Quick Market Overview: Inventory, or the number of available homes for sale has increased 10.6% from the same month last year but continues well below the average of the past 16 years! With continued high demand, the real estate markets in both Santa Clara and San Mateo counties remain strong. Demand continues to outstrip supply in Santa Clara County as 71% (versus 73% last month) of homes that closed escrow sold for more than list price inferring multiple offers whereas in San Mateo County, this indicator was at 73%, versus 70% last month. The median price for a single family residence in Santa Clara County was $1,085,000, an increase of 14.2% over April 2015 so the Silicon Valley real estate trends continue in a positive manner. For San Mateo County, its median price settled at $1,358,000, also increasing over the same month a year ago. Remember, for the most relevancy, use year over year data. For the long term trends, I’ve included a chart below.
Here is a chart of the median sales price of a single family residence in Cupertino (zip code 95014) from January 2002 to April 2016 which shows the trend and an approximate doubling of the price since sometime in 2012. (Data source: mlslistings.com)
Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 1,161, up from 1,050 or 10.6% from the same month a year ago. Sales or accepted offers also increased 5.3% in Santa Clara County.
For San Mateo County, inventory of single family residences stood at 418 which was an increase of 11.5% from the low level 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.
Sale price to list price ratio shows that for Santa Clara County transactions completed or closed escrow during April, this ratio stood at 104.9%, and while not a record for this time of year it still was among the highest going back for 16 years! Currently, the highest ratio belongs to the Cupertino/Sunnyvale market area (median price of about $1.715 million) at 108.1%, an extremely hot marketplace! It registered a super low median days on market at just 9 which means half the inventory disappears in just 9 days! The Los Altos/Palo Alto market area (median price about $2.699 million) came in a close second at 106.9% with a median days on market also of 9! San Mateo County’s ratio overall is at 107.6% with the highest ratio in the Bay Cities (Belmont, Burlingame, Milbrae, San Carlos, San Mateo) market area (median price of about $1.548 million) at 110.6%.
As we approach the end of May and closing in on the Memorial Day weekend, this historically marks the end of what we call the primary selling season which garners the most buyer activity. If you would like specific market condition information for your area or neighborhood or a current home value, please feel free to ask me, your Remax Agent! And as always, you are welcome to leave your comments or questions or feel free to give me a call. Thank you.