In last week's blog, I looked at March real estate performance in the Mid-Peninsula area. Today I am able to give you an update for April on both San Mateo and Santa Clara counties.
Good news still abounds, with strong further confirmation of the current seller's market.
Property sales were down in both counties on a year on year comparison but, as we discussed last week, this is at least partially explained by the shortage of available homes for sale in the area over this period, in spite of very high buyer demand.
More encouraging, however, is the 7.2% property sales growth in San Mateo and very impressive 26.6% increase in Santa Clara, compared with March. To add to the air of optimism as the busy season really gets under way, pending sales were also up on the previous month, by 4.9% in San Mateo and 6.9% in Santa Clara. In the case of Santa Clara, pending sales were also up by 3.7% on the previous year!
So what is driving the very noticeable upturn in the market?
Certainly there has been no dilution in buyer sentiment, as mortgage rates continue at rock bottom. Perhaps of most significance, however, is the big change in numbers we're seeing on the growing number of for sale listings, perhaps indicating a longer term recovery in inventory levels.
In San Mateo, the number of for sale listings was up 28.8% from one year earlier and 37% up on March. In Santa Clara, for sale listings rose by 11.8% year on year, with a single month rise of 17.4%.
Months of available inventory were up 58.6% from the previous year in San Mateo and by 32.3% for the same period in Santa Clara.
These are extremely significant statistics and suggest that sellers are now more widely recognizing the fantastic opportunities for them in the current marketplace.
But even though supply of homes appears to be on the increase, this hasn't yet impacted on median and average sold prices.
Median prices increased by 9.5%, compared with March, in San Mateo and were up by 2.1% in Santa Clara.
Average sold prices rose by 9.7% during the month in San Mateo and by 0.4% in Santa Clara. Average days on market, another strong indicator of seller's market conditions, showed a downward trend in both counties.
On so many levels, there are such compelling reasons to sell your home in the present market, while buyers are able to borrow so relatively cheaply.
While more inventory eventually increases competition and potentially pressurizes pricing, it's essential to remember that, in counterbalance, buyer motivation is so great right now. However, buyers do need availability and choice of the right types of home so, with improving inventory levels, it's simply far more likely that they'll buy, rather than continually delaying purchase in a seemingly never ending search for the elusive perfect home.
Why not contact us today and start to make the most of what promises to be a very lively market in both counties in the coming weeks.