Silicon Valley Home Sales Soaring Or Slumping?
We are getting mixed signals. The median home sale price is up by 6.9 percent from the beginning of the year while August prices are down by 6.6 percent comparing with the August of last year. This is a result of a sharp price surge in the first half of 2018. The market then went through an adjustment from June of 2018 through January of 2019 before resuming growth at the rate we experienced during the earlier recovery years.
The summer months are traditionally slower in terms of market activity and a lot of the owners were waiting to list their homes in September. In 2018, for example, there was an increase of 18.6 percent in the number of new listings in September comparing with August. We expect a similar pattern repeating itself this year.
The number of new listings in August decreased by 8.3 percent comparing with the August of last year and the average time on the market increased from 21 days to 31 days over the same time period. The longer time on the market resulted in fewer sales last month – the number of closed sales decreased by 9.9 percent and the number of pending and contingent listings decreased by 6.5 percent.
The seller’s market, however, continues as the inventory remains in 1.6 month range, same as most of 2019. The supply should reach 3 to 4 months of inventory for a balanced market here in Silicon Valley.
The demand for the housing remains very strong, open homes are well-attended by potential buyers. The number of properties available for sale stays almost unchanged from the last year and low interest rates boost the residents’ buying power. We meet a lot of potential buyers getting ready to enter the market as they see better opportunities presenting themselves.
This is Michael with the Talis team. If you are thinking about buying, selling or investing in real estate, dial the number on your screen, let’s have a conversation. Let’s find the best possible opportunities for you.
Elena & Michael Talis