A shaving was taken off the total number of homes for sale in Santa Clara County for the second month in a row in August. After remaining steady at nearly 3,700 units in spring and early summer, we’re now at our lowest level this year at 3,355. Although this is typical of the annual cycle, this time last year the inventory was still growing. And while it may bring modest relief to sellers who are concerned about soft prices, it means the first-time home buyer market (which has remained vibrant despite broader economic challenges) must face tighter competition with investors and cash-buyers. What the numbers don’t show is that many of these first-time home buyers are unexpectedly finding themselves being outbid on their first-choice homes. With just 2.4 months of inventory it is indeed a Silicon Valley market that slightly favors sellers in terms of units if not in price. Oh, by the way… the average 30-year fixed-rate mortgage last week was 4.09%. We’re (almost) tired of saying how amazingly low the rates are, but there you have it!
The Valley Breakdown – median prices and months of inventory for various parts of Santa Clara County – click image to enlarge
Santa Clara County Listings, Pended Sales, and Closed Sales: Houses, Townhouses, and Condominiums Combined
Vital Signs: (Santa Clara County houses, townhouses, and condos, as of August 2011)
Total Active Listings: 3,355
Average asking price of unsold homes: $895,000 (remember, luxury homes in higher price ranges take longer to sell and skew this number)
Average sales price of sold homes: $654,000
Median sales price of sold homes: $520,000
Average percentage of original asking price obtained by successful sellers: 97%
Average number of cumulative days on market: 66
Closed sales, year-to-date: 10,445
Listings expired during August 2011: 105
Average 1-year appreciation: -3.0%
Months of supply by the end of August, based on closed sales: 2.4 (slight sellers’ market)
Average 30-year fixed interest rate as of September 16, 2011: 4.09%, 0.7 points



