Seller's Market Continues as Fall Transitions to Winter
I've just been studying the very latest area real estate reports for San Mateo and Santa Clara Counties in November.
The stats confirm that we are still seeing seller's market conditions as fall transitions to winter.
Average sales prices are appreciating on a year on year basis in both areas, by 3.1% in San Mateo and by 1.9% in Santa Clara. Santa Clara also showed a significant 5.6% increase between October and November.
The number of property sales in both counties also significantly rose in comparison with November 2015, with San Mateo up by 11.3% and Santa Clara showing an even more impressive 21% rise.
Sales were lower in both areas compared with October, however we need to factor in seasonal factors here. Nonetheless, this is strong annual growth and demonstrates that the election month was not enough to deflect buyers from the determination that has characterized their purchasing behavior in most local market sectors during 2016.
Since the election we have of course seen a progressive rise in mortgage rates, above the 4% level for a 30 year fixed loan, for example. It will be interesting to see what effect this has in December and pending property reductions of about 17% for both counties in November suggest that we may see a reaction. It should be remembered, however, that rates are still incredibly competitive on any historic scale, so things should begin to level out again once everyone has gotten more used to what was arguably an overdue mortgage interest rate market correction.
Inventory of available homes for sale was dramatically down on the previous month - by 34.3% in San Mateo and 29.3% in Santa Clara. Some of this can be explained by seasonal variation and the mistake many sellers make by temporarily withdrawing their homes from the market over the holidays.
Whatever the reasons, reduced inventory is great news for those sellers who continue to list, especially right now, as there is considerably less competition about and more robust asking price sustainability. Wait for the New Year and the current advantage will almost certainly begin to diminish, as more sellers return.
Why not contact us today to discuss your best options in the current excellent market conditions for sellers.