Reflections on Current Market Trends
This week I took a close look at the very latest market trends in two of our key areas for real estate - Sunnyvale and Los Altos Hills.
Although there are contrasts in some respects, both areas demonstrated quite similar overall performance characteristics, and I thought I would share an overview with you today and reflect on what these figures tell us about the current situation.
Sunnyvale and Los Altos Hills typify what we've been seeing in a wider context, in that the market has been cooling down a bit this year. Prices have also tended to plateau recently.
It's quite interesting to compare the similarities in these two areas, as they do represent relatively contrasting locations, if we consider, for example that the current median sales price is $6,141,500 in Los Altos Hills and $1,448,000 in Sunnyvale.
We do start to see differences, however, when we look at the market action index, which indicates that it's still a strong seller's market in Sunnyvale and merely advantageous for the seller in Los Altos Hills. This reflects what I said in a recent video blog about the top of the market being somewhat less active than the mainstream at present. As further evidence, it only takes an average of 38 days to sell a home in Sunnyvale and 97 days in Los Altos Hills.
As I also said in that video, there really is no cause for alarm, because we have to consider where we are coming from in 2016, following a year of extremely frantic market activity with a large number of multiple offers for many homes in the mainstream market sectors. While multiple offers are still a factor, we're not seeing them in quite the same numbers as last year and this is ultimately tending to be reflected in the pricing statistics we're receiving.
We also need to put current prices for both areas into a wider perspective. While we're not seeing current price growth, looking at 90 day rolling averages we're still roughly at last year's peak price levels in Sunnyvale and actually much improved on last year in Los Altos Hills, where prices now approach the peak levels we last saw in 2014.
So where are we heading?
In general, we've seen something of an arguably overdue market correction to date this year, but the attractiveness of buying a home, especially due to low mortgage interest rates, means that demand is still excellent, especially in the bottom three quarters of the market.
With the uncertainty that early November's election is bound to generate, whoever wins, it's difficult to know if the current trends are in some senses a short term reaction or not. Whatever the outcome, however, we're unlikely to see any quick changes at all in the success story of this part of the world and how that informs the prosperity of our property markets.
It's still a great time to sell, buyers are very active and there's every reason for confidence moving forward. Why not contact us today to make the very most of the current opportunities.