Benford Real Estate, Silicon Valley, Santa Clara County

As of August 5, the average 30-year, fixed-rate, mortgage interest rate, according to the California Association of REALTORS®, was a razor thin 4.49%. For anyone who doesn’t follow interest rates, that’s a bit like getting gas for $1.50 per gallon: very rare, and very exciting for those who need to buy.

Locally, although median prices have been rising steadily for quite some time now, and continued to do so last month, there are signs they may stabilize in the near future, giving more encouragement for prospective buyers. For much of 2010, the inventory of unsold homes in Santa Clara County has been below 3 months, which is considered a sellers’ market with more demand than supply and hence upward pressure on prices. But at the end of July, Santa Clara County inventory (including townhomes and condos) was about 3.5 months. Between 3-6 months is considered a balanced market; above 6, a buyers’ market. That means more selection and negotiating power for buyers, and a little more competition for sellers. But overall, Silicon Valley is fortunate to have a real estate market that is thriving compared to many other parts of California and the United States.

Santa Clara County Median Sales Price: Houses, Townhouses, and Condos Combined

Vital Signs: (Santa Clara County houses, townhouses, and condos, as of July 2010)
Total Active Listings: 4,484
Average asking price of unsold homes: $888,000
Average (not median) sales price of sold homes: $711,000
Average percentage of original asking price obtained by successful sellers: 96%
Average number of cumulative days on market: 56
Closed sales, year-to-date: 8,712
Listings expired during July 2010: 179
Average 1-year appreciation: 14.3%
Months of supply by the end of July, based on closed sales: 3.5 (balanced market)
Average 30-year fixed interest rate as of August 5, 2010: 4.49%, fees not included

Snapshots, July 2010
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95119 (San Jose-Santa Teresa): 1.5 months of inventory
2. 94303 (Palo Alto*): 1.6
3. 94087 (Sunnyvale): 1.8
Top 3 buyers’ markets:
1. 95033 (Los Gatos Mountains): 21.5
2. 95112 (San Jose-Central): 9.6
3. 95046 (San Martin): 9.0
3 most expensive zip codes
1. 94301 (Palo Alto-Downtown): $2,065,000
2. 94022 (Los Altos/Los Altos Hills-North): $1,863,000
3. 95070 (Saratoga): $1,567,000
3 least expensive zip codes
1. 95110 (San Jose-Central): $285,000
2. 95122 (San Jose-East/Hillview): $300,000
3. 95116 (San Jose-East/Central): $306,000

*94303 includes parts of Palo Alto (Santa Clara County) and East Palo Alto (San Mateo County). In these statistics, only the Santa Clara County portion is included.

When we’re out in public talking to people one of the most common things they ask when they find out we’re in real estate is, “Gosh, things are pretty bad right now, huh?” They often express doubt when we tell them the market in San Jose and the greater Silicon Valley has been recovering for over a year. Indeed, last month was one of our busiest months ever, and for that we owe thanks to our clients, personal friends, and friends in business who continue to refer their family, friends, and neighbors to us. It’s people like you that allow us to work primarily by referral and who motivate us to work hard and enjoy it every day!

But truly, the local marketplace as a whole is also showing plenty of vitality, hovering around a healthy 3.0 months of inventory since the beginning of this year, a consistent number of sales month after month, and continuing, small but significant increases in median price. Don’t just take our word for it! Look at the numbers yourself! The graph below represents the median sales prices of stand-alone houses, townhouses, and condominiums in Santa Clara County.

Vital Signs: (Santa Clara County houses, townhouses, and condos, as of June 2010)
Total Active Listings: 4,113
Average asking price of unsold homes: $919,000
Average (not median) sales price of sold homes: $702,000
Average percentage of original asking price obtained by successful sellers: 97%
Average number of cumulative days on market: 60
Closed sales, year-to-date: 7,337
Listings expired during June 2010: 159
Average 1-year appreciation: 17.2%
Months of supply by the end of June, based on closed sales: 3.1 (balanced market)
Average 30-year fixed interest rate as of July 1, 2010: 4.58%, fees not included

Snapshots, May 2010
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95122 (San Jose-East/Hillview), 1.4 months of inventory
2. 95133 (San Jose-Berryessa), 1.6
3. 95129 (San Jose-West), 1.8
Top 3 buyers’ markets:
1. 95030 (Los Gatos/Monte Sereno), 12.0 months of inventory
2. 95033 (Los Gatos Mountains), 8.2
3. 95126 (San Jose-Rose Garden/Central), 6.4
3 most expensive zip codes in Santa Clara County:
1. 94301 (Palo Alto-Downtown), median price $2,100,000
2. 94022 (Los Altos/Los Altos Hills-North), $1,743,000
3. 94024 (Los Altos/Los Altos Hills), $1,483,000
3 least expensive zip codes in Santa Clara County:
1. 95116 (San Jose-East/Central), median price $268,000
2. 95122 (San Jose-East/Hillview), $286,000
3. 95110 (San Jose-Central), $298,000

The federal first-time home buyer tax credit expired on April 30th, and the data from May is now out! The verdict: Well, there was a slight dip in pended sales in Santa Clara county from 2,008 houses, townhouses and condos in April to 1,887 in May. But with 3,732 homes on the market, that’s still just 2 months of inventory countywide (based on pended sales). In April it was 1.8 months. If we go by closed sales it was 2.9 months and 2.3 months, respectively.

Translation: Houses are still selling, not because of any tax credit incentives (although we won’t refuse those!) but because the fundamentals are in place for a housing market recovery, which historically speaking, precedes broader economic recoveries. So we’re feeling pretty optimistic. Oh, and did we mention interest rates have hit a low for the year? The average 30-year fixed rate, minus points and fees, was 4.79% as of June 4th according to the California Association of REALTORS®.

For further encouragement, check out this median price graph followed by our vital stats below!

Vital Signs: (Santa Clara County houses, townhouses, and condos, as of May 2010)
Total Active Listings: 3,732
Average asking price of unsold homes: $963,000
Average sales price of sold homes: $672,000
Average percentage of original asking price obtained by successful sellers: 98%
Average number of cumulative days on market: 51
Closed sales, year-to-date: 5,945
Listings expired during May 2010: 133
Average 1-year appreciation: 17.5%
Months of supply by the end of May, based on closed sales: 2.3 (sellers’ market)
Average 30-year fixed interest rate as of June 4, 2010: 4.79%, fees not included

Snapshots, May 2010
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95129 (San Jose-West/Lynbrook), 0.9 months of inventory
2. 95122 (San Jose-East/Hillview), 1.0
3. 94089 (Sunnyvale-North of 101), 1.1
Top 3 buyers’ markets:
1. 95030 (Los Gatos/Monte Sereno), 6.7
2. 95046 (San Martin), 5.8
3. 94022 (Los Altos/Los Altos Hills-North), 5.7
3 most expensive zip codes in Santa Clara County:
1. 94301 (Palo Alto-Downtown), median price $1,748,000
2. 95030 (Los Gatos/Monte Sereno), $1,680,000
3. 94022 (Los Altos/Los Altos Hills-North), $1,600,000
3 least expensive zip codes in Santa Clara County:
1. 95122 (San Jose-East/Hillview), median price $270,000
2. 95116 (San Jose-East/Central), $277,000
3. 95110 (San Jose-Central), $292,000

The federal tax credits for first-time and repeat home buyers expired on April 30th, and Congress took no action to renew it as some had predicted. The good news is that for those who were in contract by that date, they have until June 30th to close their transaction.

A new tax credit, at the state level, took effect May 1st for first-time home buyers and buyers of new construction homes. But funds for the California tax credit are limited, and most experts predicted that enough home buyers would claim the tax credit to cause the funds to run out within a few weeks.

In the midst of all this, the average sales price in Santa Clara County increased 6% from $648,000 in March to $687,000 in April. The volume of sales was outpaced by an increase in inventory volume, pushing the relative inventory to a supply of 3.1 months, where we consider it to be quite balanced. It is possible that we may see a mild slowdown in our market now that the tax incentives are no longer there; but that does not mean it is an inopportune time to buy! On the contrary, serious buyers may find that they will have more homes to choose from and fewer competing buyers.

Vital Signs: (Santa Clara County houses, townhouses, and condos, as of March 2010)
Total Active Listings: 3,597
Average asking price of unsold homes: $944,000
Average sales price of sold homes: $687,000
Average percentage of original asking price obtained by successful sellers: 97%
Average number of cumulative days on market: 58
Closed sales, year-to-date: 4,190
Listings expired during April 2010: 139
Average 1-year appreciation: 30.6%
Months of supply by the end of April, based on closed sales: 3.1 (balanced market)
Average 30-year fixed interest rate as of May 6, 2010: 5.00%, fees not included

Snapshots, April 2010
Top 3 sellers’ markets in Santa Clara County by zip code:
1t. 94303* (Palo Alto), 1.2 months of inventory
1t. 95119 (San Jose-Santa Teresa), 1.2
3. 95132 (San Jose-Berryessa), 1.5
Top 3 buyers’ markets:
1. 95033 (Los Gatos Mountains), 22.3 months of inventory
2t. 95139 (San Jose-Santa Teresa/Coyote), 9.0 months of inventory
2t. 94086 (Sunnyvale), 9.0 months of inventory
3 most expensive zip codes in Santa Clara County:
1. 94022 (Los Altos/Los Altos Hills-North), median price $1,639,000
2. 95070 (Saratoga), $1,510,000
3. 94024 (Los Altos/Los Altos Hills), $1,480,000
3 least expensive zip codes in Santa Clara County:
1. 95116 (San Jose-East/Central), median price $268,000
2. 95111 (San Jose-Edenvale/Seven Trees), $275,000
3. 95122 (San Jose-East/Hillview), $283,000

* The 94303 zip code also includes a part of East Palo Alto, in San Mateo County. Only the Santa Clara County portion is factored into these statistics.

Santa Clara County’s housing market saw a dramatic increase in both seller and buyer activity during the month of March, with a 14% increase in the number of homes available for sale, and a 39% increase in the number of sales closed from February, while the average sales price increased 6% to $659,000 from $621,000 in February. This also represents a 25% increase over the average price from March 2009, when the average price was $525,000.

The federal tax credit for home buyers, which expires April 30th, is certainly not hampering this activity. Many prospective home buyers are hurrying to get into contract before then. But there’s good news for those who miss it: California recently passed a tax credit of its own for qualified home buyers who make their purchases between May 1 and December 31. Those who take advantage of it will be eligible for as much as $10,000 on their tax returns, with a total of $100 million available to first-time buyers of existing homes, and another $100 million available to buyers of new or previously unoccupied homes.

Vital Signs: (Santa Clara County houses, townhouses, and condos, as of March 2010)
Total Active Listings: 3,407
Average asking price of unsold homes: $921,000
Average sales price of sold homes: $659,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 46
Closed sales, year-to-date: 2,958
Listings expired during March 2010: 121
Average 1-year appreciation: 25.5%
Months of supply by the end of March, based on closed sales: 2.8 (sellers’ market)
Average 30-year fixed interest rate as of April 1, 2010: 5.08%, fees not included

Snapshots, March 2010
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 94041 (Mountain View), 1.1 months of inventory
2. 95111 (San Jose-Edenvale/Seven Trees), 1.3
3. 94303 (Palo Alto), 1.4*
Top 3 buyers’ markets:
1. 95033 (Los Gatos Mountains), 11.8 months of inventory
2. 95030 (Los Gatos/Monte Sereno), 8.9
3. 95032 (North/East Los Gatos), 5.3
3 most expensive zip codes in Santa Clara County:
1. 94301 (Downtown Palo Alto), median price $1,875,000
2. 95030 (Los Gatos/Monte Sereno), $1,678,000
3. 95070 (Saratoga), $1,600,000
3 least expensive zip codes in Santa Clara County:
1. 95116 (San Jose-East/Central), median price $225,000
2. 95110 (San Jose-Central), $272,000
3. 95122 (San Jose-East/Hillview), $283,000

* The 94303 zip code also includes a part of East Palo Alto, in San Mateo County. Only the Santa Clara County portion is factored into these statistics.

With potential tax credits in mind, first-time and repeat home buyers are increasing their efforts to purchase a home before the April 30th deadline. Fortunately for them, they’re enjoying an increase in selection as the number of homes for sale in Santa Clara County increased from 2576 to 2981 in February, an increase of about 16%. But the force of active home shoppers is also providing an increase in demand, as the number of executed purchase contracts jumped from 1295 in January to 1618 in February. We are seeing many of these pending sales take longer to close, as continually changing loan guidelines, as well as conservative appraisals in some cases, create problems that need to be worked out before closing. Fortunately, home buyers in contract by April 30th have until June 30th to close and still claim their tax credit. Always consult a CPA for tax-related matters, and to make sure you’ll qualify for the credit. And of course, always use a REALTOR® to help you navigate the real estate market! We’ll be glad to help you ourselves!

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of February 2010)
Total Active Listings: 2,981
Average asking price of unsold homes: $940,000
Average sales price of sold homes: $627,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 49
Closed sales, year-to-date: 1692
Listings expired during February 2010: 117
Average 1-year appreciation: 23.4%
Months of supply by the end of February, based on closed sales: 3.6 (stable market)
Average 30-year fixed interest rate as of March 11, 2010: 4.95%, fees not included

Snapshots, February 2010
Top 3 sellers’ markets in Santa Clara County by zip code:
(Three-way tie)
1. 94303 (Palo Alto) 1.4 months of inventory*
1. 95130 (San Jose-San Tomas), 1.4
1. 95133 (San Jose-Berryessa) 1.4
Top 3 buyers’ markets:
1. 95033 (Los Gatos Mountains), 21.7 months of inventory
2. 95030 (Los Gatos/Monte Sereno), 10.6
3. 95032 (Los Gatos), 8.5
3 most expensive zip codes in Santa Clara County:
1. 94301 (Palo Alto-Downtown), median sales price $2,450,000
2. 94022 (Northern Los Altos/Los Altos Hills), $1,640,000
3. 94020 (Los Altos/Los Altos Hills), $1,612,000
3 least expensive zip codes in Santa Clara County:
1. 95110 (San Jose-Central), $250,000
2. 95116 (San Jose-East/Central), $286,000
3. 95122 (San Jose-East/Hillview), $305,000

* The 94303 zip code also includes a part of East Palo Alto, in San Mateo County. Only the Santa Clara County portion is factored into these statistics.

Prospective home buyers in Santa Clara County will be relieved to know that for the first time in 11 months, the inventory of available homes for sale increased in January from the month prior. We finished the month with 2,576 homes available for sale, 16% more than at the end of December 2009, but down more than 50% from January 2009. That gave us a relatively stable 3.2 months of inventory based on closed sales in January, but a very low 1.8 months if determined by pending sales. That means it’s still a competitive market for buyers, especially in the lower price ranges (below $500,000). We expect to continue seeing multiple offers and sales above asking price at least until the expiration of the first-time home buyer tax credit and a significant increase in interest rates.

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of January 2010)
Total Active Listings: 2,576
Average asking price of unsold homes: $977,000
Average sales prices of sold homes: $587,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 50
Sales, year-to-date: 814
Listings expired during January 2010: 127
Average 1-year appreciation: 15.1%
Months of supply by the end of January: 3.2 (stable market)
Average 30-year fixed interest rate as of February 4, 2010: 5.01%, fees not included

Snapshots, December 2009
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95130 (San Jose-San Tomas), 1.3 months of inventory
2. 95111 (San Jose-Edenvale/Seven Trees), 1.4
3. 95122 (San Jose-East/Hillview) 1.5
Top 3 buyers’ markets:
1. 95046 (San Martin), 23.0 months of inventory
2. 95033 (Los Gatos Mountains), 17.7
3. 95030 (Los Gatos/Monte Sereno), 9.3
3 most expensive zip codes in Santa Clara County:
1. 94301 (Palo Alto-Downtown), median sales price $1,540,000
2. 94022 (Northern Los Altos/Los Altos Hills), $1,525,000
3. 95070 (Saratoga), $1,426,000
3 least expensive zip codes in Santa Clara County:
1. 95116 (San Jose-East/Central), $235,000
2. 95122 (San Jose-East/Hillview), $259,000
3. 95110 (San Jose-Central), $290,000

December was quite a competitive month for home buyers, particularly with price ranges below $600,000. It’s typical for sellers to avoid putting their homes on the market during this month, and yet prospective buyers, with time off work, will begin or intensify their house-hunts. As a result, the existing inventory of detached houses, townhouses, and condos dipped just below 2 months of supply for the first time in several years in Santa Clara County. Interest rates came up above 5%, however, creating an even greater sense of urgency for buyers, many of whom are facing multiple competing offers. If you’ve been waiting for an advantageous time to sell your house, this year might be it.

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of December 2009)
Total Active Listings: 2,220
Average asking price of unsold homes: $982,000
Average sales prices of sold homes: $630,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 52
Sales, year-to-date: 14,850
Listings expired during December 2009: 387
Average 1-year appreciation: 8.6%
Months of supply by the end of December: 1.9 (sellers’ market)
Average 30-year fixed interest rate as of January 7, 2010: 5.09%, fees not included

Snapshots, December 2009
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 94041 (Central/Downtown Mountain View), 0.4 months of inventory
2t. 95118 (San Jose-Cambrian/Almaden), 0.9
2t. 95130 (San Jose-San Tomas), 0.9
Top 3 buyers’ markets:
1t. 95046 (San Martin), 10.0 months of inventory
1t. 95033 (Los Gatos Mountains), 10.0
3. 95070 (Saratoga), 5.9
3 most expensive zip codes in Santa Clara County:
1. 94024 (Los Altos/Los Altos Hills), median sales price $1,700,000
2. 95030 (Los Gatos/Monte Sereno), $1,582,000
3. 94022 (Northern Los Altos/Los Altos Hills), $1,330,000
3 least expensive zip codes in Santa Clara County:
1. 95122 (San Jose-East/Hillview), $276,000
2. 95110 (San Jose-Central), $294,000
3. 95116 (San Jose-East/Central), $301,000

Curious about your zip code? Call Jeff: (408) 644-5175

No, that’s not a typo. In November 2008 the median and average sales prices for homes in Santa Clara County were $460,000 and $567,000 respectively. This past November, they were $540,000 and $668,000. So it doesn’t matter whether you use the median price, or the average price; either way, that’s 17 to 18 percent appreciation, county-wide, in just a year! What does that mean? It means the market over-corrected last year. It also means a nice Christmas present for folks who bought their homes a year ago. And with just 2.3 months of inventory currently, and interest rates down below 5%, home values are primed to continue increasing as we head into 2010. This will be a good year to buy a home in Silicon Valley!

Vital Signs: (Santa Clara County houses, condos, and townhouses, as of November 2009)

Total Active Listings: 2,564
Average asking price of unsold homes: $1,034,000
Average sales prices of sold homes: $668,000
Average percentage of asking price obtained by successful sellers: 99%
Average number of days on market: 50
Sales, year-to-date: 13,591
Listings expired during November 2009: 224
Average 1-year appreciation: 17.8%
Months of supply by the end of November: 2.3 (sellers’ market)
Average 30-year fixed interest rate as of December 3, 2009: 4.71%, fees not included

Snapshots, November 2009
Top 3 sellers’ markets in Santa Clara County by zip code:
1. 95130 (San Jose-San Tomas neighborhood), 0.6 months of inventory
2. 94041 (Central/Downtown Mountain View), 0.8 months of inventory
3. 95122 (San Jose-East/Hillview), 0.9 months of inventory
Top 3 buyers’ markets:
1. 95033 (Los Gatos Mountains), 11 months of inventory
2. 95046 (San Martin), 7.8 months of inventory
3. 95070 (Saratoga), 5.2 months of inventory
3 most expensive zip codes in Santa Clara County:
1. 94301 (Downtown Palo Alto), median sales price $1,992,000
2. 94022 (Northern Los Altos/Los Altos Hills), $1,610,000
3. 95070 (Saratoga), $1,498,000
3 least expensive zip codes in Santa Clara County:
1t. 95116 (East/Central San Jose), $240,000
1t. 95110 (Central San Jose), $240,000
3. 95122 (San Jose-East/Hillview), $270,000

Curious about your zip code? Call Jeff: (408) 644-5175

Remember the headlines in October 2008? Some members of the media were predicting a depression. What a terrible time to buy a house, right? Well, that’s what a lot of people believed. But some people in Santa Clara County bought homes anyway. And now, one year later, those opportunistic few are enjoying an average of 2.6% increase in value since their purchase. Yes, it’s a fact: the average sales price in Santa Clara County, for houses, townhomes, and condos, in October 2009, was $630,000 - that’s 2.6% higher than in October 2008, when it was $614,000. That may not knock your socks off, but for anyone who could afford it, October 2008 was a great time to buy a house. And now’s not such a bad time, either.

Vital Signs: (Santa Clara County house, condos, and townhouses, as of October 2009)

Total Active Listings: 2,923
Average asking price of unsold homes: $1,052,000
Average sales price of sold homes: $630,000
Average sales price to asking price ratio of sold homes: 99%
Average market time: 52 days
Sales, year-to-date: 12,371
Expired listings, October: 289
1-year average appreciation: 2.6%
Months of supply, end of October: 2.1 (sellers’ market)
Average 30-year fixed interest rate (as of November 5, 2009): 4.98%, fees not included

What’s Hot and What’s Not in Silicon Valley: October 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).

Strong Sellers’ Market: San Jose-Santa Teresa (0.9)

Sellers’ Markets: San Jose-South (1.3); Newark* (1.3); San Jose-Alum Rock (1.4); San Jose-Blossom Valley (1.4); Milpitas (1.6); Santa Clara (1.6); San Jose-Berryessa (1.7); Campbell (1.7); Sunnyvale (1.7); Mountain View (1.7); Fremont* (1.8); San Jose-Cambrian (1.8); San Jose-Evergreen (1.9); San Jose-Almaden Valley (2.1); Morgan Hill/Gilroy (2.3); Cupertino (2.5); Palo Alto (2.6); San Jose-Central (2.8)

Balanced Markets: Los Altos (3.2); San Jose-Willow Glen (3.3); Saratoga (4.6); Los Altos Hills (5.0); Los Gatos/Monte Sereno (5.3)

Buyers’ Market: Los Gatos Mountains (8.7)

*denotes Alameda County