Updated April 23, 2018
Market Snapshot – Santa Clara County (Recent Sales here)
Santa Clara County continues to mirror the overall market trend in the Bay Area, with rising sale prices and extremely limited and declining inventory. It marked the sixth straight year for higher sales prices for both single family homes and condo/townhomes.
The current Bay Area real estate market hinges on an extremely low supply of homes. This low inventory, combined with strong demand among home buyers, is largely responsible for the continued appreciation across most price points and markets. According to Trulia’s Chief Economist Ralph McLaughlin, this isn’t a bubble as we’ve seen in previous up cycles, but the result of basic economic forces of (lack of) supply and (strong) demand. Multiple forces are keeping home inventory low. There aren’t enough new homes being built to meet increasing demand. Additionally, current California property tax code provides a strong financial incentive for long-term homeowners to stay in their existing homes. McLaughlin also notes that the new congressional tax plan with its lower cap on the mortgage interest deduction may act to further limit supply. Under the new law, the cap on the mortgage interest deduction is reduced from $1 million to $750,000. Existing homeowners are grandfathered in at the $1 million level, giving them even more incentive to stay put.
Finally, the Fed raised interest rates in March, which will likely impact mortgage rates. Higher mortgage rates reduce buying power. Between reduced buying power and increasing prices, time is not on the side of buyers right now. Those who are ‘waiting it out’ may be waiting a long time.
Here are the numbers for March 2018. If you are curious about your Santa Clara County home value, you can receive a free online estimate, or request a custom evaluation which we are happy to give to you, free, without the hard sales pitch.
|Single Family Residences (SFR)||% Change Year Over Year||Condos||% Change Year Over Year|
|Median Sales Price ($USD)||$1,455,000||28.8%||$900,000||28.3%|
|New Listings (#)||1180||-7.96%||429||-16.05%|
|Homes Sold (#)||902||6.49%||333||-13.73%|
|Months of Inventory||0.6||-53.85%||0.4||-55.56%|
|Average Days on Market (DOM)||9||-10.00%||8||-20.00%|
|Median Days on Market (DOM)||15||-34.78%||9||-50.00%|
Median Sales Price – Santa Clara County SFR
Ratio of List Price to Sold Price (Overbids) – Santa Clara County SFR
Number of New Listings vs Sold Listings – Santa Clara County SFR
Months of Inventory – Santa Clara County SFR
Median and Average Days on Market (DOM) – Santa Clara County SFR
Median Sales Price – Santa Clara County Condo
Ratio of List Price to Sold Price (Overbids) – Santa Clara County Condo
Number of New Listings vs Sold Listings – Santa Clara County Condo
Months of Inventory – Santa Clara County Condo
Median and Average Days on Market (DOM) – Santa Clara County Condo