SILICON VALLEY MARKET CONDITIONS
The end of summer is anything but a sign that the year is winding down; in fact, it seems to be a rush of catching-up on everything you had plan need to accomplish by 2017 and now it’s time to make it happen! With school back in session and the hottest days behind us, you may be wondering if cooler times are ahead for the real estate industry. You’ve likely followed regional and national headlines all summer about the impact of inventory, the strategies of a sellers’ market and the banter behind Brexit But in the spirit of looking forward, let’s start with exactly where we are today with the state of real estate …right where you live here in Silicon Valley!
The British are coming …or not. Starting with what was on everyone’s mind about three months ago (and hardly on anyone’s mind today!), let’s address the initial impact and weeks that followed the news of Britain’s decided and lengthy exit from the European Union. With an immediate benefit to rates, there was also a ‘watch and wait’ period as the market digested the news from June 19th to July 1Qth. However, local forces and global logic initiated a quick return to the selling season and those sales numbers that we expected in late August are simply being delivered in early September.
With levels of available homes being measured by months of inventory, Santa Clara County single family home inventory in July was 1.7 months, compared to 1.3 months the same time last year. Condos and town homes demonstrated greater gains but tighter supply, with inventory at 1.4 in July of 2016 compared to 0.8 in July 2015.
With Silicon Valley’s steady and unwavering demand persisting, home prices followed suit with a median Santa Clara County home price of $1.0SM compared to July 2015;s average of $963K. Condo and town home median prices increased marginally year-over-year in July from $635K to $640K. Here are the recent charts for Almaden, Los Gatos, Willow Glen and
DAYS ON MARKET
The speed of sales is still considerably quick, with single-family homes averaging 26 days on market and condos/town homes averaging 23. Last summer, those figures were 23 and 18 days on market for single-family homes and condos/town homes respectively.
While these recent statistics provide a helpful frame of reference, we’d like to add our inside perspective to make sure you have access to the complete state of real estate today! We were definitely feeling a ‘typical August’ by industry standards; that usual late summer slowdown that occurs as a result of school starting and people trying to re-group (we all know that feeling, right?)
Notable trends include fewer multiple offers and more selective buyers, also common for this time of year. Inventory remains historically low, though still improved compared to the last 48 months.
Additionally, the figures reported above are only as important as how they relate to your ultimate personal and financial goals for the remainder of 2016. If you have been considering listing your home, it’s not too late. End of summer sales climbing into September indicate that serious buyers are here to stay, even as the seasons change. The local job market remains strong, so I don’t see a “bubble bursting” scenario in the near future.
If the state of Silicon Valley real estate has inspired you to further assess your options, we’d be happy to help. The only thing that matters today is what you decide to do tomorrow, and you don’t have to make that determination alone.
All the best,
Steve & Christine Perry, Perry Group Real Estate