Buy.Sell.Stay. July 2016 Market Report South County Gilroy, Morgan Hill
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 August 2016
Executive Insights The Summer Heat is Cooling Down As we started ramping up the summer-selling season back in April of this year, we were predicting a hot market. Little did we know that it was going to be RED HOT! In fact, Intero saw the best month ever in units sold and dollar volume in its 14-year history during the month of June. When you hit all-time highs, things are bound to cool off, and that’s exactly what the Bay Area real estate market experienced last month. In July we saw a downward trend in inventory that impacted sold listings. Because the level of new for-sale listings was trending downward and buyers were being more cautious based on timing, sold listings were down in every region of the Bay Area. There were 14.16% less Bay Area homes sold in July (2369) then there was in June (2760). These numbers support a trend that the Bay Area is pulling back from an incredibly hot seller’s market to a more normal seller’s market. In what looks like a contradiction to this cooling trend is the fact that a majority of the Bay Area regions saw for-sale listings up from June to July. But unlike the last three months, the amount of for-sale listing increases were closer to flat than the huge double-digit percentages we were seeing previously. This is having an impact on the volume of sold listings we’re seeing. Also contributing to this cooling trend was seasonality. With the start of school just around the corner, most buyer and sellers are less motivated to move at this busy time of the year. This has more sellers staying put and not offering their property to the market because they don’t want to disrupt the start of their kid’s school year. Even though we’re seeing a more moderate market as we roll into August, it still remains very healthy. With unemployment figures near 8-year lows and a lack of inventory in the most desirable Bay Area locations, we will still see high demand with more buyers than listings. But in other areas, buyers will have more choice and be able to take a more deliberate approach in their buying decision. This will keep listings in those areas on the market a little longer than we’ve experienced in the last several years and force sellers to price more appropriately. We’ll continue to keep you informed with our take and hopefully provide you with information that can help in your buying or selling process.
By Tom Tognoli President & CEO Intero Real Estate Services
Market Highlights South County
Total Homes for Sale
207
Luxury Homes for Sale*
7
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
104 $1,215,000
30
$829,000
Inventory South County
Total Number Of Homes:
For Sale
Sold
207
206 184
106
110
67
65
64
81
104
155 123
112 89
91 15-Oct
103
143 89 15-Sep
65
90 15-Aug
50
162
182
178
169 116
157 112
100
105
150
153
200
198
250
16-Jan
16-Feb
16-Mar
0 15-May
15-Jun
15-Jul
15-Nov
15-Dec
16-Apr
16-May
16-Jun
16-Jul
It is a Seller’s Market Property Sales (Sold) July property sales were 104, down 10.3% from 116 in July of 2015 and 1.9% lower than the 106 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 38 units of 22.5%. 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 0.5% compared to the previous month. Property Under Contract (Pended) There was a decrease of 13.9% in the pended properties in July, with 99 properties versus 115 last month. This month’s pended property sales were 5.7% lower than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
6
50%
$500K $1M
111
15.6%
$1M - $3M
83
25.8%
$3M - $5M
4
100%
$5M - $10M
2
100%
$10M +
1
N/A
Pricing South County
Average Prices in $,000:
1400
$1,251
1200
$1,180
$1,129 $1,031 $1,036
$1,087
$1,128
For Sale Price
$1,161
Sold Price
$1,195 $1,218 $1,192
$1,161 $1,158 $1,154
$1,215
1000 800 600
$763
$817
$879 $782
$818
$837
15-Sep
15-Oct
$776
$821
$830
15-Dec
16-Jan
$752
$784
$805
$818
$816
16-Mar
16-Apr
16-May
16-Jun
$829
400 200 0 15-May
15-Jun
15-Jul
15-Aug
15-Nov
16-Feb
16-Jul
The Average For Sale Price is Neutral The Average For Sale Price in July was $1,215,000, up 7.6% from $1,129,000 in July of 2015 and up 5.3% from $1,154,000 last month. The Average Sold Price is Appreciating The Average Sold Price in July was $829,000, down 5.7% from $879,000 in July of 2015 and up 1.6% from $816,000 last month. The Median Sold Price is Neutral The Median Sold Price in July was $746,000, down 4% from $777,000 in July of 2015 and down 1.7% from $759,000 last month.
Pricing By The Numbers
Average Price Per Square Foot.
$374
1.9%
Month over Month
On The Market South County
Average Days On Market
60 52 47
50 42 40
37
37
37 30
30
30
37
41 34
28
27
29
30
20 10 0 15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
The Days on Market Shows Neutral 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 Buyerâ&#x20AC;&#x2122;s market, a downward trend indicates a move towards more of a Sellerâ&#x20AC;&#x2122;s market. The DOM for July 2016 was 30, down 11.8% from 34 days last month and the same as in July of last year.
16-Feb
16-Mar
16-Apr
16-May
16-Jun
16-Jul
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
31
-65%
$500K $1M
23
-17%
$1M - $3M
55
-7%
$3M - $5M
0
N/A
$5M - $10M
0
N/A
$10M +
0
N/A