August presented yet another month of market recovery driven by less inventory and steady demand in Santa Clara County. Although there were fewer closed sales in August, there was a spike in pending sales. This might be a reflection of a trend we’ve been seeing lately, of more and more investors and prospective home-buyers bidding on pre-foreclosure short-sales (properties which require approval of the current owners’ mortgage holder, because the amount of the sale is not enough to pay off the existing loan). Because of this requirement, “short” sales, perhaps inaccurately named, can take months to close, and so those sales that are pended one month may not be counted as a closed sale for a few more months.
While many houses in the lower and mid-level price ranges are receiving multiple offers, higher-priced properties, especially higher-end condos and townhouses, are quite slow. Someone seeking a luxury condo, or one in a more expensive neighborhood, might still be able to find one without competing with too many other purchasers.
Vital Signs:
Santa Clara County, Detached Houses and Condominiums/Townhomes, as of August 2009
Total active listings: 3,257
Average (mean) asking price of homes not yet sold: $1,062,000
Average (mean) sales price of homes sold: $627,000
Average sales price to asking price ratio of homes actually sold: 99%
Average market time: 54 days
Sales, year-to-date: 9,458
Expired listings in August: 252
1-year appreciation: -15.4%
Months of supply, end of August: 2.7 (sellers’ market)
Average 30-year fixed interest rate (as of September 10, 2009, in California, fees not included): 5.07%
What’s Hot and What’s Not in Silicon Valley, August 2009:
“Months of Inventory”: The lower the number, the more likely prices there will be rising (sellers’ market). The higher the number, the more likely prices there will be falling (buyers’ market).
Sellers’ Markets: San Jose-South (1.4); Newark* (1.4); San Jose-Alum Rock (1.5); San Jose-Berryessa (1.5); San Jose-Santa Teresa (1.7); Santa Clara (1.8); Sunnyvale (1.9); San Jose-Blossom Valley (2.0); San Jose-Cambrian (2.2); Milpitas (2.4); San Jose-Almaden Valley (2.4); San Jose-Evergreen (2.6); Fremont* (2.6); Cupertino (2.6)
Balanced Markets: Mountain View (3.1); Morgan Hill/Gilroy (3.2); Campbell (3.4); San Jose-Central (3.7); San Jose-Willow Glen (3.8); Los Altos (3.8); Palo Alto (4.4); Saratoga (4.9); Los Gatos/Monte Sereno (5.9)
Buyers’ Markets: Los Gatos Mountains (7.8); Los Altos Hills (13.0)
* denotes Alameda County
