In last week's blog, I took a close look at the healthy position of the Silicon Valley real estate market.
Again referring to the latest Intero data for June, this week I'd like to spotlight what's been happening recently in the Mid-Peninsula area, encompassing Atherton, Los Altos, Los Altos Hills, Menlo Park, Palo Alto and Woodside.
Mid-Peninsula broadly matches the current trends across most of the rest of the Bay Area, in terms of growing inventory and improving sales.
Looking closer at sold homes for the area, there's been a rise right across the board, with homes above $3million accounting for the vast majority of total sales (127 out of 139).
June saw a 6.1% year on year increase in sales and an even more impressive 9.4% month on month leap, with pended properties also up by 8.8% in the same period.
Simultaneous with the sales growth has been a welcome sign of more sellers recognizing that we are indeed in a great sellers' market at present. Listed homes were 29.1% higher than the month before.
As we noted for Silicon Valley last week, a better supply of available homes can only be good for the market, in that many "on the fence" buyers finally have a bigger selection of homes to choose from, making it far more likely that they will be able to find a home of the specification they have found so elusive for so long. In a shortage situation many simply put off a buying decision.
The slight downside of this is that June also saw an 8.2 % month-on-month dip on average sold prices, which equated to a smaller year-on-year fall of 4.5%.
In assessing the current sold price level, it's important to put everything in the wider context of what's happening in the market. Essentially, we are most likely seeing a small market correction, as supply has improved, giving buyers a little more flexibility when making an offer.
The most important thing to take away from these stats is that they prove that more homes are being sold, as buyers can more easily locate their ideal next home. It should also be remembered that current prices are still well above those we saw between November and March of this year and running in between the levels we observed between March and April.
Put simply, you're more likely to sell your home right now, and quickly too!
With better sales levels comes faster transactions and the average number of days on the market in the Mid-Peninsula area is just 27 days - 12.9% lower than in May. That's a great deal lower than many other parts of the country and says much about buyer sentiment in the area right now.
As I mentioned at the end of last week's article, what happens to inventory now will be intriguing and will tell us a lot about where the market is headed. Is this a temporary blip or a sign of a more robust return of sellers?
With mortgage rates still at exceptionally low levels, why wait for any possible fall in the sky-high buyer enthusiasm levels we're currently seeing? Call us today to get things rolling.