Spring Seller's Market Continues
I've now had an opportunity to study the latest real estate market statistics, for April, in both San Mateo and Santa Clara counties.
Regular readers of this blog will recall that last month we looked at the impressive sales figures for March, reflecting on a very positive start in the first quarter of this year.
The really good news is that seller's market conditions continue with higher sales in both counties, in comparison with the previous month. A 3.3% rise in San Mateo and a nice 4.5% improvement in Santa Clara.
Under contract listings were also up month-on-month in both counties, by 1.1% in Santa Clara and an encouraging 8.8% in San Mateo. Looking at the year on year stats, San Mateo demonstrated a 5.5% improvement in pending property sales, while Santa Clara was a little down, by 4.6% over the same period.
Although year-on-year comparisons on pending sales are interesting, and certainly not irrelevant, I think the more important figures at the moment are the month-on-month ones, in that they do show that momentum is building on the very strong start to 2017 that we've been seeing.
It's also significant that it's taking less time to sell homes - 5% faster in San Mateo compared with the same period a year ago, and an impressive 15% quicker in Santa Clara.
Average sold prices are also on the increase, with an amazing 22.5% improvement in just a month in San Mateo and a 1.1% rise over the same period in Santa Clara. Median prices also rose during the month, by 2.7% in Santa Clara and 11.1% in San Mateo.
Based on six month trends in both counties, we can see that both average and median sold prices are appreciating. We've also tracked another key stat, with the ratio of sold price vs. original list price standing at 106% and 105% in San Mateo and Santa Clara respectively. This is a great indication of the excellent returns that sellers are currently enjoying.
Over the past few months we've been monitoring the consistent issue of low inventory of available homes for sale in each of the two counties and there are mixed blessings in these new stats.
While both counties recorded approximately 15% increases in the number of listings for sale over March, it's still concerning to look at the longer term trend. Year-on-year listings dropped by 20% in Santa Clara and 12.7% in San Mateo.
So while it's good to know that more homes are coming onto the market right now, we can see that there is still an underlying downward trend. While less choice isn't good for buyers, it doesn't seem to be adversely affecting their purchasing enthusiasm, fueling the high demand and relatively short supply scenario that's further encouraging a seller's market, with great potential returns as buyers compete for the best homes in each market sector.
If you're considering selling your home, I hope that these statistics will help to convince you what a great time it is to sell right now, with low mortgage rates still a key motivating factor for buyers to act fast. Why not contact us today to discuss your real estate needs in more detail.