Silicon Valley: October Market Update

 
June NEWSLETTER DATA.png

November is here! I can almost smell the turkey cooking in the oven already, can you?

While recent news reports discuss a possible cooldown in the real estate market, looking at October stats for our local counties, I am not seeing this to be the case as our overall numbers continue to point upwards. San Mateo County’s median sale price for single-family homes increased +4% from last October year-over-year to $1,550,000 and Santa Clara County’s increased +7% to $1,290,000. While the number of sales of single-family homes in Santa Clara County slowed by 9% vs. October 2017, in San Mateo County we saw an increase in the number of home sales by +6%. Homes in these two counties also sold, on average, +5% over list price and took just twenty-three days to sell, which meant demand was still strong. We continued to see multiple offers on homes across both counties. A charming two-story home in Palo Alto’s Midtown neighborhood priced just under $3M received 12 offers alone last month!

Year-to-date, Silicon Valley has seen 16,449 new single-family homes come on the market. To put things in perspective, we saw 16,646 homes enter the market for all of 2017. This inventory uptick continues to be welcomed news for buyers since we haven’t seen a year-over-year increase in inventory levels in quite some time. October 2018 inventory levels were up 18% year-over-year (to 1.7 months supply), however from September 2018 to October 2018 there was a decrease in inventory of 16%, and I expect the limited amount of new listings to last through the New Year.

Will the current trends continue into 2019? I will have my thoughts on this in next month’s update. Stay tuned and have a wonderful Thanksgiving!