Homes in Saratoga, especially in the Saratoga or Cupertino schools areas and in the lowest price ranges, are selling at an improved clip from a year ago.
Below please find charts indicating the overall residential real estate trends for houses on the market and sold over the last year in Saratoga, California. Of course the “market heat” will vary from home to home and area to area due to neighborhood quality, price point, newness of construction and condition of home, school district (especially), and acreage, among other things. So these general comments may not apply to your unique house, but will be a good indicator of the housing market in Saratoga generally.
First, supply and demand in Saratoga over the last year. The number of Saratoga homes on the market is up 31% year over year and the number of sold properties is up 72%. The trend line indicates a rise in both homes on the market and those sold. June’s inventory was a bit smaller than May’s. Will inventory continue to contract? If so, it will put pressure on home buyers because prices may begin to rise as the inventory gets better absorbed.
Please note that while the market is improving very noticeably, there are still far more homes on the market than are actually selling. Sellers, take heart that it’s improving but do not believe that the selling conditions are so changed that your home doesn’t need to be priced aggressively and staged nicely to get sold. (Even in a hot sellers market, some homes never do sell because of price and condition, primarily.)
Months Supply of Inventory (absorption rate) in Saratoga for single family homes (houses) has been declining and is down 26.2% from a year ago at this same time.
Finally, a look at homes between one and two million dollars in Saratoga (for sale, pending and sold). I wanted an overview of what the market is like in this fairly hot segment of the market.
This chart is helpful as it indicates price reductions and “days on market” as well as the current or sold prices. The clusters reveal that most homes that sell are selling pretty fast. Very few homes languish on the market more than 6 months before they are sold, removed from the market, or repriced dramatically enough to get a new MLS number and position in the market.
Homeowners: it is a better time to sell now than it’s been in recent history, and the market is moving into your favor (esp in the lowest price ranges). To maximize your home’s value when selling, it needs to be positioned to sell fast while buyers have the most interest in it. Buyers, the “shiny pennies” are being bought fairly quickly so if you see a good home in a good area with a good price, don’t wait too long to act. If you can buy a solid home with “good bones” that needs a little work, you’ll have far less competition then if you buy the turnkey home that everyone wants.
If you are interested in selling or buying a home in Saratoga, or anywhere in the west valley communities of Silicon Valley, please contact me for more market information that is relevant to your homebuying or home-selling needs. I would be happy to meet with you personally and discuss your needs and the current climate for buying and selling.