Even though inventory levels have increased, they are still below average for this time of year. The June Silicon Valley real estate trends continue as before — a seller’s market. Median prices of single family residences in June were $815,000 for Santa Clara County and $1,018,000 for San Mateo County. Increases from the same month a year ago was 18.8% in Santa Clara County and 21.2% in San Mateo County. These percentage increases are not sustainable over a long period.
What helps support the higher prices of Silicon Valley real estate is the fact that 73% of the closed transactions had a sale price that exceeded the list price. Similarly, in San Mateo County the percentage of sale prices that exceeded list prices stood at 72%. In addition, the number of closings was close to the lowest level when comparing those over the past 12 years!
Median days on the market or how long it takes for one-half of the listings to sell stood at just 11 days in Santa Clara County and 12 days for San Mateo County. The hottest market area in Santa Clara County remained the Cupertino and Sunnyvale area with just 9 days and a median price of $1,262,000. The coolest market area was Los Gatos and Saratoga with 15 days and a median of $1,767,000. Still the difference between the hottest and coolest was minimal.
Clearly, those that are able to purchase a home in this environment and do so are fortunate. The trick, if you will, is to buy without overpaying. My latest scorecard reveals that four out of the past six buyers I represented were successful. All were in multiple offers situations and none had any appraisal issues. Find a buyer’s agent with this kind of track record. Here’s a photo of the latest — a beautiful, next to new condominium near The Pruneyard Shopping Center in Campbell.
Last time, I mentioned that there was a noticeable change in the market. While early and late-Spring selling season generated a huge amount of offers, there has been a notable decrease in the number of offers in comparison. Where there was nine or ten or more offers, there now seems to be a few. This is a normal seasonal situation that starts after Memorial Day weekend and is due to buyers pulling away to take vacations, attend graduations, weddings, and the like. These things divert the attention of many buyers away from looking for a home to purchase as buying a home is a choice, not a necessity. With the sharp increase in the level of mortgage rates, of late, this could further impact the buyer activity over the short run at least. Just wait though until after vacations are concluded! Bottom line — the Silicon Valley real estate market is hot but not quite as hot as before.
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