Santa Clara County Real Estate Market Update for September 2012 Listings and Sales

A dire shortage of listings combined with the improving Silicon Valley economy and ever-lower interest rates is creating an intense seller’s market, which we have been experiencing since the first week in February, particularly in the high tech hotbeds of Cupertino, Mountain View, Sunnyvale, Palo Alto and nearby areas in both San Mateo and Santa Clara Counties.  More demand than inventory fuels rising prices.  How bad is it for buyers?  Year to date, the median sales price is up a whopping 29% for single family homes in Santa Clara County.

 

Santa Clara County homes year over year median price change

 

While that statistic is pretty scary for buyers and just as exciting for sellers, it does not mean that all homes have increased in value by 29%.  It does indicate strong appreciation.  But also it points to more expensive homes selling now.  For those of us active in the market on a daily, full time basic, it’s clear to see that both things are happening.  How much have prices gone up?  That varies by area, school district, price point, sale type and many other factors. Let’s get a quick view of the appreciation since the bottom of the market and also from the peak:

 

SCC home price difference from Jan 2012 and peak and trough as of end of Sept 2012

 

County wide, we have not yet recovered to the peak of the market (though it seems that in Cupertino they have already hit that peak pricing again for houses sold recently). Recovery is underway!

Individual markets are stronger or weaker than the average – let’s look at them next. These stats and graphs care of the RE Report, to which I have a subscription.

 

Santa Clara County residential real estate market statistics for September 2012

 

Please note that only 2 areas are under 100% for sales price to list price ratio.  Palo Alto is at 106%!

And next, for condominiums and townhouses: (more…)