Quick Market Overview: What occurs at the end of each calendar year is the expiration of a good many of the listings. For December, this occurred once again with the ending amount of homes available to purchase setting an all-time low in Santa Clara County. Notwithstanding this, however, the real estate markets in both counties remain in record territory. Record median prices were seen again in December in the Silicon Valley real estate market, breaking last year's records. Demand continues to outstrip supply in Santa Clara County as 58% (versus 50% in December 2014) of homes that closed escrow sold for more than list price inferring multiple offers whereas in San Mateo County, it had an even higher percentage of homes that sold for more than list price of 66% versus 63% in December 2014. Both of these are record highs for this time of year! The median price for a single family residence in Santa Clara County continued in record territory at $911,000, and increased 9.8% over December 2014 so the Silicon Valley real estate trends continue in a positive manner. For San Mateo County, its median price settled at $1,230,000, increasing at an even higher 18.3% on a year over year basis.
Below is a chart of the median price of a single family residence in Santa Clara County from January 2003 to December 2015. (Data source: mlslistings.com) Notice the recurring jump in prices in the early part of each year.
Nuts and Bolts: Inventory or the amount of homes available for purchase in Santa Clara County was 495, a record low and a decrease of 9.7% from the same month a year ago. Sales (accepted offers) decreased 6.2% in Santa Clara County but increased 20.6% in San Mateo County from December 2014.
For San Mateo County, inventory of single family residences stood at just 189 which was an increase of 5.6% but it, too, continues to lag below the average for this time of the year placing pressure on buyers as evidenced in the predominance of multiple offer situations and heated competition between buyers. Obviously, expert negotiation skills will help buyers increase their probability of success without overpaying or going nuts on their offer price.
Sale price to list price ratio shows that for Santa Clara County transactions completed during December, this ratio stood at 102.5% -- among the highest for this time of year over the past 16 years! Currently, the highest ratio belongs to the Cupertino/Sunnyvale market area (median price of about $1.49 million) at 105.4%, a continued very hot marketplace! I also registered the lowest days of unsold inventory at just 9 which means there are just 9 days of inventory at month end! The Los Altos/Palo Alto market area (median price about $2.62 million) came in a close second at 105.3% with a paltry 10 days of unsold inventory. San Mateo County's ratio overall is at 104.6% with the highest ratio in the Bay Cities (Belmont, Burlingame, Milbrae, San Carlos, San Mateo) market area (median price of about $1.50 million) at 107.0%.
As you may suspect, market dynamics change and the supply and demand relationships can vary by area. If you would like specific market condition information for your area or neighborhood, please feel free to ask me, your Re/Max Agent, now a part of the largest Re/Max agency in California -- RE/MAX Gold! And as always, you are welcome to leave your comments or questions or feel free to give me a call. Thank you.
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