The real estate market in Santa Clara County continues to be tight with the single-family home inventory in June 2014 down 33.9% from where it was in June a year ago. This June saw 1,309 active listings, a significantly low number, particularly when we see that active listings per month averaged more than 5,000 from mid-2007 through late summer 2011. It seems, however, there is no shortage of buyers.
Tilting the scale even further in favor of sellers, in June this year the average sale price of a single-family home in Santa Clara County was $1,141,640, up from $959,257 the same month a year ago. Since May 2014, the average sale price has risen 5.2%.
What a difference a year makes
Other clear trends in the market comparing June 2013 to June 2014 stats include:
Homes sold: 1,260 vs. 1,128
Properties pending: 1,405 vs. 931
Active listings: 980 vs. 1,309
Average days on market: 21 vs. 18
Distress sales saw a major shift from June a year ago to June a month ago:
Active foreclosures: 22 vs. 12
Foreclosures sold: 26 vs. 9
Active short sales: 313 vs. 9
Short sales sold: 69 vs. 1
One number that has held steady in this year-over-year comparison is the difference between sale price and list price: +105.7% in June 2013; +105.0% in June 2014.
Cities in Santa Clara County include San Jose, Cupertino, Los Gatos, Palo Alto, Mountain View, Sunnyvale, Campbell, Milpitas, Morgan Hill, Santa Clara, Gilroy and Saratoga.
Plenty of buyers for Silicon Valley homes
It seems there’s no end to buyers who are seeking prime Silicon Valley residences in which to live and/or invest. These individuals – an estimated 60% of whom are from other countries – are ready to engage in bidding wars that are as fierce as anywhere in the country. The majority of foreign buyers come from China, India, Canada, Mexico and the U.K.
They look to Silicon Valley for many reasons. For residents of Hong Kong and Shanghai, a key reason is low home prices. No, that’s not a misprint. According to a 2013 CNBC article, the average price per square foot in the fourth quarter of 2012 in China was between $4,570 and $5,050. In Shanghai it was $1,820 to $2,020. At that time, the square foot price in some sectors of the Bay Area was $769. A similar wide disparity remains today.