The housing inventory has continue to climb over the summer in Santa Clara County with 5,950 homes, townhouses and condos on the market as of 8/10/07. This is the highest level of the year and the highest level in the 2000's. There are currently 4.416 single family and 1,534 condos and townhomes on the market. The Silicon Valley continues to be a tale of two markets.
The Elite School Area Market Characteristics (API Score 850+)
- Median price is over $1.1 Million: Median Price is up 10% vs 2006
- Number closed sales is down slightly (2%) over 2006
- Average number of days on market is 34 days (up 47% vs 2006)
The Rest of the Market School Areas Market Characteristics
- Median Price is under $700,000: Median price is up 1% vs 2006
- Number of closed sales is down 28% over 2006
- Average days on market is 51 days (up 70% vs. 2006)
Looking at the data, one could come to to the following conclusions
- Median prices in Santa Clara County are at record highs
- The number of homes sold has declined significantly
- Higher priced home in good school districts are doing much better than homes in lower priced areas with less desirable schools
- The number of first time home buyer's is down significantly, resulting in higher median prices. In other words, more homebuyers are moving up and into more affluent, better school districts
Thus median priced single family homes in cities such as Cupertino and Sunnyvale are still doing very well with many homes still receiving multiple offers, going over asking price and selling in one week. Recent tightening in the mortgage market has removed some buyers from the market but overall it is still very strong in these high scoring school areas. In the past week there were 68 homes in the market in Cupertino and 10 went pending and in Sunnyvale there were 116 homes in the market and 13 went pending. In contrast a city like Santa Clara where the schools are not as elite as Cupertino/Sunnyvale, there were 166 homes in the market and only 17 went pending. Even in a city like Sunnyvale, we are seeing homes in the 94087 zip codes with its higher ranking schools doing much better than the 94086,94085 & 94089 areas with its more modest school rankings. Even worse performing are neighborhoods such as Blossom Valley and Santa Teresa in San Jose. The tightening of the mortgage market has pushed out many first time home buyers and as a result the entry level homes in the 400k-700k price range are just sitting on the market. This is good news for qualified buyers who have funds for a down payment as they will have lots of selection and negotiating power.
For more information, please feel free to visit my website www.siliconvalleyprop.com