Buy.Sell.Stay. May 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 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 South County
Total Homes for Sale
184
Luxury Homes for Sale*
6
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
105 $1,158,000
27
$828,000
Inventory South County
Total Number Of Homes:
184
Sold
155
105 81 64
65
67
65
89
103
112
123
143 91
89
162
182
169 116
153
147
65
60
90
80
112
100
105
120
118
140
137
160
157
180
178
198
200
For Sale
40 20 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 105, the same as in May of 2015 and 29.6% higher than the 81 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 31 units of 20.3%. 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 13.6% compared to the previous month. Property Under Contract (Pended) There was a decrease of 14.2% in the pended properties in May, with 109 properties versus 127 last month. This month’s pended property sales were 4.4% lower than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
10
25%
$500K $1M
100
29.9%
$1M - $3M
68
7.9%
$3M - $5M
4
33.3%
$5M - $10M
2
0%
$10M +
0
N/A
Pricing South County
Average Prices in $,000:
1400
$1,275 $1,259 $1,251
1200
$1,180
$1,129 $1,031 $1,036
For Sale Price
$1,087
$1,128
$1,161
Sold Price
$1,195 $1,218 $1,192
$1,161 $1,158
1000 800 600
$740
$783
$763
15-Apr
15-May
$817
$879 $782
$818
$837
15-Sep
15-Oct
$776
$821
$830
15-Dec
16-Jan
$752
$784
$805
$828
16-Mar
16-Apr
16-May
400 200 0 15-Mar
15-Jun
15-Jul
15-Aug
15-Nov
The Average For Sale Price is Depreciating* The Average For Sale Price in May was $1,158,000, down 7.4% from $1,251,000 in May of 2015 and down 0.3% from $1,161,000 last month. The Average Sold Price is Appreciating The Average Sold Price in May was $828,000, up 8.5% from $763,000 in May of 2015 and up 2.9% from $805,000 last month. The Median Sold Price is Neutral The Median Sold Price in May was $729,000, up 0.6% from $725,000 in May of 2015 and up 2.7% from $710,000 last month.
16-Feb
Pricing By The Numbers
Average Price Per Square Foot.
$362
19.1% Month over Month
On The Market South County
Average Days On Market
60 52 50
47
46
42 37
40
37
32
37 30
30
15-Jul
15-Aug
30
37
41
28
27
27
16-Apr
16-May
20 10 0 15-Mar
15-Apr
15-May
15-Jun
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 27, the same as last month and down 27% from 37 days in May of last year. The Sold/Original List Price Ratio Remains Steady 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 99% is down 1% from last month and down from 2% in May of last year.
15-Dec
16-Jan
16-Feb
16-Mar
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
46
-7%
$500K $1M
19
-79%
$1M - $3M
48
-8%
$3M - $5M
0
N/A
$5M - $10M
0
N/A
$10M +
0
N/A