Quick Market Summary: We’ve gone through the historically hottest part of the year where a higher wave of buyer activity (demand) comes knocking. Now, we are in the summer months with many potential buyers in vacation mode so the activity is less intense EXCEPT for this year! With low inventory and enticingly low mortgage rates, we’ve seen a very brisk summer market. In August, inventory of available homes for sale remained anemic in each county. Median prices continue to set records — in Santa Clara County it was $1,150,000 and $1,423,000 in San Mateo County. Even though these levels have drifted slightly lower the past couple of months, they represent record median prices for this time of year in the Silicon Valley real estate market. The Santa Clara County median price for condos/townhouses is $760,000. Demand continues to outstrip supply in Santa Clara County as 74% of homes that closed escrow sold for more than list price inferring multiple offers and was 80% in San Mateo County. Historically, we see a higher level of interest from buyers post-Labor Day that lasts for a month or so. I expect higher prices.
Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was just 723 down from 834 last month and down from 1,278 the same month last year or 43.4%! Sales (accepted offers) were 1,131 down from 1,146 last month but increased slightly from 1,118 the same month last year. Closed sales were interesting — they were 919 in August but only 832 last year, an increase of 10.5%. That busts the myth that sales are constrained by a lack of inventory as what we witnessed was a turnover rate faster than at any time in the last 20 years!
For San Mateo County, inventory of single family residences stood at 330, up slightly from 319 last month with sales (accepted offers) at 393 an increase from 366 last month. For both counties, the inventory continues to lag well 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 to enter the market.
Sale price to list price ratio, a key market condition indicator, shows that for Santa Clara County transactions completed during August this ratio stood at 106.4% and the highest ever for this time of year! Currently, the highest ratio and the hottest market area belong to the Cupertino/Sunnyvale market area (median price of about $1.90 million) at 114.0% which means that the average closed sale has a sale price 14% higher than the list price. It also registered the lowest median days on market at just 8 which means half the inventory sells in 8 days! The coolest market area is Los Gatos/Saratoga (median price of about $2.55 million). However, even the coolest market area in Santa Clara County is still pretty good with Los Gatos currently more active than Saratoga.
San Mateo County’s overall sale price to list price ratio stands at an even higher level of 109.1% 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 $1.60 million) at 110.7% with a median days on market of 11. The coolest market area are the Expensive (Atherton, Menlo Park, Portola Valley, Woodside, Hillsborough) market area, (median price of about $3.00 million) and the San Mateo Coast (Half Moon Bay, El Granada, Moss Beach, Montara) (median price of about $1.29 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. Thank you.