* Median sales price: $800,000
* Days of unsold inventory: 35 days
* Median days on the market (sold homes): 10 days
* Number of homes sold in the last month: 880
* Average listing price/sales price: 106.1%
Active/Available homes Data:
* Number of active/available homes for sale currently: 1027
* Percentage of (active) regular sale: 96% ; short sale 2%; bank owned 1%
Analysis of the real estate market in Santa Clara County as of May 1
The real estate market in Santa Clara County is hot, as indicated by the days of unsold inventory (35 days) and the median days of homes on the market (10 days). Both indicators show that there is only about a month of inventory of homes left and on average, homes for sale are sold in 10 days. In another words, we have a strong seller's market, as many buyers in the market are experiencing multiple offers competition in the upwards of 15-20 offers for a home.
Combining the shortage of inventory with strong buyer demand driven by the low interest rate, the median sales price has been trending up. Currently, the median sales price is $800,000. In perspective, the median price in the last 3 months and 2 months are $740,000 and $750,000 respectively. There is an indication of upward trend.
Another indication of the multiple-offers competition is that on average sellers are getting about 6.1% over the asking price. The strongest market in the county in terms of the magnitude of overbidding is Sunnyvale-Cupertino, where there is about 12.2% over the asking price that homes are sold. Similarly, in Los Altos/Palo Altos, there is about 10.5% of overbidding.
What does this mean for me?
Buyers: it's crucial to understand the market dynamics and have realistic expectations of what the competition may be. In today's market, it's extremely helpful to have a strategy in place with your agents so you save time and money (and sometimes heartache!).
Sellers: from past experience, we know that there is a cap on appreciation. The question is when and where. No one has the crystal ball; however if you have any desire of selling or are curious about your value, contact an agent who knows the market. It's an opportunity to take advantage of a seller's market with ample of QUALIFIED buyers in the market.
Investors: because of the appreciation of the market, finding the "good buy" that allows for room for positive cash flow or profit is increasingly difficult. One viable option is for investors to work with agents/brokers who have the ability to show you homes before they go on the market. In certain situations, sellers may not want to have droves of buyers going through the home (illness in the family, for example), they may consider offers without going on the market.
Useful tools for you:
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