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November Silicon Valley Real Estate Market Update

Quick Market Summary: The hot streak continues as October is added to the hottest real estate market period in history! Buyers seem to be getting a jump on expected future price gains and/or higher mortgage rates. Normal market trends have late summer and fall prices drifting lower along with sales and inventory. Not so this year! In October, inventory of available homes for sale attained what looks like a record low in Santa Clara County of just 645 single family residences. Median prices continue to set records — in Santa Clara County it was $1,250,000 and $1,525,000 in San Mateo County. The Santa Clara County median price for condos/townhouses is $767,000. Demand continues to outstrip supply in Santa Clara County as 75% of homes that closed escrow sold for more than list price inferring multiple offers and was 84% in San Mateo County. Historically, we see a higher level of interest from buyers post-Labor Day that lasts for a month or so and then things tend to settle down as we approach the holidays.

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was just 645 down from 700 last month and down from 1,116 the same month last year or a decrease of 42.2%! Sales (accepted offers) were 1,003 down from 995 last month and decreased 8.7% from 1,098 the same month last year. Closed sales were interesting — they were 797 in October, 886 last month in September but only 859 last year, a decrease of 7.2%. Comparing the large reduction of inventory and the smaller drop in offers accepted, we’ve seen that turnover has accelerated. Put another way — the length of escrows have shortened making our market more efficient or faster.

 

 

For San Mateo County, inventory of single family residences stood at 318 in October down from 396 last month. Sales (accepted offers) were 460 an increase from 393 last month. 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 October this ratio stood at 107.7% and the highest ever for this time of year and a bit lower than the all time high of 110.0% reached in the heady days of the “Dot-com” period in 2000. Last year it stood at 101.9%. Take a look at the chart below from MLSListings.com which shows this ratio since 2000.

 

 

SP_to_LP_Ratio_SCC_2017-11-14_1012

 

 

Currently, the highest ratio and the hottest market belongs to the Cupertino/Sunnyvale market area (median price of about $1.80 million) at 113.7% which means that the average closed sale has a sale price 13.7% 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 eight days! The coolest is the South County (Morgan Hill and Gilroy) market area (median price of about $0.82 million) with 101.0% and 15 days.

 

 

Days of unsold inventory are at a record low of just 22.5 for Santa Clara County and 31 for San Mateo County. This means that for Santa Clara County that the entire inventory, if held static, would sell out in less than 23 days!

 

 

The high end of the price ranges in the Los Altos/Palo Alto and Los Gatos/Saratoga market areas are showing signs of cooling. They are staying on the market much longer than those more closely aligned with the median priced homes in those same areas.

 

 

San Mateo County’s overall sale price to list price ratio stands at an even higher level of 110.2% with the highest ratio and hottest market area in the North (Brisbane, Colma, Daly City, Pacifica, San Bruno, South San Francisco) market area (median price of about $1.00 million) at 111.8% with a median days on market of 14. The coolest is the Coast (Half Moon Bay, El Granada, Moss Beach, Montara) market area, (median price of about $1.23 million). As was the case with the high end in Santa Clara County, we’re seeing the same characteristic with those higher priced homes in San Mateo County in Menlo Park, Atherton, Portola Valley, Hillsborough and Woodsidealong with the high part of the range in the Bay Cities and Redwood City. San Mateo County’s sale price to list price ratio chart is from MLSListings.com.

 

 

SP_to_LP_Ratio_SMC_2017-11-14_1015

 

 

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.Type your content here!

October Silicon Valley Real Estate Market Update

Quick Market Summary: This past several months has been the hottest real estate market period in history! Perhaps buyers are getting a jump on the normal upswing that comes in early spring of each year. Anemic inventory levels coupled with the threat of higher mortgage rates and robust buyer activity and demand provided the price pop we witnessed. In September, inventory of available homes for sale attained a record low in Santa Clara County and very close to a record in San Mateo County. Median prices continue to set records — in Santa Clara County it was $1,180,000 and $1,465,000 in San Mateo County. The Santa Clara County median price for condos/townhouses is $720,000. Demand continues to outstrip supply in Santa Clara County as 70% of homes that closed escrow sold for more than list price inferring multiple offers and was 72% in San Mateo County. Historically, we see a higher level of interest from buyers post-Labor Day that lasts for a month or so and then things tend to settle down as we approach the holidays. Things WILL settle somewhat during this period but I believe we're in for higher prices early next year provided no huge external event changes the outlook.

 

Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was just 700 down from 723 last month and down from 1,277 the same month last year or a decrease of 45.2%! Sales (accepted offers) were 995 down from 1,131 last month but decreased from 1,118 the same month last year. Closed sales were interesting — they were 886 in September but only 826 last year, an increase of 7.3%. 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!

 

Here is a chart of the months of inventory for Santa Clara County single family residences from MLSListings. Please note the new all-time low reached last month.

 

 

For San Mateo County, inventory of single family residences stood at 396, up from 330 last month. Sales (accepted offers) were 393 and increased 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 trying to enter the market.

 

Here is a chart of the months of inventory for San Mateo County single family residences from MLSListings. It shows super low levels but not quite historic lows. 

 

 

 

Sale price to list price ratio, an important key market condition indicator, shows that for Santa Clara County transactions completed during September this ratio stood at 105.9% and the highest ever for this time of year! Last year it stood at 101.7%. Currently, the highest ratio and the hottest market area belong to  the Cupertino/Sunnyvale market area (median price of about $1.86 million) at 112.3% which means that the average closed sale has a sale price 12.3% 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 ten days! The coolest market area is Los Gatos/Saratoga (median price of about $2.40 million). 

 

The high end of the price ranges in the Los Altos, Los Altos Hills, Palo Alto, Los Gatos and Saratoga market areas are showing signs of cooling.

 

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 $1.66 million) at 113.0% with a median days on market of 11. The coolest market area is the Expensive (Atherton, Menlo Park, Portola Valley, Woodside, Hillsborough) market area, (median price of about $3.55 million). As was the case with the high end in Santa Clara County, we're seeing the same characteristic with those higher priced homes in San Mateo County in Menlo Park, Atherton, Portola Valley, Hillsborough and Woodside along with the high part of the range in the Bay Cities and Redwood City.

 

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 PageThank you.


September Silicon Valley Real Estate Update

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. It's always better to compare year over year results as it removes the seasonality aspect. 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. Check out and "like" my Facebook Business Page at Facebook Business Page (I'm trying for 1,000 likes!) or follow me on Twitter at Twitter Page. Thank you.