The first half of 2018 is officially over. So far, the year-to-date numbers are showing positive real estate growth.
Single Family Homes
When comparing June 2018 with June 2017, Santa Clara County sellers who listed their single-family homes saw several positive gains:
- The median sales price grew nearly 20%. Overall, SFH values have increased from $1.18M to $1.40M, an 18.64% bump.
- The number of closed sales is down 17%. There were 211 fewer homes sold in June 2018 compared to last year, pointing to low-inventory pressures.
- It took 4 fewer days on the market to sell a home. On average, days on market decreased from twenty to sixteen. This points to buyers that are ready and willing to close quickly. Conversely, the number of months to sell increased slightly from 1 month to 1.5 months.
- The final sale price is averaging 8% over list price, up from last year’s 6%. In general, buyers are prepared to pay over asking in order to successfully amidst multiple offers.
- Active inventory increased. The number of homes available in June rose to 1,000+, which is up from a low of ~250 in December 2017. It’s unclear if inventory will drop as we move toward the end of the summer season.
Condos & Townhomes
June’s market report for condominiums and townhomes seems to follow the single-family home trends.
- The median sales price grew over 25%. Overall, condo/townhome values have increased from $740K to $928K, attaining an 25.41% in growth.
- The number of closed sales is down 17%. There were 79 fewer homes sold in June 2018 compared to last year, mirroring to the low-inventory pressure on the Santa Clara County’s real estate market.
- It took 4 fewer days on the market to sell a condo. On average, days on market decreased from seventeen to thirteen. Buyers are demonstrating to sellers they are willing to close quickly. Conversely, the number of months to sell increased slightly from .7 month to .9 months.
- The final sale price is averaging 10% over list price, up from last year’s 5%.
- Active inventory increased — nearing the 300 mark — from January through June. It’s unclear if inventory will drop sharply as we move toward the end of the summer season.
Other Mid-Year Market Stats
Number One in U.S. Economic Growth
According to a Business Insider study, the San Jose and San Francisco metro areas have the strong economies in the U.S. The analysis included these give measures: unemployment rate, average weekly wage, job growth rate, GDP per capita, and GDP growth rate. Of the 40 cities that made the list, San Jose-Sunnyvale-Santa Clara holds the top spot due to tech giants like Cisco, eBay, PayPal and these notable metrics:
- Average weekly wage of $2,297
- GDP growth of 5.9%
- GDP per capita of $126,820
Top World Economy
In the Bay Area Council’s Economic Profile report, the Bay Area’s GDP is nearing $750 billion earning its place as a Top 20 world economy. This 10th annual report is a partnership with the Bay Area Council and McKinsey & Company; the report benchmarks performance, growth and innovation to assess the region’s national and global competitiveness.
2.0% Unemployment Rate
The latest Bay Area unemployment rate available is from May 2018. In the San Francisco and San Mateo Counties the rate is a staggering 2.0%. For Santa Clara County, the unemployment rate is 2.3%. With strong economic growth fueled by high tech combined with job creation, it’s no surprise that Bay Area companies are feeling the effects of low unemployment.
Thinking About Buying or Selling?
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