensive (Menlo Park, Atherton, Portola Valley, Hillsborough, Woodside) market area (median price of about $4,110 million) at 98.2% with median days on the market of 28. 

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 (have 775 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.

July Silicon Valley Real Estate Market Update

Quick Market Summary: Is there a slight draft in this room? Well, the markets in general in Santa Clara and San Mateo counties have cooled a bit. Not too much to bring about a buyer's market but there's less pressure on buyers as inventory has increased and the amount of activity and traffic for open houses has eroded somewhat. You may recall that the markets earlier in the year were on fire and we still have some "hot spots" we can perhaps lay blame on buyer fatigue as well as the normal cooling off of the markets during summer (after Memorial Day lasting historically until Labor Day). The year over year median in Santa Clara County was up 18.4% to $1,400,000 in June and in San Mateo County the median price was $1,665,000. Inventories are up overall but seem like they are topping which is normal for the summer months. Listings for very high-end priced homes throughout both counties remains sluggish and take quite a bit longer to sell than the recent past. Condo and townhouse median in Santa Clara County has reached $933,000. In Santa Clara County 79.5% of homes that closed escrow in June sold for more than list price inferring multiple offers and a record for this time of year. It was 81% in San Mateo County. 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,045, up from 806 or 29.7% from last year. Sales (accepted offers) were 1,100 down 14.1% from the same month last year.  

For San Mateo County, inventory of single family residences stood at 397 in June. Sales (accepted offers) were 431. For both counties, the inventory continues to lag far below the historical average for this time of the year which continues to place pressure on buyers.

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during June this stood at 107.8% and the highest ever for this time of the year. Last year at this time it stood at 105.8%.

The hottest market in Santa Clara County belongs to the Cupertino/Sunnyvale market area (median price of about $2.25 million) at 109.0% which means that the average closed sale has a sale price 9.0% higher than the list price! It also registered the lowest median days on market at just 10 which means half the inventory sells in just a bit over a week and 86% of closings sold above list price! The coolest is the South County (Morgan Hill, Gilroy, San Martin) market area (median price of about $0.935 million) with 103.4% and 40 days of unsold inventory.

Days of unsold inventory moved up a bit and stand at 35 for Santa Clara County and 32 for San Mateo County. This means that for Santa Clara County that the entire inventory, if held static, would sell out in about a month!

San Mateo County’s overall sale price to list price ratio stands at 111.4% with the highest ratio and hottest market area is in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.143 million) at 117.0% with a median days on market of 12. One advantage of this area is its proximity to San Francisco and a heck of a lot less expensive or to rent! The coolest is the San Mateo County Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area (median price of about $1.260 million). 

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 (have over 775 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.

June Silicon Valley Real Estate Market Update

Quick Market Summary: My mother, a chef among her many talents, taught me that roasting was at a lower temperature than broiling. Well that's what we have in the Silicon Valley real estate market! We're not quite as hot er, broiling, as before. That said, year over year the Santa Clara County median price jumped to $1,400,000 in May up 17.2% and in San Mateo County the median price was $1,652,000. Inventories are up a bit overall, continuing the recent trend but high demand also continues but not at the breakneck pace of the past several months. This is to be expected as buying is a choice and if buyers are busy with graduations, weddings, vacations and the like, we normally see a diminished level of activity this time of the year. Very high-end priced home market throughout both counties remains sluggish as the cash-buying Asian stampede has subsided significantly. Condo and townhouse median in Santa Clara County has reached $940,000. In Santa Clara County 83.5% of homes that closed escrow in May sold for more than list price inferring multiple offers and a record for this time of year. It was 84% in San Mateo County! 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,022, up from 837 and up 6.5% from last year at this time. Sales (accepted offers) were 1,185 down 11.3% from the same month last year.  

For San Mateo County, inventory of single family residences stood at 419 in May, up from 377 in April. Sales (accepted offers) were 454, same as last month. For both counties, the inventory continues to lag far below the historical average for this time of the year which continues to place pressure on buyers.

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during May this stood at 110.6% and the highest ever for this time of the year. Last year at this time it stood at 106.0%.

The hottest market in Santa Clara County belongs to the Cupertino/Sunnyvale market area (median price of about $2.20 million) at 113.5% which means that the average closed sale has a sale price 13.5% higher than the list price! It also registered the lowest median days on market at just 9 which means half the inventory sells in just a bit over a week and 83.5% of closings sold above list price! The coolest is the South County (Morgan Hill, Gilroy, San Martin) market area (median price of about $0.915 million) with 103.1% and 32 days of unsold inventory.

Days of unsold inventory moved up a bit and stand at 30 for Santa Clara County and 32 for San Mateo County. This means that for Santa Clara County that the entire inventory, if held static, would sell out in less than a month!

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 Bay Cities (Belmont, Burlingame, Millbrae, San Carlos, San Mateo) market area (median price of about $1.94 million) at 113.3% with a median days on market of 10. One advantage of this area is its proximity to San Francisco and a heck of a lot less expensive! The coolest are the Expensive (Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside) market area, (median price of about $3.78 million) and the San Mateo County Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area (median price of about $1.285 million). 

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 775 likes – help me to reach 1,000!) or follow me on my Twitter Page.Thank you.

May Silicon Valley Real Estate Market Update

Quick Market Summary: The Silicon Valley real estate market broiling continues! Year over year the Santa Clara County median price has jumped to $1,420,000 in April up 22.4% and in San Mateo County the median price sits at $1,800,000. The unbalanced market with super low inventories and high demand contributes to the strong price increases -- sellers take notice. Very high-end priced home market throughout both counties remain The Santa Clara County median price for condos/townhouses reached $915,000. In Santa Clara County 84.5% of homes that closed escrow in April sold for more than list price inferring multiple offers and a record for this time of year. It was "only" 82% in San Mateo County! 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 837 down 13.6% from last year at this time. Sales (accepted offers) were 1,184 down from 1,265 or 6.4% from the same month last year. You'd think that sales would be down as much as inventory if you believed what some agents say that sales are limited by the low inventory. You have to take another variable into consideration and that is -- turnover. A faster market or one with a shorter number of days on market easily cancels or mitigates a lower level of inventory. Currently we're at the fastest market turnover ever! 

For San Mateo County, inventory of single family residences stood at 377 in April also down from last year. Sales (accepted offers) were 454. 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 April this stood at 112.5% 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 106.0%.

The hottest market in Santa Clara County belongs to the Cupertino/Sunnyvale market area (median price of about $2.22 million) at 119.1% which means that the average closed sale has a sale price 19.1% higher than the list price! It also registered the lowest median days on market at just 8 which means half the inventory sells in just a bit over a week and 89% of closings sold above list price! The coolest is the South County (Morgan Hill, Gilroy, San Martin) market area (median price of about $0.91 million) with 103.1% and 30 days of unsold inventory.

Days of unsold inventory are at a record low of just 24.7 for Santa Clara County and 29 for San Mateo County. This means that for Santa Clara County that the entire inventory, if held static, would sell out in less than 25 days!

San Mateo County’s overall sale price to list price ratio stands at 111.9% with the highest ratio and hottest market area in the Bay Cities (Belmont, Burlingame, Millbrae, San Carlos, San Mateo) market area (median price of about $1.93 million) at 116.3% with a median days on market of 11. 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 $3.69 million). 

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

Quick Market Summary: The Silicon Valley real estate market is HOT and actually even hotter than the recent past! Year over year the Santa Clara County median price has incredibly accelerated to $1,460,000 up 28.3% and in San Mateo County increased "only" 20.3% to $1,678,000. The hot streak continues -- sellers take notice. Supply and demand -- low inventory or supply coupled with high demand means higher prices. The Santa Clara County median price for condos/townhouses reached $900,000, up 28.4% from the same month last year. In Santa Clara County 83% of homes that closed escrow in March sold for more than list price inferring multiple offers and a record for this time of year. It was 82% in San Mateo County. 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 625 down 26.8% from last year at this time. Sales (accepted offers) were 1,227 up from 1,170 up 4.9% 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. Currently we're at the fastest market turnover ever! 

For San Mateo County, inventory of single family residences stood at 308 in March, down 8.3% from last year. Sales (accepted offers) were 384, down 6.3% from March 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 March this ratio stood at 112.7% 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 103.9%.

The hottest market in Santa Clara County belongs to the Cupertino/Sunnyvale market area (median price of about $2.28 million) at 118.6% which means that the average closed sale has a sale price 18.6% higher than the list price! It also registered the lowest median days on market at just 8 which means half the inventory sells in just a bit over a week! The coolest is the Los Gatos/Saratoga market area (median price of about $2.36 million) with 105.2% and 49 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 17.8 for Santa Clara County and 28 for San Mateo County. This means that for Santa Clara County that the entire inventory, if held static, would sell out in less than 18 days!

San Mateo County’s overall sale price to list price ratio stands at 112.6% with the highest ratio and hottest market area in the Bay Cities (Belmont, Burlingame, Millbrae, San Carlos, San Mateo) market area (median price of about $1.89 million) at 116.6% with a median days on market of 10. 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 $4.08 million). 

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.

February Silicon Valley Real Estate Market Update

Quick Market Overview: As is usual for this time of year, the number of available homes for sale have increased. While not a huge jump, we do see a trend change nonetheless. Notwithstanding this, however, the real estate markets in both Santa Clara and San Mateo counties remain in record territory in terms of prices and well off their average inventory levels over the past 15+ years. Record median prices were seen again in January in the Silicon Valley real estate market, breaking last year's records. Demand continues to outstrip supply in Santa Clara County as 60% (versus 58% last month) of homes that closed escrow sold for more than list price inferring multiple offers whereas in San Mateo County, it had an even higher percentage of homes that sold for more than list price of 62% versus 60% last month. Both of these are record highs for this time of year! The median price for a single family residence in Santa Clara County continued in record territory at $898,000, and increased 10.6% over January 2015 so the Silicon Valley real estate trends continue in a positive manner. For San Mateo County, its median price settled at $1,155,000, increasing at 9.5% on a year over year basis.

Below is a chart of the number of single family residence sales in Santa Clara County from January 2002 to January 2016. (Data source: mlslistings.com) Notice the general downwards trend.

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 591, up from 495 or 19.4% from the record low in December but a decrease of 18.5% from the same month a year ago. whereas sales (accepted offers -- please see above chart) decreased 13.2% in Santa Clara County keeping the downtrend in force since 2012.

For San Mateo County, inventory of single family residences stood at just 234 which decreased 2.9% from the same month a year ago. For both counties, the inventory continues to lag below the 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. Sales (accepted offers) were 200 a 8.7% decrease from the same month a year ago.  

Sale price to list price ratio shows that for Santa Clara County transactions completed during January, this ratio stood at 102.5%, level with the previous month and among the highest for this time of year over the past 16 years! Currently, the highest ratio belongs to the Los Altos/Palo Alto market area (median price of about $2.30 million) at 108.3%, a continued very hot marketplace! It also registered the lowest median days on market at just 9 which means half the inventory disappears in just 9 days! 

The Cupertino/Sunnyvale market area (median price about $1.60 million) came in a close second at 106.7% with a median days on market of 13. San Mateo County's ratio overall is at 105.0% with the highest ratio in the Bay Cities (Belmont, Burlingame, Milbrae, San Carlos, San Mateo) market area (median price of about $1.42 million) at 106.2%.

As you may suspect, 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 value, please feel free to call me, your Remax Agent! And as always, you are welcome to leave your comments or questions. Thank you.

February Silicon Valley Real Estate Market Update

Here are my observations of the most recent January 2013 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 -- At the end of the year the amount of homes  (single family and condos and townhouses) available broke new record low levels! In Santa Clara County, there were just 727 single family residences on the market, 394 in San Mateo County. Even though the amount of available homes for sale seemingly jumped from the levels witnessed at year end, they're climbing from record lows! The average annual cycle sees inventory build from early in the year so we're experiencing that once again. The current market condition continues to place most buyers at a disadvantage. Still, 522 homes closed escrow last month in Santa Clara County and 234 did so in San Mateo County. Both counties have the characteristics of a seller's market in most market areas but not all. During January, more than half of the closings had a sales price greater than a list price (55% in Santa Clara County and 53% in San Mateo County). It bears repeating that a well-priced listing has a tendency to develop more activity and have a much higher chance of generating multiple offers. For owners thinking of selling, it is a very good time to sell.

Which Half Are You? --  In January, it took just 16 days to sell half of the homes in Santa Clara County and 17 in San Mateo County! Keep in mind that these are countywide averages and both saw a slight increase from from the month prior. This is not to infer that the market is cooling down. Quite the contrary, even though it's cold outside, generally, the real estate markets are HOT!

In Santa Clara County, the fastest market area is Santa Clara, Willow Glen, Cambrian, Campbell with a median sale price of $703,000 has a median days on market of just 12 days followed closely by Cupertino and Sunnyvale (zip codes 95014, 94087, 94086) with a median sale price of $1,123,000 has a median days on market of 13. The slowest is East, Central, South San Jose with a median price of $403,000 has a median days on market of 30. For San Mateo County, the fastest market area is the Bay Cities of Belmont, Burlingame, Millbrae, San Carlos, San Mateo with a median sale price of $940,000 has a median days on market of 14 whereas the slowest is the expensive areas of San Mateo County comprising the communities of Menlo Park, Atherton, Portola Valley, Woodside, Hillsborough with a median sale price of $2,036 has  median days on market of 52.

Median Prices Continue to Increase -- The trend of median prices of single family, condo and townhouse homes continue upwards. For single family residences, January saw Santa Clara County's median price, half above and half below or the middle transaction, at $661,000 and the median sales price for San Mateo County decreased slightly to $715,000 from the previous month. The upwards trend has been evident since the Spring of 2009 --  not in a straight line but a varied line.

Recent Overbidding Levels Remain High -- The percentage where sale price is greater than list price gives us an indication of multiple offers. The talked about the frequency of overbidding (sale price greater than list price 55% of the time in Santa Clara County and 53% 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 102.4% or in the average transaction the seller gets 2.4% above the list price. Hottest area is Cupertino and Sunnyvale with 106.0. In San Mateo County the numbers look similar. Overall, the average is 102.4 and the highest is Foster City/Redwood Shores with 104.9.

Murphy Avenue called Murphy Street in Sunnyvale, CA

Distress Property in Decline -- In Santa Clara County, there were just 4% of the available listings that were short sales and 4% bank-owned which means regular listings accounted for more than 90%! This is a far cry from even last year when these combined for a quarter of the listings. 

 

Mortgage Rates Bottom? -- While mortgage rates remain at or near recent lows, buyers contemplating a purchase may be surprised to learn that rates have moved up. A new issue of U.S. Treasury 10-year notes were sold at a price to yield 2.02%. This is an increase from the record low of about 1.50%.  The Fed continues to monitize debt (buy mortgage-backed and other debt-securities to the tune of about $85 billion a month -- an annual rate of $1+ trillion). This puts money into the banking system and investors have to put it somewhere. Since the economy remains generally sluggish, the money predominately ends up in assets (e.g., stocks, commodities and yes, real estate). It remains long-term prudent to lock in rates before the market moves much farther away from these levels.

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.

Posted by Tom McEvoy, Realtor at 3:57 PM

January Silicon Valley Real Estate Market Update

Here are my observations of the most recent December 2012 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 -- At the end of the year the amount of homes  (single family and condos and townhouses) available broke new record low levels! In Santa Clara County, there were just 534 single family residences on the market, 293 in San Mateo County. Part of this is due to the seasonality aspect as inventory trends decrease toward the end of the year and the other is that this continues the trend set in motion from the early part of  last year. Lowered inventory usually advantages sellers but that doesn't mean buyer are not buying. In fact, 830 homes closed escrow last month in Santa Clara County and 317 did so in San Mateo County. Both counties have the characteristics of a seller's market in most market areas but not all. During December, more than half of the closings had a sales price greater than a list price (58% in Santa Clara County and 56% in San Mateo County). It bears repeating that a well-priced listing has a tendency to develop more activity and have a much higher chance of generating multiple offers.

Which Half Are You? --  In December, it took just 13 days to sell half of the homes in Santa Clara County and 14 in San Mateo County! Keep in mind that these are countywide averages and both saw this decline from the month prior. A neighborhood may vary from these figures so it's best to contact your Realtor for a current reading.

In Santa Clara County, the fastest market area is Cupertino and Sunnyvale (zip codes 95014, 94086, 94087) with a median days on market of just 10 whereas the slowest is Los Gatos and Saratoga with a median days on market of 46 for those that closed escrow during the month. For San Mateo County, the fastest market area is Redwood City with 12 whereas the slowest is the expensive areas of San Mateo County comprising the communities of Menlo Park, Atherton, Portola Valley, Woodside, Hillsborough with 31.

Median Prices Continue to Increase -- Median prices of single family, condo and townhouse homes continue upwards. For single family residences, December saw Santa Clara County's median price, half above and half below or the middle transaction, increase to $697,000 and the median sales price for San Mateo County decreased slightly to $810,000 from the previous month. The upwards trend has been evident since the Spring of 2009.

Recent Overbidding Levels Remain High -- We talked about the frequency of overbidding (sale price greater than list price in 58% of the closes) 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 102.7% or in the average transaction the seller gets 2.7% above the list price. Hottest area is Los Altos/Palo Alto with 105.9. In San Mateo County the numbers look similar. Overall, the average is 102.3 and the highest is Foster City/Redwood Shores with 104.2.

In Santa Clara County, for the Sunnyvale and Cupertino (zip codes 94086, 94087, 95014) market area, there were exactly none with 51 active single family residence listings. Ditto for Redwood Shores/Foster City area in San Mateo County with just five active listings.

Foster City, California

What's HOT and What's NOT -- In Santa Clara County, the hottest market area comprises Santa Teresa, North Valley, Milpitas, Blossom Valley with a Days of Unsold Inventory (DUI) of 15. In San Mateo County, the hottest area is Foster City/Redwood Shores with a DUI of 10. What's not is Los Gatos/Saratoga in Santa Clara County with a DUI of 61 and the expensive areas of Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside in San Mateo County with a DUI of 99.

Mortgage Rates Bottom? -- While mortgage rates remain at or near recent lows, buyers contemplating a purchase may be surprised to learn that rates moved up. Current U.S. Treasury 10-year notes are quoted at 1.90%, up from the record low of about 1.50% and bond prices look to be topping, it may be long-term prudent to lock in rates before the market moves the rates away from these levels.

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.