Buy.Sell.Stay. May 2016 Market Report Silicon Valley Cupertino, Los Gatos, Mountain View, San Jose, Saratoga, Sunnyvale
Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix June 2016
Executive Insights The Summer Swell is Slashing Inventory Last month saw a flood of inventory hit the market like we hadn’t seen in a while. Listings were up in every part of the Bay Area, with most areas seeing double digit increases month over month. But that excess inventory didn’t last long and May saw the listing inventory drop drastically in almost every part of the Bay Area. As we predicted, the strong job market and pent up demand for inventory allowed those people that have been standing on the sidelines to get back in the home-buying game. And they didn’t waste any time as sold properties for the month of May were up significantly month-over-month in almost all parts of the Bay Area. This aggressive move on the increased April inventory is also chipping away at the days on market (DOM) for sellers. As buyers are trying to secure the purchase of available properties, we are seeing the DOM on a downward trend across the region. This trend should continue as the inventory continues to stay low into the later summer months. Another win for sellers is the fact that buyers have access to amazing mortgage rates right now. Here’s an excerpt from Realtor.com from June 13, 2016: “The national average rate for a 30-year fixed mortgage is 3.63%, an increase from April but far below May 2015’s 4.12%. Realtor.com staffer Jonathan Smoke explains that with the Fed likely not raising rates this summer but likely raising them again by this time next year, the time is now to lock in.” This mortgage rate news is going to allow buyers to be more aggressive with their offers and more than likely keep inventory low. In turn we will continue to see multiple offers and over asking prices in the most desirable regions of the Bay Area. So in the blink of an eye, all those houses that hit the market in April have new buyers calling them home. It looks like this roller coaster of a real estate market will continue to keep us on our toes into the next several months. So continue to keep an eye on your individual region and let us help you become a more informed home buyer or seller.
Market Highlights Silicon Valley
Total Homes for Sale
859
Luxury Homes for Sale*
73
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
783 $1,629,000
17
$1,261,000
Inventory Silicon Valley
Total Number Of Homes:
Sold
400
200
783
859
796 766
311
300
574
358
423 403
500
557
535 558
672
699
736
815
990
939 792
936 878
664
600
628 669
700
831 822
800
730
839
900
859 879
1000
For Sale
100 0 15-Mar
15-Apr 15-May 15-Jun
15-Jul
15-Aug 15-Sep
15-Oct
15-Nov 15-Dec 16-Jan
16-Feb 16-Mar
16-Apr 16-May
It is a Seller’s Market Property Sales (Sold) May property sales were 783, down 4.7% from 822 in May of 2015 and 2.2% higher than the 766 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 28 units of 3.4%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 7.9% compared to the previous month. Property Under Contract (Pended) There was an increase of 1.1% in the pended properties in May, with 854 properties versus 845 last month. This month’s pended property sales were 2.8% lower than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
6
-81.2%
$500K $1M
342
-11.2%
$1M - $3M
438
27.3%
$3M - $5M
55
7.8%
$5M - $10M
14
16.7%
$10M +
4
-42.9%
Pricing Silicon Valley
Average Prices in $,000:
For Sale Price
$1,869
2000 1800
Sold Price
$1,617 $1,605
1600
$1,553 $1,532 $1,496
$1,702
$1,636 $1,439
$1,627
$1,742 $1,708
$1,629
$1,481 $1,499
1400 1200 1000
$1,133 $1,138
$1,194 $1,184
$1,179 $1,142 $1,140 $1,143 $1,148 $1,112 $1,081 $1,060
15-May
15-Jul
$1,251 $1,250 $1,261
800 600 400 200 0 15-Mar
15-Apr
15-Jun
15-Aug
15-Sep
15-Oct
15-Nov
The Average For Sale Price is Depreciating* The Average For Sale Price in May was $1,629,000, up 4.9% from $1,553,000 in May of 2015 and down 4.6% from $1,708,000 last month. The Average Sold Price is Appreciating The Average Sold Price in May was $1,261,000, up 5.6% from $1,194,000 in May of 2015 and up 0.9% from $1,250,000 last month. The Median Sold Price is Appreciating The Median Sold Price in May was $1,100,000, up 13.6% from $968,000 in May of 2015 and up 1.9% from $1,080,000 last month.
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
Pricing By The Numbers
Average Price Per Square Foot.
$681
2.6%
Month over Month
On The Market Silicon Valley
Average Days On Market
35
32
29
30 25 25 20
33
19
20
19 16
22
26
21
21
19
17
17
15 10 5 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
The Days on Market Shows Downward Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for May 2016 was 17, down 10.5% from 19 days last month and up 6.3% from 16 days in May of last year. The Sold/Original List Price Ratio is Rising The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 104% is the same as last month and down from 3.7% in May of last year.
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
33
39%
$500K $1M
16
-13%
$1M - $3M
16
19%
$3M - $5M
30
13%
$5M - $10M
13
-108%
$10M +
0
N/A