Last May, the Brookings Institution wrote about the post-Covid19 recovery as having several possible shapes of recovery (Z-shaped, V-shaped, U-shaped, W-shaped, L-shaped, and even the Nike Swoosh) but here are four major financial institutions predictions for recovery (below image).
In a Realtor.com study- we have seen a similar V-Shape recovery, but recently there’s been a deceleration as potential sellers found it harder to list and show their home as wildfires spread through the West coast.
Housing Market Recovery Index Highlights – Week Ending September 12
California has shown that social distancing and economic resilience continue to be key factors driving local differences in the housing recovery. Per Realtor.com’s research, the spread of COVID-19 is closely linked to the housing slowdown, with markets with higher cases per capita more likely to see a bigger impact on supply and the pace of sales. The speed and sustainability of the reopening, and each market’s ability to contain COVID-19, are dictating the speed of recovery across the regions. Finally, resilient economies may have an edge in the housing recovery, and areas with strong job markets before COVID-19, especially those with thriving tech sectors (such as in the SF Bay Area), are seeing buyers and sellers reconnect faster than the rest of the country.
Below are the V-shaped curved found in the northern California communities. Notice the downward trend in Aug – Sept due to the numerous wildfires.
The higher the index value, the higher the level of recovery. The lower the index value, the lower the level of recovery.
Thank you to the brave California Fire Department for coordinating a fantastic job containing many of the fires in California, we applaud their heroic service as many sacrificed their time, energy away from their families to protect people and properties throughout California.
How is your family and how are you handling the aftermath of the fires? I hope you and your family are doing well, but just know that it has effected everyone. It’s been a very rough few weeks here in northern California and the housing market certainly has been effected by the enormity and tragedies around us. Be safe & let me know if there’s anything we can do to assist.
|Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
PFAC Silicon Valley affiliate
Intero | A Berkshire Hathaway Affiliate
Q4 2019 – Santa Clara County
• In Santa Clara County, the median sales price of $1,250,000 is above last year, but down from the peak seen in Q4/2017.
• Overall, the market is basically unchanged from last year, “the Santa Clara market is just incredibly tight, as tight as last year and with no indication of a shift anywhere on the horizon.” – Eliot Eisenberg, PhD
• New listings are well down, active inventory is down and days-on-market is largely unchanged. Dollar volume is up, driven primarily by increased sales. • However, the common interest market in Santa Clara seems to be a little less frenetic. Some market metrics have loosened just slightly compared to last year.
Single Family Homes in Santa Clara (MLSLISTINGS) Feb 4, 2020
For private tours & buyer consultation meeting, contact Lynne MacFarlane, Realtor
(831) 346-2743 text/voice
Come to my Open House Saturday Aug 24th from 1PM – 4PM
4452 Lick Mill Blvd, Santa Clara.
HUGE REDUCTION! Rivermark’s largest townhouse floor plan and end-unit JUST blocks away from the school, community pool, and retail area! Relax in front of the living room fireplace with its huge vaulted ceilings, plenty of natural light pouring in and the distant view of the valley’s eastern foothills! The gourmet kitchen is a chefs dream with a large island, stainless steel appliances, including a Sub-Zero refrigerator and upgraded cabinetry. Attractive hardwood floors downstairs and plush new carpet upstairs. The spacious master bedroom suite features a walk-in closet with organizer and a spa-like bathroom with dual sinks, custom tile countertops and flooring, a spa tub, and separate frameless shower. Feel safe with the protection of the security system. Large 2-car garage with a huge attached storage space! Close to Levis Stadium, Intel, Nvidia, and Oracle.
Experimenting with 360 images of my open house at
2348 Susan Drive Santa Clara
Friday June 7th from 9AM – 1PM and Sunday June 9th from 1PM – 4PM.
If you can’t make it in person, why not try selecting a one of the images below. Experience with Oculus or Google Cardboard, it’s almost like being there!
Join me! OPEN HOUSE this Saturday May 4th!
Location: 2189 Hogan Drive, Santa Clara 95054
Time: 1:30 – 4:30 PM
Charming patio loft and outdoor living – Centrally located to all tech companies
2 outdoor patios, 1 rooftop loft overlooking palm trees, cathedral high bedroom ceiling. It’s your own sanctuary you’ll call home.
Bedrooms: 1 | Bathrooms: 1/1
Square Feet: 961 SQFT | Lot Size: 892 SQFT
This 1BD/1.5 BA home features an enclosed garage and a parking space. It’s centrally located, right where all the entertainment will be for Levi Stadium, Mercado Theaters, Rivermark and the future CityPlace development (north of Levi’s Stadium). Green are bike routes, making multi-modal transportation accessible for all.
May The 4th Be With You – Stormtrooper cupcakes
U.S. house prices rose 1.1 percent in the fourth quarter of 2018 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 5.7 percent from the fourth quarter of 2017 to the fourth quarter of 2018. FHFA’s seasonally adjusted monthly index for December was up 0.3 percent from November.
“House prices rose throughout 2018 but at a slower rate than in recent years,” said Dr. William Doerner, Supervisory Economist. “In the fourth quarter, house price appreciation hit one of the lowest levels in the past four years.”
FHFA House Price Index video shows how interest rate increases impact house price appreciation. Dr. Doerner explains in this video highlight of the fourth quarter.
- Home prices rose in all 50 states and the District of Columbia between the fourth quarters of 2017 and 2018. The top five areas in annual appreciation were: 1) Idaho 11.9 percent; 2) Nevada 11.2 percent; 3) Utah 9.8 percent; 4) Georgia 8.2 percent; and 5) Arizona 8.2 percent. The areas showing the smallest annual appreciation were: 1) North Dakota 0.0 percent; 2) Connecticut 0.9 percent; 3) West Virginia 1.6 percent; 4) Louisiana 1.8 percent; and 5) Oklahoma 2.0 percent.
- Home prices rose in 98 of the 100 largest metropolitan areas in the U.S. over the last four quarters. Annual price increases were greatest in San Francisco-San Mateo Redwood City, CA (MSAD), where prices increased by 17.0 percent. Prices were weakest in Urban Honolulu, HI, where they fell by 2.0 percent.
- Of the nine census divisions, the Mountain division experienced the strongest four quarter appreciation, posting an 8.1 percent gain between the fourth quarters of 2017 and 2018 and a 1.6 percent increase in the fourth quarter of 2018. Annual house price appreciation was weakest in the West South Central division, where prices rose by 4.3 percent between the fourth quarters of 2017 and 2018.
In terms home price appreciation, Silicon Valley is preforming at a strong rate. There are two metropolitan locations in California that took the highest home price appreciation, San Francisco – San Mateo – Redwood City (the Mid-Peninsula) and San Jose – Sunnyvale – Santa Clara (the South Bay).
FHFA 4Q report here.
If you’re making plans to move and relocate to another part of the country you will want to be knowledgeable about your housing price appreciation of your future home. Feel free to call me to discuss relocation possibilities, I can assist you locally and nationally.
As locals in Silicon Valley we can’t help notice all the cranes, increased traffic and new construction going on everywhere around us. What is going on?! We’re about to experience a new age in the changing landscape in San Jose / Santa Clara as Silicon Valley makes way to retain its reputation and dominance as the global powerhouse of innovative technology. South Bay cities, Santa Clara and San Jose, are positioning to attract future talent from a national and international talent pool as both cities resolve their contentious differences and now creating new commercial buildings for mixed-use development to attract more tech companies and places to live, dine and entertain.
CityPlace, a six and a half billion dollar development next to Levi Stadium in Santa Clara is a multi-phased, mixed-use development of up to 9.16 million gross square feet. It will be the hub of Santa Clara consisting of office buildings, retail, entertainment facilities, residential units, hotel rooms, surface and structured parking facilities, new open space and roads, landscaping and tree replacement, and new, upgraded, expanded infrastructure and utilities. Oh, is that all? Watch out Los Angeles and San Francisco, looks like we’re about to compete and have world class entertainment, its about time too! (More on CityPlace here)
CityPlace will be a 240 acre project site from Parks/Open Space and Regional Commercial to Urban Center/Entertainment District.
The city of San Jose promises to pay sixteen million in traffic improvement related to the project in Santa Clara. Monies will not come from the general fund but by developer fees. San Jose Mayor Sam Liccardo and Santa Clara Mayor Lisa Gillmor pledged to work together to find solutions related to traffic and affordable housing.
On the border of cities Santa Clara and San Jose is the new development called Santana West. The Santana West complex is across the street from Santana Row, a successful shopping, residential, dining commercial destination and is now planning on building a third commercial buildings totaling 1 million square feet. Two of the buildings would contain 350,000 square feet each, and the third would offer 300,000 square feet of office space. “Santana Row is a place, it’s a destination, it has an identity,” said Dave Sandlin, an executive vice president with Colliers International, a commercial real estate firm. “Tech companies want cool buildings, cool locations like this to make it easier to attract good employees.” said Steve Horton, a vice chairman with Cushman & Wakefield. (More here)
Fortunately for us nostalgic South Bay residents, the new Santana West construction will preserve one of the landmark domed movie theater that for decades has been a familiar sight on Winchester Boulevard. Here’s the story of Century 21’s former space-age, futuristic vision coming to pass.
Companies such as Splunk is betting on the success of Santana Row’s location to attract employees. Signing a long-term lease at 700 Santana Row, Splunk’s new building will feature seven levels of office area above ground floor retail, and a parking garage with approximately 1,300 spaces. (More information here)