We’re officially into the Fall season! Recent statistics are showing a resilient and thriving real estate market.

Rising Median Sale & List Price

Aculist recently released market data for Santa Clara County comparing August 2022 and 2023. There are two pieces of good news. First, we see positive year-over-year growth in median sale prices. The upticks range from 5% up to 37%. San Jose, the largest city in Santa Clara County, saw a 13% increase from $1.4MM to $1.58MM.

The second piece of good news relates to the improvements in sales over list price. List price is the price set when you put a home on the market. The Sale Over List Price percentage represents how much above or below list price sellers received. Again, we’re seeing positive numbers across the county. The city with the highest gains year-over-year is Los Altos Hills, improving from 94% (8/2022) to 106% (8/2023).

What’s Holding Buyers Back

According to a new National Association of Realtors survey, over one-third (34%) of prospective buyers have yet to purchase a home because there are not enough homes for sale in their budget. 18% of buyers are waiting for mortgage rates to drop and 9% are waiting for prices to drop.

The Fed met on September 20th; they decided not to raise the overnight Fed Funds rate. They warned of a potential .25% increase sometime before year's end to further combat inflation. Any rate reductions would most likely occur in mid- to late-2024 depending on economic conditions.

Given what I’m seeing, I don’t anticipate inventory increasing soon. Both the number of homes available for sale and closed sales are down from previous months and year-over-year stats.

Interestingly, Redfin scores the San Jose housing market 90 (out of 100), which is “Most Competitive.” They categorize competitive as:

• Most homes get multiple offers, often with waived contingencies
• Average homes sell for about 5% above list price and go pending in around 11 days
• Hot homes can sell for about 11% above list price and go pending in around 7 days

What I'm Seeing

While we’ve officially transitioned from the summer season to fall, I’m not seeing huge swings in market trends. When working with clients, I pay close attention to neighborhood details and micro-market level indicators. New inventory is added every day, providing buying opportunities. Sales close everyday, reflecting positive outcomes for sellers. Each transaction is unique and why I pay close attention to the details that can make or break a successful close. My advice has remained consistent this year:

• PREPARATION. This applies to both sellers and buyers.
  • Sellers: With such low inventory, desirable homes that show well stand out.  Homes that sit typically don’t follow the market’s best practices: prepare the home and highlight its best attributes. As I complete your comprehensive market analysis, we’ll discuss how to best price your property and market it.
  • Buyers: Make peace with current interest rates by thinking long-term. You have many other financing options than a fixed 30-year term. Bay Area real estate has consistently shown appreciation over the years and has proven to be a wealth-building investment. Therefore, be prepared to act quickly as new homes are put on the market.
• PRICING IS CRUCIAL. If you’re selling, we need to price your home to market conditions. Sometimes market conditions change before official numbers are reported. That’s one of the many reasons why clients choose to work with me as I’m in tune with what is happening in the market before it becomes public knowledge.
• INVENTORY IS FLAT. The number of available homes may drop going into the holiday season. Sometimes we see a rise in new homes hitting the market at the start of fall. Usually inventory flattens or drops as we head into the holidays. However, the reasons to sell aren’t tied to the market, they are due to major life events such as divorce, death, or job transfer.

Reach Out & Connect

I’m meeting with clients via phone, video conferencing, and by appointment. Whether you’re looking to buy or sell, you need an experienced guide in this complex and fast-paced real estate market. I’ve helped hundreds of individuals like you successfully negotiate the most important financial transaction you’ll ever make.

For buyers and sellers, I invite you to call me to discuss your situation and options.