Here’s the latest from MLSListings Silicon Valley and Coastal Regions
– Single-Family Homes Market Overview
The SF Bay Area real estate market continued to show its strength during July, even in the midst of the COVID19 pandemic.
Median prices again rose across all five MLSListings counties compared to July 2019; the lowest gain was 7% in Santa Clara County, and the highest increase in median price was 19% in San Benito County.
Closed sales remained robust across the board, both month-over-month and year-over year.
Further displaying this resilience, median days on market dropped in every county except for San Benito and new listings coming on the market grew versus last year in all counties except for Santa Cruz.
Inventory stayed problematic in all counties, with 4 out of five counties showing year-over-year decreases.
Santa Clara’s inventory is 1/3 less than this time last year and Santa Cruz inventory is down by 35%.
While San Mateo showed a modest 12% gain in inventory, it is still at historically low levels.
Even with the strong demand, premiums paid (amount paid over asking) is close to 100% in all counties and steady with both last month and last year in all counties except for San Mateo, which saw a 4% drop in average premium paid, from 105% of list last year to 101% of list this year.
It’s been a hot market recently, with a sharp decline during Shelter-In-Place (March 16th), but incline of showing interest (only with a July 4th dip), then back to climb.
Please let me know how you and your family are doing during this health crisis. I am a Professional Fiduciary Association of California of the Silicon Valley chapter affiliate member and a Senior Real Estate Specialist but mostly you’ll appreciate my wide resources and contacts to help you get the help for your family needs.
I’m here for you. Love to hear from you. Cheers
(831) 346-2743 text/voice
Good morning! Every Tuesday morning (even while we are still sheltering-in-place) we gather together for a sales meeting with Joe Brown, our fearless leader in Intero Willow Glen and COO of INTERO Real Estate Services. In those meetings we discuss what’s happening in the Santa Clara, San Mateo, and other counties, but here in this Zoom screen capture we can see the data from Active Single Family Residences (from Feb 28 – May 31) our 2020 Active listings (in red) is in between the years 2019 (in yellow) & 2018 (in blue). Housing prices tend to increase when there’s limited inventory and in 2018 it was our record banner year in terms with multiple bidding wars driving up list prices. Looking at Pendings for Single Family Residences (graph on the right) we see 2020 year (in red) taking a giant dip between April and May, caused by the pandemic. Noticeably good news is that the pendings have been increasing and catching up to 2018 & 2019 numbers!
When we combine the 5 Bay Area Counties – What do we see?
Since sheltering in place (March 16th) we’ve seen very dynamic changes in all real estate transactions (Solds, Listings, Contingenies, Pendings, TFTs, Cancelled, and Withdrawns).
Comparing 2019 timeline to 2020 (June 1st) we are seeing a 37% difference in sold properties and still a 45% difference in pendings compared with last year’s pendings. But it won’t be long for those pendings to catch up to the 2019 & perhaps the 2018 data as shown above! What does this mean? It could mean that we might be heading back to more multiple offers considering the lack of new inventory.
In the LISTINGS AND SOLDS we see a gradual increased amount of new listings and we hope to expect those sold homes numbers to increase (with a 28-30 day delay for escrow).
In May we started to see more new listings and as owner occupied homes are now able to be shown (following the CDC guidelines of touring properties with their agents) we will see more interest from the buyers. Still, it is very desirable for listings to have a virtual presence (virtual tours and video open houses) as we have now pivoted into a new generation of home buying since Covid19 has taught us that buying property or searching can be easily shown at the comfort of one’s own sofa! (Ask me about the benefits of having a Virtual Real Estate Advisor)
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
2019 concluded with median sale prices up year-over-year in every MLSListings county except for Santa Cruz. The number of homes sold in December 2019 saw double-digit increases in all counties versus last December, while inventory was down compared to December 2018 (and month-to-month) across the board.New listings also fell in all five counties in comparison to both last month and last December. Meanwhile, the actual price paid versus list price hovered around 100% in every county, from a high of 102% in San Mateo to 97% in Monterey.
** If you’re interested in receiving a property analysis of your home don’t hesitate to call or email me!
LYNNE MACFARLANE, MCDM, REALTOR
INTERO | A BERKSHIRE HATHAWAY AFFILIATE
Home sales shift to ‘neutral’
“Bay Area home sales swooned in June, tumbling to recession levels of a decade ago as buyers grew increasingly weary of skyhigh prices and scant choices.
Sales of existing homes in the Bay Area fell 13% last month from the previous year, according to real estate data firm CoreLogic. Last month’s sales were the lowest for June since 2008, when the real estate market collapsed and the U.S. economy dove into a deep recession.
Year-over-year sales dropped 14.6% in Santa Clara County, 21.6% in Contra Costa County, 14.9% in Alameda County, 8.9% in San Mateo County, and 21.7% in San Francisco County, according to a CoreLogic report released Friday.
“Across the board, prices have hit a point where people have stopped responding,” said Core-Logic analyst Andrew LePage. Despite lower interest rates and more homes for sale, transactions”
Mortgage rates near 3-year lows while 30-year average dips to 3.75%
“Long-term mortgage rates in the U.S. fell this week, nearing a three-year low.
The dip comes amid signals from Federal Reserve officials that they could cut the benchmark interest rate at their meeting next week.”
Pruneyard Towers office complex in Campbell gets big new investor, fourth tower planned
“The Pruneyard Towers office complex has landed a new majority owner and an infusion of fresh capital, which will allow the launch of a wide-ranging upgrade to the three iconic towers as well as construction of a fourth tower, the principal developer of The Pruneyard “
The (nearly) impossible search for a cheap Bay Area home
“You can still find a $425,000 home — if you look hard enough” Seven years ago, for sale signs dotted suburban lawns and city streets, hot bidding wars were uncommon, and the typical single-family, Bay Area home sold for $425,000…but if you look hard enough, you can still find a home for $425,000 in the nine county Bay Area.”
If you or anyone you know is interested in buying, selling, investing or renting in the San Francisco Bay Area, I am happy to help. I am native San Franciscan, born and raised here in the Bay Area, and lived and own homes in 5 of the 9 counties. I would love to share my knowledge of the different areas and unique attributes of each community that make living here in Silicon Valley a world-class investment for you & your family’s future. Give me a call and let’s meet over a cup of tea & discuss your needs!
What are Opportunity Zones?
An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service. Frequently ask questions & more about opportunity zones here.
How Can I benefit learning about them?
Opportunity Zones may benefit rising neighborhoods first – these areas have potential to stabilize and revitalize “distressed neighborhoods” and surrounding communities by inviting private investment capital through a series of tax benefits.
Opportunity Zones – Are there any in Silicon Valley?
Here’s a map of the designated qualified opportunity zones. These zones demonstrate the anticipated ability to revitalize neighborhoods and get even more people working.
Opportunity Zones – Santa Clara County (San Jose)
Opportunity zones are also located “over the hill” in Santa Cruz. As previously mentioned in my previous blog post, there are many new developments in Santa Clara county and Santa Cruz county.
Opportunity Zones – Santa Cruz County
Opportunity Zone investments can attract new businesses, thereby potentially generating millions, if not billions, in economic development and create jobs in these communities. (Forbes, 2018)
Call me today to discuss new investment opportunities that are noted to be in the areas “path of progress”.
Lynne Watanabe MacFarlane, MCDM
Intero Real Estate Services | Berkshire Hathaway affiliate