Buy.Sell.Stay. February 2016 Market Report Silicon Valley Cupertino, Los Gatos, Mountain View, San Jose, Saratoga, Sunnyvale
2016 Intero Real Estate Services Inc., a Berkshire Hathaway affiliate and a wholly owned subsidiary of HomeServices of America, Inc. All rights reserved. Data provided by Trendgraphix February 2016.. All information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker.
Executive Insights Home Sales Trend Upward The health of financial markets and a lack of inventory continue to be the biggest drivers of the Bay Area housing market. And with the stock market starting off the year strong, we’re also feeling a strong housing market here, with the expected seasonal slowing that often comes with the beginning of the year. “The tempo of the Bay Area housing market is tied very closely to the financial markets,” said Tom Tognoli, President and CEO of Intero Real Estate. “So much of the Bay Area’s wealth is tied up in stock options and stock purchase plans. As the financial markets go, people’s attitudes and pocket books tend to follow.” Many have been talking about the high-end of the housing market cooling off, which we’ve seen a bit. But that doesn’t mean no one’s in the market for high-end luxury homes. “Just last week, we sold a home in Atherton for over $8.5 million that was on the market for less than a week.” So it’s not a totally chilled market by any means. It’s still very much a seller’s market in the Bay Area. And while a lack of inventory continues to be a major challenge for buyers that usually means a quicker sale at a great price for sellers, those who are selling to move up are also finding it frustrating. The good news is the number of active listings increased at the state level for the first time in five months in January, and the Bay Area was part of the trend with an 8% increase in homes for sale compared to the previous month. “The fundamentals underlying the demand for housing fueled a healthy start to 2016,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. But she, along with other economists, continues to watch overall economic trends such as volatility in the equity market, that can potentially lead buyers and sellers to hold back and take a “wait-and-see” approach. So the market is starting strong, but with lack of homes and the uncertainty of an election year, we could see some slower growth. We like to watch the housing market numbers month to month because we always see noticeable changes that help our agents assess pricing and bidding strategies. Let’s take a look at the important numbers broken down into categories that are easy to understand. This will help you get clear on what’s happening in your market that can impact your home sale or purchase.
Market Highlights Silicon Valley
Total Homes for Sale
543
Luxury Homes for Sale*
41
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
331 $1,640,000
30
$1,181,000
Inventory Silicon Valley
Total Number Of Homes:
For Sale
Sold
770
408 372 301
331
514 510
543
602
639
695
874 730
822
378
416 343
308
200
511
525
400 300
15-Jul
603 624
600 500
15-Jun
702
700
795 770
794
800
822 820
890
900
931
1000
100 0 14-Dec
15-Jan
15-Feb
15-Mar
15-Apr
15-May
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
It is a Seller’s Market Property Sales (Sold) February property sales were 331, down 12.4% from 378 in February of 2015 and 11% lower than the 372 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 32 units of 6.3%. 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 33.1% compared to the previous month. Property Under Contract (Pended) There was an increase of 55.6% in the pended properties in February, with 518 properties versus 333 last month. This month’s pended property sales were 7.3% lower than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
10
-67%
$500K $1M
209
-14%
$1M - $3M
286
49%
$3M - $5M
24
-11%
$5M - $10M
14
17%
$10M +
3
-67%
Pricing Silicon Valley
Average Prices in $,000:
For Sale Price
Sold Price
2000 1800
$1,889 $1,697 $1,590
$1,652 $1,647 $1,631
1600
$1,582 $1,552 $1,519
$1,727
$1,655 $1,465
$1,640
$1,508 $1,525
1400 1200 $1,137 $1,146 $1,144
1000 $1,002
800
$1,203 $1,194
$1,147 $1,150 $1,150 $1,156 $1,121 $1,090
$977
$1,181 $1,055
600 400 200 0 14-Dec
15-Jan
15-Feb
15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
The Average For Sale Price is Neutral The Average For Sale Price in February was $1,640,000, down 0.7% from $1,652,000 in February of 2015 and down 5% from $1,727,000 last month.
Pricing By The Numbers
The Average Sold Price is Neutral The Average Sold Price in February was $1,181,000, up 3.9% from $1,137,000 in February of 2015 and up 11.9% from $1,055,000 last month.
The Median Sold Price is Neutral The Median Sold Price in February was $925,000, up 2.8% from $900,000 in February of 2015 and up 3.2% from $896,000 last month.
Average Price Per Square Foot.
$614
4.4%
Month over Month
On The Market Silicon Valley
Average Days On Market 45
41
40 35 35
31
31
32
31 28
30 25 25
21
21
15-Apr
15-May
20
20
21
27
23
20 15 10 14-Dec
15-Jan
15-Feb
15-Mar
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
5
The Days on Market Shows Neutral Trend 0 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 February 2016 was 30, down 11.8% from 34 days last month and up 3.4% from 29 days in February of last year.
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
The Sold/Original List Price Ratio Remains Steady
< $500K
44
13%
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 101% is the same as last month and down from 2.9% % in February of last year.
$500K $1M
26
-16%
$1M - $3M
32
33%
$3M - $5M
68
106%
$5M - $10M
61
NA
$10M +
0
NA