As predicted, the number of May home sales were down. The California Association of Realtors reported that California home sales fell to the lowest level since the Great Recession. Despite lower sales, the news isn’t all bleak for Bay Area real estate. In fact, many of the statistics are encouraging.
Santa Clara County Numbers Are Encouraging
In Santa Clara County, there were nearly 50% fewer single-family home sales in May 2020 compared to May 2019 (494 vs. 1026). On average it took longer to sell — 2.3 months compared to 2 months — from last year’s level. On the positive side, the median sale price rose slightly from $1.33 to $1.37 and the percentage over list price was 101%. We’re seeing home values hold relatively steady. As I predicted and advised several months ago to my buying clients, buyers don’t expect to see fire sales. And the numbers are supporting that prediction.
Inventory Levels Are Returning
You may recall that when Covid-19 shelter in place orders started, open houses and tours were disallowed. The MLS paused the Days on Market (DOM) calculation to avoid penalizing homes that were for sale but could not be shown. As county and statewide orders have eased, it’s back to business as usual… with social distancing and face masks. As a result, we’re seeing an uptick in inventory levels.
Real Estate Continues as “Favorite Investment”
In an April Gallup poll, 35% of Americans still considered real estate as a preferred long-term investment. This is no surprise especially in light that stock investments lost their luster amid Covid-19 sell-offs and a roller coaster ride for many investors.
Stock market highs and lows are a moving target. For example, the NASDAQ closed at an all-time high on July 1st. Since Silicon Valley’s real estate market is often closely tied to the stock market — specifically the NASDAQ performance – this bodes well for a continued multiple-offer environment.
Reach Out & Connect
I’m optimistic about the Bay Area real estate market regardless of economic and market fluctuations. In spite of Covid-19, I’m seeing positive signs for the summer home-buying season. I remain committed to serving my clients and providing you with the most accurate information available. We can connect virtually via phone and video conferencing, or 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 just like you successfully negotiate the most important financial transaction you’ll ever make.