When reviewing the official July 2018 real estate market stats for Santa Clara County’s single-family homes, I noticed a subtle shift. Yes, we continue to see gains in property values. Yes, sellers often received more than their listing price. Yet, the time to sell is lengthening. Is it a blip or the start of a trend?
SANTA CLARA COUNTY NUMBERS
When comparing July 2018 statistics with July 2017, we saw:
- Home appreciation rose over 15%. The median sales price increased from $1.17M to $1.35M, indicating that investing in Santa Clara County real estate was a smart buy.
- The number of closed sales is down. In fact, that drop is nearly 19% from 1062 closed sales to 861.
- The percentage over listing price was nearly the same. July 2018 was 106%, up only 1% from the previous year.
- The Days on Market (DOM) dropped by two days but average months to sell increased. May 2018 DOM was below 15 days but has jumped to 20.
- Median sale price has dipped. Comparing from its 2018 peak in March, there’s a noticeable drop in July. The gap between median sales price and median list price is narrowing.
SUBTLE SHIFTS TO WATCH
As the summer season is wrapping up, I’ll be watching:
- Inventory levels. Will homeowners waiting to list take advantage of the post-summer and pre-holiday season?
- Gap between List Price and Sales Price. Will the gap continue to narrow or hold steady?
- Time to Sell. Will DOM and months to sell increase, indicating that our red-hot market may be slowing?
BUYING OR SELLING?
In general, I’m finding that homes that are priced right and prepared as “turnkey” are selling quickly. Homes that require a lot of updating or not priced according to neighborhood comparables are sitting longer.
Price reductions are occurring because the home comes to the market overpriced. Multiple offers are still possible, however sellers must be realistic with list prices that are in line with market comps.
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 just like you successfully negotiate the most important financial transaction you’ll ever make. Contact me today to get started.